The Death Of Corporate Reputation

Why did the financial scandals really happen? Why are they continuing to happen? In The Death of Corporate Reputation, Yale's Jonathan Macey reveals the real, non-intuitive reason, and offers a new path forward. For over a century law firms, investment banks, accounting firms, credit rating agencies and companies seeking regular access to U.S. capital markets made large investments in their reputations. They treated customers well and sometimes endured losses in transactions or business deals in order to sustain and nurture their reputations as faithful brokers and “gate-keepers.” This has changed completely . The existing business model among leading participants in today’s capital markets no longer treats customers as valued clients whose trust must be earned and nurtured, but as one-off “counter-parties” to whom no duties are owed and no loyalty is required . The rough and tumble norms of the market-place have replaced the long-standing reputational model in U.S. finance. This book describes the transformation in American finance from the old reputational model to the existing laissez faire model and argues that the change came as a result of three factors: (1) the growth of reliance on regulation rather than reputation as the primary mechanism for protecting customers and (2) the increasing complexity of regulation, which made technical expertise rather than reputation the primary criterion on which customers choose who to do business with in today’s markets; and (3) the rise of the “cult of personality” on Wall Street, which has led to a secular demise in the relevance of companies’ reputations and the concomitant rise of individual “rain-makers” reputation as the basis for premium pricing of financial services. This compelling book will drive the debate about the financial crisis and financial regulation for years to come -- both inside and outside the industry.

Increasing media scrutiny, global coverage and communication via the internet means corporate reputation can be damaged quickly, and failing to successfully address challenges to corporate reputation has consequences. Companies generally suffer almost ten times the financial loss from damaged reputations than from whatever fines may be imposed. According to Ernst & Young, the investment community believes up to 50 per cent of a company's value is intangible - based mostly on corporate reputation. So recognizing potential threats, or anticipating risks, emerges as a critical organizational competence. Organizations can regain lost reputations, but recovery takes a long time. Corporate Reputation contains both academic content along with practical contributions, developed by those serving as consultants or working in organizations in the area of corporate reputation and its management or recovery. It covers: why corporate reputation matters, the increase in reputation loss, threats to corporate reputation, monitoring reputation threats online and offline, the key role of leadership in reputation recovery, and making corporate reputation immune from threats. Any book that is going to do justice to a subject that is so complex and intangible needs imagination, depth and range, and this is exactly what the contributors bring with them.

What creates corporate reputations and how should organizations respond? Corporate reputation is a growing research field in disciplines as diverse as communication, management, marketing, industrial and organizational psychology, and sociology. As a formal area of academic study, it is relatively young with roots in the 1980s and the emergence of specialized reputation rankings for industries, products/services, and performance dimensions and for regions. Such rankings resulted in competition between organizations and the alignment of organizational activities to qualify and improve standings in the rankings. In addition, today’s changing stakeholder expectations, the growth of advocacy, demand for more disclosures and greater transparency, and globalized, mediatized environments create new challenges, pitfalls, and opportunities for organizations. Successfully engaging, dealing with, and working through reputational challenges requires an understanding of options and tools for organizational decision-making and stakeholder engagement. For the first time, the vast and important field of corporate reputation is explored in the format of an encyclopedic reference. The SAGE Encyclopedia of Corporate Reputation comprehensively overviews concepts and techniques for identifying, building, measuring, monitoring, evaluating, maintaining, valuing, living up to and/or changing corporate reputations. Key features include: 300 signed entries are organized in A-to-Z fashion in 2 volumes available in a choice of electronic or print formats Entries conclude with Cross-References and Further Readings to guide students to in-depth resources. Although organized A-to-Z, a thematic "Reader’s Guide" in the front matter groups related entries by broad areas A Chronology provides historical perspective on the development of corporate reputation as a discrete field of study. A Resource Guide in the back matter lists classic books, key journals, associations, websites, and selected degree programs of relevance to corporate reputation. A General Bibliography will be accompanied by visual maps noting the relationships between the various disciplines touching upon corporate reputation studies. The work concludes with a comprehensive Index, which—in the electronic version—combines with the Reader’s Guide and Cross-References to provide thorough search-and-browse capabilities

The Vulnerability of Corporate Reputation explores the role that reputation plays in the success and failures of companies. This book focuses on the traditional topic of reputation risk management, the process of reputation, reputational excellence and examines leaders whose reputation and foresight could benefit the organization they steer.

This unique book written by four world leaders in reputation research, presents the latest cutting-edge thinking on organizational improvement. It covers media management, crisis management, the use of logos and other aspects of corporate identity, and argues the case for reputation management as a way of overseeing long-term organizational strategy. It presents a new approach to managing reputation, one that relies on surveying customers and employees on their view of the corporate character and in harmonizing the values of both. This approach has been trialled in a number of organizations and here the authors demonstrate how improving reputation, merely by learning more about what a company is already doing, is worth some five per cent sales growth. The book is a vital, up to date resource for specialists in corporate communication, public relations, marketing, HRM, and business strategy as well as for all senior management. Highly illustrated with over eighty diagrams and tables, it includes up to the minute illustrative case studies and interviews with leading authorities in the field.

Core strategies for creating a corporate reputation that will provide a competitive advantage in the marketplace: a back-to-basics approach. What does a company have to do to be admired and respected? Why does Apple have a better reputation than, say, Samsung? In Winning the Reputation Game, Grahame Dowling explains. Companies' reputations do not derive from consultant-recommended campaigns to showcase efforts at corporate transparency, environmental sustainability, or social responsibility. Companies are admired and respected because they are “simply better” than their competitors. Companies that focus on providing outstanding goods and services are rewarded with a strong reputation that helps them gain competitive advantage. Dowling, who has studied corporate reputation–building for thirty years, describes two core strategies for creating a corporate reputation that will provide a competitive advantage: to be known for being Best at Something or for being Best for Somebody. Apple, for example, is best at personal technology products that enhance people's lifestyles. IKEA is best for people who want well-designed furniture at affordable prices. Dowling covers such topics as the commercial value of a strong reputations—including good employees, repeat customers, and strong share price; how corporate reputations are formed; the power of “being simply better”; the effectiveness of corporate storytelling (for good or ill; Kenneth Lay of Enron was a master storyteller); and keeping out of trouble. Drawing on many real-world examples, Dowling shows how companies that are perceived to be better than their competitors build strong reputations that reflect past success and promise more of the same. Companies that artificially engineer a reputation with irrelevant activities but have stopped providing the best products and services available often wind up with mediocre—or worse—reputations.

The Handbook offers a diverse set of scholarly perspectives on the nature of corporate reputation: what it is, where it comes from, and how it may be managed to create and protect corporate as well as societal value. Written and organized in an accessible way, it assesses the current state of the field and provides guidance for future research.