The reputation of a company or brand is one of the most important factors for long-term success. It can be considered the equivalent of the traditional concepts of honour or virtue and has become an important factor of differentiation and success, especially in times of digitalisation and globalisation. In addition to consumers, business partners, suppliers and investors, the media are increasingly interested in the reputation of companies. In addition to its products or services, a company’s reputation can be based on corporate social responsibility, the ability to innovate, the quality of the management or special employee orientation.
Reputation thus summarises how an organisation or company is perceived by outsiders and is based on values such as trustworthiness, fairness and reliability. By contrast, a company’s image can be equated with its identity. A long-term reputation is thus the answer to a longed-desired image.
Sometimes, the longer it takes to build up a good reputation, the quicker it is for the success of entire years to be forgotten due to scandals or the discovery of explosive data. To prevent a damaged reputation and a loss of image, companies can set up internal reporting channels etc. to prevent, for example, explosive information or unethical behaviour from reaching the public.
See Academic Society at: www.akademische-gesellschaft.com/fileadmin/webcontent/Research_report/FB-Nr5_Reputation_Schwalbach_01.pdf (accessed on 03.06.2020)