Value of Business Reputation

Business reputation has economic value and can be a source of competitive advantage.

For consumers, reputation signals quality or reliability of a product/service features, for investors it increases confidence in investments, for employees it positively affects their behaviour. Speaking generally, reputation ‘attracts more and better resources’ (Fombrun, 1996) and is closely related to brand.

Companies can manage their reputation and be active in shaping it and there are ways to measure and increase it but it does not mean that every organisation should invest their resources into reputation building.