How important is the reputation of a business? How important is a CEO's reputation to the
reputation of the business itself?
A business's reputation is a crucial factor that needs to be considered when making any decision.
In the current economy, a large proportion of market value is derived from intangible assets like
brand equity, goodwill, and intellectual capital (Eccles et al., 2014). Therefore, investing in
business reputation has significant benefits. Companies that have excellent reputations are
perceived to provide more value to their customers which helps them to attract more customers
and even charge premiums (Eccles et al., 2014).
Business reputation is linked to brand image and brand loyalty which affects their short-term and
long-term market value and growth. The brand's appeal will emanate from its reputation
increasing its value. If the brand has a negative reputation such as producing products that are
not environmentally friendly could damage its market value and push customers away.
The business's reputation is directly linked to CEO's reputation (Tom, 2022). Due to social media
platforms like Twitter, CEOs are directly engaging with customers hence, they can create a
strong positive reputation for their business. The standards set by the CEO will affect the firm,
employees, and their customers (Tom, 2022). As leaders, CEOs will establish the company's
culture, values, and goals and work with employees to achieve them. Ethical CEOs attract both
customers and shareholders and raise the market value of the business.
Is it better to have the reputation of being powerful or of being fair? For example, do you
want to be insured by a company that always wins, or by an insurance company that is
willing to allow the benefit of any doubt?
A company that has power or influence can get develop and grow quickly. However, as
customers' buying decision becomes influenced by firms' fairness this attitude is changing.
Fairness will affect the firm's internal and external environment. A study has shown that
employees' perception of fairness affects transformation leadership (Bacha & Walker, 2013).
When employees feel like the management is fair they are more willing to cooperate with
changes the organization takes.
reputation of the business itself?
A business's reputation is a crucial factor that needs to be considered when making any decision.
In the current economy, a large proportion of market value is derived from intangible assets like
brand equity, goodwill, and intellectual capital (Eccles et al., 2014). Therefore, investing in
business reputation has significant benefits. Companies that have excellent reputations are
perceived to provide more value to their customers which helps them to attract more customers
and even charge premiums (Eccles et al., 2014).
Business reputation is linked to brand image and brand loyalty which affects their short-term and
long-term market value and growth. The brand's appeal will emanate from its reputation
increasing its value. If the brand has a negative reputation such as producing products that are
not environmentally friendly could damage its market value and push customers away.
The business's reputation is directly linked to CEO's reputation (Tom, 2022). Due to social media
platforms like Twitter, CEOs are directly engaging with customers hence, they can create a
strong positive reputation for their business. The standards set by the CEO will affect the firm,
employees, and their customers (Tom, 2022). As leaders, CEOs will establish the company's
culture, values, and goals and work with employees to achieve them. Ethical CEOs attract both
customers and shareholders and raise the market value of the business.
Is it better to have the reputation of being powerful or of being fair? For example, do you
want to be insured by a company that always wins, or by an insurance company that is
willing to allow the benefit of any doubt?
A company that has power or influence can get develop and grow quickly. However, as
customers' buying decision becomes influenced by firms' fairness this attitude is changing.
Fairness will affect the firm's internal and external environment. A study has shown that
employees' perception of fairness affects transformation leadership (Bacha & Walker, 2013).
When employees feel like the management is fair they are more willing to cooperate with
changes the organization takes.
