A system of risk control and monitoring to protect corporate reputation - Leading by reputation - Corporate Excellence
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Reputation & Reputational Risks

Insights September 2011

A system of risk control and monitoring to protect corporate reputation

Traditionally we have put weight on the proactive management of a company's reputation, in the benefits obtained from it, but what is the result to those benefits from the impact of negative behavior in corporate reputation?

Reputation is a spear, but also a shield. Two sides of the same coin. A good reputation achieves better values in stock markets, attracts and bonds talent, supports and promotes the internationalization of companies, succeds in generating prescription cycles and purchase or use repetition among clients (the more solid the reputation, the more possibilities one has of being recommended), but a bad reputation leads to a loss of confidence in products and services, de-capitalizes the company, generates rejection and competitors' recommendation cycles, etc. Reputatation is valued in terms of perceptions about the company's direct experiences, of what the company says and does, and in relation to what others (experts and opinion leaders) value in it.