Reasons and Emotions that Guide Stakeholder’s Decisions and Have an Impact on Corporate Reputation - Leading by reputation - Corporate Excellence
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Book summaries August 2015

Reasons and Emotions that Guide Stakeholder’s Decisions and Have an Impact on Corporate Reputation

This document was developed by Corporate Excellence – Centre for Reputation Leadership and among other sources contains references to the book Brand Psychology written by Jonathan Gabay, British lecturer and expert in Brand, Reputation and Communication and published by Kogan Page in 2015.

It explains how both sides of the brain connect when we take decisions and how this fact shapes our beliefs and trust on certain companies and people.

Brand Psychology studies the new relation models and analyzes the different techniques to be developed by brands to reach their stakeholders. Thus, the text dives into what happens in the left hemisphere, which controls rational elements, and in the right one, which controls emotional aspects and relates this explanation with brand management, value creation and shared beliefs. Gabay also provides a list of values that a brand can give to all its stakeholders and which can be summarized as: functional, social, emotional, epistemic and conditional.

Individual subconscious and general unconscious mind are also important in the right side of the brain, specially, when it comes to assess things.



Jonathan Gabay uses the theories by pshycologist Karl Gustav Jung to explain how we link both sides of the brain when taking decisions and how our subconscious mind is the result of the connection between general inconscious mind and personality.

The book also talks about expectations and explains that dealing with them is essential to be able to manage reputation. Expectations mean opportunities but also risks and demand constant innovation. Despite all the information that companies can have now, it is even more important to know the expectation of their stakeholders and how to gain their trust.



Today, brand reputation and the fact that people believe and trust in a brand depend on the decisions where emotional and rational memories crash.

That's why emotions control our decisions and look for a logical reason in the left hemisphere (a logos or argumentation) that is coherent with the emotional reason that they have found already in the left side (a pathos or emotion), everything supported by an ethos or moral conviction. These three elements are necessary to obtain a good reputation as a brand in the current context.