Undertake Commitment and Fulfill It in Order to Build Reputation - Liderando la reputación corporativa de las empresas - Corporate
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Reputation & Reputational Risks

Book summaries January 2014

Undertake Commitment and Fulfill It in Order to Build Reputation

Today, the best companies are those that have a good reputation, those who are widely and better recognised as a result of high evaluation by their stakeholders. Although the current crisis has seriously damaged trust in companies, those firms that demonstrate a strong commitment to their stakeholders will succeed in recovering this trust.

Intangible value of companies has been changing over the last 40 years. If in the middle of the 1970s only 20% of the market value of S&P 500 companies was attributable to intangible assets (according to Ocean Tomo, a financial services firm specializing in intellectual capital), today the situation is different, and the Pareto rule has been turned over: more than 80% of companies’ market value is attributed to intangibles. More specifically, in 2009 this relationship was 81% vs. 19%.

This document was prepared by Corporate Excellence – Centre for Reputation Leadership and among other sources, contains references to the book A Good Company: Towards Corporate Reputation Theory (La buena empresa: propuesta para una teoría de la Reputación Corporativa) by Justo Villafañe, Professor at the Complutense University of Madrid and President of Villafañe & Asociados Consultores, published by Pearson in 2013.