What Does Reputation Loss?
Reputational Damage Is the Loss to Financial Capital, Social Capital and/or Market Share Resulting from Damage to a Firm's Reputation. This Is Often Measured...
Reputational damage is the loss to financial capital, social capital and/or market share resulting from damage to a firm's reputation. This is often measured in lost revenue, increased operating, capital or regulatory costs, or destruction of shareholder value.
What are examples of reputation risk?
- A CEO blunder: the case of Gerald Ratner. Ever heard of the phrase 'Doing a Ratner? ...
- Poor quality products and food fraud. Perhaps one of the most well-known scandals within the food industry is the horsemeat incident of 2013. ...
- Regulatory penalties and staff misconduct.
What is the effect of reputation?
Firms with strong positive reputations attract better people. They are perceived as providing more value, which often allows them to charge a premium. Their customers are more loyal and buy broader ranges of products and services.
Chloe Bennett explores the intersection of pop culture, streaming entertainment, digital trends, and contemporary lifestyle. Her weekly commentary reaches thousands of culture enthusiasts.
