Corporate reputation has become an emerging trend of innovation in recent years and is directly related to the company’s business strategy. Obtaining a good position as well as possesing a positive brand image has become one of the primary objectives for many companies worldwide. One important factor in understanding the concept is that the reputation is always provided by the corporate image. Maintaining a good business reputation is the result of a coherent policy and efficient internal and external communication.
An important factor around the reputation are the stakeholders including employees, shareholders, providers...Their main area of responsibility is to implement the corporate recognition based on corporate actions.
The digital age has brought a variety of tools to manage and measure the reputation of a particular company. Social networks are becoming platforms not only to interact with customers but also to develop an idea of a company’s entire competences itself. Another way of measuring the corporate reputation can be implemented by means of market research and opinion polls employees and/or target audiences. If the results are satisfying, the company is to be expected to anticipate a greater degree of loyalty from their consumers, decreasing brand loyalty and the confidence of suppliers.
As the two concepts of corporate reputation and brand image only share few common characteristics, they need to be differentiated. Terry Hammington, author of the book “How to measure and manage your corporate reputation” explains the term reputation as being built based on responses to a set of questions issueing the qualities of the organization, while the brand image tends to be more linked to the reaction to the company’s or the product’s visual symbol. The reputation has a huge influence on the brand because it will create a concept around the corporate image to which the public will either respond positively or negatively. Therefore, obtaining a positive reputation is so important, because otherwise it would cause major losses of legitimacy by the public, of the commitment to the employees, of investor confidence and as well a general loss of the positive opinion on the company.