Corporations’ Reputation

Corporate reputation is the observed collective judgment of a corporation based on the assessments of financial, social and environmental impacts attributed to the corporation over time (Lexicon, 2018). In addition, the corporate reputation is what consumers think about the corporation products, the consumer experience with the corporation, the level of their information and the facts they heard about the products. In order to build a good reputation, the corporations should develop four key attributes including; credibility, trustworthiness, reliability, and responsibility, and also the staff of the corporation character, communication and trust have positive effects on the businesses’ reputation.

How important is the reputation of a business?

The reputation of a business is essential to its survival as it enables a corporation to differential its product high quality in the market from the competitors. The reputation very critical aspect of the corporation’s brand, it is the way the corporations are seen by others and its equivalent to social credibility because reputation has a critical bearing on how you are viewed. (Perez, 2012). Therefore, the leaders give importance to reputation and try to improve their business reputation day by day because if the business reputations decline consequently their will decline.

How important is the CEO’s reputation for the reputation of the business itself?

The CEO ‘s reputation is very important for the business reputation as well because the CEO set the business strategy and vision, and also the CEO communicates with all the stakeholders such as decision-makers, the press, social media, consumers, investors and so forth.

The strong CEOs with high vision and high reputation can enhance the corporation ‘s reputation. Researched shows that Jeff Bezos Amazon’s CEO and Tim Cook Apple ‘s CEO are the best-known business leaders with steadily positive reputation scores, and also the research shows a consistently high rating for Amazon and Apple (Alva Group, 2017).

Is it better to have the reputation of being powerful or of being fair? For example, do you want to insured by a company that always wins, or by an insurance company that is willing to allow the benefit of any doubt?

People who treated fairly are more likely to treat others fairly. With fairness comes to trust, with trust, comes loyalty and loyalty carries real commercial weight. A responsible company should have the ethos that you treat your staff fairly, it should be mutual respect and that should extend to suppliers and customer (Balch, 2013).

I believe in fairness besides power; if there is one option to choose between both, I will choose fairness, it is better to have the reputation of being fair. The reputation of being powerful alone will not last for long, the reputation will last as long as the power subsist; however, the reputation of being fair will be sustainable. I prefer to be insured with the insurance company which is willing to allow the benefits of the customer along with their own profit.

Goodwill is the technical word for the asset of a company being worth more than the sum of its parts. How would you measure the Goodwill of a company in dollar figures?

Goodwill is the market value of the intangible assets of a corporation, such as the corporation ‘s reputation, CEO reputations, brand strength, commercial secrets, and so forth. From the accountant perspective, Goodwill is recorded only if it is acquired, the accountants handle business goodwill then subtract the fair market value of the business assets from the total business value (Valuadder, 2018).

 The calculation of the dollar value of the intangible asset is not easy and not fixed, the Goodwill value changes over time. To calculate the Goodwill dollar figures. assume a corporation is $2,000,000 valued and the buyer purchases the corporation for $2,300,000 the difference is the Goodwill.

 

 

 

 

References

Lexicon. (2018). Definition of corporate reputation. Retrieved from: http://lexicon.ft.com/Term?term=corporate-reputation

Perez, M (Oct, 2012). The power of Reputation. Retrieved from: https://www.prnewswire.com/blog/the-power-of-reputation-4472.html

Alva Group. (2017).  CEO Reputation vs. Corporate Reputation. Retrieved from:  http://www.alva-group.com/en/case-study/what-is-the-relationship-between-ceo-profile-and-corporate-reputation/

Balch, O. (Oct, 2013). The strong correlation between fair leadership and inspiring change. Retrieved from: https://www.theguardian.com/sustainable-business/fair-leadership-inspiring-change

Business Goodwill. ValuAdder. Retrieved from: http://www.valuadder.com/glossary/business-goodwill.html