Reputation is the opinion (more technically, a social evaluation) of the group of entities toward a person, a group of people, or an organization

on a certain criterion. It is an important factor in many fields, such as education, business, online communities or social status. Reputation can be considered as a component of the identity as defined by others. Reputation is known to be a ubiquitous, spontaneous and highly efficient mechanism of social control in natural societies. It is a subject of study in social, management and technological sciences. Its influence ranges from competitive settings, like markets, to cooperative ones, like firms, organisations, institutions and communities. Furthermore, reputation acts on different levels of agency, individual and supra-individual. At the supra-individual level, it concerns groups, communities, collectives and abstract social entities (such as firms, corporations, organizations, countries, cultures and even civilizations). It affects phenomena of different scale, from everyday life to relationships between nations. Reputation is a fundamental instrument of social order, based upon distributed, spontaneous social control.

A cognitive view of reputation
Until very recently, the cognitive nature of reputation was substantially ignored. This has caused a misunderstanding of the effective role of reputation in a number of real-life domains and the related scientific fields. In the study of cooperation and social dilemmas, the role of reputation as a partner selection mechanism started to be appreciated in the early 1980s. An interdisciplinary integrated approach to reputation, accounting for both evolutionary grounds and cognitive mechanisms and processes, is still missing. Only such an integrated approach can point to guidelines for managing reputation and for designing technologies of reputation. Working toward such a definition, reputation as a socially transmitted (meta-) belief (i.e., belief about belief) concerns properties of agents, namely their attitudes toward some socially desirable behaviour, be it cooperation, reciprocity, or norm-compliance. Reputation plays a crucial role in the evolution of these behaviours: reputation transmission allows socially desirable behaviour to spread. Rather than concentrating on the property only, the cognitive model of reputation accounts also for the transmissibility and therefore for the propagation of reputation. To model this aspect, it is necessary to specify and understand a more refined classification [disambiguation needed] of reputation. A recommendation can be extremely precise (think for example of the stock market, where your advisor, when discussing the reputation of a bond, can supplement his informed opinion with both historical series and current events. On the contrary, in informal settings, gossip, although vague, may contain precious hints both to actual facts ("I've been told this physician has shown questionable behavior") and to conflicts taking place at the information level (if a candidate for a role spreads defamatory about another candidate, who should you trust?). Moreover, the expression "it is said that (John Smith is a cheater)" is intrinsically a reputation spreading act, because on the one hand it refers to a (possibly fake) common opinion, and on the

like royalty or showbiz celebrities . ways). either a group or a collective).useful only to show the gossiper belongs to the group of the informed ones. even more important than the forecast. except for electronic interaction. its willingness to comply with socially accepted norms and customs. including third-party image. the advice could fall under one of the following three categories: 1. The cases are listed. target). or its skills. for example. the other two are not unnecessarily complicated neither actually infrequent. i. and in the latter case. a social agent (which may be either individual or supraindividual.). the adviser declares it believes the potential partner is (is not) good for the transaction in object. Indeed.other the very act of saying "it is said" is self-assessing. the evaluation that an agent believes a third party has of the target. may actually be in the phase of initiating it. evaluator) that is giving advice. At this point.. for example. there is a belief the potential partner is (is not) good for the transaction in object. we can define special cases of image. 3. Note the care to maintain the possible levels of truth (the adviser declares . the evaluator. or even shared image. In the second case. and the other (the advisor.but could be lying . Gossip can also be used as a tag [disambiguation needed] only . one (the advisee) that is requesting advice about the potential for danger in a financial transaction with another party (the potential partner. The examples above can be turned in more precise definitions using the concept of social evaluation defined above. the adviser declares it believes in an undefined set of agents. Considering. and. While most cases seem to share the characteristic of being primarily used to predict future behaviour. as it is evident. nor its definition as pertaining to a precise believes . image. Indeed. All examples concern the evaluation of a given object (target).as when gossipping about unreachable icons. It consists of (a set of) social evaluations about the characteristics of the target. It may concern a subset of the target's characteristics. . While one could feel most actual examples fall under the first case. exactly for the fact the person who says so (the gossiper). we can propose to coin a new lexical item.but could be wrong . we call it third-party image. held by another social agent. manipulative subgoals. while appearing to spread the saying a bit further. above. this is the most frequent form of referral. the case of a communication between two parties. whose character should be immediately evident from the following: [edit] Image Image is a global or averaged evaluation of a given target on the part of an agent. in decreasing order of responsibility. most of the common gossip falls under the third category. the adviser declares it believes another (named or otherwise defined) agent or set of agents believes the potential partner is (is not) good for the transaction in object. 2.e. they can have. Roughly speaking. Image as an object of communication is what is exchanged in examples 1 and 2. since it provides at least one factual occasion when that something is said.

as distinct from image. and consequently it is out of the individual's power to control and manipulate. but is enough that this consist of a communicated evaluation. It is both what people think about targets and what targets are in the eyes of others. once it gets to the population level. or more precisely a believed evaluation . social. reputation is a believed.. etc. reputation is the sum of impressions held by a company's stakeholders. regulator [disambiguation needed]s and the list goes on. Reputation has become the immaterial.this could be somebody's image. competitors. From the very moment an agent is targeted by the community. the anonymous character of reputation makes it a more complex phenomenon. It is more powerful because it may not even be perceived by the individual to whom it sticks. alumni. [edit] Reputation Reputation is 'the result of what you do. we call reputation transmission a communication of an evaluation without the specification of the evaluator. Not even this last is reputation. More simply speaking for those who want a working definition of reputation. In fact. reputation is in the "eyes of the beholder". political party. an evaluation shared by a group. Reputation. analysts.e. i. it is built upon three distinct but interrelated objects: (1) a cognitive representation. But the key point in reputation is not what the leadership insists but what others perceive it to be. and what other people say about you'.. his or her life will change whether he or she wants it or not or believes it or not. meta-evaluation. Moreover. especially as an effect of corruption. possible as an image. talent. and it emerges as an effect of a multi-level bidirectional process. prospective candidates. brand. industry. what the agent is believed to be. In other words. more powerful equivalent of a scarlet letter sewed to one's clothes. reputation gives rise to a further property at the agent level. While image only moves (when transmitted and accepted) from an individual cognition to another. and only in the default sense discussed before. 2) a population object. it not necessarily believed from any agent) and from this level back to individual cognition again (when it is accepted). To be more precise.e. since it tries to define in a too precisely the mental status of the group. More precisely. if not for a group attribution. For a company. Reputation proceeds from the level of individual cognition (when is born. its reputation is how esteemed it is in the eyes of its employees. a propagating believed evaluation. customers. [edit] Reputation-based decisions . investors.. i. country. but not always) to the level of social propagation (at this level. This covers the case of example 3 above. errors.that is. deception. It need not be just a company's reputation but could be the reputation of an individual. what you say. is the process and the effect of transmission [disambiguation needed] of a target image. reputation is a highly dynamic phenomenon in two distinct senses: it is subject to change. Reputation is also how others know and perceive you as an individual. and (3) an objective emergent property at the agent level.

namely. To better understand the difference between image and reputation. Berlusconi. and they may be shared by a multitude of agents. the less the costs for supervising and exercising control. a stronger willingness among shareholders to hold on to shares in times of crisis. Reputation is a meta-belief. I may decide to spread the news to others. Both are social in two senses: they concern properties of another agent (the target's presumed attitude toward socially desirable behaviour).´[1] [edit] Firm reputation Many businesses have public relations departments dedicated to managing their reputation.. legitimisation of a position of power and social recognition. I may be convinced due to my friendship to accept this evaluation and share it. This framework provides Äreturn in cooperation³ and produces Reputation Capital. reputation is one of the most valuable "Capital" of a company.[citation needed] Incidents which damage a company's reputation for . I will use it to make decisions about my future actions concerning that target. I may abstain from participating in political activity against Mr. the two notions operate at different levels. many public relations firms describe their expertise in terms of reputation management. According to the authors reputation can be managed. In addition. an evaluation. The public relations industry is growing due to the demand for companies to build corporate credibility and hence reputation. Suppose I know the friend I mostly admire has a good opinion of Mr. Perhaps. [edit] Reputation as Capital Joachim Klewes and Robert Wreschniok focus more on corporate aspects. Whether or not I act in conformity with a propagating evaluation. a belief about others' evaluations of the target with regard to a socially desirable behaviour. Pragmatic-strategic use image to decide whether and how to interact with the target. Memetic transmit my (or others') evaluative beliefs about a given target to others. Berlusconi. A positive reputation will secure a company or organisation longterm competitive advantages. or a stronger readiness to invest in the company¶s stock. i. a premium price for goods and services offered. This implies a believed evaluation gives rise to one's direct evaluation. Once I have my own opinion (perhaps resulting from acceptance of others' evaluations) about a target.e.Image and reputation are distinct objects. The higher the Reputation Capital. accumulated and traded in for trust. However. Therefore. However puzzled I may be by this dissonance-inducing news. Image is a belief. the mental decisions based upon them must be analysed at the following three levels: Epistemic accept the beliefs that form either a given image or acknowledge a given reputation. ³Delivering functional and social expectations of the public on the one hand and manage to build a unique identity on the other hand creates trust and this trust builds the informal framework of a company.

in 1999 Coca-Cola lost $60 million (by its own estimate) after schoolchildren reported suffering from symptoms like headaches. employees. shareholders and financial markets. It is sustained through acting reliable. image and identity is often used interchangeably. Companies must properly manage the relationships between stakeholder groups and they must consider interest of each stakeholder group carefully. government. Terminology such as reputation. credible. according to MORI¶s survey of about 200 managers in the private sector. CEOs set the tone. and CEO Capital: A Guide to Building CEO Reputation and Company Success by Leslie Gaines-Ross. or to distinguish . Corporations or institutions which behave ethically and governed in a good manner builds a reputational capital which is a competitive advantage. Jackson. Stakeholders of a company include any individual or group that can influence or is influenced from a companies practices. this reputation makes a reputational capital as a strategic asset and advantage for that company. not celebrity.honesty or safety may cause serious damage to finances.´ not just the shareholders. In addition. For example. and media. attract talent. It can be sustained through consistent communication activities both internally and externally with key stakeholder groups. consumers. financial community. and are the human face of the organization. The 18 Immutable Laws of Corporate Reputation by Ron Alsop. define company direction. customers. Also.corporate reputation . shareholders. The stakeholders of a company can be supplier [disambiguation needed]s. [edit] Causes . trustworthy and responsible for employees. public relations must be used in order to establish long lasting relationships with the stakeholders. Books on building CEO reputation and company reputation include Reputation by Charles Fombrun. it becomes essential to integrate public relations into corporate governance to manage the relationships between these stakeholders which will enhance the organization¶s reputation. the CEO is called upon to speak on behalf of the organization. Increasingly. "Building Reputational Capital" by Kevin T. Company¶s reputation is an asset and wealth that gives that company a competitive advantage because this kind of a company will be regarded as a reliable. In times of uncertainty. investors to securities and employees to its jobs. CEOs are building their brands on credibility. Therefore. credible. branding. This directly influences a public company's stock prices in the financial market. Therefore. nausea and shivering after drinking its products. According to Fombrun. a good reputation enhances profitability because it attracts customers to products.[1] [edit] Building reputation through stakeholder management kierstenstakeholder theory says corporations should be run for the benefit of all ³stakeholders. which will enhance the reputation of the company.[2] [edit] CEO reputation Research has shown the reputation of the CEO is inextricably linked to the reputation of the company. trustworthy and responsible in the market. As a consequence.consequences There are many different and often conflicting models of reputation. Reputation is a reflection of companies¶ culture and identity. it is the outcome of managers' efforts to prove their success and excellence. 99% responded the management of corporate reputation is very (83%) or fairly (16%) important.

differences between related constructs. the affective element is always evaluative. . It affects a pseudonym rather than a person.6% to the price received. Stakeholder experiences relate to a company¶s day-to-day business operations. While the cognitive element of reputation can reflect the uniqueness of a company or products in terms characteristics such as brand attributes (whether an organisation is delivering high quality products. Another way to look at online reputation is how well it's being managed. In other words. develop a strategy to build your brand. consider how your personal or company brand should be perceived.[5] What is your brand identity / what is your value proposition / selling point / unique voice? Once you have developed the image you would like your constituencies to perceive. gain market leadership (create innovative tools for your industry) or connection (build a network of contacts in professional and/or social sites). To begin developing an online reputation. According to Money and Hillenbrand reputation models can be placed in a framework that relates to reputation. [edit] Online Reputation see also : Reputation system and Online identity Online reputation is a factor in any online community where trust is important. See Motivations for contributing to online communities for more information. Are you seeking credibility in the marketplace (consider blogging. but also identify the causes of reputation and its consequences. Causes of reputation are seen to reside in stakeholder experiences. commitment and cooperation are key positive outcomes of a positive reputation. it gives an indication of whether stakeholders like. its causes and its consequences. friendly etc). its branding and marketing and noise in the system. Much of this confusion has been alleviated by recent work integrates reputation models in terms of underlying psychological theory.[4] In addition. Examples include eBay. Reputation is seen to reside in the beliefs that stakeholders hold about a company (the cognitive element)and the feelings that stakeholders have about a company (the affective element). admire or trust a company and its attributes. such as the media and word of mouth. is international. In this approach it is important not only to understand has a similar reputation mechanism in place and merchants develop their reputations across different dimensions[3].[6] This form of reputation is usually called web or digital reputation to distinguish it from the online reputation. A unique and distinctive cognitive evaluation of a company only has value if this results in a positive affective evaluation and positive consequences of reputation The consequences of reputation reside in the behaviors (supportive or otherwise) that stakeholders demonstrate towards a company. One study found that a good reputation added 7. Behaviors such as advocacy. an auction service which uses a system of customer feedback to publicly rate each member's reputation. building and maintaining a good reputation can be a significant motivation for contributing to online communities. Amazon. answering questions on LinkedIn).

225-226. Foro de Reputación Corporativa is a group of 11 companies in Spain that has reputation officers. Hoover's has a list of officers with the term "reputation" in their titles. oft got without merit. If a person or a company want to manage his web reputation. Coca-Cola. Iago. the Moor of Venice Act II. and what remains is bestial. I thought you had received some bodily wound. managing reputation is a daily function and can best be given to an individual in the organization. If someone has a bad online reputation. [3] [edit] Reputation as extension of ego Concern over reputation is sometimes considered a human fault. Weber Shandwick. there is more offence in that than in reputation. This is why new accounts on ebay or amazon are usually untrusted. SABMiller. real address) is usually more trusted. exaggerated in importance due to the fragile nature of the human ego. reputation! O! I have lost my reputation. This is why a merchant on the web having a physical shop (with real name. There are only a handful of people in the business world with the word "reputation" in their titles -. People aspire to have a positive online reputation. few companies have reputation officers. [edit] Reputation Officers Despite the rising interest in reputation. Digital of Web reputation does not concern the virtual on-line reputation only. Although many companies will say company reputation is the job of the CEO. This negative word of mouth could be from dissatisfied customers but from employees as well. Digital footprints accumulate through all of the content shared. and lost without deserving: you have lost no reputation at all. there only remains 25 or fewer people as reputation . my reputation! Iago: As I am an honest man. he will have many more difficulties. Reputation is an idle and most false imposition. Othello. -Shakespeare. I have lost the immortal part of myself. [2] An online reputation is the perception that one has on the Internet based on their digital footprint.Dow Chemical. My reputation. Leaders also worry about confidential leaks which seem to be growing at a rapid pace online.[citation needed] The greatest reputation threat online to companies is negative media coverage (84% say so). William Shakespeare provides the following insight from Othello: Cassio: Reputation. Despite the great interest in reputation. unless you repute yourself such a loser. Nearly seven out of 10 global business executives see their reputations online as vulnerable. This high estimate reflects executive anxiety over reputation erosion in a fiercely competitive and unpredictable business environment. Allstate. he can easily change his pseudonym.Indeed. feedback provided and information that created online. and GlaxoSmithKline (although no longer). reputation. Scene III. but the whole real reputation of a person or a company as it is affected by the Web. Repsol YPF. The next two greatest threats are customer complaints in the media or on grievance sites online (71%)and negative word of mouth (54%).

Once you have identified the problems. Also ask your colleagues to tell you candidly what they hear about you on the street. no longer ar When you were a teenager. but they don't manage the details. and eventually the doors closed. For existing customers. "A lot of business owners are expert at seeing the big picture. "People are forgiving and willing to give you another chance. But how long has it been since you've thought about your company's reputation? You probably know of a number of businesses that slowly declined before finally giving up. Reputation recovery is the long and arduous path to rebuilding equity [disambiguation needed] in a company's good name. Research has found it takes approximately 3." says Gooden. Then--and only then--should you attempt to recapture your lost market. Barely a day goes by without some company facing new assaults on its reputation. or you will lose them forever. I he whispers here and there of poor quality or service escalated until "everyone knew" not to patronize a company. If you ask for a second chance and don't deliver. Others would say that the CEO has too many responsibilities to focus on reputation. a marketing service and public relations firm in Oklahoma City.officers. take the necessary steps to correct them. "Most bad reputations are caused by neglect.5 years to fully recover reputation (Safeguarding Reputation [4]). Could those companies have been saved? The answer is an emphatic yes.. [edit] Reputation Recovery The convergence of globalization. but you have to do it right this time. for former customers. ask specifically if they are dissatisfied in any way and how you can improve. says Brent Gooden." Gooden says. Companies which were once heralded as invincible. if possible. " To prevent a bad reputation from sounding the death knell for your business. customers will feel they've been lied to. find out why they left and what it would take to bring them back. Some would argue reputation-building and protection is the job of the CEO and not any direct report. CEO of I he Gooden Group Inc. your reputation was one of your most valuable assets. The reason reputation recovery has risen in importance is that the "stumble rate [5]" among companies has risen exponentially over the past five years. and they won't be forgiving again. Collins of Good to Great fame says it takes a company seven years to go from good to great. The path is clearly long. In fact. Start by surveying existing and. Gooden says you first have to find out if you have a problem. and that leaves a very poor impression on their customers. instantaneous news and online citizen journalism magnifies any corporate wrongdoing or misstep." . former customers. "A business only gets two chances. James C. 79% of the world's most admired companies have lost their number one positions in industries in that time period.

it begins with their traditional philosophy of their relationship to their immediate environment. "Over the last decade. The idea is to keep positive energy flowing and deflect the negative energy. RELATED ARTICLE: Success By Design IF BUSINESS isn't going as well as it might.the orientation of the door and the type of art you have can have a significant impact on your business. how your desk is positioned.Getting that second chance requires more than simply admitting your mistakes and asking for another opportunity. Pacific Rim companies have had an increasing impact on the global marketplace. Some of Spear's tips: . but the process will strengthen your company and may even take you to levels of prosperity you never before imagined. but calculate the potential rewards." says William Spear. Clearing clutter. The bottom line: Recovering from a bad reputation can be painful and lengthy. and adding or removing specific elements can have a dramatic impact on your creativity and success. It's a technique Asians have been practicing for centuries." says Gooden. a consultant and author of Fen Shui Made Easy: Designing Your Life With the Ancient Art of Placement (Harper Collins). the ancient art of arranging your personal space to create balance and harmony with the forces of nature." In other words. consider taking a second look at your physical environment. It may cost a considerable amount of money. rearranging furniture. An increasing number of Westerners are discovering feng shui (pronounced fung schway). "When you investigate the way in which Asian corporations conduct business. Not sure what to do? Simple: Ask your customers what it will take to win them back--then do it. "You have to do something bold to prove that you have changed.