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Corp Reputation Rev

DOI 10.1057/s41299-017-0041-4

ORIGINAL ARTICLE

The Corporate Reputation Reporting Framework (CRRF)


Salman Khan1 • Jacques Digout1

Ó Macmillan Publishers Ltd., part of Springer Nature & Reputation Institute 2017

Abstract Corporate reputation (CR) sciences have made reports being historically focused, omit ‘reputation’—a key
way into c-level management quite rapidly in the past two intangible, which lessens the relevance of these reports
decades. During the same period, numerous CR measure- (Cravens et al. 2003; Fill and Roper 2012; Tischer and
ment techniques also emerged. This study evaluates the Hildebrandt 2014). Such an exclusion can also lead to
effectiveness and appropriateness of available models for severe cases of misevaluation. Inadequate measurability of
thoroughly reporting an organization’s CR. By highlighting ‘reputation’ contributes to the under-representation of this
and rationalizing the central features of the ‘reputation’ intangible in market valuation practices. For reputation
construct, the usefulness of notable measurement approa- capital to be justly included in management functions and
ches for thoroughly reporting CR is critiqued. The analysis reporting, further development of CR measurement and
reveals that most techniques deviate from theory, and in depiction is imperative.
several ways fall short of incorporating online aspects of Moreover, corporations around the world are rapidly
corporate (e-) reputation formation. A corporate reputation adopting reputation management as an essential function.
reporting framework is modeled and directed towards Reputation executives must proactively monitor and
large-scale applicability across contexts. The proposed strengthen the position of their firm to safeguard from
framework robustly integrates a variety of CR features, potential crisis situations (Claeys and Cauberghe 2015).
facilitating the creation of comprehensive CR reports and The process of building, managing, and repairing CR
delivers insights into the urgency of adapting to digital demands the ability to interpret, gauge, and depict repu-
aspects of reputation formation and management. tation thoroughly (Hannington 2004).
There are three fundamental issues with the CR analysis
Keywords Corporate reputation  e-Reputation  techniques currently in practice. First, a significant fraction
Reputation measurement  Reputation management  of the systems in use is commercial solutions like TRI*M
Framework development  Reporting framework and Alva. These methods are either not grounded in subject
theory or inadequately explained through academic
Corporate reputation (hereafter, ‘‘CR’’) is one of the most research. The second issue is the gap between definitions
valuable organizational assets. The market value is com- and measurement frames. Dowling (2016) calls this
posed of four measures: physical, financial, intellectual, ‘‘defining A, and measuring B.’’ The CR concept in liter-
and reputational capital (Fombrun and van Riel 2004). ature is expansive in scope and flexible in nature. In con-
Most present-day business analysis and performance trast, most measurement methods generate simplistic,
tracking procedures are disproportionately reliant on the narrow, and absolutist judgments, leaving little for inter-
first two components (physical and financial). Traditional pretation and inference. The third challenge is an outcome
of digitization. Internet-powered e-communications have
exceedingly influenced the reputation dynamic (Khan and
& Salman Khan
Digout 2017). Academics are yet to integrate the prospect
s.khan@tbs-education.org
of e-reputation into the overall CR theory and computation
1
Toulouse Business School, Toulouse, France logic.
S. Khan, J. Digout

The purpose of this paper is three-fold. First is an Such a combination serves well the intention of compre-
elaboration of the theoretical viewpoint on CR, as pre- hensively exploring the diversity of this subject. From here,
sented in the literature. The ‘background literature’ section a systematic development of the CR feature (proposition)
is an exploration of the definitions, construct conceptual- list is initiated. Some of the following propositions are
izations and several CR features. Secondly, based on the directly inspired by the above-mentioned definitions, while
identified characteristics of CR, the current measurement other points are built rationally based on literature review.
models’ strengths and weaknesses are reviewed in the
subsequent section ‘contemporary models.’ Thirdly, the Wide Scope
urgent need to envision a detailed, progressive and har-
monious CR reporting format is highlighted and addressed Every organization (like humans) is subject to bearing a
under the ‘framework’ heading. The study builds a nor- reputation among its observers. CR is a universal concept
mative-integrated reputation reporting framework that has that is relevant to all organizations around the world,
a broad application across organizational contexts and is regardless of their size, or the market they operate in,
inclusive of the digital aspects associated with CR. whether it is B2B, B2C, B2G, or G2C (Davies et al. 2003;
Fombrun and van Riel 2004; Bernett and Pollock 2012).
Reputation management is an equally pressing concern for
Background Literature non-profit and non-commercial organizations (Fill and
Roper 2012; Khan and Digout 2017). Therefore, a CR
Definition measurement and reporting framework must provide value
to organizations belonging to different contexts. The model
CR has been studied from a variety of disciplinary per- should be widely applicable in different countries, indus-
spectives. Over the years, the term received an inordinate tries, and markets.
supply of definitions. The lexicon of this discipline is ever
Proposition 1 CR is a widely applicable concept, span-
in a state of reconstruction (Baka 2016). In 2013, Davies
ning cultures, industries, and business markets.
noted decades-long disagreement among scholars regard-
ing the definition and envisioned the lack of consensus to
Stability
persist for many years to come. As the measurement of
reputation is profoundly dictated by definition (Clardy
Reputations are a stable construct that develop over the
2012), it is necessary for this study to mention the defini-
long term. Academics concur that reputation formation
tion(s) of choice.
happens gradually (Rindova 1997; Mahon 2002; Rhee and
In recent years, researchers have collected, reviewed,
Haunschild 2006). This relatively stable and more enduring
and attempted to consolidate the diverse array of defini-
nature of CR distinguishes it from ‘corporate images’ that
tions. Barnett et al. (2006) reviewed 49 definitions and
are often short-lived and volatile (Gray and Balmer 1998;
proposed an integrated definition, ‘‘Observers’ collective
Rindova et al. 2005; Walker 2010). Thus, to be compatible
judgments of a corporation based on assessments of the
with literature, neither should a measurement tool produce
financial, social, and environmental impacts attributed to
‘sticky’ results, nor display extreme ‘volatility.’
the corporation over time.’’ This contribution was one of
the first to establish the distinction between the concept of Proposition 2 CR is relatively stable and enduring.
identity, image, and reputation. Walker (2010) conducted
the most thorough systematic review of the CR definitions, Multiple Stakeholders
covering the most prominent research of the preceding
27 years. Walker then constructed a definition with the Every organization is subject to diverse stakeholders.
intent of guiding and aiding the efforts towards measure- Martinez and Norman (2004) define stakeholders as ‘‘All
ment, ‘‘Corporate reputation is a relatively stable, issue- constituencies whose contact with the firm (voluntarily or
specific aggregate perceptual representation of a com- involuntarily) results in an effect on, or their being affected
pany’s past actions and future prospects compared against by, the firm and its activities.’’ Customers, employees, the
some standard.’’ Recently, Dowling (2016) reviewed 50 general public, investors, suppliers, governments, and
definitions and proposed a simpler alternative, ‘‘The media are some stakeholders that are generally relevant to
admiration and respect a person holds of an organization at all types of organizations. Based on the industry and nature
a point in time.’’ of operations, there may also be other stakeholders
This study is built on the definition proposed by Walker involved. The stakeholders can broadly be categorized into
(2010), and Dowling (2016). Clearly, there is a two: internal (e.g., employees and board members), and
notable contrast in the complexity of both perspectives. external (e.g., public, customers, and investors). Different
The Corporate Reputation Reporting Framework (CRRF)

stakeholders may hold different perceptions (Fombrun General Aggregates


1996; Helm 2007; Puncheva-Michelotti and Michelotti
2010; Harvey et al. 2017). For a CR model to be sound and A formative measurement model happens when the indi-
extensive, it must facilitate aggregated measurement of cators cause the construct. For example, useful features,
stakeholder-specific reputations (Walker 2010). good performance, and long durability (indicators) of a
smart-phone determine the gadget’s value (construct).
Proposition 3 An organization has many stakeholder-
Correlation between the indicators is unimportant for for-
specific reputations.
mative measures. In contrast, the direction of causality in
reflective measures is ‘construct to indicators.’ The scores
Issue Specificity
of different general knowledge tests (indicators) are all
outcomes of a person’s knowledge (construct). The mea-
Organizations are judged on a variety of issues such as
surement variables here are a reflection of the construct. A
product/service quality, corporate social responsibility,
high correlation of indicators is expected since they are
corporate governance, and innovation (Lewellyn 2002). It
affected by the same thing.
is possible for a company to be perceived favorably for one
Based on the condition of correlation, Helm (2005)
issue, and unfavorably for another. Take the case of Wal-
advocates the formative motion. According to this view,
mart that has a sound reputation for financial prosperity
reputation is the construct, and some of the indicators
while scoring poorly in the employee treatment area. Bar-
include product quality and employee treatment. Helm
nett et al. (2006) echoed this idea in their definition by
argues that an improvement in the product quality barely
stating that organizations are assessed on ‘financial, social,
affects other indicators (in this instance: employee treat-
and environmental’ factors. Walker (2010) also highlights
ment). Therefore, this weak correlation between indicators
the importance of distinctly capturing and reporting these
is used to illustrate the construct as formative.
issue-specific reputations.
In our opinion, the formative motion supporters are
Proposition 4 An organization has many issue-specific referring to the ‘overall corporate reputation’ that is formed
reputations. by many issue-specific reputations. The various issue-
specific reputations combine and form the overall reputa-
Comparability tion of an organization, as shown in Fig. 1. When the
overall CR is seen as a construct, the various non-corre-
Reputation, by nature, is a relative element. Stakeholders lated issue-specific reputations act as indicators, confirm-
form perceptions regarding organizations, in comparison to ing the formative-ness of this measure.
‘something.’ One of the primary comparative objects is However, the sub issue-specific reputations themselves
competition (Fombrun 1996). Walker (2010) also observes are constructs, reflective of different indicators. For
potential comparison with past performances, industry example, the employee treatment reputation may utilize
averages, and benchmarks. A key feature of CR is its high indicators like (1) generous compensation packages, (2) a
dependency on the object of comparison. For example, the good place to work, and (3) low turnover. These indicators
CSR reputation of an organization may be weak in com- are highly correlated, and hence make the sub reputations
parison with other local organizations. On the other hand, it reflective.
is possible that the same organization is perceived as the In other words, overall CR is a second-order formative
best in its industry for CSR activities. construct with many first-order reflective dimensions that
we call issue-specific reputations. The singular reputation
Proposition 5 Reputation is highly influenced by the
being addressed by Helm, and others, is on the right (for-
object of comparison.
mative) side of the structural model in Fig. 1, while the
reflective argument applies to issue-specific reputations
Construct
which are on the left (reflective) side.
An interesting CR debate is regarding the ‘construct of Proposition 6 General CR aggregates are formative
reputation.’ Scholars are divided between conceptualizing constructs formed by various (non-correlated) issue-
the construct as formative or a reflective measure. To specific reputations that are reflective measures.
develop a measurement framework for CR, a discussion on
this issue and declaration of the authors’ theoretical Formative or Reflective?
standpoint is vital.
Supporters of the formative notion also point to the fact
that changes in indicators cause changes in reputation
S. Khan, J. Digout

Indicator 1

Indicator 2 Issue-Specific Reputaon 1

Indicator 3
Overall Corporate
Reputaon
Indicator 1

Indicator 2 Issue-Specific Reputaon 2

Indicator 3

REFLECTIVE

FORMATIVE

Fig. 1 Reflective–formative structural model

construct; and not the vice versa. An example is presented Howsoever, this study affirms that CR is a construct too
of CR being a consequence of delivering high-quality complex to be categorized as either formative or reflective.
products (driver/signal); whereas an improvement in CR A commonly held view is that rich competence of an
does not automatically make the product superior. This is organization garners a favorable reputation. Nonetheless,
argued to be characteristic of a formative measure. the betterment of organizational competence may also be a
In response, it is paramount to reinstate that CR is the consequence of strong reputation. Caruana and Chircop
summary view of ‘perceptions’ (Chun 2005), and CR (2000) observed such a ‘halo effect’ where good reputation
measurement is an endeavor to understand how an orga- facilitates better corporate performance, which further
nization is perceived (Wartick 2002). As reputation is a improves CR. For example, companies with favorable
social construct—an indicator of ‘beliefs,’ Fombrun (1996) reputations are often equipped with the best talents; as a
sees it as independent of reality. Reputation is a mere result of which, talented job seekers are more inclined to
portrayal of ‘reality as perceived’ by people. Hence, Ponzi join such businesses. Furthermore, recent studies have
et al. (2011) also argue that CR should be distinguished noted how reputation rankings influence financial perfor-
from drivers and signals, as facts about a company may mance (Tischer and Hildebrandt 2014; Krueger and
reach the audience, tainted with social noise, misinterpre- Wrolstad 2016).
tations, and misrepresentations. Drivers/signals are the In many ways, CR functions as a self-fulfilling pro-
actions and behavior of organizations that lead to the for- phecy. This is visualized in Fig. 2. Hence, this study con-
mation of ‘perceptions.’ These perceptions are the ultimate siders reputation to be a ‘reflexive’ measure. Sound CR
indicators of reputation. Therefore, CR is a second-order depictions must not only provide historical insights, but
latent variable. also predict and enhance future performance.
Whether reputation is a reflective construct or not
Proposition 7 Reputation is a reflexive construct, pro-
depends on how a change in CR affects perceptions.
viding historical representation, and also bearing predic-
According to research (Barnett and Leih 2016), people tend
tive power.
to perceive the offering of certain companies superior,
often because of the organization’s favorable CR. A better
reputation may not directly improve product quality, but it
does act as a catalyst in being perceived as a better value Drivers / Signals
provider. Hence, a change in the construct (reputation)
does affect the indicators (perceptions); pushing the debate
in favor of the ‘reflective’ motion. Reputaon Percepon

Fig. 2 Reflexive construct


The Corporate Reputation Reporting Framework (CRRF)

Cognitive and Affective issues, the priority of stakeholders, and selection of indi-
cators must all be derived from the context when a CR
Reputations form on two types of drivers: cognitive and study is pursued. Although less operational than other
affective. Cognitive drivers employ learning, comprehen- ‘short-form’ alternatives, this approach is adequately
sion, and analysis of fact-based signals sent out from aligned with the large-minded expression of the CR
organizations. Most reputation monitors capture cognitive literature.
reputation indicators such as the quality of management,
Proposition 9 CR frameworks must be elastic to fit the
corporate social responsibility, innovation, financial
context, allowing alteration of issues, stakeholders, and
soundness, and quality of the offering. These drivers are
indicators.
easy to explain, monitor, and evaluate. On the part of
observers, it is an objective mode of perception formation.
Multi-Dimensional
In contrast, affective reputations rely on observer
experiences, feelings, and emotions towards an organiza-
The existence of multiple stakeholder-specific and issue-
tion. It stems from ‘affective commitment,’ a sense of
specific reputations gives rise to the question, ‘‘which
belonging and affection a person has towards an organi-
reputations are right, and which are wrong?’’ A postmod-
zation. Stakeholders may associate with an organization
ernist stance on this topic helps address such queries.
based on its corporate visual identity (van den Bosch et al.
‘Reputation’ being a social construct is neither right nor
2005), culture, age (Bartikowski et al. 2011), country of
wrong. It is a construction of the society that ultimately
origin, brand ambassadors (Wang et al. 2017), and business
decides what is acceptable, and what isn’t. The quality of a
partners. Stakeholders have also been found to form per-
product, the citizenship of an organization, the employee
ceptions about organizations based on CEO and board
treatment at a company, is as depicted in reputation scores.
members behavior (Dowling 2006; Men 2012; Turk et al.
Whatever the stakeholders adjudge as good (bad) is good
2012). Such subjective and emotional antecedents of CR
(bad). Thus, CR precedes the definition of good and bad. It
form affective reputations, which give insights into how
is the use of CR measures that must guide organizations’
stakeholders connect with an organization at a non-cogni-
judgment of acceptable, and unacceptable. Therefore,
tive level.
reputation is not a unipolar measure (Walker 2010). It must
Proposition 8 CR is driven by cognitive and affective be indicated as a bipolar construct, between ‘favorable’ and
drivers. Both domains must be factored into CR ‘unfavorable.’
computations. Furthermore, Lange et al. (2011) proposed a three-di-
mensional representation of CR; being known (strength and
Philosophical Orientation popularity), being known for something (cognitive reputa-
tions), and generalized favorability (affective reputations).
Elasticity of Reputation Each dimension further expands into sub-items. For
example, components of being known are media visibility
Reputation is an outcome of an organization’s actions and (Deephouse, 2000), prominence, and familiarity (Mari-
behavior. To be perceived favorably by stakeholders, what conda and Lurati 2014). This study encourages the addition
behavior is appropriate? Which stakeholders and issues are of all such dimensions and components in the CR reports.
important? What scales and indicators must be used to Instead of attempting to give a washed-down, dogmatic
measure reputation? There are many objective and sub- view of CR through a rank or a number, the information-
jective answers to such questions. These variables change rich reports will transfer the authority of interpretation
between countries, cultures, markets, and industries. Yet, from the report writers to the report readers. Financial
most reputation measurement techniques strive to create a statements function in a similar manner. Diverse KPIs are
single standard and restrictive structure to be used by all presented, without imposing a singular style of inference.
organizations. While one analyst may focus on debt–equity ratio, price/-
This study critiques those structures and systems that are book value ratio, and return on equity, another might look
not customized for the respective contexts of study. Rep- at cash flow–debt ratio, price/earnings ratio, and return on
utation is a dynamic construct, built on mechanisms that assets. Each metric tells a part of the story. The final
change from context to context. The authors favor more sensemaking is subject to the reader’s views.
than one way of modeling a CR report. As the drivers, Reputation is an indicator of social standing, as financial
stakeholders, issues, and observers of reputation differ statements are indicators of business performance. The
from one market to another; measurement frameworks reputation report should be a collective representation
should also facilitate customization. The importance of utilizing multiple KPIs, just like financial reports. For CR
S. Khan, J. Digout

reports to be a comprehensive overview of one of the four Ce-R indicators are often available on the Internet in
organizational assets (physical, financial, intellectual, and abundance, in the form of big data that can be synthesized
reputational capital), such information-rich and open to using sentiment analysis software. Studies have found such
interpretation reporting is the way forward. analysis to be highly accurate and reliable (Mostafa 2013).
However, according to Gandomi and Haider (2015),
Proposition 10 CR is a multi-dimensional, multi-faceted,
‘‘Conventional (pre-big data) sentiment analysis tech-
and bipolar construct.
niques, may not be ideally suited to leverage big data.’’
Currently, academics are attempting to advance e-reputa-
The E- Aspect
tion tracking systems using sentiment analysis (Felbermayr
and Nanopoulos 2016; Shad Manaman et al. 2016). Pre-
Corporate e-reputation (Ce-R) refers to the online reputa-
sent-day technologies may not be sufficient to capture the
tion of organizations and can be considered an element of
scope of Ce-R fully, but this remains an interestingly
CR (Dutot et al. 2016). Due to vast differences in the
promising area to watch.
characteristics of online and offline reputation concepts
Further academic investigations are required to formal-
(Dutot and Castellano 2015), it is necessary to discuss the
ize a complete incorporation of Ce-R with CR sciences.
online concept independently, under a separate heading
Advancement of tools and approaches for measuring Ce-R
(Khan and Digout 2017). For example, Amazon, Alibaba,
is also critical (Dutot et al. 2016). At the moment, three
and Uber are all e-commerce businesses. The addition of
implications are derived from this discussion. First, mea-
‘e-’ does not imply that all operations are digitized, or that
surement models must incorporate the use of digital indi-
traditional commerce science does not apply to the ‘e-’
cators. Secondly, Ce-R must be noted as a separate, but
businesses. Rather, ‘e-’ is used for convenience, like an
important issue for all organizations. Thirdly, CR frame-
umbrella over all digital aspects of business that are of a
works must leverage sentiment analysis and opinion min-
nature different from ordinary offline commerce. Similarly,
ing to acquire insights regarding the CR based on available
the term Ce-R is only to differentiate the discussion from
online big data. Some CR experts resist the use of such
offline reputations; nonetheless, this study views Ce-R
information processing methods, stating that it only por-
merely as an integral subset of CR.
trays a short-term ‘mood’ associated with an organization.
Reputation formation depends on signals sent out by an
Howbeit, this rich source of information cannot be over-
organization through various touchpoints. In offline con-
looked and is worthy of inclusion in CR reports as a sep-
texts, these signals range from press releases and annual
arate KPI.
reports to corporate image (Foroudi et al. 2014). Digiti-
zation grows the complexity of reputation formation by Proposition 11 Digital (online) indicators and signals
exponentially adding numerous new touchpoints. For provide key insights regarding Ce-R, an integral subset of
example, organization-related activity on social media is CR.
now a key predictor of reputation scores (Meadows and
Meadows 2016; Ji et al. 2017). As Internet levels the
playing field between big and small players, it is tough to Contemporary Models
ascertain which online brands are heritage-rich, and which
aren’t. Hence, it is vital for reputation executives to There are three main (overlapping) streams of reputation
monitor and enhance their organization’s Ce-R measurement (Berens and van Riel 2004); trust, personifi-
dedicatedly. cation, and social expectations. ‘Trust’ fundamentally
Besides injecting two-way communications, digital predicts future performance based on historical evidence.
technologies also promote stakeholder to stakeholder con- The second stream attempts to personify organizational
versations about corporations. To form perceptions reputations; while the third stream gauges reputation using
regarding an organization, stakeholders now rely on new ever-evolving cognitive scales.
sources of signals available online. User-generated content Here we discuss models built on these streams, with
(UGC) (Baka 2016) and word of mouth (WOM) (Walsh emphasis on the compatibility of the respective models
and Beatty 2007) are critical drivers of CR. Rauschnabel with the features (propositions) of CR identified earlier in
et al. (2016) emphasize the necessity of diligently moni- the paper. This study scrutinizes only the most widely
toring brand-related social media activity, citing the studied and applied examples from each stream. For the
emergence of notorious ‘collaborative brand attacks’ ‘trust’ stream, reference is made to Fortune’s ‘World’s
(CBAs) by online bullies. van Noort and Willemsen (2012) Most Admired Companies (WMAC)’ ranking. The ‘per-
support this view by affirming the importance of moni- sonification’ stream is explained using the ‘Corporate
toring eWOM across the web. Character Scale (CCS).’ The ‘RepTrakÒ’ model represents
The Corporate Reputation Reporting Framework (CRRF)

the third stream, ‘social expectations.’ Although none of Furthermore, the lists are driven heavily by cognitive
these are outright CR reporting frameworks, they serve as drivers of reputation, with no consideration for affective
prime constituents for the creation of one. factors. The outcome generated with this method is a
unidimensional, one-or-two digit metric (rank) that does
Ranking Lists and Monitors not serve the purpose of representing reputational capital in
the fullest possible terms. Due to various massive short-
Each year, Fortune Magazine’s WMAC list surveys comings, the CR ranking lists and monitors are unsuited to
approximately 4000 hand-picked executives to evaluate the be standardized for CR measurement and reporting.
CR of enterprises on nine-item criteria. The indicators are
neither cross-culturally validated, nor have any theoretical
Personification Metaphors
underpinning (Fombrun and van Riel 2007). In the most
recent WMAC survey, only 680 companies were short-
Corporate Character Scale (CCS) uses personification
listed for evaluation (based on revenue), from a mere 28
metaphor to assess the CR of organizations (Davies et al.
countries. The sampling is not only small and biased
2004). Personification is intended less to measure and
(Bromley 2002), but also overlooks NGOs and other non-
define CR, and more to explain why some companies have
commercial entities. Most reputation ranking lists and
a better reputation than others (Davies et al. 2001).
monitors operate similarly.
Although the method is remarkably suitable for use in
This method produces unstable (Brown and Turner
diverse contexts and cultures (Davies 2013), the theoretical
2008), and sometimes, ‘sticky’ reputations (Fill and Roper
grounding of this approach is alarming (Berens and van
2012). New companies abruptly overtake heritage-rich
Riel 2004; Clardy 2012).
brands to take top ranks; and at times, big names ranking
The personification method does provide stable results
high in a year, totally get dropped out the subsequent year.
and can be used to attain multiple stakeholder views. As
For example, Samsung Electronics fell off the ‘All-Star
this framework focuses on two stakeholder views:
List’ of WMAC in 2017. According to the rationale of the
employees and customers (Davies et al. 2003), it is best
model, the ‘combustible phone batteries’ issue was suffi-
suited for service industries. However, generating issue-
cient to overshadow Samsung Electronics’ five decades of
specific reputations, and reputation aggregates are beyond
industry-wide legacy. In contrast, some brands demonstrate
the scope of this model.
a ‘stickiness’ towards their rank. Year on year, despite
Furthermore, Clardy (2012) raised a concern about the
depreciating public admiration, the large and visible enti-
lack of clarity with the results. Whether a specific result on
ties stickily renew their positions in such CR monitors
the character scale is favorable or unfavorable (positive or
(Schultz et al. 2001). This volatility and stickiness of
negative) remains unclear. This makes it difficult to com-
results lead to instability and unreliability of such CR
pare and benchmark CR using this technique. The depen-
depiction methods.
dence on language is a significant limitation for CCS, and
The method even falls short of representing multi-
other similar methods. As language evolves, the structural
stakeholder views. According to Fombrun (1998), narrow
integrity of such scales fades.
external stakeholder views are presented in WMAC, serv-
Personification is scarcely useful in understanding issue-
ing ‘narrow agendas.’ Fombrun et al. (2000) voice con-
specific performance and presents no predictive capacity.
cerns by mentioning the weak representation of social and
Despite the shortcomings, this tool remains an intriguing
employee issues. The ratings appear to be grounded in fi-
way of looking at things. As this model is made to capture
nancial performance and investment potential (Fryxell and
affective drivers of reputation (Davies 2013), it can com-
Jia Wang 1994). Additionally, the rankings do not facili-
plement the numeric and cognitive alternatives of CR
tate the aggregation of issue-specific reputations. Conse-
representation.
quently, due to excessive focus on finances only, this
technique only provides a historical representation of
organizations, while failing to predict performance related Scales
to other issues.
Also, the comparison facilitated herein is extremely RepTrakÒ is a well-researched model, profoundly reasoned
limited. For the reputation of two companies to be com- academically (Fombrun et al. 2015), and generates elabo-
pared, both must be ranked on the same ranking list or rate and stable results. Reputation Institute uses this tool to
monitor. Additionally, comparison of reputation with ear- measure the CR of over 7000 companies in 25 countries.
lier self-imposed benchmarks is only possible if an orga- The 23-indicator scale employed to capture public per-
nization was listed by a particular list or monitor in ceptions related to seven issues have been validated in six
preceding years. countries, making it highly appropriate for cross-cultural
S. Khan, J. Digout

use. The results render the historical representation of However, since these alternatives are not academically
performance and bear immense predictive potential. This validated, it leaves a huge gap in the CR measurement field
technique even makes it straightforward to compare the (Casado and Peláez 2014). In the next section, we build and
reputations of organizations in different contexts. propose a new CR measurement and reporting framework
CR measurement scales have been held for overly that better aligns with the literature.
focusing on cognitive drivers of reputation (Sarstedt et al.
2013). RepTrakÒ, however, utilizes a short-form general-
ized favorability indicator called RepTrakÒ Pulse as a Framework
complementary KPI, which adds an affective dimension to
the CR measurement. The structure of this method aids the We propose a Corporate Reputation Reporting Framework
depiction of stakeholder-specific and issue-specific repu- (CRRF) (Fig. 3) comprised of three dimensions, as sug-
tations that can be aggregated into general reputation. In gested by Lange et al. (2011). The first dimension, being
comparison with the former two models of CR measure- known, portrays how well known an organization is. The
ment, scales are relatively progressive. second dimension, being known for something, describes
how an organization is perceived across issues by different
Summary stakeholders. The third dimension named generalized
favorability represents the stakeholders’ overall fondness
All of the three models above have specific shortcomings. and emotional connection with an organization.
In common, all lack the portrayal of multi-dimensional and Data required to inform the various components under
bipolar KPIs, which draw a complete picture of CR. Fur- each dimension of CRRF can broadly be extracted from two
thermore, none of the measurement techniques provide sources: (1) surveys, and (2) online signals. In the following
elasticity to customize the measurement framework for the discussion, we explain which components can utilize data
particular contexts. Also, the use of automated digital from which of the two sources. Although this paper pre-
signals is absent from all options currently available. Some scribes some processes for carrying out tasks related to
commercial alternatives like TRI*M and Alva have CRRF, the focus here is not on ‘how things should be done,’
implemented the use of e-reputation monitoring indicators. but rather on ‘what should be done, and why.’

Being Known Being Known For Something Generalized Favorability


Strength & Popularity Cognive Reputaon Affecve Reputaon

Visibility Reputaon Matrix Favorability Scores

Prominence Priority Matrices Senment Analysis

Familiarity Stakeholder-Specific

Issue-Specific

e-Reputaon

Comparisons

Source: Survey Source: Online Signals

Fig. 3 Corporate reputation reporting framework


The Corporate Reputation Reporting Framework (CRRF)

This framework is meant to aid the creation of CR Prominence


reports that are based on opinions, norms, and subjectivity.
The intended reports must not only describe CR but also Prominence, on the other hand, is a measure of an orga-
help in understanding the underlying phenomena. Based on nization’s influence, and impact via its ‘owned media.’ It
these fundamental characteristics, this framework is represents how many listeners are reached when the
deemed ‘normative.’ Furthermore, the application strives organization talks. The visitor traffic on the company
to produce a comprehensive and balanced CR representa- website, engagement on a brand’s social media accounts,
tion. We combine features from a myriad of CR concepts and reach of online press releases are all examples of
and measurement models, in a complementary fashion. organizational prominence. The KPIs of this component
Hence, CRRF is also set on an integrative approach. The can be informed by digital signals using tools such as
remainder of this discussion provides a description, critical Alexa, SEMrush, SimilarWeb, Simply Measured, and
overview, and defense of this normative-integrated CRRF. Socialbakers.

Being Known Familiarity

The being known dimension portrays the strength of an Familiarity measures how well individuals think they
organization based on its popularity and fame. This know an organization. Most CR measurement models
dimension consists of three components proposed by only evaluate organizations with a high level of famil-
Mariconda and Lurati (2014): (1) visibility, (2) promi- iarity in public. The RepTrakÒ scale for example, only
nence, and (3) familiarity, each of which is quantitatively reports responses from respondents that declare them-
defined. While most CR models use these components as selves as ‘‘somewhat’’ or ‘‘very’’ familiar with an orga-
qualifiers for organizations to get onto the ranking lists or nization. We denounce the use of familiarity as a filter
to be part of a CR study, CRRF favors the inclusion of and argue that a lack of response to a question in the
quantitative aspects as a separate dimension of the CR survey, delivers vital insights about the familiarity level of
report. Collectively and individually, the components in the stakeholder with an organization, on that particular
this dimension capture the overall renown of a company. issue. Although the perceptions of individuals declaring
Although precise measurement of these components is themselves as unfamiliar with an organization cannot and
unattainable, use of digital signals can help indicate the should not count, the very issue of ‘unfamiliarity,’ war-
overall standing of an organization relative to other rants reporting.
players.
Being Known For Something
Visibility
Organizations are not merely ‘known’ they are ‘known for
Visibility, simply put, represents how many people are something,’ a fact that is captured in this dimension of
talking about an organization. It is the exposure an orga- CRRF. Collectively, the six components of this dimension
nization gains via mentions by customers, media, third assess the stable cognitive reputations built over long term
parties, and the public. Calculating visibility in the offline by stakeholders objectively observing various issues rela-
world is difficult. However, visibility in online terms ted to an organization. Below, each of the components is
translates to eWOM, UGC, and third-party aided PR. It is explained in detail.
the ‘earned media’ over which organizations have no
control. This type of media can easily be monitored and Reputation Matrix
quantified using numerous software solutions. Some of the
leading vendors for visibility tracking are Brand24, Cision, A reputation matrix (Table 1) consists of two axes: (1)
Meltwater, Mention, and Trendkite. stakeholder groups (S) (examples: customers, employees,

Table 1 Reputation matrix


Stakeholder group 1 Stakeholder group 2 Stakeholder group 3

Issue 1 I1.S1 I1.S2 I1.S3


Issue 2 I2.S1 I2.S2 I2.S3
Issue 3 I3.S1 I3.S2 I3.S3
S. Khan, J. Digout

and investors), and (2) issues (I) (examples: product Priority Matrices
quality, workplace, and financial performance). The matrix
indicates the averaged perceptions within each stakeholder The priority matrices (Table 2) represent (1) the impor-
group for the corresponding issues. Each issue is indicated tance of issues to stakeholders, (2) stakeholder group sig-
by multi-item (indicator) scales. For example, the work- nificance in an industry and (3) stakeholder group
place issue utilizes two items: (1) fairness of employee importance to an organization. It is likely that different
treatment, and (2) quality of work environment. The cre- stakeholder groups give different importance to various
ation of such a matrix involves a 2-step process: landscape issues, as explained earlier. For example, the workplace
setup and surveys. quality issue is of high importance to the employee
To set up the landscape for a CR study, the following stakeholder group, and of low-to-average importance to the
must be established: (1) stakeholder groups being investi- customers. Similarly, it is also likely that in a specific
gated, (2) issues being examined, and (3) scales being used sector, some stakeholder groups are more important than
to measure various issues. The CR construct, the variety of others. For example, tobacco companies ascribe more
stakeholders, the range of issues, and suitability of mea- weight to the perceptions of customers than of the general
surement scales varies across contexts (Greyser 1999; Ali public. Thus a method is needed to ensure that priorities—
et al. 2015; Tetrault Sirsly and Lvina 2016). The RepTrakÒ both of issues and of stakeholders—can be mathematically
model measuring seven issues, using a total of 23 indicators, captured in the proposed framework.
serves as an excellent base for CRRF. However, in some Two preliminary surveys would be required to create
cases, another set of indicators may be better suited for the such matrices. First, a sample from each stakeholder group
context. For example, Wepener and Boshoff (2015) present must be surveyed to identify the importance given to var-
a customer based reputation scale created for large service ious issues by the respective group. For the second part,
organizations. CRRF is a flexible framework—independent researchers should reach out to industry observers and
of scales, amply supporting necessary customization for experts, enquiring the importance of the identified stake-
better application of CR analysis, as prescribed by Walsh holders to the organizations in an industry (PE). In the
et al. (2015). proposed framework, priorities shall be ranked on a scale
To fill values in the reputation matrix, surveys must be of 1–3, representing declining priority. Additionally, if the
carried out across stakeholder groups. The indicators used to CR study is being conducted for the use of a particular
measure various issues must be bipolar, that is, a scale ranging organization’s management, the matrix can also be used to
from negative to positive. The possible values for each identify the prioritization of stakeholders by that organi-
response in the issue indicators must include 1 for favorable zation (PO). Once priorities are captured, the data collected
reputation, 0 for neutral, and -1 for unfavorable reputation. in the reputation matrix component should be adjusted to
For example: to measure workplace quality, the following the weighting scheme, to derive stakeholder-specific and
item, ‘‘the organization treats and rewards employees fairly,’’ issue-specific reputation aggregates.
must be supplied with these responses: (1) agree—value 1, (2)
neutral—value 0, and (3) disagree—value -1. Thus, a net- Stakeholder-Specific Reputations
positive score would indicate favorable reputation in a cate-
gory, a score of 0 would indicate neutrality of reputation, and To determine the reputation of an organization within a
a net-negative score across a stakeholder group would indi- particular stakeholder group, it is crucial to combine the
cate unfavorable reputation for that issue. reputation ratings assigned to the organization by respon-
dents from that stakeholder group. As explained earlier in
the paper, stakeholders are focused on different issues
based on their interests and nature of relationship with the

Table 2 Priority matrices


Stakeholder group 1 Stakeholder group 2 Stakeholder group 3

Issue priority for stakeholder group


Issue 1 IP1.S1 IP1.S2 IP1.S3
Issue 2 IP2.S1 IP2.S2 IP2.S3
Issue 3 IP3.S1 IP3.S2 IP3.S3
Stakeholder group priority
According to industry experts (PE) PE.S1 PE.S2 PE.S3
According to organization (PO) PO.S1 PO.S2 PO.S3
The Corporate Reputation Reporting Framework (CRRF)

organization. This renders it necessary to measure the (3) quality of service, and (4) social media presence. Each of
stakeholder-specific reputations by adjusting for priorities. these categories makes a discrete contribution to the con-
Stakeholder-specific reputations constitute columns struct of organizational e-reputation. However, as identified
appearing in the reputation matrix where each value is the by the developers of the scale, the e-reputation science is in
rating given to the organization by the specific group of infancy, and much conceptual development is required to
stakeholders, for the corresponding issue. These values are cover this aspect of CR appropriately.
multiplied by the respective weighting figure in Table 2 to
yield an adjusted score. This adjusted score is the stake- Comparisons
holder-specific weighted aggregate.
Stakeholder Group 1 Specific Reputation Reputation statements being normative are expressions of
Pn implicit evaluations relative to something. Companies are
ðIi:S1Þ  ðIPi:S1Þ
¼ i¼1Pn not known for something in a vacuum. When organizations
i¼1 ðIPi:S1Þ
come to be known, the cognitive knowledge is structured in
Such an approach facilitates the aggregation of internal, the form of specific comparisons.
external, and overall CR ratings. The weighting mechanism Consider the hypothetical example illustrated in
aided by reputation matrix and priority matrices estab- Table 3. Delta Air Lines is a legacy carrier based in the
lishes a significant progress over methods that eschew the United States. Although its customers will compare it with
use of weighting. other local legacy carriers like American Airlines and
United Airlines, the general public may weigh the value
Issue-Specific Reputations offering of Delta against low-cost carriers; Southwest
Airlines and JetBlue. The media might compare the com-
What is the reputation of an organization for a specific pany with top foreign players like Singapore Airlines and
issue? To answer this, CRRF proposes computation of is- Qatar Airways. Employees such as aircraft mechanics and
sue-specific reputations that are similar in structure to the technicians working at the airline will understandably
stakeholder-specific reputations discussed above. Issue- compare the organization with alternative employers of
specific aggregates constitute rows appearing in the repu- their occupation; example: Boeing, an aircraft manufac-
tation matrix. The weighted importance of the corre- turer, or Netjets—a charter airline. The investors evaluate
sponding stakeholders to the organization is listed in the the performance of Delta against better-performing stocks
priority matrices (Table 2). Using the same weighted from the transport sector that can strengthen financial
averaging technique as of the previous component, CR portfolios. These benchmarks can range from FedEx—a
aggregate scores specific to particular issues are obtained. freighter, to Union Pacific—a rail transportation company.
Pn An explanation of comparisons is, therefore, crucial for
ðI1:SiÞ  ðPE:SiÞ
Issue 1 Specific Reputation ¼ i¼1Pn any CR report. Surveys can be employed to reveal infor-
i¼1 ðPE:SiÞ
mation about which entities do stakeholder groups compare
an organization with. Delivering these insights along with
e-Reputation other measures puts stakeholder-specific reputations into
better contextual perspective.
As explained earlier, Ce-R is functionally distinct from
brick-and-mortar CR, and hence, is treated as a separate
component in the CRRF. For e-reputation, all stakeholders Generalized Favorability
are surveyed as one group, although the same bipolar scale
(ranging from -1 to 1) is maintained. Ce-R can be measured This dimension represents affective reputations, formed on
using the four-item scale provided by Dutot and Castellano individual experiences, emotions, and feelings. Unlike the
(2015): (1) online brand characteristics, (2) website quality, stable cognitive counterparts of the second dimension, the

Table 3 Hypothetical
Which company do you compare Delta Air Lines with?
comparison table
Investors FedEx Corporation (Air freight)/Union Pacific (Rail transport)
Employees Boeing (Aircraft manufacturer)/Netjets (Charter airline)
Customers American Airlines/United Airlines (Legacy carriers)
Public Southwest Airlines/JetBlue (Low-cost carriers)
Media Singapore Airlines/Qatar Airways
S. Khan, J. Digout

elements of this dimension are very volatile, as the moods into stakeholder opinions about an organization, the scores
of stakeholders drive these. The first component of this are calculated through a process of online text mining,
dimension, favorability scores, relies on data from surveys, analyzing, and machine learning. This science is develop-
while sentiment analysis is done using big data from the ing rapidly and is already being widely adopted by cor-
internet. porations seeking to ascertain their digital presence.
Currently, the function is best powered by BrandsEye,
Favorability Scores Brandwatch, Crimson Hexagon, Digimind, Synthesio, and
Talkwalker. The artificial intelligence technology—Wat-
One of the two definitions used as a base for this study son, being developed by IBM, also holds immense promise
presented CR as a generalized favorability associated with for this area of CR measurement.
an organization. Going by the definition of Dowling (2016),
overall favorability can be calculated on two indicators:
admiration and respect. Another scale that can guide the Conclusion
measurement of this component is one proposed by Ponzi
et al. (2011), using four indicators: (1) feeling, (2) admira- The value of this normative-integrated CRRF is the gen-
tion and respect, (3) trust, and (4) esteem. The choice of eralizability and multi-dimensionality. The structure is
scale to be employed is at the researcher’s discretion. firmly rooted in theory, and broadly applicable. The main
CRRF does however assert the condition of (1) using a implication for practice is that firms should take a well-
bipolar scale (-1 to 1) for this score, and (2) measuring the balanced long-term view of CR. Also, the reputation
scores separately across stakeholder groups; just as in the matrix enables organizations to systematically and cate-
other framework items. For ease of presentation, the radar gorically analyze the CR, based on stakeholder-specific and
chart presented in Fig. 4 demonstrates how this component issue-specific perspectives; which bear historical repre-
is conveyed visually. It depicts the favorability scores for sentation, as well as predictive power. The framework also
each stakeholder, from -1 to 1. The dark shade on the 0 accommodates ‘affective’ reputations in the form of fa-
grid marks neutrality of reputation, between the favorable vorability scores. Moreover, CRRF is elastic, facilitating
and unfavorable extremes. customization per context, and is made progressive through
the inclusion of digital signals of CR insights.
Sentiment Analysis The authors acknowledge the limitation of the study and
identify an avenue for future research based on each
Sentiment analysis captures the short-term mood and shortcoming. First, this framework describes in detail ‘what
qualitative aspects of Ce-R. Information regarding per- to report and why’ without concentrating much on the
ceptions related to an organization resides on the Internet, question of ‘how to capture relevant signals.’ More
in blog posts, reviews, social media chatter, discussion research is needed to expand on scientific methods for
boards, forums, and so on. This large data set spread across computing each of the KPIs. Additionally, there is a need
the web is big data for CR. Sentiment analysis is the pro- to create a comprehensive list of possible stakeholders,
cess of determining the feelings and overall contextual issues, and indicators to be included in the landscape, in a
polarity in a text. For the purpose of generating insights variety of contexts. Lastly, this study only proposes a short
list of software to capture digital signals. Future research is
Favorability Scores Radar encouraged to operationalize this framework and report on
Investors the applicability of different tools and software to perform
0.83 the necessary tasks for CR report generation. Big data, data
sciences, and machine learning can also be availed to
develop a broad range of semi-automated real-time visu-
alization dashboards for CRRF. Academic progression in
Public Customers this direction will guide the development of related soft-
-0.41 0.36
ware technologies and enhance the CR science reflexively.

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corporate reputations. Corporate Reputation Review 1 (2): Salman Khan is an Online Marketing Certified Professional
188–194. https://doi.org/10.1057/palgrave.crr.1540042. (OMCP), holding a marketing specialized Bachelor, Master, and
Rindova, V.P., et al. 2005. Being good or being known: An empirical Doctorate in Business Administration. He has years of professional
examination of the dimensions, antecedents, and consequences experience in branding, communications, and marketing (B2B and
of organizational reputation. Academy of Management Journal B2C) contexts. He teaches marketing courses and currently pursues
The Corporate Reputation Reporting Framework (CRRF)

research in the area of corporate reputation. His other areas of interest He has a significant record of publishing articles, books, and
include data sciences, opinion mining, and strategic management. delivering conference speeches on various disciplines of business,
including marketing, corporate reputation, e-business, communica-
Jacques Digout is a professor, and director of various masters and tion, among others. His published work in English, French, and
doctorate programs at Toulouse Business School, overseeing aca- Spanish, includes significant contributions to e-reputation.
demic operations at various branches of the school across the globe.

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