Good Corporate Reputation Research Articles

‘Radiomarathon’ in the Guinness World of Records: A tool for building a strong corporate reputation through corporate social responsibility

Is it in corporations' long‐term interests to exceed their social and environmental obligations and deliver a superior ethical performance? This is one of the key questions raised in the debate launched by the European Commission's green paper last year regarding the concept of corporate social responsibility (CSR). It is clear that the commercial world must rise to the challenge of building the confidence and trust demanded by stakeholders worldwide. There is a broad consensus on the need for businesses to take the social, economic, and environmental impact of their actions — the ‘triple bottom line’ — into account. Businesses are an integral part of the society (local and international) and they have to consider the impact their behaviour has on it. Many businesses highlight the links between CSR and their wider sustainable development agenda. Corporate reputation or image depends on how the company conducts or is perceived as conducting its business. Today the ability to build a sustainable corporate reputation is more important than ever before as stakeholders are more educated, more knowledgeable, and more demanding. The Cyprus Popular Bank, the second largest banking organisation in Cyprus, has developed and launched ‘Radiomarathon’ in support of children with special needs, which has won a place in the Guinness World of Records as the most successful charitable event in the world on the basis of per capita contribution, and was chosen among the top five charity events worldwide by the Chartered Institute of Bankers for 2003. Radiomarathon has been used in order to build a strong corporate identity and corporate reputation: “With the Radiomarathon we have hit a vein of gold…our corporate reputation is stronger than ever before! In such a turbulent climate, a positive corporate reputation can play a vital role in ensuring that the organisation is on a solid footing. ” (Yiannos Pissourios, Cyprus Popular Bank). The bank realised the importance and need for corporate social responsibility in their efforts to build a good corporate reputation and achieve competitive differentiation.

Is It All A Question of Reputation? The Role of Branch Identity (The Case of an Oil Company)

This paper aims to demonstrate that a good corporate reputation in itself does not ensure the successful introduction of a new product or brand when it is a case of brand extension. In this paper, it is argued that good corporate reputation is not a decisive factor in the consumer's perception of a product, if the product does not match the company's identity. The paper introduces a concept of ‘branch identity’, which can be seen as a preliminary condition for building corporate identity. The findings presented in this paper are based upon the case study of a Slovenian oil company.

Corporate reputation and sustained superior financial performance

AbstractGood corporate reputations are critical because of their potential for value creation, but also because their intangible character makes replication by competing firms considerably more difficult. Existing empirical research confirms that there is a positive relationship between reputation and financial performance. This paper complements these findings by showing that firms with relatively good reputations are better able to sustain superior profit outcomes over time. In particular, we undertake an analysis of the relationship between corporate reputation and the dynamics of financial performance using two complementary dynamic models. We also decompose overall reputation into a component that is predicted by previous financial performance, and that which is ‘left over’, and find that each (orthogonal) element supports the persistence of above‐average profits over time. Copyright © 2002 John Wiley & Sons, Ltd.

Do consumers really care about corporate responsibility? Highlighting the attitude—behaviour gap

According to the press at the turn of the year 1999—2000, a good corporate reputation for responsible marketing is a key element in business success. One justification for this is the assumption that consumers are interested in how companies behave and this has an influence upon their consumption behaviour. There is also the suggestion that a financial pay‐off is to be gained from good behaviour. Conflicting reports in previous research cast doubt upon the reliability of these assumptions, and there are few studies which unequivocally support positive consumer purchasing in return for responsible marketing. This paper reviews current opinion and evidence in relation to the growing interest in corporate reputation, and reports findings from focus group research which casts doubt upon the efficacy of corporate reputation in influencing positive consumer purchase behaviour.

Reputation as Reservoir: Buffering Against Loss in Times of Economic Crisis

The premise of this study is that a good reputation serves as an intangible asset which can help protect the organization in times of corporate crisis — in public-relations terms, the ‘reservoir of goodwill’ presumption. Using data from the stock market crashes in 1987 and 1989, this study examined whether companies with better reputations, as measured by Fortune's annual ratings of America's largest corporations, suffered less severe declines in market value. Results show no significant difference between companies with higher and lower reputations in 1987, when the market dropped over 20 per cent in one day. During this crisis, there was a high volume of automated computer trading and a great deal of investor panic which may have precluded rational investment decision making. In 1989, however, when the market took a less severe sudden, unexpected downturn, the stock prices of companies with better reputations dropped significantly less than those of companies not favored with such positive standing. This supports the hypothesis that good corporate reputations provide a reservoir of goodwill which buffers companies from market decline in times of uncertainty and economic turmoil (short of a panic), underscoring the importance of attentive reputation management.

Corporate reputation and perceived risk in professional engineering services

The importance of corporate reputation is widely acknowledged in both contemporary and academic business writings. While reputation is a difficult concept to measure, managers frequently assume a positive relationship between business performance and corporate reputation. The literature avers that from a client’s perspective, a healthy reputation may act as a risk suppresser. In this empirical study, the nature of corporate reputation and risk aversion in professional engineering consultancies is examined. Findings support a three‐dimensional reputation construct, but there is no evidence to suggest that a good corporate reputation reduces clients’ perceived risk. Implications are drawn, limitations noted and directions offered for ongoing research.