Strong Corporate Reputation Research Articles

Overcoming the Challenges Faced by Leaders of Purpose-Led Medium-Sized Businesses: The Role of Corporate Communication and its Interplay with Corporate Reputation and Organisational Identity

AbstractInduced by worsening environmental conditions, pursuing purpose, not solely profit, now constitutes an ethical obligation for leaders of business organisations, towards future generations. Consequently, increasing numbers of businesses seek to become purpose-led (PLBs), but challenges exist. Despite the significant growth in PLB research since the turn of the millennium, attention has mainly focussed on multinational companies, although small- and medium-sized businesses (MSBs) hugely impact any economy. This research sets out to better understand the challenges faced by leaders of companies undergoing purpose-led MSB transitioning. Thematic analysis of the interview data from founders and leaders of B-Corp certified purpose-led MSBs revealed six specific challenges consistent with literature findings, but also provided uniquely useful insights from the leaders’ perspectives. Integrated business strategies or solutions, which meet multiple challenges simultaneously, revolve around a strong corporate reputation and organisational identity driven by corporate communication. Corporate communication engages stakeholders, builds trust, reinforces reputation, and serves as a strategic intervention for differentiating purpose-led MSBs in the marketplace, shaping organisational identity. Overall, the work provides leaders of MSBs with a practical guide for navigating their challenges and developing leadership practices to enable purpose-led transformations.

How does corporate social responsibility affect firm leverage?

PurposeA commitment to social responsibility is indispensable to the sustainable development of a firm, and corporate social responsibility (CSR) has become a key corporate evaluation indicator. CSR's economic consequences have long been a hot topic in academic research. The authors analyze the relationship between CSR and corporate capital structure and also investigate channels through which such links are transmitted.Design/methodology/approachUsing CSR score (CSRS) data published by China's Hexun (hexun.com) from 2010 to 2018, the authors control some influencing variables of the nature and characteristics of enterprises and discover that CSR can effectively improve firm leverage using ordinary least square regression. In addition, the research results remain robust for other CSR proxies, different dimensions of CSR, alternative measures of leverage and endogenous testing.FindingsThe authors discover that CSR can significantly reduce firm leverage. In addition, the research results confirm that investor attention and liquidity are the main channels by which CSR effectively reduces leverage, and other influence channels are worthy of further exploration. After examining the substitution variables and endogenous characteristics of CSR, the results remain robust.Originality/valueRegarding decision-making and governance within companies, the authors conclude that CSR reports not only announce the status of CSR activities to corporate stakeholders but also reveal information on corporate financial decisions. Considering the widespread agency problems in companies, management may take advantage of investor understanding of CSR reports and conceal real information or disclose false information. They distort investors' understanding of the financial policies of financial reports to achieve their self-interests. Hence, companies must reinforce their governance and construct comprehensive monitoring mechanisms for CSR disclosure to protect their investors, establish a strong corporate reputation and facilitate long-term development.

The Role of Distinctive Organization Capability and Corporate Reputation in Formulating Co-Creation Strategy in the Age of Industry 4.0: Study on Indonesian Telecommunication Firms

This paper aims to provide the effects of corporate reputation and distinctive organizational capability in formulating co-creation strategy for incumbent firm in facing industry resolution 4.0. A co-creation strategy is critical to sustain the business in anticipating new entries that convey the new business model. The study focuses on incumbent telecommunication companies since the telecommunication industry, while the incumbent has strong corporate reputation and organization capability. Those both capabilities is required to become a distinctive capability to provide strong core competence among others. This study is a quantitative study that was conducted with 35 firms were used as a sample in the study as exploring the model. The analytical approach and the solution technique used is the Smart Partial Least Square (SmartPLS). The results of the study demonstrated that corporate reputation and distinctive operational capability influence co-creation strategy, while corporate reputation has a bigger role than distinctive capability in building co-creation strategy. These findings have practical implications for the management of the telecommunications industry in Indonesia, as the development of a co-creation strategy requires to be based on the development of corporate reputation with the support of the development of distinctive operational capability. Further research can be explored by expanding the sample, industry and in other countries. The study can also expand into a longitudinal study as part of the digital transformational model.

Stakeholders, actores estratégicos en la construcción de marca

Los stakeholders, o grupos de interés, son cada día más importantes para la construcción de marca, especialmente por la necesidad de generar una comunicación diferenciada de parte de la empresa, la cual debe demostrar una identidad sólida, que genere procesos de creación de una correcta imagen y una reputación corporativa fuerte. En este aspecto, este artículo responde a una necesidad prioritaria: conocer los grupos de interés para la creación de estrategias de construcción de marca, incluso a partir de herramientas de actualidad como el marketing experiencial. Para esto se realizó una revisión teórica de autores reconocidos en el campo de la marca, la comunicación corporativa y el marketing, a través de bases de datos especializadas, donde se tuvieron en cuenta textos académicos, investigaciones y artículos científicos. Luego de tener estos insumos, se desarrollaron temáticas relevantes para el estudio de los stakeholders y su relación con la comunicación de las empresas. Esto permitió realizar un análisis detallado de los intangibles de la empresa, lo que aporta a la generación de conocimiento útil para el área del branding. Las principales conclusiones giran en torno a la relevancia que tienen los stakeholders en la gestión de la identidad de la marca, con miras a la generación de una correcta imagen y reputación corporativa. Este asunto es clave en la comunicación de cualquier empresa, debido a que en la actualidad el manejo adecuado de los intangibles es la clave del éxito empresarial y de un buen vínculo con los diferentes stakeholders.

BORSA İSTANBUL KURUMSAL YÖNETİM ENDEKSİNDEKİ ŞİRKETLERİN WEB TABANLI YATIRIMCI İLİŞKİLERİ YÖNETİMİ ETKİNLİKLERİNİN BORSA İSTANBUL 100 ENDEKSİNDEKİ ŞİRKETLER ARASINDAKİ KONUMU

İletişim teknolojilerinin ve doğru, eksiksiz ve zamanında bilgiye ulaşmanın öneminin hızla arttığı günümüzde işletmeler açısından, yatırımcılarla kurulan iletişim çerçevesinde web tabanlı yatırımcı ilişkileri yönetimi oldukça önemli bir noktaya gelmiştir. Web tabanlı yatırımcı ilişkileri yönetiminin doğru bir şekilde yapılması, direkt olarak kurumsal itibar oluşturma ve geliştirmede, dolaylı olarak ise piyasa değeri yükseltmede işletmelere ciddi kazanımlar gerçekleştirmektedir. Borsa İstanbul’da işlem gören şirketlerden Kurumsal Yönetim ve BİST 100 endeksine dahil olan şirketlerin, web tabanlı yatırımcı ilişkileri konusunda diğer şirketlere göre daha başarılı oldukları öngörülmektedir. Bu bağlamda, araştırmanın kapsamını, Kurumsal Yönetim Endeksi şirketlerinin web tabanlı yatırımcı ilişkileri yönetimi uygulamaları, kurumsal yönetim derecelendirme puanları ve bunların Borsa İstanbul BİST 100 endeksindeki şirketlerle karşılaştırmaları oluşturmaktadır. Araştırma kapsamındaki veriler iki aşamada toplanmıştır. Veriler; şirketlerin web tabanlı yatırımcı ilişkileri yönetimi için Türkiye Yatırımcı İlişkileri Derneği’nin hazırladığı Skor Kart çalışmasından, Kurumsal Yönetim Derecelendirme Notları için ise derecelendirme şirketlerinin değerlendirdiği notlardan elde edilmiştir.

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

In today’s connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to shareholders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies’ customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring. Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it.

Corporate Reputation Effects Across Nations: The Impact of Country Distances and Firm-Specific Resources

CEOs are responsible for the development of a strong corporate reputation, which is increasingly used by multinational corporations as an important differentiation criterion in foreign markets. Because the effects of an often centrally managed but locally perceived reputation are likely to vary between countries, this study analyzes the moderating role of institutional distance and firm-specific resources on reputation effects in the chemical and pharmaceutical industry, two important aspects that have not been considered in consumer-centered corporate reputation research so far. The authors refer to signaling theory—advanced by institutional and resource-based thinking—and use data from 29,987 consumer evaluations of a multinational corporation in 43 countries. The results of the multilevel models indicate that distance between home and host countries weakens reputation effects on both consumer loyalty and trust, whereas firm-specific resources reinforce these effects. In particular, country experience and cultural-cognitive distance are important when managing reputations across nations because they explain high amounts of country-level variance.

A stakeholder approach to corporate social responsibility, reputation and business performance

Purpose– This paper aims to investigate business managers’ assessment of stakeholders’ influence on corporate social responsibility (CSR) initiatives. The key stakeholders included “employees” and “unions” as internal and “public”, the “media” and the “government” as external stakeholders. The purpose was to estimate the influence of stakeholders that managers perceive as important. Moreover, the study sought to identify association between the CSR construct and corporate reputation and in turn whether this influences business performance.Design/methodology/approach– This study uses a mail survey with a random sampling of senior managers sourced from Dun & Bradstreet’s Australian business database, focusing on large organizations (i.e. minimum $10 million p.a. reported sales and minimum 100 employees) as the selection criteria. A conceptual model was developed and tested using structural equation modeling.Findings– The results identified that “employees” and the “public” are perceived to be the influential stakeholder groups in CSR decision-making. There was evidence of a positive relationship between the CSR construct and reputation, which in turn influenced market share, but not profitability.Research limitations/implications– This study examined a cross-section of organizations using Dun & Bradstreet’s database of Australian businesses and may not fully represent the Australian business mix. The effective response rate of 7.2 per cent appears to be low, even though it is comparable with other research in the CSR area. There may have been some self-selection by the respondents, although there were no statistically significant differences identified in the corporate characteristics of those invited to participate and those responding with usable questionnaires.Practical implications– Managers can adopt a stakeholder-influenced CSR strategy to generate strong corporate reputation to improve business performance. It is important to ensure that the interests of “employees” and “public” stakeholders are addressed within organizational strategy. Respondents were less concerned about government stakeholders and thus government involvement in organizational CSR may need to be revisited.Social implications– The major concern that emerges from these findings is the absence of the perceived importance of regulatory stakeholders on firms’ CSR activities. Regulatory controls of CSR messages could reduce or eliminate inaccurate and misleading information to the public.Originality/value– The analysis explains the perceived relative influence of stakeholders on CSR decisions. It also provides an understanding of the link between organizational CSR reputation and organization’s performance.

Hard times matter: The impact of stakeholder orientation on reputation and the role of market risk

Intangibles, such as corporate reputation, are increasingly considered the major source for value creation and company success. Given the importance of having a strong corporate reputation, new strategic and operational approaches are emerging to manage it. In this context, stakeholder orientation is at the forefront of reputation management. Relying on extensive data over a period of six years, this study theoretically develops and empirically tests the relationship between stakeholder orientation through CSR disclosure and corporate reputation. The dataset includes 249 US firms belonging to the S&P 500 over the years 2004-2009. Results show that the sign of the relationship is positive and statistically significant, supporting the view that a stakeholder-oriented disclosure strategy can be associated with a series of bottom-line benefits such as an improvement in corporate reputation. Instead complexity, uncertainty and dynamism in the business environment make the positive relationship between stakeholder orientation and corporate reputation weaker.

Stakeholder Orientation and Corporate Reputation: A Quantitative Study on US Companies

Intangibles, such as corporate reputation, are increasingly considered the major source for value creation and company success. Given the importance of having a strong corporate reputation, new strategic and operational approaches are emerging to manage it, such as stakeholder-based practices. Relying on extensive data over a period of six years, this study develops and tests the relationship between stakeholder orientation and corporate reputation. Results show that the sign of the relationship is positive and statistically significant, supporting the view that a stakeholder-oriented disclosure strategy can be associated with a series of bottom-line benefits such as an improvement in corporate reputation.

The Reputation Effects of Stakeholder Orientation and the Moderating Role of Market Risk

Intangibles, such as corporate reputation, are increasingly considered the major source for value creation and company success. Given the importance of having a strong corporate reputation, new str...

Linking stakeholders and corporate reputation towards corporate sustainability

The purpose of this paper is to understand the interdependence of corporate reputation within the sphere of stakeholder management with the goal of achieving corporate sustainability. The paper investigates literatures in corporate sustainability, stakeholder management, social marketing, corporate communication, and reputation management in order to build a new framework. This study suggests that building and managing stakeholder relationships solidly can assist business organisations to become more sustainable, and solidifying a strong corporate reputation by utilising corporate communications, public relations, and social marketing as practices and as discipline can also contribute to corporate sustainability. This paper provides a new approach to link stakeholders and corporate reputation towards corporate sustainability.

Reputation risk management for airports: A case study of TAV airports holding

Reputation is one of the most valuable assets of an organization, its entire survival could be based on its good reputation achieved for one or many of its attributes such as quality, price, reliability, and environmental friendliness amongst others. Global companies are investing substantial resources to manage their reputation risk. They do so by integrating reputation risk management into their overall enterprise risk management practice. Strong corporate reputation can provide important benefits such as higher market and shareholder value and market position strengthening. Furthermore, a strong positive reputation permits companies to charge higher prices for their services; it helps attract top talent, and can lead to stronger sales and improved market position vis-a-vis competition. Reputation risk should be managed throughout the organization. This paper is an effort to develop the concept thorough its application to airport management and more specifically to the case of TAV Airport Holdings. Key words: Airport business, civil aviation management, enterprise risk management, management and strategy, reputation, risk, sustainability.

‘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.

Advancing and enhancing corporate reputation

This article describes corporate reputation as it pertains to corporate practice. Key areas treated are worldwide executive opinion on their ability to affect corporate reputation; three specific strategic benefits and goals of strong corporate reputation (preference in doing business with a company when products/services are similar, support for a company in time of controversy, and company value in the financial marketplace); the six key factors that drive corporate reputation; examples of how these drivers vary in importance in different countries, in different industries in the same country, and in the context of the three different goals; and illustrations of how company behaviour, relative to public expectations, can erode corporate reputation. Credibility is cited as the central link between company behaviour and public confidence, also encompassing the “promise/performance gap” between consumer expectations and product/service delivery.