Reputation increases the actual worth of the company and increases its market value , but most organization does not understand the real value of reputation.
Companies need to measure, monitor and manage their reputation to be successful on a long term basis. Most organization does not take initiative to manage reputation because they consider it as an intangible asset. Like any other asset of the company, reputation has its liability side. So the reputation management implemented by a company has to evaluate both the reputation assets and the liabilities. According to Doorley (2007,pg.11)“The very act of having to list their reputational assets and liabilities helps the various units focus on reputation management”. It is extremely important for an organization to have a plan regarding the reputation management. A comprehensive reputation management plan is to be applied to all areas of an organization like finance, human resources, manufacturing, marketing, investor relations and public affairs.
Definition of Reputation
Reputation is the main identity of an organization on international business platform and to maintain it, a company need to have an ideal reputation management system. A reputation can be defined as the opinion or view of other’s about something. According to Chang“Abdul Rahman and Hailes defined reputation as an expectation about an agent’s behavior based on information about or its past behavior”. ...