THE IMPACT OF CORPORATE REPUTATION ON COMPANY’S PERFORMANCE

Aniuga Chukwuma, Okolo Amaka Nwakego

Abstract


Reputation is a set of collectively held beliefs about a company's ability to satisfy the interest of its various stakeholders. Corporate reputation can be a key contributor to an organization’s success and it can just as easily be a contributing factor to an organization’s failure. This work is a review of empirical studies on corporate reputation with emphasis on how it can help organizations achieve strong competitive advantage, enhance stock market performance as well as performance values on other measures. It reveals that cultivating a strong reputation is a necessary foundation for today’s firms that intend to beat the competition, enhance their market outlook and financial performance as well as sustained existence. The paper also presents corporate reputation as a logical outcome of the quality of corporate governance operated in an organization. It is a critical resource, and indeed a pillar, upon which the quality of an organization’s future can be predicated. The paper concludes that corporate reputation can be a key contributor to an organization’s performance or success and it can be a contributory factor to an organization’s failure.

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References


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