By Kevin T. Jackson

This sensible consultant finds easy ideas of integrity and equity with which agencies can construct an everlasting attractiveness. the writer outlines some great benefits of a solid acceptance, describes the very important position the firm's chief needs to play, and masses extra.

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Extra info for Building Reputational Capital: Strategies for Integrity and Fair Play That Improve the Bottom Line

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Verschoor, "Principles Build Profits," Management Accounting (October 1997): 42–46. How Reputational Capital Squares with Received Models of the Firm The concept of reputational capital fits nicely into the standard economic models of the corporation. These are: (1) the social institution model; (2) the contractual model; and (3) the stakeholder model. Regardless of which model of the firm we consult, the main idea we arrive at is this: The concept of reputational capital supports the ideal of free-market capitalism, upgraded by a recent value shift toward corporate social and environmental responsibility.

But the output increase enjoyed by the individual firm may extend further: It can increase the productivity of other firms. [12] This downstream effect (or loss, as the case may be) of reputational capital is evident in the collateral damage effect a scandal may have on the credibility of an entire industry, such as the accounting professions in the United States following the imbroglios with Enron, WorldCom, and Arthur Andersen, and, in Europe, in the wake of accounting irregularities disclosed in connection with the Dutch retailer Ahold.

To help clarify matters, let's pull apart two distinct senses of reputation. There is a weak (shallow) sense and a strong (rich, deep) sense. The weak sense of reputation is the one people use when they are really talking about brand and corporate image. " Managers directing their energies toward this sense of reputation set about to directly manage impressions. This is public relations and marketing stuff. All the books on corporate reputation and the current measures of reputation used by analysts, accountants, economists, and marketers deal with this superficial aspect of brand and corporate image.

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