Corporate Reputation: A Review of Its Importance and The Relation to Business Performance
Corporate Reputation: A Review of Its Importance and The Relation to Business Performance

Summary/Abstract: Within the past decades, the notion of corporate reputation has become mainstream lexicon. In the modern business landscape, described by a growing competitive pressure and in a constant change, companies worldwide are turning the attention towards seeking new ways of gaining a differentiated market positioning. To cope with the new business reality, companies that want to remain relevant in the global marketplace are paying increasing importance to the way they are perceived by different groups of stakeholders. The present research paper builds on the existing literature and postulates that the concept of corporate reputation has experienced a rapid and fundamental transformation. The corporate success is no longer a function of providing a portfolio of products and services of quality, while ensuring a robust financial performance is not any longer the only requirement that companies worldwide are required to meet in order to be held in high regards by stakeholders. In this view, the article provides theoretical support for recognizing reputation as a combinatorial force. The concept of corporate reputation is being transformed to accommodate multiple organizational facets. Nowadays, corporate reputation is driven by multiple business factors such as corporate governance and leadership, social and environmental responsibility, or corporate empathy and the emotional bond. Ultimately, the purpose of this article is to explore and deepen the understanding about the positive impact that holding a favourable reputation in the marketplace has on company's long-term commercial performance.

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