The Importance of Reputation and the Role of Public Relations

"Glass china and reputation are easily cracked, but never well mended," Benjamin Franklin declared. Reputation represents organizational past and present performance and portrays the ability to deliver reliable desirable results to various stakeholders. Alternatively, reputation illustrates the perceptual track record of organizations. Reputation is a tremendously important personal and professional success requisite which signified the esteem with which something or someone is perceived by important publics.

Reputation is arguably the single most valued organizational asset. Consequently, a positive and linear relationship exists between reputation and organizational success. Positive reputations facilitate and expedite the business of successful organizations and conversely negative ones damage or destroy individuals and organizations. The Journal of Business Strategy observed that reputable names actually improve business during economic expansion and periods of prosperity while protecting companies during crisis. Proactive reputation management remains universally recognized, responsible and valuable preventive practice.

Reputation Defines Described

Professional reputation definitions might be considered. Stakeholder organizational perception is its reputation, according to one definition. Another declares that organization reputation constitutes collective images perceived by key stakeholders. Another definition maintains that reputation represents accumulated organizational intangible assets including employee dedication, degree of consumer confidence, brand loyalty, management trustworthiness and organizational public image. Reputation depicts evolving images resulting from the confluence of corporate self-definition and occasional redefinition, impression management, and effective relationship maintenance with important stakeholders, also called stakeholder engagement.

Corporate reputation signifies public evaluation of organizational activity. Reputation includes elements of trust, credibility, responsibility and accountability, concluded Sharon Beder. She added that reputation fundamentally concerns public perceptions regarding image, since most people outside of corporate management lack access to full information.

Reputation results from stakeholder and public examination of corporate actions. Consequently corporate reputation management is typically delegated to the CEO. Integrity, ethics, and deeds constitute personal or organizational attributes that typically elicit judgment, and these characteristics collectively comprise reputation.

Some scholars contend that reputation, unlike corporate image, is owned by the public. Reputation is not shaped through corporate advertisements. Positive reputations are created or destroyed through individual or organizational conduct. Reputation manifests perceptions of organizational actions by salient stakeholders.

Six "Dimensions of Corporate Reputation" were discovered by Harris Interactive, including emotional appeal, products and services, financial performance, social responsibility, workplace environment and vision and leadership. Nevertheless, reputation is...