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How to Measure and Manage the Reputation of a Corporation Essay

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A corporation is a form of business that is common in most countries. It is chartered by the state and is given legal rights as an entity that is separate from its owners. Characteristics of corporate are that the business has no liability to its owners. There is the issuance of shares of easily transferable stock, and it exists as a going concern. A business becomes a corporation through incorporation. After the business undergoes the incorporation, it is given legal standing that is different from their own. This legal standing protects the owner from being personally liable in an event that the business is sued. Incorporation also gives companies more flexible ways of managing their own structures (Melo & Garrido‐Morgado, 2012).
According to Freeman (2010), Godfrey, Merrill and Hansen (2009) and Musteen, Datta and Kemmerer (2010), reputation is the opinion about a person, social group and an organization. The opinion is as a result of evaluation of criteria. Reputation happens as a result of the corporate branding in the area of the market. Reputation is seen as a sign of future actions and behavior. It also serves as a pledge that justifies and also promotes the expectations of a principal about the actions of the agent in the field of principal agent theory. Reputation is seen as a form of goodwill in accounting. It is also viewed as a manifestation of the identity of a corporation in the field of organization theory. Finally, reputation is a potential market entry barrier in the field of management. This is because if the corporate reputation of a business is negative, the market value of the business is low and the market entry is low compared to businesses that has a positive corporate reputation (Lange, Lee & Dai 2011). R...


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...0). Reputation as an Intangible Asset: Reflections on Theory and Methods in Two Empirical Studies of Business School Reputations. Journal of Management, 36 (3), 610-619.
Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate Responsibility and Financial Performance: The Role of Intangible Resources. Strategic Management Journal, 31 (5), 463-490.
Walker, K. (2010). A Systematic Review of the Corporate Reputation Literature: Definition, Measurement, and Theory. Corporate Reputation Review, 12 (4), 357-387.



Wisdom At Work (2013). Perception is Reality – Building and Managing Corporate Reputation. Hill+ Knowlton strategies Asia. Retrieved from http://asia.hkstrategies.com/perception-is-reality-building-and-managing-corporate-reputation/
Wood, D. J. (2010). Measuring Corporate Social Performance: A Review. International Journal of Management Reviews, 12 (1), 50-84



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