The company’s reputation increasingly surpasses the importance of all other assets. According to a 2019 international research, an average of 35.3 percent of the market capitalization of 1,611 global companies included in the world’s 15 leading stock market indexes could be attributed to corporate reputation, which – expressed in monetary terms – corresponds to a total of 16.77 trillion dollars.
The good reputation of the company significantly contributes to the strengthening of sales revenue and market share, to the recruitment of quality labor, and to the increase of the companies’ competitiveness and market value.
A well-built reputation can also make its impact felt during a market shock: in 2000, when the American stock market index suddenly collapsed, the share prices of companies with stronger reputations fell significantly less than those of others. If the stakeholders (consumers, shareholders and investors, own employees, regulatory and supervisory organizations, business partners, etc.) value a company highly, it is usually more difficult for them to change their opinion, and they give less credence to negative news about it.
A favorable reputation can therefore be compared to an insurance policy that can help the company when some unexpected event occurs.
In the case of global brands, we have already seen many examples of how they were able to overcome crises with serious financial damage relatively quickly, in which the corporate reputation built up over the years also played a major role.
The aim of the first Hungarian research of its kind is to assess and compare with the results of international research, how do domestic company managers evaluate the reputation of their own company, how and to what extent does reputation influence the market value of their company, what advantages do they associate with a strong corporate reputation, and how do they manage it? Filling out the questionnaire takes approx. 6-8 minuteswe are waiting for the answers until April 6, 2023!
The questionnaire By clicking here is available.
Cover image: Getty Images
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