The Market Value of Reputation
6th International Sustainability Leadership Symposium 2005
Swiss Re Centre for Global Dialogue, Switzerland
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Report The Market Value of Reputation |
The Market Value of Reputation
“Recent transgressions in financial markets have underscored the fact that one can hardly overstate the importance of reputation in a market economy.”Alan Greenspan, 16 April 2004
Theme
Is there really a "market value of reputation"? And if so, what are the key drivers of reputation? The main thesis to be discussed at the Symposium 2005 is this: A company's reputation is widely recognised as a relevant driver of corporate market value. It takes systematic efforts and time to be established - but may be lost very quickly and with devastating effects. Reputation is only partially manageable, because it is best understood as the totality of enduring images that major stakeholders form on the basis of perceived company performance and values. Building up reputation therefore has implications not only for an extended notion of risk management, but also for the value system and corporate citizenship approach of a company.