Back in 2007 I blogged about a Businessweek article that shared some interesting research. My post From Madmen to PR’s Holy Grail pointed out the very real and quantifiable impact of reputation on a company’s stock price. Here is an excerpt:
[the article] reported on the growing trend of turning reputation management into a science, and cited research isolating and identifying the specific premium (or drag) that a company’s reputation can add to (or subtract from) its stock price.
That was almost five years ago. Flash forward to my post last week on Social Fluency, which cited a Wall Street Journal article that maintained that corporate crises cause little lasting damage to reputations, stock prices and balance sheets these days.
It is interesting, if you believe it – and I am wondering if things have changed to the extent that reputation matters less, in terms of quantifiable financial impact. Stay tuned to this blog for more on this topic.
Meanwhile, it would be good to know what your thoughts are.
