Reputation Quotient: Measuring the Reputation of Business Firms

Introduction:

In new era every organization wants to build good repute to gain competitive advantage. An innovative idea, a charming business plan, and good strategies are mean less if a company does not have remarkable repute in the eyes of customers, employees, and organization’s current and potential investors. Employees prefer to work in high reputed organizations, investors also prefer good reputed firms. A good corporate reputation shows people’s confidence to do business with company and to help company in recession also. Some organizations are able to manage their good repute but many are failed to do so. Charles J. Fombrun director of reputation institute developed “Reputation Quotient” that used to measure the reputation of the firms. “Reputation Quotient” measure company’s repute on the basis of following six key elements: “ emotional appeal, product and services, financial performance, vision and leadership, and workplace environment and social responsibility”.

Many researchers have developed positive relation between corporate social responsibility and firm’s corporate reputation. (Fombrun, 2005) says companies are engaged in CSR activities because of extrinsic motivation by its corporate reputation. (Maidnan & Ferrel, 2001) categorized CSR practices of organization as follows: legal, ethical, and discretionary (philanthropic). Most companies adopted the four principles of CSR known as: economic CSR, ethical CSR, legal CSR, and philanthropic CSR (Carroll, 2000).

Economic responsibility of organizations is gaining importance due to extensive global competition. It is not good for a good corporate behavior that an organization focus on making profit. Good corporate organizations’ investors earn high return on the...

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