2.2 Corporate Reputation Risk
Corporate reputation refers to people’s perception and evaluation of a corporation (Dutton et al., 1994). People’s evaluation of a corporate reputation is based on their communication, experiences with the corporation, and also on the symbolism that reflect the corporate behavior and spirit (Gotsi and Wilson, 2001). Corporate stakeholders make investment, career and purchase decision partly depend on a corporate reputation (Dowling, 1986). Reputation implies company culture, product quality, brand image, jobs, and prospects (Wilson, 1985). Reputation, as an intangible asset to a corporation, can contribute to great financial returns and value (Murray, 2004). Good reputation may help a corporation charge higher price and gain broader access to capital markets (Klein and Leffler, 1981, Milgrom and Roberts, 1986, Beatty and Ritter, 1986).
Reputational risk is now considered the single biggest threat to businesses today (Murray, 2004). The misbehavior or fadedness of the celebrity, company financial fraud, product counterfeiting can all give rise to corporate reputation risk. According to the study of Hollensen and Schimmelpfennig (2013), consumers will associate negative celebrity information with the brand and products endorsed, which will be threat …show more content…
As an historical hero, Lei Feng was a man with noble moral qualities. He was diligent, obedient, and loyal to the Party and Chairman Mao, and determined to serve the people heart and soul. He was loyal to the Motherland and considered himself as a ‘little cog’ in the great socialist machine. In 1963, when Chairman Mao called upon the nation to "learn from Comrade Lei Feng,” the whole nation joined forces to hold him up as national role model. The Lei Feng spirit was also taught to students at school (Reed, 1995). Indeed, Lei Feng is a positive role model. Positive role models can inspire people to strive for excellence (Lockwood and Kunda,
Corporate reputation refers to people’s perception and evaluation of a corporation (Dutton et al., 1994). People’s evaluation of a corporate reputation is based on their communication, experiences with the corporation, and also on the symbolism that reflect the corporate behavior and spirit (Gotsi and Wilson, 2001). Corporate stakeholders make investment, career and purchase decision partly depend on a corporate reputation (Dowling, 1986). Reputation implies company culture, product quality, brand image, jobs, and prospects (Wilson, 1985). Reputation, as an intangible asset to a corporation, can contribute to great financial returns and value (Murray, 2004). Good reputation may help a corporation charge higher price and gain broader access to capital markets (Klein and Leffler, 1981, Milgrom and Roberts, 1986, Beatty and Ritter, 1986).
Reputational risk is now considered the single biggest threat to businesses today (Murray, 2004). The misbehavior or fadedness of the celebrity, company financial fraud, product counterfeiting can all give rise to corporate reputation risk. According to the study of Hollensen and Schimmelpfennig (2013), consumers will associate negative celebrity information with the brand and products endorsed, which will be threat …show more content…
As an historical hero, Lei Feng was a man with noble moral qualities. He was diligent, obedient, and loyal to the Party and Chairman Mao, and determined to serve the people heart and soul. He was loyal to the Motherland and considered himself as a ‘little cog’ in the great socialist machine. In 1963, when Chairman Mao called upon the nation to "learn from Comrade Lei Feng,” the whole nation joined forces to hold him up as national role model. The Lei Feng spirit was also taught to students at school (Reed, 1995). Indeed, Lei Feng is a positive role model. Positive role models can inspire people to strive for excellence (Lockwood and Kunda,