 How important is the reputation of a business?

Reputation according to Darcy Buxton (2023) is the collective perceptions of the company’s
past inter-action and the expectation regarding its future endeavors. A good business
reputation is important for potential consumers since it indicates trustworthiness and honesty.
Customers are willing to pay more when they do business with companies that have built up
strong reputations, which in turn helps attract talented employees (Darcy Buxton, Updated
April 17, 2023).

So, the reputation of a business can either builds it or destroy the business. While Robert G.
et al (2007) make us to understand that firms with strong positive reputations attract better
people, provide more values, allow the firms to charge a premium and their customers are
more loyal and buy broader ranges of products and services (Robert G. Eccles, Scott C.
Newquist, and Roland Schatz, February 2007).

 How important is a CEO's reputation to the reputation of the

business itself?

A CEO’s reputation according to Reputation 911.com (2023) can affect the bottom-line
performance of a company. The role of a CEO is so pivotal, and because of that, their
personal image should be very closely monitored and a slight mistake can put the company in
a great danger. CEO’s reputation is very important in that they are considered key factor in
shareholder value and the slightest mishap will put the company in danger and their positive
reputation will lead to a great performance of the company (Reputation 911, updated on April
16, 2023)

According to Migs Bassig, (2022) CEO reputation management is an important part of

protecting your business, your brand, and your chief executive and organization’s legacy. So,
CEO’s reputation is important because it helps to build your company’s reputation. (Migs
Bassig, 2023).

 Is it better to have the reputation of being powerful or of

being fair? For example, do you want to be insured by a
company that always wins, or by an insurance company that
is willing to allow the benefit of any doubt?
I think it is better to have the reputation of being fair than being powerful. Ron Meyer (2023),
defines fairness as the quality of behaving in a reasonable and just manner, that is treating
others the right way. Also, being fair is the high road to leadership influence, being
reasonable and just builds people’s trust in the leader and makes them willing to let
themselves be swayed (Ron Meyer, May 23, 2023).
While power according to Erin Eatough (2021), is the capacity to make others act or believe
in a certain way. Powerful can be viewed both negative and positive trait depending on the
way it is used and people that wield power could be viewed as unjust or corrupt when they
use their personal power to achieve unscrupulous goals or when using it to manipulate their
subordinate or smaller companies (Erin Eatough, PhD, October 5, 2021).

 Goodwill is the technical word for the asset of a company being

worth more than the sum of its parts. How would you measure the
Goodwill of a company in dollar figures?

According to Marshall Hargrave (2023), is an intangible asset that is associated with the
purchase of one company by another and represents the value that can give the acquiring
company a competitive advantage. Goodwill is the portion of the purchase price that is higher
than the sum of the net fair of all the assets purchased in the acquisition and the liabilities
assumed in the process. Goodwill is calculated by taking the purchase price of a company and
subtracting the difference between the fair market value of the assets and liabilities (Marshall
Hargrave, Updated March 25, 2023).

 How important is it that an organization demonstrate social

responsibility towards the environment?

According to Akhilesh Ganti (2023), social responsibility means that individuals and
companies must act in the best interests of their environment and society as a whole. Social
responsibility helps to boost company morale, especially when a company can engage
employees with its social causes (Akhilesh Ganti, Updated March 28, 2023).

Elie Collier (2018), explain corporate social responsibility as when a company operates in an
ethical and sustainable way and deals with its environmental and social impacts. That is a
careful consideration of human rights, the community, environment and society in which it
operates.

It is very good for companies to operate in a way that demonstrates social responsibility.
Social responsibility and ethical practices are vital to your success and according to him, the
2015 cone communications | Ebiguity Global CSR study found that a staggering 91% of
global consumers expect businesses to operate responsibly to address social and
environmental issues and 84% says they seek out responsible products wherever possible.
From this statistics, customers are increasingly aware of the importance of social
responsibility and actively seeking products from businesses that operates ethically. This
makes good business sense to operate sustainably (Ellie Collier, January 26, 2018).
  If given the choice, would you opt to invest in a company that is more
likely to generate profits or more likely to respond to shareholder
concerns for fair trade in supply chain dealings? Please explain why.

If given a chance to choose, I would opt to invest in a fair trade in supply chain dealings
which respond to shareholder concern than the company that generate high profit. This is
because fair trade according to Andrew Ancheta (2022), refers to investing in companies or
projects that promote fair trade with producers in developing nations and everyone can
benefit from fair trade practices. The production company can receive the minimum amount
required in order to meet the basic needs of their workers while continuing to operate,
consumers benefit from knowing their products came from an organization dedicated to
treating people well and the worker producing the good is paid a livable wage. Investors will
also benefit through gains on their investment, having the knowledge they are putting their
capital into organizations committed to fair pay and working conditions. This has less risk as
compare to investing in a company that generate high profit (ANDREW ANCHETA,Updated
June 30, 2022)

REFERENCES:

1. Darcy Buxton, (Updated April 17, 2023). Why is a Positive Reputation Important in
Business? https://www.minclaw.com/why-positive-reputation-important-business/
#:~:text=Not%20only%20does%20a%20good,for%20future%20products%20and
%20services.
2. Robert G. Eccles, Scott C. Newquist, and Roland Schatz, (February 2007).Reputation
and Its Risks https://hbr.org/2007/02/reputation-and-its-risks#:~:text=Firms%20with
%20strong%20positive%20reputations,ranges%20of%20products%20and
%20services.
3. Reputation911, (updated on April 16, 2023). Why a CEO’s Reputation is Important
https://reputation911.com/ceo-reputation/
4. Migs Bassig, (November 15, 2022), CEO Reputation Management: Why It Matters
and How to Get Started https://www.reviewtrackers.com/blog/ceo-reputation-
management/#:~:text=CEO%20Reputation%20is%20Linked%20to,based%20on
%20a%20CEO's%20reputation.
5. Ron Meyer, (May 23, 2023 )LEADERSHIP FAIRNESS MODEL
https://www.tias.edu/en/item/leadership-fairness-model#:~:text=Being%20fair%20is
%20the%20high,to%20let%20themselves%20be%20swayed.
6. Erin Eatough, PhD, (October 5, 2021) What is power and how does it affect
workplace dynamics? https://www.betterup.com/blog/what-is-power
7. Marshall Hargrave, (Updated March 25, 2023),Goodwill (Accounting): What It Is,
How It Works, How To Calculate
https://www.investopedia.com/terms/g/goodwill.asp#:~:text=Goodwill%20is
%20calculated%20by%20taking,year%20and%20record%20any%20impairments.
8. Akhilesh Ganti, (Updated March 28, 2023), Social Responsibility in Business:
Meaning, Types, Examples, and Criticism
https://www.investopedia.com/terms/s/socialresponsibility.asp#:~:text=Social
%20responsibility%20benefits%20society%20and,and%20promoting
%20volunteering%2C%20and%20philanthropy.
9. Ellie Collier, (January 26, 2018), The Importance of Corporate Social Responsibility
for Your Business https://www.highspeedtraining.co.uk/hub/importance-of-corporate-
social-responsibility/#:~:text=It's%20incredibly%20important%20that%20your,are
%20vital%20to%20your%20success.
10. ANDREW ANCHETA, (Updated June 30, 2022), Fair Trade Investing
https://www.investopedia.com/terms/f/fair-trade-investing.asp