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Reputation, Stock Price, and You: Why the Market Rewards Some Companies and Punishes Others by Dr. Nir Kossovsky

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Employees

Lose money for the firm, and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless.

—Warren Buffet to his employees1

On or about 13 April 2009, in a small Domino’s Pizza franchise in North Carolina, two employees uploaded a two-minute prank video to YouTube of the duo offensively tampering with the food they were preparing. Within a few days, the power and reach of social media triggered more than a million views on YouTube and a “viral” spread of the subject on Twitter. No surprise that a Google Trends report showing a 50% increase in searches for “Domino’s Pizza” was not accompanied by a surge ...

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