Reputation, Stock Price, and You: Why the Market Rewards Some Companies and Punishes Others

Cultural ContextBy Robert C. Brandegee¹

The ability of a company to execute its strategy and bring new products and services to market, are directly linked to a company’s understanding of the social and environmental context in which this happens.

—Aron Cramer²

We have shown how reputation is a consequence of corporate behavior that motivates stakeholders to behave in ways that either reward or punish the corporation. We’ve argued that reputation crises—instances in which markets punish companies—are often consequences of operational failures in one or more of the six business processes that are the pillars of reputation (Table 1-1). The factor ...