Chapter 4. From Fame to Fortune


“Not everything that can be counted counts, and not everything that counts can be counted.”


Is there a financial return to companies that develop strong reputations? As we showed in Chapter 2, “What are Reputations Worth?” the general answer to that question is yes—reputation is closely tied to bottom-line returns, so research tells us. Financial performance results because, in line with the reputation value cycle, a good reputation induces supportive behaviors from customers, employees, investors, and the public that improve operating performance and grow market value.

Despite having presented these results in many management forums, however, doubt persists. Senior executives are reluctant to ...

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