The significance of a company’s reputation is well known. Strongly reputable businesses draw better talent. They can frequently charge more since they are thought to offer better value. Their patrons are more devoted and purchase a wider variety of goods and services. These businesses have better price-earnings multiples, market values, and lower costs of capital because the market expects them to provide sustained earnings and future growth. Organizations are particularly vulnerable to anything that harms their reputations in an economy where 70% to 80% of market value originates from difficult-to-assess intangible assets like brand equity, intellectual capital, and goodwill.
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