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Reputation drives company value

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Experts claim that reputation is one of the main drivers of value in companies, calling for it to be reported as an intangible asset. Spencer Fox, MD of the Reputation Institute, says: “All FTSE-100 companies should be acknowledging the yearly change – positive or negative – in their reputations and report accordingly.”

Whilst Garry Honey, Professor at Plymouth University, accepts that the impact of reputation on the bottom line is a value that should be acknowledged: “attempting to give it a monetary value is impossible.”

 It may make sense to report the strength of a company’s reputation, but perhaps FDs should try to define it first, rather than measuring it.

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Posted Aug 2011
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