In today’s data-rich environment, marketing communications can track and measure almost everything—from audience engagement to revenue forecasting. Yet, the value of corporate reputation remains one of the most influential, yet intangible, business assets.
A 2019 study attributed roughly one-third of the valuation of companies listed on the world’s top 15 stock markets to corporate reputation. Other estimates, such as a survey of 2,000 executives, placed this figure at over 60%. The exact value depends on numerous factors—sector, geography, stakeholder base—but what’s certain is that reputation now carries more weight than ever.
Why? Because scrutiny is everywhere.
From environmental impact and AI adoption to employee well-being and financial performance, companies are constantly under the microscope. Thanks to the digital age, information—whether accurate or not—spreads faster than ever. With more than 10 billion internet-connected devices worldwide and 82% of the U.S. population using smartphones, the media is no longer confined to newsrooms. Every individual is now a broadcaster, capable of influencing public perception in real time.
Crucially, the importance of reputation often becomes starkly clear only in its absence. When a company’s credibility is compromised—often in the wake of a crisis—significant value can vanish in an instant.
Reputation at Risk: A High-Stakes Example
Take the case of cybersecurity firm CrowdStrike. In July 2024, a software update error caused global outages across industries, affecting an estimated 8.5 million devices. Giants like FedEx, UPS, Sky News, and even the UK’s NHS were impacted. The event, dubbed by some analysts as “the largest IT outage in history,” wiped more than $12 billion off CrowdStrike’s market value in a matter of days.
But the story didn’t end there.
Rather than retreat, CrowdStrike leaned into transparency and accountability. Senior leaders took to public platforms, including U.S. Congressional hearings and cybersecurity conferences, to own the failure. Executives emphasized their commitment to change, reinforced stakeholder trust, and even embraced criticism—winning an ironic “Most Epic Fail” award at DEF CON, which the company president accepted in person.
In a later interview, CEO George Kurtz reflected on the fallout: “We turned the incident into a competitive advantage. Customers stayed with us. Some even said, ‘Broken bones heal stronger.’” Within weeks, the company had not only regained but exceeded its pre-crisis valuation.
The lesson? A strong reputation doesn’t just protect—it can propel recovery and even growth after a crisis, provided the response is swift, authentic, and strategic.
Managing Reputation as a Business Asset
Reputation shouldn’t be left to chance. It must be managed with the same intent and rigour as financial planning or product development. That means embedding a robust communications strategy into the core of business operations.
Key components include:
- Clear objectives that align to outcomes and business focus areas
- Messaging and tone of voice tailored to different audiences
- Leadership trained in communication techniques to ensure executives represent the brand effectively
- Multichannel content strategies spanning a variety of content types to proactively engage stakeholders
- Processes, a team and tools to enable the ability to respond quickly whether to emerging new, trends or a crisis
In an era where perception can shift in a single social post and news cycles move at lightning speed, reputation is no longer a passive reflection of past behaviour—it’s an active determinant of future success. Companies that invest in managing their reputation proactively, with transparency and consistency, can not only weather crises but build stronger businesses.
As the lines blur between internal and external audiences, and between media and individual voices, businesses that treat reputation as a strategic priority—not just a communications concern—will be best positioned to lead.
In the end, reputation isn’t just what people say about you; it’s what shapes whether they choose to work with you, buy from you, invest in you—or walk away.
