Using data from Fortune magazine's survey of corporate reputations, an analysis was performed to determine whether there was a significant correlation between financial performance and a firm's reputation as a socially responsible institution. Results indicate a conundrum where management must produce financial results for stakeholders, but that too aggressive a course of action in that process can reduce later perceptions of reputation and lead to diminished autonomy for management initiatives.
corporate reputation, risk, return
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Hammond, Sue Annis and Slocum, Jr., John W., "The Impact of Prior Firm Financial Performance on Subsequent Corporate Reputation" (1994). Historical Working Papers. 172.