It's something that everyone who works in PR and reputation management knows - a company's reputation is directly correlated to its value.
There are numerous examples of where bad reputation management has contributed to a dramatic fall in share price (BP Deepwater Horizon oil spill) and even the collapse of companies (Gerald Ratner and the Ratner-effect).
It seems that this concept is now being consider in actual valuations of companies too. However businesses are struggling to issue spot before a risk turns into a problem. This is why when we advise on crisis communications we regularly provide vulnerability audits and scenario planning as well - so that we can preempt situations - thereby stopping issues from escalating to a crisis and ultimately affecting your reputation and value.
Although 13 per cent of FTSE100 companies describe reputation as an asset in their chairman’s speech, only three per cent of those companies currently have a way of checking that they are managing reputation across their businesses.