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Evaluation of Indexes of Dynamism of Corporate Reputation in Conditions of Behavioral Economy

Author

Listed:
  • Vitaliy Shkromyda

    (Vasyl Stefanyk Precarpathian National University)

  • Taras Gnatiuk

    (Vasyl Stefanyk Precarpathian National University)

  • Nadiya Shkromyda

    (Vasyl Stefanyk Precarpathian National University)

Abstract

The effective corporate reputation management in today’s business environment requires new research approaches that are based on a combination of social, psycho-emotional, behavioral and economic theories, and practices. The company’s corporate reputation is formed in retrospect and is being accumulated on the basis of thoughts and impressions due to the relationships with various contact groups. According to the theory of behavioral economics, decisions made by stakeholder are often based on cognitive biases and, as a result, are inconsistent with rational behavior. Under such conditions reputational risks may arise, as the company’s key stakeholders may not take into account the advantages of corporate reputation and its components. In this context, the methodical approach to the corporate reputation management has been proposed on the basis of the structural analysis of the dynamicity of its components. The peculiarity of the approach lies in the construction of a matrix that reflects the list of key stakeholders and main attributes of corporate reputation, the combination of which makes it possible to identify the structural components of the company’s corporate reputation. To study structural changes in the company’s corporate reputation it has been proposed to calculate such indicators: the coefficient of the structural formation of corporate reputation, the coefficient of the coordinated volatility of the corporate reputation components, the coefficient of the direction of change of the corporate reputation components. The calculation of these ratios allowed us to obtain information about the structural content of corporate reputation in the dynamics, namely, taking into account the structural components of the financial and social effects. We believe that the definition of indicators of the dynamics of the structural components of corporate reputation in the aggregate expand the method of evaluating the object of study in the dynamics and complement the information field of the reputation management in terms of behavioral theories.

Suggested Citation

  • Vitaliy Shkromyda & Taras Gnatiuk & Nadiya Shkromyda, 2022. "Evaluation of Indexes of Dynamism of Corporate Reputation in Conditions of Behavioral Economy," Corporate Reputation Review, Palgrave Macmillan, vol. 25(2), pages 81-93, May.
    • Handle: RePEc:pal:crepre:v:25:y:2022:i:2:d:10.1057_s41299-021-00113-9
    DOI: 10.1057/s41299-021-00113-9
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    References listed on IDEAS

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