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Corporate Reputation

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Corporate Reputation

Introduction Nowadays, people are living in a digital age. Internet and social media begin playing irreplaceable roles in everyday life as well as business. What changes of corporate reputation appeared under the digital era, and what do corporates react to those changes are discussing in the report. Key issues and how to address are also provided.

Key Differences in Corporate Reputation Pre and Post Digital Age The earliest version of the Internet, Web 1.0 was composed of about 250,000 sites and 45 million users worldwide in 1996. However, with Web 2.0 appeared in 2006, with about 80,000,000 sites and over one billion users1, a new digital age has arrived, giving more opportunities and threats for business. The new era brings three key differences for corporate reputation.  Geography and Demography With the growth of global Internet, news can deliver all around the world. Things happened in Asia can be post online and read by North Americas, vise versa. By 2013, there are 39% Internet users globally (world population is 7.1 billion), see Table 1. Especially for international companies, who have locations around the world, corporate reputation is more globally involved. For example, Pepsi was criticized by people worldwide because of its brutal treatment to workers in India2. Also, because that computers and Internet have been owned by increasing number of people, more people are involved. Consumers are influenced by word of mouth, online reviews/research result, news, and all kinds of channels available on the Internet (see Figure 1)3. NGOs and investors would rethink about reputation of corporates by scandals, online post annual report, CSR and so on.



Controller Pre-digital age, companies could have more control of its reputation by increase positive

customers experiences, services and product quality. Also, some companies

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