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date: 23 October 2019

Abstract and Keywords

This article introduces an institutional perspective on corporate reputation, concentrating on the role played by country regulatory institutions in shaping the formation, management, and functions of corporate reputation. It is noted that reputation may substitute for regulation and may provide a frame for assessing reputation. The diversity of regulatory institutions across countries is likely to help us understand both why reputation sometimes substitutes for regulation, and how regulation frames reputation. Corporation reputation has a role in formal regulation, since stakeholders produce and maintain economic relationships with the firm based on relative reputational assessments of the particular firm. Regulatory states present formal rules that serve as minimum standards for all firms, but leave considerable scope for voluntary adoption of higher standards. National institutions determine how firms are likely to invest in reputation-building. Finally, the areas where institutional perspective may significantly add to thinking in respect of corporate reputation are covered.

Keywords: corporate reputation, regulatory institutions, regulation, stakeholders, institutional perspective, formation, management, functions

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