A research by Reputation Dividend, which measures the value of corporate reputation and identifies the optimal messaging priorities, reveals that corporate reputations have helped companies to secure shareholder value through the pandemic.

UK company reputations constitute more than a third of the combined market capitalisation of the FTSE 350, worth £823 billions of shareholder value at the start of this year. The analysts found that corporate reputations have played a major part in protecting value through the crash, minimising the scale of the decline and fuelling the recovery so far.

According to Simon Cole, founder and director of Reputation Dividend, some of the key reputational drivers include goods and services, focus on innovation and securing the right talent.

 “Once the initial shock of the pandemic downturn had subsided, investor attention turned to corporate qualities that not only suggested companies are well placed to ride the storm but also, and critically, best positioned to capitalise on the up-turn as and when it comes,” he says.

Unilever lead the UK top ten, with a 56.6%, followed by Astra Zeneca and Halma. While reputation contributions were mainly positive, in close to 20 cases they were sufficiently poor as to be a drain on companies’ market caps, and costing shareholders accordingly.