REPUTATION EMERGES AS A $7TN ASSET FOR GLOBAL COMPANIES
Corporate reputation is delivering measurable shareholder value and widening performance gaps between companies, according to new research.
Corporate reputation has become a $7tn economic asset, according to new research from communications group Burson, as investors place growing weight on trust and corporate behaviour.
The study estimates that reputation contributes $7.07tn to the global market value of listed companies, suggesting it now represents a material driver of shareholder returns rather than a purely qualitative interest. Burson's analysis of 66 publicly traded companies found that those with stronger reputations generated an average 4.8 per cent annual uplift in shareholder value beyond what could be explained by financial performance alone.
The findings highlight widening gaps between reputational leaders and laggards across areas including leadership and innovation, with underperformance translating directly into lost value. Workplace reputation emerged as one of the most pronounced dividers, with the largest disparity between top and bottom performers, despite being ranked relatively low by executives.
Burson warned that the rapid adoption of artificial intelligence is intensifying reputational risk, particularly where AI is perceived as a cost-cutting tool rather than a means of investing in people. Sectoral differences were also pronounced, with aerospace and energy companies showing signs of reputational recovery, while financial services continued to see erosion across key trust metrics.
The report adds to evidence that reputation is increasingly viewed by markets as a core strategic asset, placing new pressure on boards and communications leaders to measure and manage it.