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	<title>reputationXchange.com &#187; price of reputation</title>
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	<link>http://reputationxchange.com</link>
	<description>ReputationXchange.com is a blog written by Dr. Leslie Gaines-Ross, Weber Shandwick's Chief Reputation Strategist</description>
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		<title>The Price Tag of Reputational Harm</title>
		<link>http://reputationxchange.com/2010/07/19/the-price-tag-of-reputational-harm/</link>
		<comments>http://reputationxchange.com/2010/07/19/the-price-tag-of-reputational-harm/#comments</comments>
		<pubDate>Mon, 19 Jul 2010 12:21:35 +0000</pubDate>
		<dc:creator>Dr. Leslie Gaines-Ross</dc:creator>
				<category><![CDATA[corporate reputation]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[reputation]]></category>
		<category><![CDATA[Reputation crisis]]></category>
		<category><![CDATA[reputation damage]]></category>
		<category><![CDATA[reputation risk]]></category>
		<category><![CDATA[price of reputation]]></category>
		<category><![CDATA[reputational harm]]></category>

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		<description><![CDATA[What is the cost of reputational harm? The New York Times has a back of the envelope calculation from recent crises making the news. Here is what they say? &#8220;It would be too crude to conclude from this analysis that reputation is worth 11 to 14 percent of market capitalization&#8230;&#8221; and concludes the following: &#8220;What [...]]]></description>
			<content:encoded><![CDATA[<p><img src="http://www.psdgraphics.com/wp-content/uploads/2009/04/red-tags.jpg" alt="" width="220" height="144" />What is the cost of reputational harm? <em>The New York Times</em> has a back of the envelope calculation from recent crises making the news. Here is what they <a href="http://www.nytimes.com/2010/07/19/business/19views.html?_r=1&amp;scp=1&amp;sq=Reputation's%20Price&amp;st=Search">say</a>?</p>
<p>&#8220;It would be too crude to conclude from this analysis that reputation is worth 11 to 14 percent of market capitalization&#8230;&#8221; and concludes the following: &#8220;What is clear, though, is that reputation has huge value. Companies need to guard theirs vigilantly.&#8221;</p>
<p>Somewhere in my many investigations on reputation, I have seen a similar calculation that reputation (not reputational harm) places a 10 to 14% premium on a company&#8217;s market value. So the <em>Times</em> might just be right.</p>
<p>[By the way, back from vacation. Back to work.]</p>
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