Corporate Reputation and Social Performance: The Importance of Fit

21 Pages Posted: 8 May 2006

See all articles by Stephen J. Brammer

Stephen J. Brammer

University of Bath - School of Management

Stephen Pavelin

University of Bath - School of Management; University of Reading - Department of Economics

Abstract

Utilizing data on a sample of large firms, we estimate a model of corporate reputation. We find reputation, derived from the assessments of managers and market analysts, to be determined by a firm's social performance, financial performance, market risk, the extent of long-term institutional ownership, and the nature of its business activities. Furthermore, the reputational effect of social performance is found to vary both across sectors, and within sectors across the various types of social performance. Specifically, our results demonstrate the need to achieve a 'fit' among the types of corporate social performance undertaken and the firm's stakeholder environment. For example, a strong record of environmental performance may enhance or damage reputation depending on whether the firm's activities 'fit' with environmental concerns in the eyes of stakeholders.

Suggested Citation

Brammer, Stephen and Pavelin, Stephen, Corporate Reputation and Social Performance: The Importance of Fit. Journal of Management Studies, Vol. 43, No. 3, pp. 435-455, May 2006. Available at SSRN: https://ssrn.com/abstract=898971 or http://dx.doi.org/10.1111/j.1467-6486.2006.00597.x

Stephen Brammer (Contact Author)

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom
01225 826826, ext. 5685 (Phone)

Stephen Pavelin

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

University of Reading - Department of Economics ( email )

Reading, RG6 6AA
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
23
Abstract Views
1,261
PlumX Metrics