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Reputation & Capital

Phronesis' Reputation & Capital Report analyses the cost of reputation incidents for ASX200 companies between 2020-2024. 

To download the full report, complete the form below.

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Globally unique

This research is the first time that the direct relationship between stock market performance and routine reputation incidents has been examined.

The results are a call to action for management and boards, and have informed the development of the Reputation Risk Standard, a framework that decisively mitigates reputation risk and helps organisations to build a more resilient reputation over time.

Covering six incidents

Reputation & Capital Report covers reputation incidents experienced by ASX200 companies between 2020-2024, across 73 individual companies and 189 individual incidents. To inform the research, the Phronesis team reviewed nearly  100,000 releases issued by the 253 members of the ASX200 between 2020-2024.

Through this research, six reputation incidents emerged:

Criminal Action

Any confirmed instance of illegal activity, whether resulting from an investigation or self-reporting, that involves either the company’s behaviour or actions enacted against the company.

Litigation

Any confirmed or ongoing legal action, whether initiated by or against the company, draws significant public or media attention and potentially harms the company’s reputation or financial standing.

Executive Conduct

Any confirmed instance of misconduct, unethical behaviour, or breach of fiduciary duty by a company’s executives or staff, whether arising from internal investigations, external reports, or legal proceedings.

Product Failure

Any confirmed instance of a product failing to be delivered, or to meet its promised quality or safety standards.

Regulatory Enforcement

Any confirmed instance where the company is subject to regulatory action or sanctions for failing to comply with legal or industry standards, resulting in public scrutiny or damage to the company’s reputation.

Governance Issues

Any confirmed instance where the company’s governance structures or processes are found to be ineffective, non-compliant, or lacking in transparency, leading to reputation damage and potential loss of stakeholder trust.

Unique Insights

Corporate reputation is used by stakeholders to understand or predict a company’s actions. The cost the market is factoring in to having a poor – or inaccurate reputation – reflects the utility of a good reputation. A good reputation provides access to the resources companies need to achieve their objective, whether licences, customers, employees, or more.

Phronesis' complementary briefing on the findings of the report will help to shape your understanding of what matters - and what doesn't - when it comes to reputation.

This 30 minute session will help to define what reputation is, why it's important and how to safeguard it now and into the future. 

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A new standard

The inevitability of these challenges, and the impact demonstrated throughout Reputation & Capital, underscores the need for a more proactive approach to managing reputation.

The Reputation Risk Standard is the answer to this challenge, and the first standards-based approach to managing reputation risk. 

It defines the essential principles required for a reputation management system that decisively mitigates reputation risk and builds a more resilient reputation over time. This robust standard helps to not just build an effective reputation management system, but also allows independent assessment of its effectiveness, and reporting on this to management and Directors.