Corporate Reputation and Return on Investment (ROI): Measuring the Bottom-Line Impact of Reputation

This chapter deals with economic returns as the meaning of bottom-Iine contribution. The chapter is composed of five parts. First, the need for return on investment (ROI) measurement of communication is discussed in the context of communication evaluation. Second, the reasons why reputation can be a legitimate goal of communication relations and how communication can contribute to the bottom line by achieving the goal are explained. Also, the relationship between reputation and financial performance is reviewed. Third, the possible ROI measure models are introduced and the results in the previous study are reviewed. Fourth, the preventive function of reputation is suggested and the full model for measuring the bottom-line impact is discussed. Fifth, the result of replication study with current data is presented. Future empirical study should be extended to include the preventive effect of reputation and how it contributes to the bottom line.