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Reputation capital

From Wikipedia, the free encyclopedia

Reputation capital is the quantitative measure of some entity's reputational value in some context – a community or marketplace.[citation needed] In the world of Web 2.0, what is increasingly valuable is trying to measure the effects of collaboration and contribution to community.[citation needed] Reputation capital is often seen as a form of non-cash remuneration for their efforts, and generally generates respect within the community or marketplace where the capital is generated.


  • eBay has a seller rating that attempts to represent trustworthiness of a seller. A negative rating of 1% can decrease the selling price of an item by 4%.[1]
  • Google's PageRank is a measure of popularity of a site, and for individual blogs, gives a rating of this, and as a result, of the bloggers themselves.
  • Technorati has an authority rating based on incoming links to blogs that it has found in its Blogosphere
  • This has been more coarsely defined as A, B, or C-list blogger rating.[2]
  • Slashdot and reddit's karma mechanisms


For a business, reputation capital is the sum of the value of all corporate intangible assets, which include: business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience.[3]

Delivering functional and social expectations of the public on the one hand and manage to build a unique identity on the other hand creates trust and this trust builds the informal framework of a company. This framework provides "return in cooperation" and produces Reputation Capital. A positive reputation will secure a company or organisation long-term competitive advantages. The higher the Reputation Capital, the less the costs for supervising and exercising control.[4]

Reputation capital is a corporate asset that can be managed, accumulated and traded in for trust, legitimisation of a position of power and social recognition, a premium price for goods and services offered, a stronger willingness among shareholders to hold on to shares in times of crisis, or a stronger readiness to invest in the company's stock.[4]

See also[edit]


  1. ^ Gürter and Grund PDF 2006
  2. ^ Are you an A-list bloglebrity?
  3. ^ Intangible Asset Finance Society
  4. ^ a b Klewes, Joachim & Wreschniok, Robert (2010). Reputation Capital: Building and Maintaining Trust in the 21st Century. Springer. ISBN 978-3-642-01629-5.

Further reading[edit]

  • Building Reputational Capital: Strategies for Integrity and Fair Play That Improve the Bottom Line by Kevin T. Jackson