We hope that our assessment will motivate researchers to consider how CR is created, maintained, and destroyed in a wider supply chain context. Corporate Reputation (CR) is essential to value generation and is co-created between a company and its stakeholders, including supply chain actors. Consequently, CR is a critical and valuable resource that should be managed carefully along supply chains. However, the current CR literature is fragmented, and a general definition of CR is elusive.
- Following US military occupation after World War II, several regulatory standards were transposed and influenced standards for transnational companies across Western Europe (Maier, 1977; Majone, 2002).
- What counts as a good current ratio will depend on the company’s industry and historical performance.
- Supply chains without any resource buffers, that were purposely designed for lean management, just-in-time, and cost optimization, showed little resilience during the Covid-19 pandemic (Phillips et al., 2022).
- They identify that CR is of special importance in an e-commerce environment because of the typically trust boosting effects of face-to-face encounters, which are absent in an online setting (Fombrun et al., 2022).
Many authors of this school (Bromley, 2001; Fombrun, 1996; Fombrun & Shanley, 1990; Gray & Balmer, 1998; Rindova, 1997; Saxton, 1998) argue that CR reflects a firm’s image over time perceived by its stakeholders. In addition, Fombrun (1996) suggests that CR is essentially backwards looking, characterized by customers experiences created in the past. The concept of self-identity thus informed the creation of reputation as a research field. Martineau (1958) defines corporate image as a sum of functional qualities and psychological attributes that exist in the mind of the consumer. This view is mainly influenced by the idea of reputation as a behavioral construct as part of self-identity theory. Early studies stemming from the Analogous School of Thought focused on the concept of corporate image rather than on CR.
CR in Business Meaning
He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Because the subject is dynamic and can impact a range of different departments, fully identifying the positive (or recognising the negative) effects in context and in their entirety can be difficult. Often as a result organisations will focus on a fewer, more “high profile” or “pet” CR/CSR initiatives which are then fanfared at the expense and possible detriment or oversight of others.
This is not surprising, as it is very difficult to collect reliable data along supply chains. When supply chains span the globe, data collection is especially challenging, as the chain consists of multiple suppliers and subcontractors, positioned at different tier levels. Recognizing this, the knowing your customers paper examines firstly the current state of CR research through a systematic literature review from a business perspective. The review is combined with a bibliometric mapping approach to show the most influential research clusters, representative of CR research streams and their contributors.
Stakeholder-based perspectives should recognize the growing importance of online and social media environments. Specifically, studies should seek to understand social media’s role in the context of CR formation (Dijkmans et al., 2015; Hartmann, 2021; Ott & Theunissen, 2015; Waldner & Willems, 2020; Zheng et al., 2018). To date, the literature on this remains nascent with only a few articles directly considering the influence of digital media on the development of CR (Mingione & Abratt, 2020; Schaarschmidt & Walsh, 2020). Corporate Reputation (CR) is an intangible and critical asset in sustaining business operations. Although the many advantages that a positive CR brings to individual organizations (improving the bottom line, being a decisive factor in some customers’ choices, buffering for risks, etc.), CR cannot be seen in isolation (Dhingra & Krishnan, 2021). Over time, however, a better understanding of the important role CR plays in the successful and sustainable development of companies emerged.
This would be worth more investigation because it is likely that the accounts payable will have to be paid before the entire balance of the notes-payable account. Company A also has fewer wages payable, which is the liability most likely to be paid in the short term. For example, a company may have a very high current ratio, but its accounts receivable may be very aged, perhaps because its customers pay slowly, which may be hidden in the current ratio.
What Credit (CR) and Debit (DR) Mean on a Balance Sheet
Most organisations are already doing something positive under the Corporate Responsibility/ Corporate Social Responsibility heading, but have not fully recognised it as such. Examples include charity work, good workplace health, safety and wellbeing, community programmes, environmental initiatives around net zero, waste and recycling and social value. By having a management review from an external consultant, you can pull all these efforts together and create a plan for sustainable improvement within your business. Under this system, your entire business is organized into individual accounts.
The research was and is always in line with current law and there are no potential conflicts of interest involved in this joint research paper. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years.
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For instance, ‘being innovative’ may spill from the supplier to the manufacturer when working with this supplier. These receiving organizations are CR borrowers, and the spill can happen willingly or unwillingly. Let’s review the basics of Pacioli’s method of bookkeeping or double-entry accounting.
Managers should understand and use reputational mechanisms to their advantage. Managers also must pay attention to the ‘ones that care.’ These stakeholders are reputational reflectors (e.g., customers), whose awareness and relevance cause spillovers to occur. Relationships with these stakeholders should be managed well, so that spillovers can be controlled to a greater extent.
These scholars wrote seminal papers, separating the concepts of corporate identity, corporate image, corporate branding, and CR (Abratt & Kleyn, 2012). Increasingly, topics from the field of social media marketing and digital marketing attracted attention, such as a consideration of e-reputation (Chun & Davies, 2001). Overall, this cluster focuses on CR as a customer-centric concept (Walsh et al., 2015). As the Boohoo.com case demonstrates, end-customers may not be the only actors shaping CR but it could be any stakeholder along the chain (Dewalska-Opitek & Bilińska-Reformat, 2021). This change is helpful when examining reputational spillover effects in a supply chain context. Following the argument of Petersen and Lemke (2015), one actor can utilize reputational triggers (i.e., offering, communication, and action) which may cause reputational aspects of the initiating actor to spill to others.
The company records that same amount again as a credit, or CR, in the revenue section. Credit entries will increase the credit balances that are typical for liability, revenues, and stockholders’ equity accounts. Credit entries will also decrease the debit balances usually found in asset and expense accounts. The second factor is that Claws’ current ratio has been more volatile, jumping from 1.35 to 1.05 in a single year, which could indicate increased operational risk and a likely drag on the company’s value. The current ratio can be a useful measure of a company’s short-term solvency when it is placed in the context of what has been historically normal for the company and its peer group.
We adopted ‘descriptive coding’ to develop “an inventory of topics for indexing and categorizing” (Miles et al., 2019, p. 65). In the initial coding of the text block data, highlighted text chunks represented distinct meanings, which is typical in ‘first cycle coding’ (Saldaña, 2016). Each coder worked separately with the identical card set, allocating the highlighted text chunks to meaningful categories. In the ‘second cycle coding’ step, the coding material was then categorized, following the principles of ‘pattern coding’ (Saldaña, 2016).
Consequently, the relationships between CR and stakeholders’ individual reputations should be investigated further. Finally, research on the role of social media on an individual’s perception of a corporation’s reputation remains limited and the potential mechanisms explaining such relationships are poorly understood (Rutter et al., 2021). Quite visibly, yet surprisingly, CR academic research in a supply chain context is noticeably underrepresented, and specific CR questions in this area are listed in Table 4 (highlighted in gray). Furthermore, we continued with the ranking of questions beginning with the ones that are currently critical to move the field forward and others that are suitable for subsequent exploration. We encourage future researchers to adopt a supply chain perspective in their CR investigations. The chain setting adds complexity, but it is important to recognize the impact that this research stream can make on supply chain theory development and practice.