Corporate reputation emerges as a $7 trillion asset class, Burson study finds

New Delhi: Corporate reputation now carries a measurable financial value, with companies that maintain stronger reputations delivering higher-than-expected shareholder returns, according to a new study released by Burson. The research estimates the global “reputation economy” to be worth $7.07 trillion, positioning reputation as a quantifiable economic factor rather than an abstract perception.

Titled The Global Reputation Economy: A New Asset Class for a New Era, the study identifies a “reputation return” of up to 4.78% in unexpected annual shareholder value for companies with high reputational strength. Burson’s analysis suggests this uplift can translate into gains ranging from $2 million to as much as $202 billion per company, over and above returns explained by traditional financial performance indicators.

“For decades, leaders have known intuitively that reputation matters, but they’ve never been able to quantify it as a financial asset; now, we can,” said Corey duBrowa, Global CEO, Burson. 

“Our research shows that reputation is an interconnected system that, when rigorously managed, can yield billions in measurable returns, build resilience against shocks, and give leaders the confidence to make bold moves. A strong reputation that can deliver financial impact goes well beyond the simple binary of trust.”

The research also highlights the workplace as a growing reputational fault line, particularly as organisations integrate artificial intelligence into operations. Although workplace factors ranked lowest in perceived importance among the eight drivers studied, Burson found one of the widest performance gaps between leading and lagging companies, indicating rising sensitivity around employee treatment and organisational culture.

“Businesses must go beyond having an ‘AI strategy’ and create an ‘AI people strategy,’ because how they manage this transition will be a powerful statement about how they value their employees,” said Matt Reid, Global Corporate and Public Affairs Lead, Burson, and U.S. CEO, Burson Buchanan.

“Organizations that invest in reskilling their workforce and co-create the future with their people will earn a reputation dividend. Conversely, those that view AI merely as a tool for headcount reduction will pay a reputation tax, with any efficiency gains offset by reputational losses.”

Sector-level analysis shows that companies with the strongest reputations outperform peers consistently across innovation, product quality, governance and leadership, while industries such as finance face sustained reputational erosion. Burson’s findings indicate that declines in leadership, governance and citizenship perceptions within financial services have placed a significant portion of sector-wide reputational value at risk.

The study also notes a shift in how reputation recovery is unfolding in high-risk industries such as aerospace and energy. Rather than relying on external messaging or product-led narratives, reputational improvements in these sectors are increasingly linked to governance standards, operational integrity and internal workplace practices.

“Our research proves that the historical models for studying reputation were at best static and at worst not actionable,” duBrowa said. “Reputation is organic and constantly evolving, so with a clear understanding of which components of reputation are strong or require action, businesses can focus with precision on predicting and influencing the forces that drive perception and fuel financial outcomes.”

Chung, Asia-Pacific CEO of Burson, said the findings underscore the importance of structured reputation management for companies operating in global markets. “Our research demonstrates that reputation is no longer an abstract idea, but a measurable asset with a direct impact on enterprise value,” Chung said.

“For Asian companies, including those in Korea, disciplined reputation management is now critical to competing and winning on the global stage. Through our proprietary Reputation Capital model, we’re offering clients with near real-time insight into the state of their reputation and how external events are shaping it. This is not only enabling more agile planning and execution but also keeping us sharply focused on the areas that drive tangible business outcomes, helping clients make informed decisions at scale and with speed.”