Brands Shout and Reputation Whispers
But Everyone Listens to It
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July 23, 2025
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What good is a striking logo if customers don’t trust the company behind it? Many companies invest millions in building visually appealing brands - from dazzling advertising campaigns to social media branding strategies - but neglect reputation management.
This imbalance is a hidden dilemma in the corporate world. Today, when decisions are made not only on price or product, but also on perception and trust, many companies are missing out on a hidden competitive advantage: their reputation.
Confusing notoriety with reputation is one of the most common - and costly - mistakes in the corporate world.
Being on a list based on spontaneous recall is not the same as having a solid reputation. What people remember does not always match what they really value or who they trust.
Although They Are Closely Related, Brand and Reputation Are Never Exactly the Same Thing
One way of looking at it is as follows: brand and reputation are essential intangible assets, but they play different roles. Having a recognized brand helps to stand out in the market,1 while a positive reputation helps to convert that attention into sustained revenue, i.e., securing the social license to operate. Some studies suggest that improving reputation by even a single point can translate into significant gains (up to an additional $1 billion in large companies).2
So, if reputation has a real impact on business, why do so many companies focus more on branding? In part, because of the immediacy and attractiveness that offers. A successful marketing campaign can bring fast users, press and positive feedback in networks. Hence, many entrepreneurs confuse brand with reputation,3 believing that working hard on the former will guarantee the latter. It is tempting to assume that a strong brand equals a strong reputation, but this is not always the case. Brand and reputation are different concepts that must be managed in parallel, and failure to do so carries long-term risks. A strong brand is measured by popularity, not necessarily trust or legitimacy.
It is also influenced by a business mentality where the visual and aspirational outweighs the structural. It is not uncommon to see companies obsessed with growing fast and being visible4 assuming that user trust will come by itself. However, the reality is different: many companies fail not because of weak technology, infrastructure or operations, but because they did not have a solid trust strategy when they needed it most, despite enjoying good brand positioning. A high level of visibility can hide deep reputational cracks. Building a brand without reputation management is like putting lights on a building without a foundation: it looks good, but it can collapse at the slightest tremor.
Reputation Can Be Quantified and Translated into Actionable
In the short term, there is constant pressure for results.5 Investors and markets tend to reward accelerated growth - such as new user acquisition, press mentions, engagement metrics - indicators where a strong brand can make a difference. But in the long run, what really sustains growth is reputation. While less visible and harder to measure, its impact is evident over time. And just as no one would leave financial health unmonitored, reputational health deserves rigorous, continuous and strategic monitoring.
Measuring only the “top of mind” leaves out what is most important: the quality of the bond, trust and coherence between speech and action.
There are methodologies and tools to perform a 360° evaluation of corporate reputation. These measurements work as a diagnosis: they reveal strengths, weaknesses and gaps between what the company wants to be and the way it is perceived by its stakeholders.
This is where having specialized partners makes the difference. At FTI Consulting we created a comprehensive model to evaluate and manage corporate reputation, backed by years of global experience in the field.
Our approach focuses on reputation key performance indicators (“KPIs”) and combines them with qualitative, quantitative and digital methodologies to get a complete picture. In practice, this means that we can quantify that intangible called reputation, but, more importantly, break it down into actionable elements: from customer perception to the opinion of industry leaders, to internal perception. With this holistic analysis, it is possible to detect hidden risks, identify opportunities for improvement and design tailored strategies to strengthen trust in the company.
Figure 1 - Communication (Internal & External) & Direct Contact?
Source: FTI Consulting
The Risks of Ignoring Reputation
Focusing solely on brand and neglecting reputation can be dangerous6 as a crisis of trust can destroy in days what has been built over years, something that in any industry is critical: for example, a recent study by Mastercard showed that 60% of consumers would stop trusting a financial provider after a serious security or service failure.7 Ironically, however, only 42% of companies in the industry prioritize security and data transparency despite recognizing the importance of trustworthiness. This gap shows how many companies underestimate reputational risk.
The consequences of a bad reputation range from loss of customers to difficulties in attracting talent and investment. In extreme cases, it can trigger regulatory sanctions or even the collapse of the business.8 Let us remember that today, between 70% and 80% of the market value of companies comes from intangible assets such as brand and reputation.9 In other words, most of a company’s value lives in the minds of its stakeholders.10 A data leak, an ethical scandal or an inconsistent service can generate a chain reaction in social networks and media, eroding trust in record time.
Conclusion: Balance to Gain Confidence and Sustainability
In short, brand and reputation must go hand in hand. A sustainable company is one that manages to be both eye- catching and reputable. Building an attractive brand does not conflict with cultivating its reputation; on the contrary, they are mutually reinforcing. A structured reputation assessment brings concrete benefits:
- Identification of areas for improvement: the results of an assessment reveal where the company is not meeting expectations. Are there gaps in social responsibility? Do any stakeholders distrust the company? Detecting this allows specific improvement plans to be undertaken and resources to be allocated where they are most needed.
- Stronger relationships with stakeholders: Involving stakeholders in the evaluation, i.e. actively listening to their feedback and addressing their concerns, allows the design of a strategy to strengthen trust and builds goodwill. Over time, this translates into more engaged employees, more loyal customers, more confident investors and more supportive external partners.
- Protect the social license to operate: When a company understands what its stakeholders, including regulators, government, and community, expect of it, it is in a better position to build legitimate arguments that allow it to operate in any environment.
- Drives a differentiating positioning: A well-understood reputation reveals what differentiates the company beyond the product or service it offers. Identifying gaps in the narrative, confusing perceptions or unclear messages is key to building a value proposition that is unique, authentic and credible. This allows stakeholders to understand who the company is, what it stands for and why it deserves their support, beyond what the brand stands for.
Measuring reputation on a regular basis is not a luxury, but an imperative. Companies that understand their reputational profile can anticipate threats, prioritize internal improvements and build long-term relationships with their key audiences. Moreover, an actively managed reputation often translates into greater resilience: when faced with a problem, those with a good reputation receive the benefit of the doubt and the support of their stakeholders, while those who have neglected their reputation face the storm alone.
The most successful companies build their brand on a solid reputational foundation. That balance allows them to grow with confidence, earn the favor of customers and stakeholders, and navigate the ups and downs of the marketplace with resilience. At the end of the day, reputation is the most valuable currency in business, and only those who invest in both managing and promoting it will achieve real sustainability over time.
Footnotes:
1: Redacción. Marca y reputación no son lo mismo y las empresas tienen que trabajarlas de forma diferente. PMK. (2019, Septiembre 10). link
2: The Reputation Institute, Redacción. Marca y reputación no son lo mismo y las empresas tienen que trabajarlas de forma diferente. PMK. (2019, Septiembre 10). link
3: Redacción. Marca y reputación no son lo mismo y las empresas tienen que trabajarlas de forma diferente. PMK. (2019, Septiembre 10). link
4: Zalatimo, D. The How-To: Building A Really Successful Fintech Solution. Entrepreneur. (2025, Febrero 28). link
5: Redacción. Marca y reputación no son lo mismo y las empresas tienen que trabajarlas de forma diferente. PMK. (2019, Septiembre 10). link
6: N.A. Diferencias entre marca y reputación. Harca Sostenible. (2015, Febrero 04). link
7: Zalatimo, D. The How-To: Building A Really Successful Fintech Solution. Entrepreneur. (2025, Febrero 28.) link
8: Dan. Intangible Assets: Protecting Your Brand And Reputation. Strategic CFO. (2018, Agosto 16). link
9: id.
10: id.
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