Burson Reveals $7 Trillion Global “Reputation Economy” and Impact on Shareholder Value

A groundbreaking new study by Burson reveals that corporate reputation now holds measurable financial value, establishing a global “Reputation Economy” estimated at $7.07 trillion. The analysis demonstrates that companies with the strongest reputations can achieve nearly a five percent ‘Reputation Return’ in shareholder value, translating into significant unexpected gains.

The study, titled “The Global Reputation Economy: A New Asset Class for a New Era,” successfully quantifies reputation as a tangible asset rather than a soft concept. It shows that top-performing companies can generate between $2 million to over $202 billion in unexpected shareholder returns, surpassing traditional financial performance metrics.

“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 New Reputational Battleground: AI and the Workplace

While reputation leaders excel across various domains, the study highlights the workplace as both a significant opportunity and a potential threat—particularly in the age of artificial intelligence. Although ranked lowest (11%) among the eight reputation drivers examined, the workplace showed an 11.8% performance gap between the top and bottom companies.

The research warns that mishandling AI integration could pose a reputational crisis for organizations.

“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.”

Additional Key Findings

– Leaders Leave No Weak Links:Top-performing companies outperform across all eight reputation drivers, scoring an average of 11 to 15 points higher on each. Notably, they excelled in Innovation (15.5-point gap), Product (15.2-point gap), and Governance (14.4-point gap).

– Counterintuitive Path to Recovery (Aerospace & Energy): In sectors where failure can be catastrophic, reputation is being rebuilt from within. Aerospace firms in the study improved their reputations by focusing on operational integrity through Governance (+7.9%) and Workplace (+6.2%). Similarly, energy companies gained reputation through Workplace (+0.9%) and Citizenship (+0.9%), rather than solely emphasizing sustainability narratives.

– Finance Sector’s Multi-Billion-Dollar Erosion: The sector experienced consistent declines in Leadership (-24%), Governance (-11%), and Citizenship (-15%). This erosion puts approximately $4.3 billion—38% of its total reputational value of $11.4 billion—at direct risk.

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

Burson’s complete report, “The Global Reputation Economy: A New Asset Class for a New Era,” can be found here.