One's reputation is based solely on the judgement and opinion of others. The best reputation in town can be brought to an end very quickly through an intentional whisper campaign of gossip and lies. But character ah, that is another ballgame all together. Character does not develop well in solitude for character is habits that one develops through the experience of circumstances. Character directs one's actions.
Character is what one really is.
Now there's the rub. I know quite a few people who enjoy a good reputation but are, in realty, liars and cheats. Their reputation does not reflect the reality of their character. I know other people whose reputations are poor but who, in actuality, are honest and truthful individuals. It is my experience that the person who denies the wrong doing, without having been asked, is usually of questionable character.