Even seemingly benign corporate actions can attract criticism. Nike, the world's biggest sportswear manufacturer, for example, has been supporting basketball culture in China by building and maintaining basketball courts in major cities. The courts themselves are decorated with its ubiquitous logo, so are the clothes worn by coaches and t-shirts, caps and other promotional items. None of this sounds unusual until one considers that the price of a pair of Nike shoes is far beyond the reach of most Chinese consumers. When such questions are taken together with criticism once levelled at Nike for its alleged use of sweatshop labour in emerging markets, it is easy to see how quickly such an issue can explode into a real threat to a company.
Reputation management is thus a natural extension of brand management.
Done well, reputation management can bring considerable benefit to a company. A decent reputation helps to sell goods and services, recruit new talent and attract desirable business partners. Done poorly, it destroys shareholder value. A bad reputation is an obstacle in selling to outlets and consumers, and in recruiting new talent. Consequently, reputation management is quickly becoming a popular boardroom analysis and review topic.