The reputational risk of tax avoidance
Reputation Risk of Tax Avoidance Understanding corporate reputation Corporate reputation is a generalized term that denotes the stakeholders' collective formal or informal opinion of an organization with results from predictive factors that populate the reputation score. It is informed by insights into the market behavior and focused on measurable outcomes. The predictive factors include environmental, social and financial impact assessments that are conducted over a given period. It is notable that each stakeholder designation (as an assessor) will assign different ratings for each of the predictive factors. Another notable aspect is that reputation shares a close relationship with the image since the two concepts have a bilateral and dynamic relationship since the reputation is typically projected into the image. That is to say that corporate reputation is an interpretation of predictive factors that are influenced by the organization's projection of its image as presented by symbolism, communication, and behavior (Burke, Martin & Cooper, 2016, 33-36). This awareness is guided by the belief that protecting corporate reputation relies on strengthening relationships with stakeholders and increasing trust to include actively working to align public and government interests, attract investment, deepen relationships with clients, and engage personnel. Galvanized by the concept of business value, companies are keen on improving their corporate reputation by generating a captivating narrative that captures its direction,…
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