Reputation and Social Purpose: How Organizations Can Maintain Legitimacy With Their Stakeholders

Abstract Responding to stakeholder expectations of social purpose while navigating their reputations is a complex challenge for organizations. Through an examination of case studies across multiple sectors, we show how the failure to authentically align organizational actions with stakeholder expectations of social purpose can lead to reputation damage, regulatory scrutiny, and ultimately decline. The fragile nature of reputation and its position will be explored as an intangible asset that organizations must earn but yet never truly own. We explore the complex communications that are required to build and protect reputations, and the challenges that organizations must overcome to ensure that they align their social purpose claims with evidence.