The 3 Biggest Factors That Influence Corporate Reputation — and Threaten It

In the age of AI, the polycrisis and culture wars, companies must strive to be more authentic, more relatable – and more human, argues Caliber CEO Shahar Silbershatz.

Reputations, it’s often said, take years to build but seconds to ruin, which is why most businesses remain on red alert for reputational risks. Today, factors such as corporate social responsibility, brand values, services quality, and the ability to create satisfied customers all play a central role in determining how resilient a company’s reputation can be.

Gazing into the crystal ball, I see three trends that will threaten businesses – but also give them opportunities to build or burnish their reputations. 

Key Takeaways

The corporate reputation will be defined by authenticity, empathy, and stakeholder trust.

As AI, geopolitical instability, and culture wars reshape public expectations, companies must act and communicate with greater transparency and emotional intelligence.

 

1. Authenticity drives trust.
Reputation now depends on how human and relatable a company feels. Empathy, openness, and genuine communication build credibility across audiences.

 

2. AI, the polycrisis, and culture wars redefine reputational risk.

Ethical AI use, transparent crisis response, and clear ESG communication can turn global challenges into opportunities for stronger stakeholder relationships.

 

3. Proactive storytelling and stakeholder intelligence are key.
Organizations that track stakeholder perceptions in real time and explain their decisions clearly will better manage misinformation, maintain trust, and strengthen long-term reputation.

1. The AI Threat

The first is artificial intelligence and its increasing impact on business.

The good news is that the increasing use of AI – such as tools that allow companies to listen to what people are saying about them online and help them respond to corporate crises – will help them manage their reputations more effectively. 

Others will use generative AI to tailor their messages to ever more discrete audiences and save time and resources.

Using these tools ethically and transparently will be key, of course. Companies that do so will become more trusted, liked and relatable to stakeholders.

The bad news is that companies will unwittingly use generative AI to publish inaccurate or plagiaristic content. Some will suffer security breaches – like data leaks – and others will see algorithmic biases roll back diversity and inclusion gains. 

More than ever, companies must consider AI’s broader impact on society next year.

Businesses that replace employees with AI and put vast numbers of people out of work may suffer reputational harm.

Companies must also show leadership by investing in measures to protect their customers’ data.

Many companies will also face the growing risk of disinformation and misinformation.

Deep fakes, in particular, will compromise more companies and damage reputations.

“Malgorithms” that place company ads in inappropriate places will raise brand suitability red flags. And the gradual erosion of trust in authority will weaken hard-won reputations.

 

2. The polycrisis threat

The second major threat to corporate reputation will stem from geopolitical instability and what experts call the “polycrisis.”

For many companies, crises will arise from localized events—wars, natural disasters, or supply chain disruptions—directly impacting business performance and testing their company’s reputation. Others will face public pressure to respond to global social movements or political conflicts.

In this environment, corporate reputation hinges on knowing when and how to respond authentically. Overreacting or taking insincere stances can alienate existing customers and stakeholders, while silence can damage a company’s reputation.

Still, these challenges also present an opportunity. Companies that act with empathy, clarity, and values-driven leadership can strengthen their corporate reputation. By aligning responses with brand purpose, ethics, and emotional intelligence, they can attract customers and build deeper trust.

Stakeholders increasingly look for organizations whose actions reflect integrity and consistency—hallmarks of a strong reputation and lasting business performance.

3. The Culture War Threat

The third threat to corporate reputation in 2024 will be climate change – but not just for the usual reasons.

As global temperatures approach the 1.5 Celsius threshold, discussing ESG and other sustainability goals will be fraught with risk.

For some companies, the reputational pitfalls will lie in the regulatory realm.

Even as they strive to reduce emissions, companies will face greater scrutiny – especially from regulators challenging their ESG claims.

The consequence of falling foul won’t just be a fine but reputational damage.

For other companies, the challenge will be subtler.

The backlash against ESG activities and other corporate goals aimed at improving society – denigrated as “woke” by some journalists, politicians and investors – will grow in 2024, especially in the run-up to what’s expected to be another bitterly disputed US presidential election.

These companies will struggle to maintain their reputation with all stakeholders.

As they navigate the choppy waters of the culture wars, though, companies will still be able to strengthen their reputations.

How? By speaking openly, honestly and authentically, showing stakeholders their human side and sticking to their promises and values.

Again, companies that communicate with empathy and sincerity about climate change and their response to it can become more trusted and liked, even as the world burns.

The Overlap Problem in Brand Reputation

Still, here’s what could make 2024 especially parlous for reputation: the three trends potentially overlap.

For instance, a company that engages in “greenhushing” –  avoiding publicity of its sustainability goals and actions to sidestep the ESG backlash – may inadvertently create an information vacuum.

Consequently, some people may draw mistaken conclusions about the company, while others will use the vacuum to create deep fakes. That can erode stakeholder trust and damage the company’s reputation.

Likewise, a company’s failure to say something about a major event creates a similar void – one that’s ripe for disinformation, misinformation and misinterpretation.

But that’s not all. Corporations are increasingly becoming “juicy targets for foreign disinformation”, with hostile actors targeting companies with “online slanders” on “noncredible” websites that traditional media monitoring tools simply can’t catch. 

The Risks of Silence and Misinformation

For instance, a company that practices “greenhushing”—avoiding publicity around its sustainability goals to escape ESG backlash—may inadvertently create an information vacuum. 

This lack of transparency can quickly harm the company’s reputation, as customers expect open communication, authenticity, and accountability from the brands they trust.

When that vacuum forms, misinformation, fake online reviews, and deepfakes can easily spread across social media platforms, distorting how the company communicates with the public. Over time, this can damage not just brand visibility and brand image, but also overall business operations and long-term competitive edge.

Similarly, when a company remains silent about a major event, it risks being misinterpreted. That silence can fuel speculation, negative online reviews, and public skepticism—outcomes that directly affect customer interactions, repeat business, and overall company success.

Hidden Threats Behind the Scenes

Corporations today have also become high-value targets for disinformation campaigns, especially in emerging markets, where digital infrastructure and media literacy differ widely.

Hostile actors use noncredible websites and fake profiles to post slanderous claims that damage business reputation and erode trust. Traditional monitoring tools often miss these narratives, allowing falsehoods to quietly shape an organization’s reputation in the background.

Moreover, internal factors such as employee treatment, corporate governance, and ethical practices are increasingly seen as key factors in how stakeholders judge a company’s integrity. 

Poor workplace culture or lack of accountability in treating employees fairly can spread quickly online, overshadowing even strong product quality or innovative services.

The Solution

In 2024, then, companies need to be better prepared than ever. That means taking a more proactive approach to managing their story and using the right tools to monitor their stakeholder universe. 

But it also means prioritizing soft skills and empathy and being more responsive to the needs of their customers, employees and other stakeholders. In the age of AI, this may be as simple as having real people communicate with customers – and fostering real relationships.

Authenticity will be more vital than ever, too. Companies must pick their battles wisely – and remember that they can’t please all the people all the time. Instead, they should take positions aligned with their purpose – and explain what they’re doing, why they’re doing it and how it will affect stakeholders.

Likewise, if they choose not to take a position, they should explain why – clearly, honestly and sincerely. 

In other words, to protect their reputation in 2024, companies must stand up for their beliefs, remain loyal to their values and strive to be as relatable as possible.

Ready to Strengthen Your Corporate Reputation?

In an era defined by uncertainty, data overload, and shifting public expectations, protecting your company’s reputation is not just a communications challenge — it’s a strategic imperative.

At Caliber, we help organizations build trust, monitor stakeholder perceptions, and uncover the insights that matter most for long-term business performance. Whether you want to measure your corporate reputation, manage reputational risk, or turn stakeholder intelligence into action, our experts can help.

Talk to our team today to discover how Caliber can help your company earn trust, enhance credibility, and build a reputation that lasts.

Picture of James Clasper
James Clasper

James is a communications strategist and senior content lead at Caliber, where he writes about corporate reputation, stakeholder intelligence, and brand trust. He draws on more than a decade of experience helping organizations turn data into stories that build credibility and connection.

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Frequently Asked Questions

What are the biggest reputation risks

In an era defined by AI disruption, geopolitical instability, and cultural polarization, companies that act and communicate with honesty, empathy, and human connection will be most trusted. Reputation will increasingly hinge on emotional intelligence — not just performance or PR.

How can AI affect a company’s reputation?

AI can help manage reputation through better data analysis and stakeholder listening — but it also creates new risks such as misinformation, data breaches, and biased algorithms. Transparency, accountability, and responsible use of AI are essential to maintaining stakeholder trust.

What is the “polycrisis,” and how does it impact reputation?

The “polycrisis” refers to multiple, overlapping global disruptions — from wars and pandemics to climate and social unrest. In this environment, silence or insincere responses can harm credibility. Companies that show empathy, communicate clearly, and demonstrate their values strengthen stakeholder loyalty and reputation.

Why is authenticity so important for reputation today?

In a climate of disinformation and social division, stakeholders value brands that act and communicate with honesty and humanity. Authentic companies that explain their decisions clearly — even when taking unpopular positions — are more likely to earn long-term trust and respect.

How can businesses protect their reputation in uncertain times?

Businesses should take a proactive approach: monitor stakeholder perceptions in real time, address misinformation quickly, and communicate consistently across channels. Tools like Caliber’s Stakeholder Intelligence Platform help organizations stay ahead — combining data-driven insights with the human understanding needed to build genuine trust.

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