Reputational rot sinks trade for 78% of global firms

The survey also found 60% of companies fail AI threat test.

Reputational weaknesses affected company trading over the past year for 78% of organisations worldwide, according to a new global study, highlighting growing risks for companies across Asia’s major markets.

The findings come from the Reputation Capital Scorecard 2026, launched this week at the World Economic Forum in Davos. The survey covered more than 3,000 C-suite executives across 27 markets, including the Asia-Pacific region.

The report found that reputation shortfalls are increasingly damaging revenues, company valuations, crisis recovery, and talent attraction and retention, each cited by 65% of respondents.

Despite this, only 61% believe their organisation’s reputation is currently strong.

Less than half of companies said they are meeting stakeholder expectations, with alignment highest amongst customers at 45%, followed by employees and regulators at 44%, investors at 42%, and communities at 40%.

Although 72% of CEOs said reputation is critical to commercial success, the study points to a widening gap between awareness and execution.

Artificial intelligence emerged as the leading reputation management concern for the year ahead, driven by risks linked to misinformation and automated content.

Despite this, only 40% of executives said their organisations are well prepared to manage AI-related threats.

Fewer than four in ten felt ready to address cyber and data security risks, ESG scrutiny, misinformation, or employee activism.

The study also found companies are weakest in their ability to track stakeholder sentiment and identify emerging risks, scoring an average of 55 out of 100.

Firms with stronger insight capabilities were significantly more likely to report effective reputation management and stronger overall reputations.

The findings were presented to business leaders at a closed-door session in Davos earlier this week.