Question

In: Economics

Explain how a reputation for "honest dealing" on the part of executives can elevate a company's...

Explain how a reputation for "honest dealing" on the part of executives can elevate a company's stock.

Solutions

Expert Solution

A reputation for "honest dealing" on the part of executives can elevate a company's stock because honest dealing and good reputation always leads to better relationships of the company with the customers as is well said that "Good begets good" , thus more honestly a company deals with the customers and more good deeds it performs leads to develop a better image of the company in the minds of the customers and hence leads to increase the no. of the customers dealing wih the company. Being honest and having a good reputation in the market plays a very vital role in getting the customers to pursue and trust and to engage with the company and hence leads to elevate more and more stocks. This honest dealing also distinguishes the company from other competitors , builds the resiliency with respect to the non-supporters , attracts large no. of supporters and also provides the opportunity for the company to develop more and more .Thus honest dealing and good reputation should be the first priorty of the company so that it could promote or elevate more and more stocks and hence could progress continuously.


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