Business reputation and trade efficiency

Economic Annals-ХХI: Volume 137, Issue 1-2(1), Pages: 54-56

Citation information:
Ivanov, G., & Mayorova, E. (2014). Business reputation and trade efficiency. Economic Annals-XXI, 1-2(1), 54-56. https://ea21journal.world/index.php/ea-v137-14/

Gennadiy Ivanov
D.Sc. (Economics),
Professor,
Plekhanov Russian University of Economics
36 Stremyannyi bystreet, Moscow, 117997, Russia
g.ivanov@bk.ru

Elena Mayorova
Post-Graduate Student,
Plekhanov Russian University of Economics
36 Stremyannyi bystreet, Moscow, 117997, Russia
e_mayorova@mail.ru

Business reputation and trade efficiency

Abstract. Introduction. Business reputation has a huge impact on performance of commercial organizations being, on the other hand, a benchmark of how companies act in the market encouraging them to be honest and make predictable steps. The sufficiently essential importance of business reputation both for separate market participants and the market in general determines the significance of the problem to be discussed. The aim of the article is to analyze business reputation of retail organizations (considering the leading international retail chains) based on the assessment of its qualitative and quantitative factors.

The methodology of how the research should have been conducted is interesting in the way that the results obtained by using different analysis methods are to be compared with the view of differentiating factors that greatly influence the changes of business reputation within social responsibility. Results. Business reputation of the leading international retail chains is analyzed based on its assessment in accounting, economic, and social aspects. The share of business reputation in balance and market values of commercial organizations has been defined. The rating of commercial organizations based on the coefficient of business reputation efficiency has been done as well. The place of commercial organizations in the international reputation ratings has been shown. And the reflection of social responsibility factors in nonfinancial records made by commercial organizations has been also examined.

Conclusion and recommendations. The share of business reputation in balance value of commercial organization assets is 11.7%. The average share of business reputation in market value of commercial organizations is 23.4%. Commercial organizations are of high and average level of business reputation from the point of view of its efficiency. Despite the fact that the public opinion of trade and commercial organizations is positive in general, there are still some urgent steps to be followed, which are the increase of business reputation in the eyes of the interested parties and the development of corporate social responsibility principles.

Keywords: Business Reputation; Retail; Commercial Organization; Valuation; Efficiency

JEL Classification: С13; L14; L81

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Received 25.10.2013