Authors: Maria Bakumenko; Anatoliy Sigal
Addresses: Department of Business Informatics and Mathematical Simulation, Institute of Economics and Management (a division), V.I. Vernadsky Crimean Federal University, Sevastopolskaya Str. 21/4, Simferopol, 295015, Russia ' Department of Business Informatics and Mathematical Simulation, Institute of Economics and Management (a division), V.I. Vernadsky Crimean Federal University, Sevastopolskaya Str. 21/4, Simferopol, 295015, Russia
Abstract: The article deals with a substantial threat for corporate security - decline in corporate reputation. Corporate reputation is regarded as the most important intangible asset of corporations. Investment project implementation may greatly affect corporate reputation, both positively and negatively. Therefore, investment decision-making requires consideration of how project implementation affects corporate reputation and application of ethics and social responsibility. We suggest an index to consider the impact of investment project implementation on corporate reputation at the pre-investment phase - reputation improvement index. To evaluate weight numbers, which are part of reputation improvement index, the analytic hierarchy process is recommended. Also, we propose a model to evaluate weight numbers, based on solution of a respective matrix game, and give a case study. We conclude that reputation improvement index, along with traditional methods of investment decision making and risk consideration, lowers corporate threats at present and in the long-term.
Keywords: corporate security; corporate reputation; investment project; investment decision making; corporate ethics; corporate social responsibility; model; reputation improvement index; risk; matrix game.
International Journal of Risk Assessment and Management, 2018 Vol.21 No.1/2, pp.111 - 134
Available online: 26 Feb 2018Full-text access for editors Access for subscribers Free access Comment on this article