A corporation is a common form of business in most countries. It is licensed by the state and has legal rights as an entity separate from its owners. The characteristics of a business are that it has no responsibility towards its owners. There is the issuance of easily transferable shares, and it exists as a going concern. A business becomes a company by incorporation. Once the company is formed, it benefits from a legal status different from its own. This legal status protects the owner from personal liability in the event of a lawsuit against the business. Incorporation also gives businesses more flexible ways to manage their own structures (Melo & Garrido‐Morgado, 2012). According to Freeman (2010), Godfrey, Merrill and Hansen (2009) and Musteen, Datta and Kemmerer (2010), reputation is the opinion about a person, a social group and an organization. The opinion is the result of the evaluation of criteria. Reputation results from the brand image of the company in the market domain. Reputation is considered a sign of future actions and behaviors. It also serves as a pledge that also justifies and promotes a principal's expectations regarding the agent's actions in the realm of principal agent theory. Reputation is considered a form of goodwill in accounting. It is also considered a manifestation of a company's identity in the field of organization theory. Finally, reputation constitutes a potential barrier to market entry in the management field. Indeed, if a company's reputation is negative, the market value of the company is low and market entry is low compared to companies that have a positive corporate reputation (Lange, Lee & Dai 2011 ). R...... middle of paper ......0). Reputation as an intangible asset: Reflections on theory and methods in two empirical studies of business school reputation. Journal of Management, 36 (3), 610-619.Surroca, J., Tribó, JA and Waddock, S. (2010). Corporate responsibility and financial performance: the role of intangible resources. Journal of Strategic Management, 31 (5), 463-490.Walker, K. (2010). A systematic review of the literature on corporate reputation: definition, measurement and theory. Corporate Reputation Review, 12 (4), 357-387. Wisdom At Work (2013). Perception is Reality – Building and Managing Company Reputation. Hill+ Knowlton Asia strategies. Retrieved from http://asia.hkstrategies.com/perception-is-reality-building-and-managing-corporate-reputation/Wood, DJ (2010). Measuring corporate social performance: a review. International Journal of Management Journals, 12 (1), 50-84