The Concept of Reputational Bliss

A normative criterion identifying the conditions for a desirable corporate reputation, “reputational optimality,” or “reputational bliss,” is described, and a case developed for its utility and reasonableness as a criterion to apply to real world phenomena. The paper discusses some behavioral patterns under alternative moral positions taken by observers and the firm, critiques some alternative moral principles, and considers some dynamics of moving toward, defending and maintaining, and breaching or breaking reputational bliss. Barry M. Mitnick is Professor of Business Administration and of Public and International Affairs at the University of Pittsburgh. His research interests center on failures in organizational control and the means by which desirable social outcomes can still be obtained. He was an originator of the theory of agency, and has also written on government regulation, incentive systems, implementation, corporate social performance, corporate political activity, corporate governance, and the concept of the public interest.