terça-feira, abril 07, 2015

Reputation capital

The Internet Memory Hole:
Reputation capital consists of the good or bad opinions that a community holds of an individual over time. It is not always accurate, but it is what people think. The opinion is often based on past behaviors, which are sometimes viewed as an indicator of future behavior. In business endeavors, reputation capital is so valuable that aspiring employees will work for free as interns in order to accrue experience and recommendations. Businesses will take a loss to replace an item or to otherwise credit a customer in order to establish a name for fairness. Reputation is thus a path to being hired and to attracting more business. It is a nonfinancial reward for establishing the reliability and good character upon which financial remuneration often rests.
Reputation capital is particularly important because it is one of the key answers to the question, “Without government interference, how do you ensure the quality of goods and services?” In a highly competitive marketplace, reputation becomes a path to success or to failure.

Right-to-be-forgotten laws offer a second chance to an individual who has made a mistake. This is a humane option that many people may choose to extend, especially if the individual will work for less money or offer some other advantage in order to win back his reputation capital. But the association should be a choice. The humane nature of a second chance should not overwhelm the need of others for public information to assess the risks involved in dealing with someone. Indeed, this risk assessment provides the very basis of the burgeoning sharing economy.

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