BusinessWeek, in its July 9 issue, reports that "many savvy companies are starting to realize that a good name can be their most important asset-and actually boost the stock price."

Peter Engardio and Michael Arndt have unearthed the "new science of reputation management." Many investment pros have traditionally scoffed at "suggestions they can be influenced by image manipulation," and most CEOs believe corporate image "is not something to fret about" except during a crisis, wrote the duo.

However, a "more sophisticated understanding of the power of perception is starting to take hold among savvy corporations." More executives are "finding that the way in which the outside world expects a company to behave and perform can be its most important asset."

The pair reveal that a "company's reputation for being able to deliver growth, attract top talent, and avoid ethical mishaps can account for much of the 30 percent to 70 percent gap between the book value of most companies and the their market capitalizations."

Engardio and Arndt report that a good reputation is why Johnson & Johnson trades at a higher price-to-earnings ratio than Pfizer. Procter & Gamble surpasses Unilever, and ExxonMobil tops Royal Dutch Shell.

The authors say "spin" alone can't create a lasting public image. Messages must be grounded in reality and reps are built over years.

The piece has high praise for United Technologies and tosses brickbats at Wal-Mart Stores. According to a CCW study, Wal-Mart's market cap would be $10B higher if it enjoyed a rep equal to that of competitor Target.

BusinessWeek.com is a client of TrylonSMR