According to the Institute of Chartered Accountants in England & Wales and consultancy The Risk Advisory Group's second study of companies in the FTSE index, 69 per cent of respondents rated reputational risk as important to their businesses, up from 66 per cent from the previous 2002 survey.
The survey also showed that companies have become more engaged in managing risks to their reputation, with 71 per cent saying their level of engagement was very or fairly high, compared with 67 per cent a year ago.
But the proportion of companies that thought the importance of reputation had increased over the preceding year fell to 33 per cent in 2003 from 44 per cent.
Some 491 companies were surveyed, 86 of which responded. Most had turnover of over £1bn.