Reputational damage refers to the harm done to an individual or organization's public image. This can happen due to negative events, such as scandals, poor customer service, or unethical behavior. When a company faces reputational damage, it can lose customers, face legal issues, and struggle to regain trust in the market. The effects of reputational damage can be long-lasting. For example, a celebrity involved in a controversy may find it difficult to secure new projects or endorsements. Similarly, a business may see a decline in sales and a drop in stock prices, making it crucial to manage and protect their reputation effectively.