Certainly, reputation is important in society. But a fly-by-night company is free to rebrand itself when its misdeeds are discovered. We'd like for businesses to be transparent, but evidently they can hide what they do. Reputations can be manufactured, so we can't necessarily trust them.

In any case, if reputation matters here, it does so by implying the religious logic of purgatory. We imagine our every deed will last forever, as recorded in our reputation. That's not the same as making personal calculations in a social game. So I think your point is consistent with my argument.