Social media has changed how customers, businesses, employees, and job seekers form their reputation perceptions of a company, that is, how they form their evaluative judgements about a company’s products, services and behaviors towards constituencies. In pre-social media times, companies had control over what they communicated to their stakeholders, for example, by using corporate websites to convey a predefined image. With social media, multiple opinions, experiences, and company perceptions reach the wider public via multiple channels such as Twitter, Facebook, and other social networking sites that enable user-generated content. Although companies usually try to nurture an online reputation by running their own Facebook and Twitter profiles, a large amount of online content related to a company is produced by social media users and thus is beyond companies’ control. This habilitation thesis is devoted to studying consumer and employee responses to employee behavior in social media. Across eight different articles, with multiple studies each, this thesis aims to draw a full picture of how employee behavior in social media affects customers, other employees, job seekers, and the employing company as a whole.