A situation that results from an undesirable, offensive, or scandalous association.

Example:

The firm attentively tries to avoid the taint of a looming accounting scandal.

Generally speaking, tainting denotes a trace of something bad, defective, or offensive.

Example:

The management’s reputation was tainted by allegations of corruption.

Also, a taint is a defect or flaw.

Example:

The latest mishap has left a taint on the firm’s reputation.