Grismar's EVE Wiki : EffectiveStanding

Effective Standing

The base standing between you, NPC agents, corporations and factions is modified by skills to give an effective standing. The skills that affect your effective standing are connections, criminal connections and diplomacy. These skills will not apply to all agents, depending on your base standing. If they do apply, they increase your effective standing by 4% of 10.00 per level of the skill.

Read more in the guide on standing.

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Current EVE version: 2.08.3582 (Exodus)