Hello Marie,
The reputation system settings are in the Admin Console under People > Settings > Status Level Settings. There the administrator can choose whether he/she wants to use the reputation system, and how it will work. There are two groups of settings to put in if the reputation system is being used: The points per activity, and the ranking system. The points per activity section looks like so:

The admin decides what each activity's point value is, and then when someone does one of those things on SBS, they receive the amount of points chosen for that activity. Secondly, we have the ranking system:

where the admin can put in new ranks, change the names of the ranks, or change the pictures for the ranks if he/she pleases. Let me know if you have any other questions.
Thanks,
Kevin