It's not guaranteed, and it does depend heavily upon your own faction choice, but high reputation goes a LONG way towards maintaining good diplomacy.
There's a thread buried here that lists all the modifiers, and I can't remember what the thread is titled, but here's some from memory:
Having a faction leader with high chivalry increases your reputation slightly each turn.
Having a faction leader with high dread lowers your reputation slightly each turn.
Anytime you take a city and occupy it, you gain reputation.
Anytime you exterminate a city you lose reputation.
Anytime you release prisoners (for whatever reason) you gain reputation.
Anytime you execute prisoners (no matter the reason) you lose reputation.
Every turn, you gain and lose reputation points for each faction in the game that has a relationship with you above neutral (so-so, I think is how it displays in game).
THE BIGGIE - anytime you break an alliance (no matter the reason), you lose MAJOR reputation.
So, make friends with everyone you can by giving gifts to them. Occupy every city, never sack or exterminate. Release all prisoners, never offer ransom because you'll take a hit if it's refused. Make one single alliance and stick to it. The things I'm saying are excessive, I know. However, with one caveat, this should help you maintain solid diplomacy throughout the game.
That one caveat is religion. If you have bad relations with a faction of another religion, it drags down your relations with ALL factions of that religion, and especially so if the religion is question is Catholicism. If the Pope doesn't like you, none of the Catholic states will like you. I've tried, but it's the next best thing to impossible to maintain high reputation playing as Byzantium. Venice won't like you, therefore the Pope won't like you, therefore the other Catholics won't like you, therefore your reputation will suffer.
The reason I say make only one alliance is that your reputation will be completely screwed if you have two allies that go to war with one another. You will not be able to maintain alliance with both, and breaking the one you chose to break will drop your reputation through the floor.
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