 He's talking about what the world sees when the world looks at the church. And when the world looks at the church and see hypocrites who are living in immorality and accepting of those who live in immorality and living in sin, then obviously that's a reputation problem for the body of Christ. Also, when the world looks at the church, looks at the body of Christ, and he sees the body of Christ in open and bitter disputes with other people within the body of Christ, then they look and say, man, I don't want to be a part of that clan, right?