I have seen many examples in recent years where it appears reputation no longer matters. Starting with the financial crisis behemoth companies like AIG, Goldman Sachs, Bank of America, and a myriad of others have fallen to scandal only to come out with renewed vigor. So what does it mean when a company falls out of favor because of scandal or financial ineptitude? Why do companies work so hard to build a brand only to lose their reputation to scandal?
Seemingly, some companies believe they can have a double standard and believe it’s okay to “do as I say and not as I do.” Why do these companies jump right back into business and rebuild so quickly? Is it because reputation no longer matters?
I believe the problem is a leadership problem of trying to keep a double standard. What’s good for the goose isn’t good for the gander. Weren’t things better when we could trust companies to obey their own standards? Isn’t that what leadership is all about?
I believe leadership is about valuing people to carry out a common vision and trust is the main ingredient needed to develop leaders. Why do companies not spend more on training executives on developing their leadership skills? Are they too arrogant and insensitive to open and honest feedback or do they believe their reputation no longer matters?
Think about what people are buying. I see more people buying generic brands and putting less value on major brand names. I go to Wal-Mart and see generic foods just as good as the major brands for less money. I see the same thing happening with other products. Just yesterday I was looking at lawnmowers and I only saw brands I never heard of before. Whatever happened to an automobile with a body by Fisher? Does anyone care about the brand or do people go for the value?
AIG, Goldman Sachs, General Motors, and Bank of America are right back at it with renewed vigor and one would think these brands would have had some damage. I am sure you can think of others. These companies spend huge sums on advertising to replace customers. Can we trust these brands?
I still believe reputation is critical for success and trust matters. I believe in a new breed of leader that people can respect and trust. Why do today’s executives do okay without the respect and trust of their workers and customers? Why do they need double standards? Have we lowered our standards as consumers?
Please leave a comment or visit us for more. I want to know your thoughts. Does reputation matter?