Few things are more important than one’s reputation, whether a company’s or a person’s. How one is viewed in the marketplace, and by those with whom we come into contact directly, affects our well being. In the business environment a positive reputation provides tremendous benefits, including attracting and retaining top human talent, business partners, and the most desired customers and clients. It affects dealings with suppliers, lenders, and shareholders, among many more.
Certainly the words of Warren Buffett are on point: “It takes 20 years to build a reputation and five minutes to ruin it.” We can look to what happened to companies whose reputations were damaged, such as Firestone Tire, Arthur Andersen, BP, News Corp., SAC Capital—and others too numerous to cite. Some survived, some didn’t, but all paid a significant price.
