From ChangeThis: CEOs and board members routinely list repu­ta­tion as one the company’s most valu­able assets. Yet, every month a new repu­ta­tional disaster makes the head­lines destroying share­holder value and trust with customers and other stake­holders. During the last year leading compa­nies ranging from Toyota, Goldman Sachs, BP to HP and Johnson & Johnson battled severe repu­ta­tional crises. In recent weeks we have witnessed not only the devas­tating earth­quake and Tsunami in Japan, but also the so far futile response of Tepco, the nuclear oper­ator of the Fukushima nuclear power plant. […]

Trust is now an essen­tial part of busi­ness success. Yet trust in U.S. busi­ness has substan­tially dropped over the last decade. While trust in busi­ness is still higher in devel­oping coun­tries, Non-govern­mental orga­ni­za­tions (NGOs) are on a par with busi­nesses in emerging markets and more trusted in devel­oped markets including the United States. These data suggest that busi­ness can no longer rely on a trust reser­voir. Rather trust needs to be earned.

Compa­nies have not responded to these changes. Their repu­ta­tional risk has increased dramat­i­cally, but their capa­bil­i­ties have stayed the same. The result is one crisis chasing another and the long-term erosion of public trust in private enter­prise.” · Go to Repu­ta­tion rules: Don’t neglect your company’s most precious asset →