Mitsubishi Motors president, Katsuhiko Kawasoe, resigned last month over the scandal and Tokyo police are investigating whether the company was criminally negligent. In Australia, banks are becoming increasingly unpopular with branches closing, staff sackings, high fees and customers being forced to embrace impersonal electronic banking. The Australian Competition and Consumer Commission has got in on the act, launching Federal Court action against the National Australia Bank, alleging it breached the Trade Practices Act by making agreements with other financial institutions to fix fees on credit-card transactions. Each year the reputation of another large corporation goes on the line. But in our post-industrial society, a corporation's brand, the integrity of that brand and issues of reputation are more important than ever.
Reputation is no longer about feeling good but about being competitive even staying in business.
For instance, a company that skimps on environmental protection risks a disaster which costs more than money. A business that cuts employee costs too hard risks losing the loyalty of staff and damaging its relationships with customers and suppliers. Reputation also helps companies differentiate themselves in a crowded market. Corporations that dismiss all this do so at their peril. In the end, you will have to give your customers a reason to choose you.