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End of the Corporate Exception

In his book Crisis of Character: Building Corporate Reputation in the Age of Skepticism, Peter Firestein, counselor of CEOS and senior managers of global corporations, writes, “Because a company can no longer hide its actions from investors and the public, the question of its reputation has moved to the forefront as a determining factor in its ability to grow and sustain itself. Its reputation derives directly from its actions. All of its constituencies—customers, shareholders, employees, the media, communities, and activist groups—form their opinions out of what the company has done, or not cone. A company’s reputation is the sum total of these opinions. Reputation determines the value of a company’s shares, the cost of its capital, its ability to attract talent, its treatment in the press, and its relationships with interest groups with influence the attitudes of legislators and the decisions of customers.”
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