Reputation Gurus

Conde Nast’s new business magazine, Portfolio, is hitting the stands. It’s filled with beautiful images and tenderly cultivated prose.
It’s also a primeexample of the “celebritization” of business executives. Business news coverage is increasing, but the focus on “rock star” managers and their companies is skyrocketing. Maybe it results from companies’ increased visibility. Maybe it reflects the fact that we’re investing in mutual funds. Personally, I suspect it proves that journalists believe business stories are more interesting and get better play when they focus on “heroes” and “villains.”

Whatever the motive, companies are under the microscope. Governance advocates scrutinize executive pay. Attorneys general in 50 states recognize the political value of a showcase lawsuit. Business media are less friendly towards business. And the online community realizes how much power it wields — with companies large and small.

Corporate reputations are under greater pressure than ever. And companies that fail to burnish and protect their reputations risk everything. On any given day, we see pharmaceutical, insurance, financial services, communications and other businesses under siege over some perceived misdeed. As fines and settlements grow, so will the attention these investigations get from the public. Investments to protect the corporate reputation will always be far smaller than the costs of dealing with the aftermath — and far more helpful to the company’s health.