With the national economy taking its time to recover and plenty of recent financial scandals, Wall Street’s reputation has tanked. If Wall Street, banks, and other financial institutions want to rebuild a solid reputation, they’ll need to focus on the 7 distinct perceptions consumers have about them. By addressing each of these areas, Wall Street bankers and stockbrokers can tackle the problem of a poor reputation from several angles.
The 7 key factors Wall Street must address to rebuild reputation are:
products and services
Consumers expect companies they do business with and those who hold a lot of power to show good corporate citizenship and social responsibility. Citizenship in this sense is the idea that businesses like those on Wall Street must be actively compliant with the law, monitor and be accountable for their own actions, and have a positive impact on the environment, employees, customers, stakeholders, and the public at large.
No one wants to buy from, work for, or invest in a company that isn’t financially stable and making a steady profit. Scandals, embezzlement, debt, gambling, poor investments, sour mergers or acquisitions, and other cash-flow problems all reflect a negative financial performance.
How a company is run can have a big impact on the company’s reputation. Consumers expect a company to be run efficiently, fairly, and responsibly, with strong values and appropriate policies.
Implementing a better system to punish employees involved in scandals and reward those who live up to the company’s values and mission would go a long way to rebuilding Wall Street’s reputation. So would making processes more efficient, policies more fair, and values and mission statements more in line with the other 6 factors.
The most successful companies–which, coincidentally, usually have good reputations–evolve and adapt. They are not afraid to update old products and policies, create new ones to match the times, and otherwise innovate in any way they can to perform better and please stakeholders.
Wall Street has stagnated by doing the same things the same way for years. It’s time for them to get creative and change how they play the game to regain trust and rebuild a strong reputation.
Thanks to the internet, consumers expect companies to have visible leaders who are experts in their industries and take a stand on important issues of the day. Wall Street executives should strive to be an influence for good and become thought leaders in smart investing, ethical banking and financial policies, and other relevant topics.
Products & Services
Businesses live or die by the strength and value of their offerings. Wall Street institutions must make sure their products and services actually help customers, solve problems, and are appropriately priced.
Although this factor mainly affects employees, it makes a difference in a business’s reputation. Consumers expect businesses they frequent to treat their employees well, and an employee’s assessment of the company is more powerful than a random customer.
Rebuilding Wall Street’s reputation will take a lot of work, but these 7 key factors provide the much-needed guidance to get them on the right track.