Javon reputation is hard to come by.
Javon ScottProfessor NateMarketing 091016 November 2017Is a Damaged Reputation Bad For Sales A good reputation is hard to come by. A company’s reputation takes time to build but can be destroyed in the matter of seconds. After a company’s reputation has been damaged, the public may lose faith in them resulting in lost sales and in major instances bankruptcy and failure. Takata, brought down by airbag crisis, files for bankruptcyJethro Mullen (2017) Takata’s reputation was brought down by its exploding airbag crisis. Takata’s airbags could eject without warning negatively impacting the driver and passengers. This resulted in the death of 11 people and the recall of millions of vehicles. After Takata’s debt fell to more than 9 billion dollars the company filed for bankruptcy while also selling off most of its company to an American rival. Takata admits to manipulating and withholding important information for their faulty airbags for years.Wells Fargo finds an additional 1.4 million potentially fake accountsRenae Merle (2017).Wells Fargo said it had possibly opened an extra 1.4 million fake accounts customers didn’t know about. The bank reconsidered the grand total, which brings it to 3.5 million, after finding that workers may have been opening unsanctioned credit card and bank accounts for clients longer than originally acknowledged. This hurts the bank’s attempts to proceed past the year long scandal as Congress and regulators investigate further into its inner workings and demand changes. The most recent analysis also does not acknowledge other scandals that have plagued the bank recently, including that 560,000 of its car loan customers were billed for insurance they didn’t want, causing some to default and have their cars taken. Wells Fargo fired 5,000 workers the past three years for the practice. Under pressure, Wells Fargo reported earlier this month that it would make changes to its board of directors. Stephen Sanger, former chief executive of General Mills, is being replaced by Elizabeth Duke as board leader starting in 2018. Two other long term members of the board, Cynthia Milligan and Susan Swenson, also made public that they would resign.Goldman Sachs Finally Admits it Defrauded Investors During the Financial CrisisLucinda Shen (2016)Banking giant Goldman Sachs has agreed to pay $5.1 billion to settle a lawsuit connected to its handling of mortgage backed securities leading up to the 2007 financial breakdown. From 2005 to 2007, Goldman provided and underwrote many mortgages and securities that had been backed by residential loans borrowed by customers with bad credit reports. That helped tip the economy into recession after the housing market crash in 2007, leading to foreclosures and negligence. That caused billions of dollars in losses for investors. This resolution holds Goldman Sachs responsible for its wrongdoings after lying to investors and telling them that securities they sold were backed by strong mortgages when in reality they were ticking timebombs.Everything You Need to Know about the VW Diesel-Emissions ScandalClifford Atiyeh (2017).Volkswagen installed emissions program exceeding more than one million diesel cars in the U.S. and around 10.5 million others across the world that allows them to understand the pattern of an emissions drive cycle set by the Environmental Protection Agency. In the test mode, the cars are fully compliant with all federal emissions levels. But when driving regularly, the computer changes to a different mode drastically changing the fuel pressure, injection timing, exhaust-gas recirculation, and, in models with AdBlue, the amount of urea fluid sprayed into the exhaust. While this mode likely delivers higher mileage and power, it also permits heavier nitrogen oxide emissions a smog forming pollutant linked to lung cancer up to 40 times higher than the federal limit. U.S. District Court Judge Charles Breyer approved the final $14.7 billion settlement on October 25, 2016, after which Volkswagen will start mailing notifications to all current affected owners and lessees of 2.0-liter cars informing them of the $10 billion buyback program.Deepwater Horizon oil spill of 2010 Richard Pallardy The Deepwater Horizon rig, owned and operated by offshore-oil-drilling company Transocean and leased by oil company BP, was located in the Macondo oil prospect in the Mississippi Canyon. On the night of April 20 a rush of natural gas shot through a concrete layer recently poured by contractor Halliburton to cover up the drilling hole to use in the future. It later came to light through official papers published by Wikileaks that a similar incident had occurred on a BP-owned rig in the Caspian Sea in September 2008. Both concrete layers were probably too delicate to endure the stress because they were composed of a concrete mixture that used nitrogen gas to speed up curing. After the gas passed through the concrete layer, the natural gas traveled up the Deepwater rig riser to the platform, where it ignited, killing 11 workers and injuring 17. The rig fell over and sank on the morning of April 22. Oil started to flow into the water at about 1,000 barrels per day which government officials believes to have reached at one point 60,000 barrels per day. In conclusion a firm’s reputation is key to its survival. There are many things that contribute to a firm’s reputation, some being ethics, social responsibility and much more. As you can see a bad reputation can lead to bankruptcy and loss of customers trust. From these five instances new managers should have their customers safety and satisfaction in mind instead of just corporate profits. Its obvious that after you get caught doing something wrong the punishment outweighs the benefits. It is very hard to regain the trust of consumers so you should do things right the first time. It is paramount that company owners are loyal and maintain good relationships with stakeholders.Reference pageAtiyeh, clifford. “Everything You Need to Know about the VW Diesel-Emissions Scandal.” Go to News., 24 Oct. 2017, blog.caranddriver.com/everything-you-need-to-know-about-the-vw-diesel-emissions-scandal/Bracey, Leon. “The Importance of Business Reputation.” Business in Focus, Business In Focus, 5 Nov. 2017, www.businessinfocusmagazine.com/2012/10/the-importance-of-business-reputation/. Eccles, Robert G, et al. “Reputation and Its Risks.” Harvard Business Review, Harvard Business Review, Feb. 2007, hbr.org/2007/02/reputation-and-its-risks. Egan, Matt. “Wells Fargo Uncovers up to 1.4 Million More Fake Accounts.” Cnn Money, CNNMoney (New York), 31 Aug. 2017, money.cnn.com/2017/08/31/investing/wells-fargo-fake-accounts/index.html.Elkind, Peter. “THE TRUTH ABOUT HALLIBURTON .” Fortune, 18 Apr. 2005, archive.fortune.com/magazines/fortune/fortune_archive/2005/04/18/8257012/index.htm.Hulbert, M. (2013, Mar 08). Most-admired companies aren’t always great investments. Wall Street Journal (Online) Retrieved from http://ezproxy.rowan.edu/login?url=https://search.proquest.com/docview/1315240192?accountid=13605 Japan’s Takata was brought down the huge cost of its exploding airbag crisis. The company’s faulty airbag inflators. “Takata, Brought down by Airbag Crisis, Files for Bankruptcy.” CNNMoney, Cable News Network, money.cnn.com/2017/06/25/news/companies/takata-bankruptcy/index.html. Merle, Renae. “Wells Fargo Finds an Additional 1.4 Million Potentially Fake Accounts.” The Washington Post, The Washington Post, 8ADAD, www.washingtonpost.com/news/business/wp/2017/08/31/wells-fargo-finds-an-additional-1-4-million-fake-accounts/?utm_term=.865d59e79e9c Pallardy, Richard. “Deepwater Horizon Oil Spill of 2010 Environmental Disaster, Gulf of Mexico.” Encyclopædia Britannica , Encyclopædia Britannica, Inc., 31 Mar. 2017, Shen, Lucinda. “Goldman Sachs Finally Admits It Defrauded Investors During the Financial Crisis.” Fortune, 11 Apr. 2016, fortune.com/2016/04/11/goldman-sachs-doj-settlement/.