Alas, for those in the United States right now, we are in the silly season once again. Politicians are wasting millions of dollars with ads that impugn their opponents instead of discussing critical problems and potential solutions. The notable take-away is that the hyperbole, annoying and far from enlightening in a real sense, can have a long-term impact on voter turnout and how one feels about his or her local government. In the State of Connecticut, many agree that the end of "feel bad" campaigning can't come soon enough. In "Voters Looking Forward To Election Day, When Negative TV Ads End" (October 18, 2014), Hartford Courant writer Christopher Keating says that "A recent study by Wesleyan University showed that Connecticut's governor race has the highest percentage of negative ads in the nation." Using the tv mute button to silence attack ads has become the norm for some. At the same time, political scientists tout the advantages of being mean for those who listen. According to "The Science of political advertising" (Monitor on Psychology, American Psychological Association, April 2012), writer Sadie Dingfelder explains that "negative ads might create more thoughtful voters than positive ones..." and "...that campaign ads that make people feel fear - with ominous music and grainy images of drugs and violence - caused people to seek more information and remember more facts from a newscast aired afterward."

In business, negativity can be costly. As the 65th U.S. Secretary of State Colin Powell quipped, "Bad news isn't wine. It doesn't improve with age." One wonders for example how holiday sales for a well known retain chain will fare in the aftermath of its decision to sell "Breaking Bad" action figures (each with "a tiny bag of crystal meth (fake, of course)" and then reversing course after nearly 8,000 people signed a protest petition. See "Toys R Us pulls 'Breaking Bad' figures after controversy" by Beki Winchel (PR Daily, October 22, 2014). A quick look at the Press Releases section of the company's website today reveals nothing about this decision.

In contrast, Business Insider contributor Kim Bhasin chronicles "9 PR Fiascos That Were Handled Brilliantly by Management" (May 26, 2011) in part because of a swift and remedial response. With a focus on allaying concerns, companies that experienced setbacks and came clean quickly had a better chance of preserving customer loyalty, sales revenue and enterprise value.  As former White House Chief of Staff Howard Baker warned, "It is almost always the cover-up rather than the event that causes trouble." 

According to the Reputation Institute, corporate image is an undeniable component of economic value in an "environment in which people buy products, take jobs or make investments based predominantly on their trust, admiration and appreciation for the companies and institutions that stand behind them." See "Corporate Reputation" The Main Driver of Business Value" (May 1, 2012).

In an era of social media, the electronic Pandora's Box, once open, is virtually impossible to snap shut. That is why stewards in charge of wealth creation on behalf of shareholders must understand something about digital communications. In "6 Steps for Protecting Corporate Reputation in the Social Media Age" (January 2, 2012), Layla Revis recommends ways to stay on the right side of tweets and "likes." Then a Vice President of Digital Influence at Ogilvy PR Worldwide and now a Senior Vice President with Leo Burnett, she urges companies in the image crossfire to address a crisis, respond with a meaningful gesture, own up to a mistake, get the word out via multiple information channels, assemble a "crisis communications response team" and "become influential and change perceptions."

In the financial services arena, a 2014 image report talks about "steady growth in recent years" and how companies in this industry are "continuing to build brand value by engaging with their customers and providing more seamless, convenient, and fully integrated experiences." See "Interbrand's 15th annual Best Global Brands Report" (October 9, 2014).

As James Surowiecki, author of "The Wisdom of Crowds..." points out, brand loyalty is fleeting and companies need to do a lot to compete. Creating a "transformative" experience or getting a consumer to buy a product because it can "confer status" are two competitive strategies. See "Twilight Of The Brands" (The New Yorker, February 17, 2014).

The watch word for institutional investors is to dig deep to assess the strength of a company's brand and the precautions in place to protect intangible assets. Due diligence has to take into account the ability of a brand(s) to generate future revenue.

Founding father, stateman, philosopher and inventor, Benjamin Franklin wisely said "It takes many good deeds to build a good reputation, and only one bad one to lose it."