Not only does a firm need to put out a good product to be successful in the long run, it must also:
- Be efficient in its operations
- Attract and retain quality employees by providing adequate compensation and a good work environment
- Serve its clients well in all regards
- Invest in long-term initiatives
- Foster stable relations with reliable suppliers
- Consider its impact in a broader societal context
A good manager or regulator must integrate these objectives, and prioritize where contradictions and conflicts arise. Ultimately, the firm that is able to set long-term goals and achieve them will enjoy stability and financial success.
Pursuing the same things will also transform the firm into a more respected institution. A corporate brand is not respected in and of itself, but follows the respect people have for the organization on account of its behavior. Largely, this is dependent on the quality of the firm’s product, but it also derives from the experiences that people have interacting with the firm outside their role as a consumer.
This can readily be witnessed in proactive: observe that the most respected firms are those whose chief concern is not generating short-term returns for shareholders, but long-term benefit to customers, employers, investors, and the public. Financial success is the result, not the objective, of good governance and management.