Rather fail with honor than succeed by fraud. – Sophocles

A true test of success is not only the financial net worth of a businessman, not from fancy titles or high positions in business chambers, not only from honorary degrees or medals in one’s collection, not just from the power wielded by a politician, not even just from the fickle highs and lows of popularity surveys, or other apparent symbols of success, but the quality of one’s reputation.

Reputation is as important, even more so than money or actual capital, in business and other vocations. Reputation is based on unsullied trust and years of consistent credibility, not on praise releases, public shows of charitable donations, or photo-ops.

For centuries, Chinese business circles throughout Asia operated efficiently and smoothly due to the reliance on the old-fashioned concept of trustworthiness or shinyong. A trader or entrepreneur who violates this shinyong faced a fate worse than death, with members of the business community, the creditors, suppliers and customers avoiding the violator like a leper.

It is sad that in our modern times, the age-old tradition of transacting commerce on unwritten contracts or the spoken word of shinyong has increasingly become extinct, replaced by a complex web of legalities and other financial sophistry. It is tragic that there are rich people who value money and profits more than their family or personal honor, violating ethics as long as their acts are deemed legal. They do not realize that reputation is a priceless and intangible wealth, which endures beyond our death, and which can be passed on to descendants for many generations.

The legendary American retail tycoon James Cash Penney (1875-1971) once drank ginger ale at a party and someone had mistakenly reported that he drank a cocktail. Penney later said: "I am sure that a reputation which I value has been endangered by my drinking ginger ale. Hereafter, it will be plain water or tomato juice for me."

The son of a poor farmer, J.C. Penney once worked as a dry goods store clerk and later built his business empire on what his firm called "timeless values." He opened his first department store on April 14, 1902. His firm went public in 1927, giving all his store managers shares and later including all his employees in corporate profit-sharing. J.C. Penney Corporation Inc., the wholly-owned operating subsidiary of J.C. Penney Company Inc., is one of America’s largest department store, catalog, and e-commerce retailers, employing approximately 150,000 associates. As of Jan. 29, 2005, J.C. Penney Corporation Inc. operated 1,017 J.C. Penney department stores throughout the United States and Puerto Rico, and 62 Renner department stores in Brazil.

J.C. Penney was a devout business tycoon who in 1950 wrote the book Fifty Years With the Golden Rule. He not only guarded his personal reputation from the slightest hint of irregularity or unethical acts in his business and personal lives, he donated much to his favorite charities out of sincerity based on devout Christian faith. Reputation Key To Effective Leadership In our increasingly competitive business world, banks, insurance firms and many other businesses rise and fall on the strength of their reputations. In recent years, several once high and mighty corporate titans in the US collapsed due to the unethical, dishonest, selfish, immoral and sleazy dealings or acts of their executives.

Philippine brands like Jollibee, Bench, SM, Max Chicken, Figaro, Summit Media, Dencio’s, Gerry’s Grill, San Miguel, Tanduay Rhum, BPI, China Bank, Metrobank, National Book Store, and Mercury Drug are just some corporate names with enduring corporate reputations not only among the mass consumer market, but also among creditors, suppliers and other institutions. It would be exciting to see how these credible homegrown corporate names can build on their solid reputations and expand overseas, conquering global markets and becoming internationally reputable brands like Unilever, Citibank, Standard Chartered, HSBC and others.

Alan Greenspan wrote: "In today’s world, where ideas are increasingly displacing the physical in the production of economic value, competition for reputation becomes a significant driving force, propelling our economy forward. Manufactured goods often can be evaluated before the completion of a transaction. Service providers, on the other hand, usually can offer only their reputations."

Reputation is not only important for business enterprises, but also essential for the effectiveness of political, military and other leaders in commanding the loyalty and confidence of followers. A lot of political movements, coalitions, even revolutions were built or destroyed on the good and bad personal reputations of leaders.

There was an ancient tale about a soldier in the army of Macedonian conqueror Alexander the Great. He was brought for court-martial trial before the emperor, who heard the charges and the evidence against the soldier. The emperor asked the soldier’s name and the latter replied: "Alexander!" The emperor asked three more times, and the reply was the same each time: "Alexander!" The world conqueror was infuriated and shouted: "You say your name is Alexander? You are found guilty of your crime as charged, and now you must pay the penalty. Either change your conduct or change your name, for no one can bear the name of Alexander, my name, and do the things that you have done!"

President Franklin D. Roosevelt, whose rock-hard reputation for decisive leadership, courageous reforms and bold vision brought the US out of the Great Depression and led his nation to World War II victory, once said: "Confidence thrives on honesty, on honor, on the sacredness of obligations, on faithful protection and on unselfish performance. Without them it cannot live."

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BULL MARKET, BULL SHEET By Wilson Lee Flores The Philippine STAR 05/09/2005