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(The following post first appeared on My Three Cents, Ken Makovsky’s own blog.)

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  1. I think there are cases where external forces can help firms’ reputation. One case is when an industry is suffering from the bad actions of a few, and only government regulation may force the entire industry to adhere to certain standards. If your survey was representative of the entire industry, I can see how some in the industry who have good reputations may hope that government regulation may force the “bad apples” to behave better, or at least cause the perception among the public.

    Also, from an analysis perspective (and not having reviewed the entire survey), just because respondents agree that government regulation may help reputation, I don’t think you can conclude that respondents would agree that only external forces would solve reputational problems. Frankly, as Sean Williams suggests, in an industry with multiple stakeholders and heavily regulated, I think both external and internal factors shape reputation.

  2. Ken, thanks for this research. As I wrote recently on my own blog, there’s a tendency to blame someone, anyone, for the mess, and though the banks share in the responsibility for creating it, the bucket of blame needs to be passed around to a lot of constituencies – government, financial industry regulators, and even ordinary people who bought more house than they really could afford, or opted for a loan that carried unsustainable terms. (this isn’t to excuse criminals who took advantage of the mortgage boom to prey via fraud on elderly or desperately poor people.)

    That said, there are times when no amount of classical crisis PR will bring an optimal result. It’s a dirt sandwich, and everybody has to take a bite.

    Financial companies bring the firestorm on their own heads when they refuse to see how their actions speak louder than their words — the say-do disconnect harpoons trust, and that’s a big part of why we are where we are.

    Thanks again for your post.

  3. Pingback: Many Financial Services Firms Flunk PR, Survey Says | Institute for … | Where Digital marketers get their news

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