Cannibalism effect (negative goodwill)

An unfavorable, detrimental aura emanating from a provider in business transactions in general and in the financial market in particular – from an institution or also – from a particular event. – In mid-December 2012, a large contingent of around 500 officers from the police, the Federal Criminal Police Office and the tax investigation unit searched the offices of Deutsche Bank in Frankfurt am Main; corresponding pictures went around the world for days. The Frankfurt Prosecutor General’s Office accused some employees of the money house of serious tax evasion, money laundering and the
obstruction of justice. The damage to the company’s image (damnage to reputation) caused by this raid was estimated by the management of the institute at several million euros. – The German Ergo insurance company, apparently with the approval of the management, sent so-called “high-performing employees” to whorehouses in Budapest in 2007 and on sex trips to Mallorca and faraway Jamaica in 2012. This earned the company the popular name “puff insurance,” and it put all insurance salesmen and also the whole insurance sector in a bad light. – See badwill, credit rating, gnomes of Zurich, goodwill, Helvetophobia, incentive trip one-bank strategy, reputational risk, risk, strategic, spill-over effect, trust. – Cf. 2013 BaFin annual report (regulator rebukes image-damaging incentive trips).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/