In a surprising - and some say unprecedented - move, Goldman Sachs legally acknowledged that "adverse publicity" is one of the financial risks it faces. The Wall Street Journal has the story:
The unusual disclosure in a 12-page section of "risk factors" ranging from rocky financial markets to natural disasters is the latest sign of Goldman's whipping-boy status among rivals, lawmakers and angry Americans because of the firm's giant profits.
"Goldman has become one giant pinata to whack," said Charles M. Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, adding that he couldn't recall a previous instance where a company cited bad publicity as a risk to its business. "It's reflective of the rather bizarre political climate in which we operate."
Those working in financial and corporate PR likely see their day's work validated by this admission from the global investment firm that yes, indeed, corporate reputation impacts the bottom line. Thoughts and comments? Reach me here.
The text from Goldman's February 26 10-K filing is after the jump.