Barclays and G4S both recently suffered major setbacks in reputation. Barclays became ‘the latest victim of a crisis cycle that has seen corporate reputations shredded by hostile political, regulatory and media scrutiny’ And G4S, which prides itself on ‘securing your world’, came up short at one of the world’s most prominent events.

But businesses appear not to be heeding the public’s demand that they shoulder more responsibility. People haven’t quite taken to the street in protest the same way they might have a few decades ago. But they have made themselves heard through social networking. Faith in business has been shaken and trust in corporations has declined. Perhaps that’s why David Cameron hopes that the Olympics will “lift up our troubled nation” and “act as a national morale booster.”

Reputation Institute, a reputation management and research consultancy, reports a decline in trust across most sectors, noting that the company behind the products and services matters to people when deciding what to buy, invest in or recommend. Stakeholders – including the public – want to know more about an organisation’s leadership and what it’s like as employer, for instance. Research by Reputation Institute shows that governance and citizenship are key drivers of reputation. But as Managing Director, Spencer Fox, points out: “Stakeholders are much more savvy now than they have ever been. Companies must say what they do and do what they say. Those that invest in measuring and managing their reputation will perform better financially and bounce back quicker from a crisis. Just like Rolls-Royce did in 2010.”

However, companies are missing opportunities to get ahead of competitors as they continue to presume that stakeholders don’t need or want to know what’s happening behind closed doors. The London financial sector, in particular, has taken one hit after another. Whether it be fat bonuses, misselling, fixing interest rates or failing to have proper controls in place to deliver basic services, as RBS found out to its cost recently. Can the Olympics be the saving grace? It may be a step in the right directions.