What is it exactly, do you suppose, that Ernst and Young sells its clients? If you said "auditing services" or "consulting", you're right, but I'm asking a more general question than that. To get to the heart of the matter, why would you listen to E&Y moreso than you would listen to your neighbor, a cousin, or that dude on the street that talks to himself?
The answer is Trust. That's what they sell. At the core of the purchasing decision is the degree to which you do or don't trust E&Y to deliver the goods - and the confidence that you have that they will add value. They know it, too - take a look at their Overview: "...integrity and professional competence are the cornerstones of our global organization. We work hard to earn and maintain our clients’ trust and confidence..." Or take a look at their Code of Conduct:
We respect and protect confidential information obtained from, or relating to, our clients or third parties, as well as personal information about our people, in accordance wiht local law and professional standards.
So what kind of effect do you think it has when they lose that trust? Like when, for example, they fail to disclose the exposure of customers' personal information (in direct contradiction to the advice they give others.) Or about all the laptops with client information. Or what about if something like that happens again and again.
You'd have to think that would impact the bottom line...
Posted by Ed at March 20, 2006 01:55 PM