A good reputation should be guarded above all else, according to Scott Hunter, former managing partner of Arthur Andersen Bermuda which was until earlier this year one of the Island's leading accounting firms.

What can happen when your reputation comes under threat, even from afar, is all too obvious to Mr. Hunter who is now overseeing the wind up of the local Andersen firm.

Like many Andersen firms world wide, Mr. Hunter closed down Andersen Bermuda - a well-established firm that had built a solid relationship with its clients from the time it set up in the 1980s - following the indictment of the American Andersen firm by the US Department of Justice for its role as auditor of now failed energy giant Enron.

On a global scale, the events were to impact the jobs of thousands of Andersen staff - in Bermuda alone 35 people faced finding new jobs and world wide some 80,000 Andersen staff found themselves in similar circumstances.

In an interview with The Royal Gazette, Mr. Hunter said: "The demise of Andersen; the closing down of a premier professional services firm of 80,000 people around the world, is a tangible demonstration of how important reputation (and integrity) is, and how a loss of reputation can be catastrophic. Reputation is the most important asset you've got in both a personal and organisational context."

But Mr. Hunter said his thoughts on reputation were not only a reflection on what had happened to Arthur Andersen but something that he had long talked to his staff about and also something that all sectors of the Island should bear in mind.

Mr. Hunter reflected that when accountancy students came to do their articling (training) with the firm, he would tell them: "The three most important assets (we have) are our people, clients and reputation (or integrity)," he said, but pointed out however that when you think of it, none of these assets would be on a balance sheet.

Mr. Hunter continued: "Historically, I worried a lot about our people; I also worried about our clients from time to time; but, I never worried a lot about our reputation, it was almost a given."

Looking at the broader picture, Mr. Hunter said: "Ultimately, (reputation) that is what we have to offer from a Bermuda context.

"It is important that our community always puts reputation and integrity first in any decision making and in the way we act - as we have seen in recent times, a good reputation can be very fleeting."

Mr. Hunter said maintaining a reputation of high standing was something we should all be aware of, especially as the Island depends on it to sustain its pre-eminence as a business jurisdiction: "In my lifetime I have witnessed an incredible transformation in Bermuda from agriculture, hospitality and some fishing in the early 1950s to where we are today where the so-called knowledge workers drive our economy.

"We don't manufacture things, we have built a service/knowledge worker economy whose future success will be dependent in large part on how well we nurture and act as stewards of our reputation. Our reputation in the hospitality industry is clearly not where we would like it - but it is interesting to note that it was eroded over a significant time (it was like a tanker changing course by 5 degrees a year). However, I believe the same dynamic does not exist in international business."

Mr. Hunter said if something unethical was to be done by a Bermuda company or even the Government, the implications for the community could be devastating:

Mr. Hunter concluded: "Reputation is very fleeting. You can lose it very quickly. You have to be constantly alert to the impact of anything on your reputation. I would be concerned with reputation suffering as a result of an action, or non action, that is perceived as unethical. Our whole community could be significantly affected, even if it were not true. A substantive claim from an authoritative source could be devastating. The same could be true it there were a series of smaller acts.

"A significant change in our community's reputation for high integrity could have a drastic (and quick) negative impact on our community, and it is important that all stakeholders - our business, Government, work force and community at large - do everything to ensure our reputation and integrity are not compromised. That is the concern I have. We have to recognise how vulnerable we are."