Corporations care about near-term profit. What counts as near-term profit is determined by accounting rules. e.g. technically, investing in a 100-year bond is a very long term investment (since you only get your money back in 100-years) but accounting rules don't count it as a expense to a 100-year bond, so companies don't under invest in them. In contrast, investing in say consumer goodwill will show as an expense. So a CEO looking to boost profits this quarter might sell a bad product (ruining consumer good will in exchange for some fast cash) even if that hurts the company in the long run. Thus, by reforming accounting rules, we can control corporate behaviour. For example, if "how much the public approves of your company" counted as an intangible asset, companies would be less willing to ruin their reputation in exchange for a dollar (because it would appear as a loss to investors) There are limits. Because investors ultimately want actual cash as dividends or stock buybacks, even if we say "a dollar given to the poor is worth two dollars in heaven", investors will still punish companies with such heavenly profits.
There’s already precedent for damages to good name, reputation, etc., and both investors/employees have interest in a company’s perceived quality.
(i'm op) Yes, but those don't appear on the balance sheet. They don't appear on quarterly earning reports. They don't directly determine CEOs bonuses like profits do.
Balance sheets do include something called "goodwill" but it only appears when acquiring a company (the difference between what you paid and what the company's books record the company as worth). So that is unrelated.
