For as large and established as Arthur Andersen was, it could not overcome its reputational crisis in the wake of the Enron collapse. Could this happen to your business, nonprofit or academic institution?
Your organization's reputation is its most valuable - and fragile- asset. Some businesses, nonprofits or academic institutions never recover from a reputational crisis. Others pull through and move on to become bigger and better. Your organization's reputation need not be damaged in a crisis! How you handle a crisis will be remembered long after it is passed.
Written for businesses, nonprofits and academic institutions Reputational Risk Management will illustrate how to: Leverage the four steps to create and execute an effective crisis management plan. Avoid missteps in dealing with a crisis. Keep everyone prepared to confidently deal with a crisis situation. Employ the secret weapons for managing and surviving a crisis. Endorsements "Having worked with Peg Jackson for several years, one could not ask for a better risk manager to have in your corner.
Her sixth sense is attuned to reputational risk management, a critical element in today's business environment. Her newest book, Reputational Risk Management, is a must read for all business managers and owners; small, large or in between. They cannot afford to not know what they don't know. It can happen to them! Recently, multinational corporations have begun to reinvent themselves as socially responsible actors, largely in response to anti-corporate activist pressure.
The author argues that a concern with corporate reputation is leading to an ideational shift in corporate behaviour — in essence, it is disciplining their behaviour. This innovative exploration of the idea of a self-regulating corporation in an era of globalisation first examines the link between corporate reputation, corporate behaviour and self-regulation, and then goes on to compare and contrast various studies of multinational corporations that have sought to self-regulate.
This acknowledges both the dangers that multinational corporations pose to communities, and that anti-corporate activists are the first group to understand the potential risk of targeted campaigns to corporate reputations.
He also illustrates his points using three case studies of companies that have attempted to self-regulate: Royal Dutch Shell, the Toyota Motor Corporation and Interface Inc. Undergraduate and postgraduate students of international business, management and business ethics will be interested in the essential topics covered in this book.
It can wipe out billions of dollars in market capitalization and impose sweeping changes to company leadership. But what does it mean and how do you manage it? Reputational risk strikes without warning and shifts your corporate landscape.
Even worse, it injects an unfavorable narrative into your search results which affects customer opinions and impacts revenue. There are countless statistics about online reputation that support this conclusion.
We commissioned a study by Forrester Consulting to find out what executives at large brands think about SEO and reputation. Unfortunately, reputational risk is often neglected or confused with other types of corporate risk. Strategic risk is specific, measurable and predictable. Therefore it is controllable. Reputation risk , on the other hand, is largely unpredictable.
There are numerous types of risk to guard against, including outside adverse events, workplace practices, data retention failures, product recalls, bad financial statements, and CEO reputation issues. If your CEO has a negative reputation , then so does your company.
And that, ultimately, affects revenue, investments and shareholder value. Even if a beleaguered CEO leaves the company, his or her reputation may continue to damage the brand. That can make it difficult and expensive to find a replacement, and could further feed the negative news cycle. Imagine the consequences in each of the following scenarios:.
Any of those situations could cause a viral news cycle that results in boycotts, customer defection, and significant revenue loss for years. Whether brought on by unsettled employee disputes, customer complaints or regulation violations, negative media attention can shackle profits for global banks, financial services companies and other businesses.
Read the full study here. Events like mergers and acquisitions or closing down an underperforming factory could trigger negative articles that damage your reputation. Or perhaps something from the past resurfaced. Contact us to set up a call. Social media can be both a cause and a catalyst for a negative reputation.
Additionally, unsolicited brand mentions by influential political figures or celebrities can also lead to social media backlash. Although your company may have been casually mentioned, the public will likely infer a reciprocal endorsement.
Whatever your business model, if your company underperforms or overcharges, it will eventually develop a bad reputation. For example, a journalist may publish an expose about shady sales techniques or reveal hidden fees. Or a financial analyst could write a damaging article about the quality of your investment funds. Your customers trust you with their data.
In fact, finance companies handle some of the most sensitive personal information, including: names, social security numbers, passwords, logins, pin numbers and bank account numbers.
Government regulations can change with each election cycle. Under one administration your bank may meet stress test requirements, and under another you could face liquidity risk. A negative corporate reputation harms client and investor trust, erodes your customer base and hinders sales. A poor reputation also correlates with increased costs for hiring and retention which degrades operating margins and prevents higher returns.
Furthermore, reputational damage increases liquidity risk which impacts stock price and ultimately slashes market capitalization. Wells Fargo is probably the best example of the impact of reputational risk. As a result, the wealth and investment management unit has struggled to generate new business. The following steps will help you measure, monitor, manage and mitigate damage to your reputation.
That will help you determine public perception of your company and competitors as well as the industry in which you operate.
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