We use cookies on our website. Find out more or ignore

Reputation is priceless

26 June 2017 by Henry Ker

Reputation is priceless - read more

Restoring trust once it has been broken or lost is a formidable task

Governance and Compliance June | July 2017

Reputational risk and the paramount importance of public trust for an organisation has permeated discussion on a wide range of governance topics recently – from cyber risk to customer services, anti-corruption and bribery, whistleblowing, business ethics and financial reporting.

Certainly, recent negative publicity around very public incidents for companies like British Airways, United Airlines and Uber all threaten to undermine strong reputations built over many years; while, as Ibi Eso of Bridgehouse Company Secretaries explains in their article 'Plan ahead', even something simple like non-compliance and late filing at Companies House may well lead to reputational consequences.

Tom Hollobone, a Senior Director at Kroll, states in his article 'The best line of defence' that ‘reputational concern has now become the top reason third parties fail to meet an organisation’s standards’, while 51% of FTSE 350 company secretaries surveyed in the Winter 2016 FT–ICSA Boardroom Bellwether consider their exposure to reputational risk to be increasing.

Restoring reputation and trust was also the driving force behind the inquiry into the charitable sector by the House of Lords Select Committee. Baroness Pitkeathley, Chair of the Committee, explains in our interview 'Stronger charities': ‘[because of] the rather torrid time the charity sector had been going through in recent years … one of the main aims of the inquiry was to acknowledge just how good the sector is, how much good it does, how well it manages itself, and also to increase confidence in the sector.’ Restoring something once it has been broken or lost is a formidable task and as the Baroness warns, organisations should ‘[not] take trust for granted’.

Boards are beginning to acknowledge the consequences of business incidents stretch far beyond the direct costs of restoring full service or compensating stakeholders. As Ricardo Turra of Votorantim Cimentos (one of the executives interviewed as part of Kroll’s report) states: ‘Hours or days can destroy decades spent to create a great brand.’ It is better to protect the organisation through comprehensive governance and compliance programmes than to have to try picking up from the ground the pieces of a shattered reputation.

Henry Ker is Editor of Governance and Compliance

LATEST ARTICLES

The social case for diversity can stand alone - Read more

The social case for diversity can stand alone

24 May 2018 by Jimmy Nicholls

Businesses can pursue diversity as a societal good, even against a varied business case. Read more...

Do you think the FRC’s enforcement powers should be enhanced?

Do you think the FRC’s enforcement powers should be enhanced?

23 May 2018

Our community assesses the teeth of the Financial Reporting Council. Read more...

Philippa Foster Back: Even if it is legal, is it right? - Read more

Philippa Foster Back: Even if it is legal, is it right?

16 May 2018 by Jimmy Nicholls

The director at the Institute of Business Ethics discusses consumer backlash against misbehaving companies, how boards shape culture and UK reform of corporate governance. Read more...

Strong culture and governance make for sporting behaviour - Read more

Strong culture and governance make for sporting behaviour

15 May 2018

Understanding and improving culture can help ease sport’s troubles. Read more...

How small and mid-cap firms can AIM higher - Read more

How small and mid-cap firms can AIM higher

15 May 2018

The QCA has updated its code to help small and mid-cap companies improve governance and encourage growth. Read more...

For some chief executives there is no easy way out - Read more

For some chief executives there is no easy way out

15 May 2018

Succession planning for a charismatic CEO is a thankless task. Read more...

This AGM season faces a shifting climate - Read more

This AGM season faces a shifting climate

15 May 2018 by Jimmy Nicholls

Investors are demanding firms do more on environmental and social issues, including board diversity and climate change. Read more...

Executive remuneration reform needs patience - Read more

Executive remuneration reform needs patience

15 May 2018

Recent changes to executive pay regulation need more time to have an effect. Read more...

Companies House's online registration needs fixing - Read more

Companies House's online registration needs fixing

15 May 2018 by Jimmy Nicholls

The conviction of a whistleblower protesting the ease of registering with Companies House shows flaws in the system. Read more...

Work experience lets candidates try governance for size - Read more

Work experience lets candidates try governance for size

15 May 2018

ICSA has developed guidance to help support companies to offer work experience. Read more...

Have your say

comments powered by Disqus

Advertisements