Tag Archive for ‘Reputation’
Environmental issues, from headline-grabbing environmental catastrophes to protracted conflicts with governmental authorities, can impair a company’s reputation. Such reputational issues can threaten a company’s relationship with regulators, customers, employees, interest groups and the general public. Because it can take many years to repair a damaged environmental reputation, it is critical for any company to manage its environmental reputational risk.
Columnist Gael O’Brien says marketers searching for hip and edgy corporate advertising often risk reputation and close the door on social responsibility in pursuit of a breakthrough moment. Recent misfires by Pepsi, Hyundai, McDonald’s, Ford and General Motors are the latest round in advertising blunders striving for humor that instead were unwrapped as offensive and insensitive stereotypes.
The former Congressman, who resigned two years ago in a sexual social media scandal, disclosed this week that he’s thinking of entering the race to become the next mayor of New York City. Columnist Gael O’Brien looks at what some other leaders have done to rehabilitate their reputations after scandal and analyzes the challenges involved in regaining trust.
Shareholder proposals on social and environmental issues constitute about half of all resolutions in the 2011 proxy season and have become a serious strategic consideration for corporate boards and their members, according to a new report from the consulting firm Ernst & Young. “The degree of support for these types of resolutions is growing among mutual funds and other important investors,” the report finds.
Reporter Jesse Eisinger suggests that Goldman Sachs’ announcement last week of a plan to increase transparency and disclosure does not resolve some big questions about the investment banks’ role in financial markets. “Could there be an argument that Goldman should break up into three smaller, more focused companies?” he asks. “It would be better for the financial system, and just might lead to the self-improvement that Goldman is searching for.”
The investment banking giant, seeking to repair damage to its reputation suffered in the aftermath of the global financial crisis, said its management and board had adopted and begun implementing 39 new policies and practices that represent a “fundamental re-commitment” by the firm to “reputational excellence” and increased transparency and disclosure.
Sustainability may be a massive and vitally important global movement, says columnist Gael O’Brien, but it often suffers from its own ambiguity. “It isn’t surprising that when you ask people what their company is doing in sustainability,” she reports, “the question back is almost always ‘how are you defining it?’”
A business executive who happens to also be a former Catholic monk has his own unique litmus test for gauging executive credibility and trust. “How can I tell if an executive is trustworthy?” he asks. “What are the signs to look for in promoting leaders in this new era of doubt and suspicion?”
Perhaps not surprisingly, heightened concern over risk to corporate reputation is “noticeably” affecting how senior management and boards are doing business, according to a new survey of corporate executives. The survey found the timeliness and quality of information shared with boards is improving while more time is being spent on risk management by directors and executives.
When students return to campus in coming weeks, so will debate about the purpose of management education and the role of ethics. Columnist Gael O’Brien wonders whether current business leaders will support training new leaders in skills and competencies that support new models of business – or will it be simply business as usual?