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Managing Corporate Reputation & Risk

Managing Corporate Reputation & Risk

For a business organization to behave responsibly, executives must do more than state their desire to do the right thing. The author shows that employees may easily step over the line at every level of the organization, and provides valuable advice on preventing these slips.

Author(s): Dale Neef

Publisher: Editions Elsevier

Date of publication: 2003

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Ethical scandals now have major repercussions on the future of concerned companies and their executives. So why are so many companies still caught in the act of irresponsible behavior? A decision by company leaders to act honestly is not sufficient, as Dale Neef shows. Potential ethical slips must also be prevented at all levels of the organization. The author provides valuable suggestions on how to do this.
–To access the main ideas of the book rapidly, go to the introduction and chapter 5, which briefly explain the causes for the recent rise in the number of corporate scandals and provide ways to reduce the risk of being affected. In addition, chapter 4 classifies corporate reputation management policies to help you assess how far your company has come in this arena.
– The author greatly focuses on the need to fight against reprehensible practices. He emphasizes that business pressures tend to encourage people to break the rules (chapter 1), that the price to pay for scandal is increasingly high (chapter 2) and finally enumerates the areas in which corporate reputation may be compromised (chapter 3). The examples of DoubleClick, Nike, Fisher-Price and BP-Amoco are used as concrete illustrations.
– To prevent miscreant behavior, a clear code of conduct must be applied every day. Chapter 6 shows how to do this despite inevitable skepticism.
– The need to organize reporting on practices that do not comply with ethical principles is probably the most innovative theme in the book. Although chapter 7 remains rather abstract as it explains the underlying principles, chapter 8 offers many valuable methodological tips. Chapter 10, which shows how to use the company’s information systems for this purpose, and chapter 9, which is devoted to fostering an information sharing culture are also highly useful. Some illustrative examples include Intel, HP/Compaq and LookSmart.
– Finally, chapter 11 provides a handy guide to current international standards on corporate responsibility.

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