Safeguarding the Reputation of Your Company

Safeguarding the Reputation of Your Company
by Howard Morgan

"There are business scandals that are so vast and so penetrating that they profoundly shock our most deeply held beliefs about the honesty and integrity of our corporate culture."
Bruce Nussbaum
Newsweek Magazine January 2002

The Enron scandal reminds us all too clearly that reputations are longer in the making than the losing. As I write, accounting firm, Arthur Andersen, is at the centre of a battle to defend its reputation which could threaten the very existence of the firm.

"It felt like we were hit by a tidal wave" is what the Chief Executive Officer felt when waking up to find his company's name and "Scandal" in the same headline. Yet how many would describe one of their key roles as safeguarding the reputation of their company?

In the business world it is all too easy for the CEO's exhortations to increase profits and beat the competition, to be understood as "win at all costs". Should we be surprised that individuals acting unethically are capable of bringing down even the largest organisation?

In the "old days" CEOs ruled by fear and the "command and control" model of business. This ensured little damage could be done by a single employee acting unethically. After all it is hard to inflict much harm if you need five signatures before you can spend £50!

Today, the mantra of successful business is "Speed, Speed, Speed" and to enable this, staff have to be empowered to make decisions on the spot. However, as the demise of Barings shows, empowerment without responsibility is a recipe for disaster.

So what tools are available to help safeguard the reputation of your company?

One method being increasingly used is the Ethical Audit. Put simply, an Ethical Audit holds a mirror up to your organisation and helps you to see how your reputation looks from the perspective of your stakeholders - your customers, your suppliers, your staff and the wider community. It also captures how effectively your business is helping your staff to draw the line between ethical and unethical behaviour.

Apparently "Enron" has become a verb in the USA, with "to Enron" meaning "to take advantage of others for financial benefit". Are you doing all you can to make sure that your company's name is known for the right reasons!!

Steps you can take to safeguard the reputation of your organisation.

  • Actively promote the discussion of ethical issues throughout your organisation, from the boardroom to the water-cooler.
  • Commission an independent ethical audit of your company.
  • Tie ethical behaviour back into the way you operate and do not let the subject be perceived as just another 'window dressing' PR initiative.

Ask yourself questions such as.

  • What are the published and unwritten rules for conducting business?
  • How are the values of your company expressed, internally and externally?
  • How widely are they understood and shared?
  • Does the board lead by example?
  • How are ethical issues resolved?
  • Do you encourage or discourage whistle-blowers?
  • How do you deal with unethical employees?