On the other hand, weak or defective products, scandals and public company gaffes can damage a brand’s reputation — in some cases for years. Doing so efficiently and cost-effectively across even a mid-sized organization, however, means turning to purpose-built technology. Technology is an unparalleled enabler for organizations trying to reach new plateaus of maturity and visibility into the performance of their compliance programs. By putting customers first, their share of this particular market managed to grow by 23%. There’s even a #deletefacebook movement on Twitter urging users to actively delete their Facebook accounts. You can call me on – [no. A truly effective top-down approach is a reflection of the values of all the stakeholders involved. The... 2. For some, that's a good thing. Build a Morning News Brief: Easy, No Clutter, Free! A Common Example of Reputational Risk. This extra transparency was enough to convince customers that it was impossible to have tampered with a PepsiCo can by putting a syringe inside. While the letting company Simpson works for has so far managed to keep their name out of the press, the media attention is sure to have had an impact. Or because of an employee … In the beginning, both PepsiCo and the FDA believed that these reports weren’t true and they couldn’t have happened. Trying to accomplish it using traditional processes and tools is a recipe for failure, and leaves an organization exposed to risk. In our survey, we found that millennials were less trusting overall of different institutions after a data breach. Good example of dealing with data breach. "So try to … Ethics. Inappropriate Photos Display a Bad Image. For others, some present on this list, not so much. Amy's Baking Company in Scottsdale, Arizona, was featured in an episode of Gordon Ramsay's Kitchen Nightmares, which aired on May 10th, 2013. It was the first time Mr Ramsay had walked off the show. The falls experienced in their stock price recovered after a month. Regulators, industry groups, consultants, and individual companies have developed elaborate guidelines over the years for assessing and managing risks in a wide range of areas, from commodity prices to control systems to supply chains to political instability to natural disasters. One can do wonders for building their business and establish a strong brand presence in the market. Through the power of social media, any kind of news (good, A company’s reputation can receive a damaging blow instantly, thanks to an unhappy consumer getting media coverage, or a news report of unethical behavior. Or because of an employee saying something inappropriate on social media, or the announcement of a company breach that’s exposed users’ personal data the company had promised to protect. Click here to read more about how we use cookies. The sexual harassment investigation then uncovered other reputation-killing issues like minority discrimination and the existence of an unethical and hostile workplace. Among the companies analyzed, non-compliance costs were 2.65 times higher than the costs of compliance efforts. Issues involving Uber executives and the company's diversity and inclusion efforts highlight how the company still has a long way to go in revamping a controversial corporate culture. They don’t know your business, nor can they appreciate how much work you have put in to build its reputation. Incidents which damage a company's reputation for honesty or safety may cause serious damage to finances. Corporate Compliance Insights offered their view of the top 10 key strategies a GRC team should follow to proactively head off reputational risk and brand damage: It may seem like a tall order to implement all these measures. 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