Post by account_disabled on Mar 6, 2024 2:26:50 GMT -5
Companies are increasingly vulnerable to reputation risks. In fact, 70% of them have experienced an event that has posed a threat to their reputation. This is according to the annual Global Risk Landscape Report , produced by specialist business advisory firm BDO LLP.
BDO's extensive survey of more than 500 C-Suite executives in Europe, the Middle East, Africa, Asia-Pacific and the Americas shows that companies are aware of the dangers:
25% point out that the loss of value for shareholders is a consequence of reputational damage
25% also believe customers would take their money elsewhere if there was a damaging incident.
Family businesses and manufacturing companies are those that feel the most reputational risk.
Earning money is not having a social purpose.
Reactive instead of proactive
Despite the threat, it is clear that too many companies remain reactive in their approach, with less than half (45%) of respondents believing their crisis strategy is proactive and more than a third (35%, in fact) considering themselves reactive when it comes to reputation-focused issues.
Perception before reality?
Trying to demonstrate corporate integrity while acting without values is an issue that can affect even well-reputed companies.
The BDO survey reveals the danger of Chile Mobile Number List so-called 'integrity washing', in which companies care more about the perception of their integrity than the practice. A significant 93% believe companies are guilty of this, and a worrying 87% of executives believe their own organization is guilty on this particular point, with almost half (49%) agreeing with the following statement:
As long as we are perceived to have integrity, we do not actively prioritize putting it into practice.
Nigel Burbidge, global chair of risk advisory services at BDO LLP, commented:
Clearly integrity is vital, 99% of respondents agree on that point. Being a trustworthy company confers extraordinary advantages to a business and ensures customer loyalty. Customers flock to brands they believe in, and a sense of integrity allows them to outperform their rivals.
Burbidge added: "However, we have found deep disagreement about who is responsible for transparency. There is clearly a lot of work to be done here. Integrity must be woven into the fabric of every company. "Everyone must share the same spirit."
The role of CEOs
There has been a social shift in recent years, where CEOs and other leaders within companies have received increased media coverage.
Recent years have shown that charisma is limited. Figures like Elon Musk of Tesla and Adam Neumann of SpaceX have shown that without integrity, searchlights are very risky.
The rise and fall of WeWork has shown that CEO abuse and risk-taking in business can lead to short-term collapse.
81% of those surveyed agree that the CEO's personality directly influences the company's reputation.
Trust and integrity
The public remains vigilant about the behavior of companies. One in three respondents believe customers trust brands to do the right thing less than they did five years ago.
Purpose and leadership are perceived as the most important elements of integrity, growing considerably compared to five years ago.
The environment, catalyst for change
Environmental concerns are now front and center. An overwhelming 85 percent of respondents say their industry has been put at risk by new environmental standards.
Companies have moved quickly to address this. Nearly half have reviewed their supply chain as a result of environmental concerns and 47 percent say they have made changes to their investments. Likewise, four out of ten have implemented changes in the purpose of the business for environmental reasons.
Threats to corporate reputation are constant and integrity remains paramount in a rapidly changing.
BDO's extensive survey of more than 500 C-Suite executives in Europe, the Middle East, Africa, Asia-Pacific and the Americas shows that companies are aware of the dangers:
25% point out that the loss of value for shareholders is a consequence of reputational damage
25% also believe customers would take their money elsewhere if there was a damaging incident.
Family businesses and manufacturing companies are those that feel the most reputational risk.
Earning money is not having a social purpose.
Reactive instead of proactive
Despite the threat, it is clear that too many companies remain reactive in their approach, with less than half (45%) of respondents believing their crisis strategy is proactive and more than a third (35%, in fact) considering themselves reactive when it comes to reputation-focused issues.
Perception before reality?
Trying to demonstrate corporate integrity while acting without values is an issue that can affect even well-reputed companies.
The BDO survey reveals the danger of Chile Mobile Number List so-called 'integrity washing', in which companies care more about the perception of their integrity than the practice. A significant 93% believe companies are guilty of this, and a worrying 87% of executives believe their own organization is guilty on this particular point, with almost half (49%) agreeing with the following statement:
As long as we are perceived to have integrity, we do not actively prioritize putting it into practice.
Nigel Burbidge, global chair of risk advisory services at BDO LLP, commented:
Clearly integrity is vital, 99% of respondents agree on that point. Being a trustworthy company confers extraordinary advantages to a business and ensures customer loyalty. Customers flock to brands they believe in, and a sense of integrity allows them to outperform their rivals.
Burbidge added: "However, we have found deep disagreement about who is responsible for transparency. There is clearly a lot of work to be done here. Integrity must be woven into the fabric of every company. "Everyone must share the same spirit."
The role of CEOs
There has been a social shift in recent years, where CEOs and other leaders within companies have received increased media coverage.
Recent years have shown that charisma is limited. Figures like Elon Musk of Tesla and Adam Neumann of SpaceX have shown that without integrity, searchlights are very risky.
The rise and fall of WeWork has shown that CEO abuse and risk-taking in business can lead to short-term collapse.
81% of those surveyed agree that the CEO's personality directly influences the company's reputation.
Trust and integrity
The public remains vigilant about the behavior of companies. One in three respondents believe customers trust brands to do the right thing less than they did five years ago.
Purpose and leadership are perceived as the most important elements of integrity, growing considerably compared to five years ago.
The environment, catalyst for change
Environmental concerns are now front and center. An overwhelming 85 percent of respondents say their industry has been put at risk by new environmental standards.
Companies have moved quickly to address this. Nearly half have reviewed their supply chain as a result of environmental concerns and 47 percent say they have made changes to their investments. Likewise, four out of ten have implemented changes in the purpose of the business for environmental reasons.
Threats to corporate reputation are constant and integrity remains paramount in a rapidly changing.