Corporate governance has a big impact on a company’s reputation. You only have to look at financial misreporting at Tesco and poor working practices at Sports Direct. There’s also the Volkswagen emissions scandal and BHS pension fund, each illustrating how significant corporate governance is.
Many of today’s top businesses have been brought to task for shoddy approaches to corporate governance. But, once exposed, who cleans up the mess? Who rebuilds reputation? And how can the crisis be avoided in the first place?
Igniyte Managing Partner Simon Wadsworth recently talked to Communicate Magazine about the issue. Particularly on the role of leadership and considering the impact of actions and ripple effect on stakeholders. Take Sir Philip Green or Mike Ashley, as the article states – the point about bad behaviour is that it will usually leak out and become common knowledge among stakeholders. As Simon Wadsworth says, the damage to corporate reputation can take years to recover from.
“Entrepreneurs should be more realistic in what can be achieved – don’t cut corners – but more important is to consider the impact of everything they do.” You can read the full article here.