Reputation Actions That Absolve

February 10, 2014

Reputation Actions That Absolve

In a recent post, I talked about new research that demonstrates how companies can repair their reputations by communicating their good deeds and what actions they intend to take to remedy their failure to (represent their numbers accurately, i.e. restatements). In the research report from Stanford and Emory University, there is an appendix of examples that companies took to improve corporate governance post-crisis and absolve themselves as well as regain financial value. I thought they were worth listing here as a reminder of the goodwill actions that get companies on the way to reputation rejuvenation:

Board of Director Actions

  1. Appointing new independent directors
  2. Require that board members obtain permission to serve on other boards
  3. Continuing education for board members
  4. Shortened board tenures
  5. Increased number of votes required for new board members
  6. Shareholders allowed to call special meetings via two-thirds vote
  7. Eliminating anti-takeover provisions
  8. Minimum stock ownership guidelines
  9. Technology/software for board members to access board materials remotely

Incentive/Internal Control System Actions

  1. Hire Chief Compliance and Business Ethics Officer reporting directly to BOD
  2. Remediation plans to address internal control deficiencies
  3. A different tone with respect to internal communications regarding application of GAAP
  4. Hire Chief Risk Officer 
  5. Hire Chief Regulatory Officer 
  6. New Statement of Principles and strengthened Code of Conduct

Restructuring/Reorganizing

  1. A strategic refocusing
  2. New operating structures to align and clarify accountability

Customer Actions

  1. New worldwide re-branding
  2. New 10 day warranty on products, warranty extensions
  3. Announcement of various industry awards

Employee Actions

  1. New employee policies to cultivate a culture of compliance
  2. Announcing high ratings in best place to work surveys

Community Actions

  1. Announcement of charitable programs 
  2. Announcement of contributions to a grant program 

 

 

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Leslie Gaines-Ross
Leslie Gaines-Ross
lesliegainesross@gmail.com

As Weber Shandwick’s Chief Reputation Strategist, I focus on the ever changing world of reputation. For the past 25 years, I have relentlessly observed, researched and commented on the rise and fall of reputations.

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