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Reputational Risks For Business To Manage

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How To Prevent Reputational Business Risk Damage And Grow Your Business Faster

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Understand and manage your reputation risk to improve your business performance:

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Build business resilience to prevent reputational damage destroying business value.

Identify quantify and manage the risks to your company reputation long before a problem or crisis strikes

Proactive action before events takeover. Mitigate threats to brand name.  Enhance the good name of your business increase your profile to disrupt your marketplace and sell more profitably to grow your business faster.

Examples Of Bad Good and Ugly Corporate Reputation Risk Management

BooHoo Supply Chain Risk Management

BooHoo which owns brands like Pretty Little Thing and Nasty Gal will undertake an independent review of its UK supply chain following allegations that factories in Leicester that sell clothes to BooHoo pay workers below minimum wage in UK and failed to protect them during coronavirus pandemic.

BooHoo has also announced it will invest an initial 10 million pounds to eradicate malpractice in supply chain risk management step. BooHoo has to now rebuild its brand reputation following the allegations in its supply chain. It has promised to terminate any supply chain relationship where noncompliance with its code of conduct is found.

BooHoo has found like companies before it the cost of supply chain management impacting on its profit. Companies like Next ASOS and Amazon have removed all BooHoo clothing from sale following the allegations about BooHoos supply chain. More than a billion pounds was quickly knocked of BooHoos market value.

24th March 2020 Sports Direct Plc International Frasers Group Plc Manages To Grab Defeat From The Jaws Of Victory

The coronavirus COVID19 is just about to hit peak of infections and deaths in the UK. The UK government announces it is instructing all shops not selling essentials like food and medicine to close as many people in the UK are not following social distancing guidance.

Sports Direct decides its products like fitness equipment makes it an essential business so says it is not going to close. After a word with the UK government Sports Direct says it will close.

Bike repair shops are remaining open but it is hard for many members of the public to agree that Sports Direct is an essential supplier.

Businesses such as B&Q are remaining open so you do not have to be in the medical sector to be regarded as an essential supplier. However Sports Direct seems to think that pushing it to the limit is the key part of its success in future. As a result its reputation is once again in tatters.

Recovering its reputation was on track but a slip in the face of existential global crisis demonstrates that taking it to the max can be perceived as simply taking the piss! That does not help your brand flourish sustainably! Perhaps why its changing its name to Frasers Group Plc.

12th August 2018 Monsanto Weedkillers Claimed To Be Dangerous In USA

It remains unclear whether weedkiller produced by Monsanto and used widely around the world is dangerous. However in America a jury has found Monsantos weedkiller to be dangerous. A man claimed  a weedkiller containing glyphosate had caused his cancer and won a quarter of a billion pounds in damages from the company.

Monsanto is appealing the decision but around the world retailers are reconsidering the stocking of weedkiller. Consumers when they see the Roundup brand in UK on the shelves of the store may think twice after hearing about the alleged connection between the weedkiller and cancer.

In the court case in America it was successfully argued that Monsanto knew the weedkiller was dangerous but continued to sell it. The defence did argue that competing evidence concluded it was relatively safe to use and did not need additional labelling as to the potential risks to health.

Monsanto say they will try to overturn the jurys decision and defend the company products and brand. However how much damage to the brand has been done before the result of the appeal is found?

Glyphosate is found in many weedkillers. There is contradictory evidence as to the level of safety of this ingredient. It is used widely in agriculture and to kill weeds. Some countries have banned using glyphosate in some circumstances. However it remains the most popular ingredient in weedkillers around the world. Many manufacturers use this ingredient. Some countries think its great others want it banned. Many very large organisations have studied the ingredient and found no link to cancer.

What do you think? How would you protect the reputation of your products in a similar situation?

18th June 2018 Wendys Restaurant Chain

A Wendys restaurant in Oklahoma reached across the world with what is an unwelcome news story for Wendys. An employee allegedly videoed a mouse inside a bag of hamburger buns and shared it online.

Wendys defended itself saying that the local health department visited the restaurant in question and found no violations. However the video on Facebook was backed by comments that people should not eat a Wendys.

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