When companies fail to deal effectively with corporate reputation issues, you often hear it’s ‘because we don’t want to damage the reputation of the organisation’.
That’s not true. What it often means is that executives don’t want to damage the reputation of their senior colleagues who have messed up. The personal trumps the principle.
I once advised a charity whose founder had resigned during an investigation from the Charity Commission into his (and therefore the charity’s) conduct.
Initially, the trustees criticised my approach because they did not want to ‘dishonour’ the founder and felt I was hanging him out to dry.
That wasn’t my intention. However, I was clear that the trustees were bound to operate under British charity law and, if the CEO did not act in accordance with that law, it was entirely appropriate to accept his resignation.
It’s hard. We all have colleagues we like, with whom we have build a great relationship. But when the company’s reputation is at stake, we have to separate the personal from the institutional.
Eventually, with a strong, new CEO, the charity followed my advice. The investigation concluded and media coverage of the charity was largely neutral while the founder received strong criticism. Fresh trustees augmented the board and, following a rebrand (not vital in my view, but useful to help the staff move on), the charity has continued to thrive and do amazing work among severely threatened communities.
‘Too trusting’ at the Post Office
The Post Office is another good example where personal relationships played a role in blinding those at the top from action. Former Chief Executive Paula Vennells told the enquiry she was ‘too trusting’ of senior colleagues. She was certainly not trusting enough of the hundreds of sub-postmasters who were so remote, so removed from senior management meetings, so absent from her drinks parties and social events.
What lessons can we learn about dealing with corporate reputation issues from these two examples?
- An outside viewpoint is important to overcome personal loyalties
- The primary role of a consultant is to put the issue into the context of broader society and the legal position of directors or trustees
- A well-run organisation is always greater than any individual, no matter how charismatic, how well-connected or how experienced they are
To analyse your corporate reputational risks and put strategies in place to deal with them, contact 360 Integrated PR. Our reputation workshops will put you in control.