Thursday, November 5, 2015
Whether it’s the VW emissions scandal or rebuilding a company’s reputation after a cyber attack, we’re reading a lot about the challenges of managing reputation risk in the business world.
How important—and valuable—a positive reputation and ethical C-suite leadership is for an organization to attract talent is highlighted by recent findings of a survey of 1,012 U.S. adults by Corporate Responsibility Magazine and Cielo Healthcare.
(Hat tip to the WSJ’s Risk & Compliance Journal for flagging this survey.)
The research identified bad behaviors most harmful to a company’s culture and reputation as:
- Public exposure of criminal acts (33 percent);
- Failure to recall defective products (30 percent);
- Public disclosure of workplace discrimination (21 percent);
- Public disclosure of environmental scandal (15 percent).
What’s the true cost of a bad corporate reputation? According to the survey, companies perceived as unethical face a potential talent shortage and increased recruiting costs as they struggle to successfully recruit women and millennials.
Only 67 percent of employed Americans surveyed would take a job with a company that had a bad reputation if they were offered more money, compared to 70 percent in 2014.
In contrast, 92 percent would consider leaving their current jobs if offered another role with a company with an excellent corporate reputation.
It would also take a substantial pay increase for many to take a job with a company with a bad reputation, with 46 percent of survey respondents needing a pay increase of 50 percent or more to consider moving to an unethical company.
Women are more motivated to work for an ethical company, the survey found. Some 86 percent of women who responded said they would not join a company with a bad reputation compared to only 67 percent of men.
In contrast, 92 percent of men and women would consider leaving their current jobs if offered another role with a company with a stellar corporate reputation.
Check out the I.I.I. online resource for business insurance here.