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These are my slides for my presentation at the ITWeb GRC conference on 6 March 2013 on reputation as a corporate governance issue from the perspective of the social Web.
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Reputa'on Management as an emerging GRC challenge@pauljacobson@webtechlaw
Tuesday 05 March 13
2013-03-06
Picture it ...
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2013-03-06
Chicago, 2008
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2013-03-06
Dave Carroll had a guitar
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2013-03-065
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2013-03-066
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150 000 views in 1 day
7
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3 000 000 views in 10 days
8
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9
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United’s share price dropped 10%*
*http://www.ibtimes.com/articles/20090724/youtube-complain-song-cost-united-airlines-180-million.htm
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What does Dave Carroll’s guitar have to do with governance, risk or compliance?
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King 3
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Sustainability
Leadership
Accountability
Transparency
Interconnected
Corporate citizenship
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Transparent and effective communication with stakeholders is essential for building and maintaining their trust and confidence - Principle 8.5
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Listen, capture
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Risk
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The board should exercise leadership to prevent risk management from becoming a series of activities that are detached from the realities of the company’s business. - Principle 4.1.1
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The board should be able to demonstrate that it has dealt with the governance of risk comprehensively. This should include the development and implementation of a policy and plan for a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, as well as the related internal control, compliance and governance processes within the company. - Principle 4.1.3
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Stakeholders that could materially affect the operations of the company should be identified, assessed and be dealt with as part of the risk
management process - Principle 8.1.8
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Reputation
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Stakeholders
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Shareholders
Media
Analysts
Potential investors
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Shareholders
Customers
Media
Communities
Analysts
Employees
Potential investors
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Perceptions are important
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Stakeholders’ overall assessments (and therefore aggregate perceptions) of companies, result in the formation of corporate reputations. Reputation is
based on how well a company performs compared with the legitimate interests and expectations of
stakeholders. There is growing awareness of how important the contribution of reputation is to the economic value of the company. - Principle 8.1.1
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The board should be the ultimate custodian of the corporate reputation and stakeholder relationships.
The company’s reputation and its linkage with stakeholder relationships should therefore be a
regular board agenda item. The board should take account of and respond to the legitimate interests
and expectations of stakeholders linked to the company in its decision-making. - Principle 8.1.4
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Empower management
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The board should delegate to management to proactively deal with stakeholder relationships -
Principle 8.2
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The relationship becomes symbiotic
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Constructive engagement with stakeholders could provide companies with valuable information about
stakeholders‘ views, external events, market conditions, technological advances, and trends or
issues. This can assist companies anticipate, understand, and respond to external changes
more efficiently, thereby enabling the company to deal with challenges more effectively. - Principle
8.2.15
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Your employees
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The board should, as part of the company‘s stakeholder policies, adopt communication
guidelines that support a responsible communication programme. These guidelines should define the respective responsibilities of
the board and management in regard to stakeholder communication.
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Are you going to leave your social media policy up to your marketing team?
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Contextualise public facing updates and posts
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You could be listening to your competitive advantage
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Thank you!
Visit http://j.mp/wtlitwebgrc for more links and resources
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Paul Jacobson
@webtechlaw
webtechlaw.com
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Ques'ons?Thank you
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