Transparency is the best policy: Avoiding corporate damage through appropriate crisis management

Abstract

Purpose

The purpose of this paper is to highlight the financial consequences of corporate irresponsibility or malpractice.

Design/methodology/approach

The author uses three case studies in different areas of corporate malpractice, to highlight typical consequences.

Findings

The author demonstrates that transparency, even with difficult information or decision‐making, is the most desirable management strategy to avoid long‐term loss.

Practical implications

The paper underlines the importance of transparency in corporate crisis management.

Social implications

Corporate responsibility and transparency, especially with public health and environmental issues, will cause much less damage to a business than a strategy designed to minimize or cover up responsibility. It will encourage trust and accountability with the public.

Original/value

Paper reaffirms obvious but important codes of conduct for management, using historical examples to highlight common mistakes or pitfalls.

Citation

(2010), "Transparency is the best policy: Avoiding corporate damage through appropriate crisis management", Strategic Direction, Vol. 26 No. 10, pp. 22-24. https://doi.org/10.1108/02580541011080537