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.
Keywords
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
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited