According to Kapish Haldia, corporations are shaped by their corporate governance procedures. They also aid in shaping the public's perception of a business. In order to create and enhance a company's brand equity, it is critical for a firm to clearly communicate its practices and demonstrate how these practices are put into reality.
Transparency in Business: A Call to Action
Great goods and services have always been the foundation of a company's reputation. There are several factors to consider while shopping for a product or service, such as how transparent the firm is, how much it costs, and the organization's values. A company's dedication to ethical and legal standards and its emphasis on environmental, social, and governance (ESG) principles are only two examples of these.
Kapish Haldia pointed out that, the general public and advocacy organizations have been calling on global insurers to cease insuring and investing in fossil fuel firms in recent years. Additionally, some shareholders want the same insurers to "implement and reveal new rules that assist in ensuring [their] underwriting processes do not encourage additional fossil fuel supply." Shareholders at Berkshire Hathaway has demanded for stronger governance and increased openness on how the company's diverse businesses promote diversity and manage climate concerns and greenhouse gas emissions. These requests for action create headlines and have a significant influence on the public's view of a business.
What You Do Is More Powerful Than What You Speak
After the two 737 Max planes that crashed in Ethiopia and Indonesia, Boeing's reputation suffered a hit. In both disasters, Boeing's MCAS system had malfunctioned, resulting in deaths. But its fall from grace came when Boeing employees were aware of the system's flaw but did nothing to address it. Corporate governance rhetoric and reality at Boeing were no longer in sync for several reasons.
The things I've learned
Kapish Haldia suggested that, keep your brand's image shining by taking a leaf from the new environment for corporations and ensuring that your corporate governance standards are solid and implemented in practice as well as theory
• Encourage a climate of honesty and transparency. Employees should be encouraged to voice their concerns. It's possible to give anonymous and confidential access through the Internet, phone, or even a third party, depending on the size of the organization. Ethics and compliance-focused companies need processes in place to accept complaints and conduct comprehensive investigations of any allegations.
• Make it clear that the organization appreciates ethics and morals. A company's reputation is directly influenced by the behavior of its employees, both positive and negative. Incorporate corporate governance procedures into your company's long-term objectives. Every level of the organization should promote diversity and inclusion if that's one of your core values. Examine the company's recruiting methods to determine whether they are following through on their promises.