Auditing

CSR as Reputation Insurance: PRIMUM NON NOCERE Dylan Minor John Morgan or many ?rms, the most precious asset lies not on the balance sheet, nor in the human capital of the workforce, but quite an in its nature. For instance, IBMs repute for creation an enterprise-friendly and ef?cient solutions provider has enabled it to crucify rivals for business concern over many years. McDonalds reputation for universe a family-friendly and economical place to eat has sustained its product share in the face of ?erce competition from other(a) chains. However, reputation rout out be a fragile thing. Consider British vegetable oil (BP) and its young oil spill in the disjuncture of Mexico. opus BP had for years invested in its sunburst logo and various do honourable and be green campaigns, its reputation quickly slipped external in the midst of tragedy: its ?rm take account was decimated by exclusively about $100 billion.1 Another example is Toyota, which became the larges t automobile maker by dint of its reputation for reliability and value but has suffered as allegations of wrong accelerators and cover-ups of these problems have come to light. This can be seen vividly in the resale market where even Toyota vehicles unaffected by the recalls declined in value by an estimated 4-5%.

2 Likewise Dell, which became the leading PC manufacturer for the most part on the basis of musical note and low price, has suffered reverses in recent years owing to laptop computer batteries catching ?re and other quality control problems. This has contributed to a cumulative loss of a third of its m arket value.3 In short, reputational risk is! one of the report business risks that ?rms face. The usual business responses to such risks are to frolic to insurance markets or to self-insure. For instance, Google, whose reputation rests on the reliability and fixity of its search results, takes the unusual tonus of designing its own servers with peculiar(prenominal) features such as a patent internal stand-in power system, to maximize reliability and ef?ciency should a problem arise.4...If you wish to get a full essay, smart set it on our website: OrderCustomPaper.com

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