How to prevent corporate scandals and fix good companies that do wrong
The news media is replete with stories of corporate scandal, corruption and misdeeds. The need for effective crisis management and corporate governance strategies has never been greater. Broken Business explains why corporate scandals happen, what to do when scandals arise in your company, and how to prevent their future occurrence.
Offering real-world anecdotes and solutions, this book details how corporations can mitigate the risk of scandal, reform corporate image and install structures to create a more ethical and profitable company. This insightful resource dispels common misconceptions of corporate misconduct and its causes through fascinating research into human nature, and compelling storytelling that demonstrates fundamental flaws in corporate culture.
Author José Hernandez draws on decades of experience working with high-profile global corporations to present seven essential steps for transforming a company, including building a better culture, more effective compliance systems and re-focusing the strategy. This book allows you to:
- Examine current and highly publicized cases of corporate scandal and their impact on corporate credibility
- Employ practical methods to rehabilitate your corporation’s public image
- Implement managerial frameworks to quickly address cases of misconduct
- Promote a culture of compliance and integrity to encourage good conduct in your corporate environment
At its core, this book is a simple, engaging “how to” guide that offers practical advice on institutionalizing integrity in any organization. Broken Business: Seven Steps to Reform Good Companies Gone Bad is an essential text for leaders seeking a concise review at how things can go wrong, how to deal with scandal fallout and how to ultimately become a better company.
Table of Contents
About the Author xiii
Preface xvii
Acknowledgements xxix
PART I Introduction 1
THE PROBLEM
PART II The Tale of Wind International 21
The Crisis at Wind 23
Analysing the Problems at Wind 45
PART III The Bigger Picture 61
Why the System Fails 63
A Path to Reform and Change 81
THE SOLUTION
PART IV The Steps to Address a Corporate Scandal 103
Step 1 - Understand the Crisis 105
Step 2 - Undertake an Independent Investigation 131
Step 3 - Define a Roadmap to Recovery and Remediation 147
Step 4 - Achieve Criminal and Civil Resolution 173
PART V Institutionalizing Integrity and Good Conduct 191
Step 5 - Strengthen Structures to Prevent, Detect and Respond to Misconduct 193
Step 6 - Reshape the Culture 227
Step 7 - Refocus the Strategy 257
A RECALIBRATED SENSE OF LEADERSHIP
PART VI Concluding Thoughts and Leadership Roadmap 287
References 309
Index 311
