A study produced by the ACE Group showed that c75% of senior risk executives in the luxury goods industry stated that reputation is their company's greatest asset and 80% agreed that reputational risk is the most difficult individual risk category to manage.
These luxury goods companies, along with those operating in the mass market, are likely to be busy managing cyber and environmental risks for example but the main risk to their reputations is much, much closer to home: their employees. The greatest damage to these companies can come from employees behaviour either simple human error or negligence or deliberate misconduct. For example an employee at Morrisons stole payroll data of almost 100,000 employees and posted it on a website. It is therefore vital for all organisations, if they want to engender trust and ethical behaviours in their employees that they start by treating them fairly. This approach includes diversity of opportunity, on-going learning and development, fair terms and conditions etc etc. If reputational risk is now going up the corporate agenda then this surely has to be good news for employees and other stakeholders?
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