Transcript of "Presentación Deborah Hyman Congreso PRORP 2010"
Building Your Corporate Reputation through Transparency Deborah K. Hyman
Everyone isdemanding morecorporate transparency—From theinstitutional investorto the anti-globalization protestor
Transparency serves as adeterrent to illegal orunethical behavior
Best Corporate Citizens 2010 1. Hewlett-Packard 2. Intel 3. General Mills 4. IBM 5. Kimberly Clark 6. Abbott Labs 7. Bristol-Meyers Squibb 8. Coca Cola 9. Gap 10. Hess Note: Verizon ranked 27th out of 100, ahead of Johnson & Johnson, Starbucks, McDonalds and Xerox. Source: Corporate Responsibility Magazine
Trailing the Pack 1. Abercrombie & Fitch 2. Bancorpsouth 3. Weight Watchers International 4. White Mountains Insurance Group 5. Axis Capital Holdings 6. Lorillard 7. Central European Media Enterprises 8. Fidelity National Financial 9. Scripps Networks Interactive 10. Bio-Rad Laboratories Note: Companies listed alphabetically and not in ranking order
Key Legislation Regulating Corporate Transparency Regulation Fair Sarbanes-Oxley Lobbying Disclosure Disclosure in 2000 Act of 2002 Act of 1995 • Eliminate • Major changes in • Provisions privileged access the rules for attempting to by financial corporate maintain a degree analysts and governance, of transparency in large investors to financial the activities of key information disclosure, lobbyists auditor independence & corporate criminal liability
Key Questions Will greaterCan we comply with transparency build Where is this pushthe laws and keep up trust in our company toward greater with the public’s or will it merely open transparency going? expectations? the door to further harsh scrutiny?
The more the public exercises its right to Is it worth trying to know, the more it keep up? seems to want to know
A company that positions itself as “open” is trying to convey that it welcomes public scrutiny Insert open door image If sustained,Nothing to then help to hide rebuild trust
Improved relationships Awareness of emerging problems Greater efﬁciency
• Customers Dialog • Local Communities • Shareholders Openness Dialog • Government Ofﬁcials Dialog • Employees
Set social and Monitor your Engage your environmental external stakeholders performance targets environment Form an internal Post your corporate committee (e.g., governance policies Disclosure on your Web site Committee)
Ethics training and Localize public Be willing to commitment from issues with disclose all of youremployees to uphold employees and third- business, social and business principles parties political activities Address the tough questions directly Conduct a “culture and speak candidly audit” with employees
Integrate your external engagement strategies— from media relations to government affairs to ﬁnancial reporting Champion the concept of openness throughout the corporation Drive the corporate culture