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Unexpected Crisis Events
In
Today’s Business Environment

By
Michael Fanghella
Managing Director
www.santafeadvisoryservic...
Unexpected Crisis Events




a catastrophic facilities explosion, a publicly announced
criminal indictment, the discover...
Unexpected Crisis Events




While every corporate crisis is unique, they share a great deal of common
facts. Corporate ...
Unexpected Crisis Events
Commonly accepted principles of
Corporate governance include:
 Rights and equitable treatment of...
Unexpected Crisis Events
Rights and equitable treatment of shareholders:
 Organizations should respect the rights of
shar...
Unexpected Crisis Events
Interests of other stakeholders:
 Organizations should recognize that they
have legal and other ...
Unexpected Crisis Events
Role and responsibilities of the board:
 Your board needs have a range of skills and an
understa...
Unexpected Crisis Events
Integrity and ethical behavior:
 Ethical and responsible decision making is not only
important f...
Unexpected Crisis Events
Disclosure and transparency:
 Organizations should clarify and make publicly known the
roles and...
Unexpected Crisis Events
Disclosure and transparency:
 Organizations should clarify and make publicly known the
roles and...
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Corporate goverance awareness

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A quick review of those issues that confront both public & private companies, C & S Corps, LLC's, Trusts & Partnerships in today's transparency driven business environment.

Published in: Business, Economy & Finance
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Corporate goverance awareness

  1. 1. Unexpected Crisis Events In Today’s Business Environment By Michael Fanghella Managing Director www.santafeadvisoryservices.com
  2. 2. Unexpected Crisis Events   a catastrophic facilities explosion, a publicly announced criminal indictment, the discovery of financial statement errors, reports of product defects, a corporate governance or compliance failure, just to name a few — can quickly destabilize a company. Instantaneous and sustained response is crucial, especially when media scrutiny is immediate and intense. What does not get done, or done well, at the beginning can have real long-term adverse consequences. In this arena, there is no time for on-the-job training, for guess work, for missed priorities. With our clients, we develop and execute targeted strategies for responding to governmental agencies, shareholders, the investment community and the media.
  3. 3. Unexpected Crisis Events   While every corporate crisis is unique, they share a great deal of common facts. Corporate governance, officer and director responsibility issues become sharply focused in almost every case. And inquiries and claims from Congress, federal and state governmental agencies, and private parties frequently follow very quickly after the crisis event. It is important to crisis management response efforts, even though the triggering circumstance did not arise in those areas. Not knowing what you should have know become pronounced. In particular, our extensive experience in the areas of corporate governance, advice on the proper white collar defense ( as all are not the same), SEC and other government agency enforcement defense, legislative proceedings and investigations, securities litigation defense, and insurance coverage (including director/officer issues and business claims) are often called upon in dealing with — and in many cases are central to managing — your corporate crisis.
  4. 4. Unexpected Crisis Events Commonly accepted principles of Corporate governance include:  Rights and equitable treatment of shareholders  Interests of other stakeholders  Role and responsibilities of the board  Integrity and ethical behavior  Disclosure and transparency
  5. 5. Unexpected Crisis Events Rights and equitable treatment of shareholders:  Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by effectively communicating information that is understandable and accessible and encouraging shareholders to participate in general meetings.
  6. 6. Unexpected Crisis Events Interests of other stakeholders:  Organizations should recognize that they have legal and other obligations to all legitimate stakeholders.
  7. 7. Unexpected Crisis Events Role and responsibilities of the board:  Your board needs have a range of skills and an understanding to be able to deal with various business issues in transition and have the ability to review and challenge management’s performance.  It needs to be of sufficient size and have an appropriate level of commitment to fulfill its responsibilities and duties.
  8. 8. Unexpected Crisis Events Integrity and ethical behavior:  Ethical and responsible decision making is not only important for public relations, but it is also a necessary element in risk management and avoiding lawsuits.  Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound to eventual failure. Because of this, many organizations establish Compliance and Ethics Programs specifically to minimize the risk that those in charge of daily operations and or activities possibly step outside of such ethical and legal boundaries.
  9. 9. Unexpected Crisis Events Disclosure and transparency:  Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability.  They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting.  Disclosure of such material matters concerning the organization should be timely to ensure that all investors have access to clear, factual information.
  10. 10. Unexpected Crisis Events Disclosure and transparency:  Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability.  They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting.  Disclosure of such material matters concerning the organization should be timely to ensure that all investors have access to clear, factual information.

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