The Devastating Impact of a 'shattered' Reputation

Penny's Expert Media Tips
"No one asked....what's the right thing?" Commissioner Terence Cole exclaimed as he handed down his findings into the UN oil-for-food fiasco in late November.

In his 2065 page report he questioned the AWB's corporate culture, which he described as one of 'superiority and impregnability, of dominance and self-importance'.

You see in the end, an organisation's reputation rests with its integrity, its corporate culture and its ability to ask those ethical questions which somehow get lost in the desire for profit, kudos or power.

Eleven top ranking executives of the wheat executives could face prosecution. How does this happen? What kind of an environment leads to what Commissioner Cole described as 'a deliberate policy of deceit'.

The Chairman of AWB, Brendan Stewart, appeared before the media last week to give a statement that no Chair or CEO would ever wish to give. He was responding to the damning report.

I want to put it on the record that most of our people in the AWB group have had absolutely no involvement at all with the matters which have occurred in Iraq during the oil for food program they have seen the company they work with embarrassed and humiliated in the media day in day out. Clearly our reputation has been shattered by the events of the last year as our role in the oil for food program has been examined forensically by commissioner cole. WE have not commented before now on the enquiry, the evidence before it or the allegations or findings because of our respect for the process of the commission. It has been a very long and painful process for all involved. The board deeply regrets the damage done to the company. The board accepts accountability for the actions of management and the culture at AWB during the oil for food program. At the end of the day the board ultimately accepts responsibility for what happened and is committed to making significant changes to ensure it never happens again. Mr Stewart told the media pack.

The answer to ensuring it never happens again is, on the one hand, obvious and easy, but on the other, requires a total overhaul of the organisational culture.

Every organisation must take lessons from the AWB fiasco. You must have systems in place that allow staff to question processes and policies. You must encourage transparency at every turn. You must be vigilant, following up complaints, customer or provider queries, staff concerns.

You must have clear articulated policies that are understood and followed. You need to develop a radar for potential problems.

In the end you live or die on your organisation's reputation. Brendan Stewart describes AWB's reputation as 'shattered'. Where is this organisation's future? How do the staff feel or work there each day? What does it do for morale?

Think preventative rather than curative, because once you hit the media crisis the damage has well and truly been done!!!