CORPORATE REPUTATION AND TRANSPARENCY : COMMUNICATING THE GOOD, THE BAD AND THE UGLY

Abstract

Corporate transparency has taken on increased importance in the first decade of this century due to the failures of corporate governance culminating in the failure of several major financial institutions in 2008 and 2009. (Reputation Institute 2009) These governance failures have led to a loss of stakeholder trust in business, and demands for increased regulatory oversight and information disclosure. In the face of this difficult environment, forward thinking corporations are looking at the demands for ever greater transparency as an opportunity to build trust and enhance the corporate reputation. In these organizations the corporate communications function as well as public relations consultants need to reevaluate how negative news regarding the business is communicated to stakeholders, for in the era of transparency the forthright communication of negative news can establish credibility, build trust and protect the long-term reputation of the company.