Business
11/15/07 by Mike Paul | Business, Law & Justice | No Comments »
According to Integrity Interactive(R) Corporation, a company that helps leading global corporations build ethical cultures that reduce risk, recently announced the results of a September 2007 survey of 108 Global 2000 companies, which shows corporate ethics and compliance programs and controls do not extend to their global supply chains. The survey found that 78 percent of companies do not include suppliers in their company compliance and ethics programs, and nearly 58 percent were not sure if their company regularly assessed ethics risks in the supply chain, the network of companies that collaborates to deliver a product or service to customers.
Many corporations around the world are unaware of how effective supply chain ethics and compliance programs can help them avoid costly recalls and brand damage that results from a supply chain ethics scandal. Supplier ethics management (SEM) is a relatively new business practice that enables companies to manage their suppliers and supply relationships through strategies, programs and metrics that better align supplier business conduct with purchaser standards. The goal is to reduce a purchasing company’s overall risk of corporate integrity failure in the supply chain by aligning supplier conduct with purchaser standards in three major areas of corporate integrity: compliance, ethics and corporate responsibility.
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06/06/07 by Mike Paul | Business, Law & Justice | No Comments »
According to a study published by the National Bureau of Economic Research. Ask any thoughtful corporate board member what they are most concerned about these days, and it is not Sarbanes-Oxley. It is CEO pay. Directors worry because shareholders continue to express outrage, and the media attention to the issue will not go away.
According to the Harvard Business School Alumni Bulletin and Jay Lorsch, the Louis Kirstein Professor of Human Relations at Harvard Business School, directors are right to be concerned.
The long-term trend has been for CEO pay to rise along with the pay for other senior executives, and it is now twice as much as that of CEOs in major European countries, according to Towers Perrin, a global consultancy. A study published by the National Bureau of Economic Research indicates that the increase in pay of senior executives and superstars in other fields has been a major source of the rising inequality of wages in the United States. Rising income inequality is political dynamite and damages the reputation of American business, already scarred by recent corporate scandals.
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03/27/07 by Mike Paul | Business, Law & Justice, You & I | No Comments »
“We are embarrassed by the situation and stress that certain restaurants did not meet the very high standards that we set for ourselves.” Said ADF President Don Harty, trying to apologize to customers after viewing the video of his rat infested restaurant in NYC. ADF, a decade-old company, owns more than 350 fast-food restaurants in several states and is among the nation’s largest operators of Pizza Huts.
According to A.P., a major owner of Pizza Hut, KFC and Taco Bell franchises saw a majority of its New York City restaurants shut down Thursday as the fallout continued from a video showing rats overrunning one of its Manhattan eateries. The city’s health department revealed that three more restaurants owned by the ADF Cos., of Fairfield, N.J., were closed by inspectors this week because of unsanitary conditions. Two, both in Queens, were found to be infested with mice.
The new closures prompted swift action by fast-food giant Yum Brands Inc., parent of the KFC, Taco Bell and Pizza Hut chains. Late Wednesday it announced the pre-emptive closing of 10 additional New York restaurants operated by ADF. It said they would remain shuttered until city inspectors gave them a clean bill of health.
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02/17/07 by Mike Paul | Business, Law & Justice, You & I | No Comments »
“I think I’m uniquely qualified to deal with these issues.” Said David Neeleman, JetBlue’s CEO, with hubris.
According to Reuters, JetBlue Airways Inc., which was forced to cancel nearly a quarter of its flights this holiday weekend after last week’s ice storm in New York, said on Sunday it expected to return to a normal schedule by today. But it may take the low-cost airline a long time to regain its reputation after suffering harsh criticism from thousands of stranded travelers since the storm struck Feb. 14.
The airline admitted it didn’t act swiftly enough to cancel flights after the storm struck and threw federally mandated air crew work-time schedules into disarray, resulting in massive flight cancellations at the start of a high-volume holiday period. ”This has never happened before on this scale,” said JetBlue spokeswoman Tracy Sanford on Sunday. “We didn’t cancel flights as much as we could have.” She said the delays and subsequent cancellations had a “snowball effect” on air crew schedules.
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01/13/07 by Mike Paul | Business, Law & Justice, You & I | No Comments »
NEW YORK – The following is Mike “The Reputation Doctor” Paul’s Predictions for Corporate Crisis Issues for 2007. This list is compiled by and solely the opinion of global reputation management expert Mike Paul, who is also a weekly guest in the media providing expert analysis of various reputations in crisis:
1. Corporate Fraud – Going back to the origin of sin with Adam and Eve (read Genesis in the Bible), we must be reminded that we as humans are flawed, commit sin and people are not perfect. Corporations are managed and staffed with people. As a result, corporate fraud committed by executives/people will continue to be a major crisis issue and concern for corporate reputation management for many years to come. We either lean on truth, transparency, accountability, humility and consistency in building honest, long-term corporate and personal reputations, or we lean on fraud, lying, deceit, breaking of the law, inflated egos and evil. I predict there will be many major stories in the news with leading corporations in crisis in 2007. The core crisis will involve inappropriate human behavior and illegal, immoral and unethical choices, which will have consequences.
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