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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New York – The following is Mike “The Reputation Doctor” Paul’s Annual Top 10 List of Reputations in Crisis in 2006. 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. Donald Rumsfeld – The now-former Defense Secretary was the stubborn and poor-listening architect of the war in Iraq, and because the U.S. has still not “won the war,” he was finally asked to leave by President Bush under strong pressure from Democrats in Congress. Both the Bush administration and the U.S. as a nation have global reputations in crisis because of decisions in Iraq and Donald Rumsfeld ran the war in Iraq and tops my list this year for reputations in crisis.
2. The Duke case – D.A. Mike Nifong charged former Duke lacrosse players Collin Finnerty, Dave Evans and Reade Seligmann with allegedly raping a stripper hired for a team party in March. The case has made both national and international headlines for many months and highlights and importance of both the court of law and the court of public opinion. All the reputations in this case have been damaged, especially D.A. Nifong, who is up for re-election and has many thinking he only took the case in an attempt to get re-elected.
3. Mel Gibson – His drunken, anti-Semitic rant towards an L.A. police officer will blur our perception of him forever, mainly because it was not the first time he voiced similar opinions. To overcome a crisis, you must remove the root of the problem and sadly, the root has not been removed within Mel Gibson.
4. Floyd Landis – Floyd Landis was fired by his team and his sponsors and the Tour de France no longer considered him its champion after his second doping sample tested positive for higher-than-allowable levels of testosterone. The samples contained synthetic testosterone, indicating that it came from an outside source. This was the top steroid story in the world in 2006.
5. Halliburton – The Reputations Institute’s recent survey ranked Halliburton as the corporation with the worst business reputation worldwide. This is not a good thing. Dick Cheney was CEO of Halliburton before becoming Vice President of The United States. Halliburton is a products and services provider to the oil and energy industries with major contracts in Iraq.
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“Of 120 companies involved in the snowballing backdating scandal, more than 40 percent share directors with other implicated companies.” A corporate governance research firm, The Corporate Library, said in a recent report. According to the Associated Press, on tennis courts and golf courses, in bars and restaurants, at meetings and conventions, it seems corporate board members spread the word about a novel way to boost executive compensation – backdating options.
A study released last month suggested that the common link between companies that backdated options was a network of directors who sat on some of the same company boards. Now many of them, their companies and their chief executives are losing their jobs because of it.
Of 120 companies involved in the snowballing backdating scandal, more than 40 percent share directors with other implicated companies, The Corporate Library, a corporate governance research firm, said in a report Thursday. That proportion of interconnected boards is much higher than would be expected from a similar, randomly selected sample, the study found. “Director interlocking relationships are fast becoming what appear to be the most important characteristic and indicator of backdating problems,” the report said.
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“If you removed trans fat from the planet, the only people who would feel the difference are the people who sell the trans fat.” Commented Dr. Steen Stender, one of the leading Danish experts who lobbied for the anti-trans fat law in Denmark. According to the Associated Press, two years ago, Denmark declared war on artery-clogging oils, making it illegal for any food to have more than 2 percent trans fats.
Offenders now face hefty fines — or even prison terms. The result? Today, hardly anyone notices the difference. The french fries are still crispy. The pastries are still scrumptious. And the fried chicken is still tasty. Denmark’s experience offers a hopeful example for places like Canada, Chicago and New York City, which are considering setting limits on the dangerous artery-clogging fats. Trans-fatty acids typically are added as partially hydrogenated oils to processed foods such as cookies, margarine and fast food. They are cheaper to produce than healthier oils — such as canola, corn or olive oil — and give foods a longer shelf life.
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“We had a wonderful time. It is time for me to move on. We remain friends.” Commented Carolyn Kepcher, formerly a star on NBC’s The Apprentice and formerly executive vice president in the Trump organization, on ABC’s Good Morning America after being fired by Donald Trump due to excessive self promotion as her full-time job suffered.
According to A.P., Carolyn Kepcher, who sat by while her boss Donald Trump dismissed one would-be apprentice after another on TV, has now felt the full force of his iconic phrase: “You’re fired.”
Kepcher, a co-star with Trump from the start of “The Apprentice” in 2004 and a long-time employee of the Trump Organization, has been let go.
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