Image is important – but reputational risks can’t be addressed by the marketing department alone, writes Nir Kossovsky
Have you heard this story before? A company sources product in a country with well-known lax workplace safety rules, no minimum wage and no prohibition against child labor. The company’s in-country supply chain partner gives assurances of ethical management, consistent with the company’s values. The company’s risk management apparatus, mindful that any incident could damage the company’s reputation and lead to consumer boycotts, concludes that the potential uproar is a marketing problem. The company launches a major corporate social responsibility campaign, spending millions building schools in developing countries and publicizing its commitment to education.
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