Recent corporate damage in Australian industry is highlighted by the actions of corporate entities (Finance and Energy Sectors) misleading their customers and treating them unconscionably. The incentives to management that encouraged such bad behaviour outweighed the incentives to put customers first.
These practices were enshrined within their Corporate policies and procedures. Risk management lacked the appropriate attention.
The evidence regarding AMP’s corporate practices was damning in the extreme and the resulting damage to their brand has been substantial.
These company’s collective behaviours not only hurt consumers but also threaten support for, and the proper working of the market economy.
Profits are essential however the focus should be on long term profitability.
To this end policy should be framed accordingly and procedures set in stone to ensure safeguards against reputational damage.
The legislation and regulation of any industry is available 24 hours a day.
Update and amend your documents, induct and discuss with all employees and require acknowledgement from all involved.