As corporate activities face growing scrutiny, organisations are becoming increasingly prepared to forego short-term profits if this would protect their reputations in the long term, a CGMA survey has found.
According to the global poll, conducted by CIMA and AICPA, 76% of CFOs and other senior finance professionals believe that their organisations are prepared to make such a sacrifice.
The respondents cited three main reasons for this increasing preoccupation with reputational risk/brand protection:
- Growing market demand for greater transparency
- Incidents at leading organisations or competitors leading to a loss of reputation
- The rise of social media, at long last I have seen a benefit of facebook.
This has to be an encouraging development for technical teams responsible for supply chain risk management. Food safety risk & supplier risk has been seen as a compliance issue for too long, if the CFO’s are waking up to the reputational risk to their business they may start to take investments in supplier management systems and supply chain compliance more seriously.