In the business world, building reputation and trust can give you success

In the world of business, reputation and trust matter— as a panelist from KPMG, Sai Venkateshwaran, Partner and Head , Accounting Advisory Services, pointed out during a talk recently. Speaking at the CII National Risk Summit in Mumbai, the panellist discussed how strong corporate governance leads to better management of reputation risk. He gave the example of a company struggling to save its reputation in the international market.

He said, “We saw a company with product integrity issues. It took only a few days for the company’s value to come crashing down to almost 50 per cent.” He added that given the new regulations, companies are now required to talk about how they do their sourcing, ethical practices, etc.

“It’s a question of what they do versus what they put out. The regulations are there but ultimately, what’s lacking is an enforcement and monitoring mechanism which is adequate enough,” he said.