Issue link: https://www.e-digitaleditions.com/i/207525
CEO's Letter The Cost of a Bad Reputation It amazes me that the HR departments of the world are not more involved in corporate responsibility issues. Data emerges every day showing that HR departments can't do their jobs effectively in a company that has recently experienced scandal. And, by the way, I am not sure that HR shouldn't suffer as a result of a scandal. One of the biggest issues of our time is the question of who owns ethics in a major organization—and overseeing ethics is much more than putting a few signs in the cafeteria about company principles. Does HR own it or does the corporate responsibility function? In some companies the HR function and the CR function now merge into one position. This is the role of Alison Quirk at State Street Corporation; she is executive vice president and chief human resources and citizenship officer. We should look inside the costs and impacts of bad reputation on a company. SharedXpertise recently conducted a study of both employed and unemployed workers on the impact of reputation. The study, sponsored by AllegisTalent2, interviewed 1,010 individuals. Of this group, 552 were employed full time and 448 were unemployed, students, or retired. The demographic data below shows how the group is a good cross section of the American public. The results are astounding. When asked about the likelihood of accepting a job if offered one by a company with a bad reputation if the respondent was unemployed, 69 percent said it was not likely. While someone may accept a job because they need the work, clearly the choice between a company with a recent scandal and any other job would lead to declination. We then asked employed workers if they received an offer from a company with a bad reputation, what salary increase would be necessary in order to accept the job? Thirty-three percent would need in excess of a 50 percent increase and 31 percent would just not accept. We know that most offers are in the "up to 20 percent" range, so effectively 64 percent of employed people are not reasonably available for hire. [4] HRO TODAY MAGAZINE | OCTOBER 2013