The Sunday Mail
YOU have probably heard how good corporate governance structures can benefit the business and be key to how the organisation functions.
Looking into our own market, at times I ask myself if we even know what good corporate governance is.
In this write-up I will just focus on one of the components of good corporate governance —reputation. Reputation is determined by how others view a person, organisation or profession. It includes a reputation of competence, supplying good quality goods and services in a timely fashion, and also being managed in an orderly way. However, a poor ethical reputation can be as serious for an organisation as a poor reputation for competence.
As you read this, ask yourself how people view you as a person.
Are you regarded as an honest person? Do you keep your word? Are you a selfish person? In business the issue of reputation can determine your success or failure. Our market is now characterised by business leaders who are given to lying. Creditors are worst affected as business owners are being dishonest when it comes to settling their obligations. If your company is well known for not paying creditors on time, not paying salaries on time, providing poor quality goods and services and generally misleading the public, then consider your down as nigh, unless, of course, if you take determined steps to change that perception.
A good reputation cannot be bought, but it is something within a person. Businesses do not always go well at times, but the most critical and noble thing to do is to be honest. Even if other stakeholders are not happy with the truth, just be honest. Never run away from your problems, face your creditors and employees even when the situation is not right.
If you have a bad reputation, suppliers and customers will be reluctant to deal with you; you will fail to recruit high-quality staff and demand for your product or service will decline. Consequently, your business will lose market value as investor confidence drops.
The importance of reputation is not, however, peculiar to business leaders, it also affects employees and school goers.
If you are an employee who has patented the art of “being sick” all the time, you come to work late, you do not finish your tasks on time, you always complain and you are rude, you should know this: One day you will surely be fired.
A good reputation goes a long way. People will want to do business with you because of who you are and not necessarily because you have too much money.
Be a good person and goodness shall surely follow you.
I wonder what you all would think if you see someone you hold in high regard partying away in a night club. Definitely, you will be surprised. Your view of that person naturally changes.
Do not be known for the wrong reasons and be careful on who and where you spend your time.
Imagine bumping into a creditor that you have not paid for quite some time while your a splashing cash on unnecessarily luxurious items. What will he think of you? It is these simple and seemingly small things in life that make a world of difference on our success.
What are you known for? You may dodge bullets for a while but there will come a time when it will hit you straight in the chest. Simply be someone of good morals and have a good reputation.
In business, you represent a lot of people. Do not always think of yourself as this will impact on others. Because of your bad reputation, a company can lose good contracts that may mortally impact on the firm.
There are also many people who might financially depend on you who stand to lose if you get offloaded from work.
Students who were hard-headed and stubborn often regret years after leaving school.
Your reputation has a huge impact in life. You may not have the best grades or the best of education in life, but with a good reputation you may actually be promoted at work at the expense of those who are well educated.
Same applies to individuals with small businesses: A big company may decide to give you a large contract simply because of your reputation. If you are in a habit of saying “come tomorrow or I will call you” to your creditors yet you know very well that by that time you will not be in a position to pay, then you are a terrible businessperson.
I have personally experienced such, and to people reading this, I am sure most of you have also experienced this.
Treat every creditor with respect, irrespective of whether you owe them huge sums of money or small amounts.
Losing a bad reputation is difficult, losing a good one all too easy. As Warren Buffet, the third-richest man in the world, remarked: “It takes 20 years to build a reputation and five minutes to ruin it.”
A classic example is of the late Michael Jackson. He made a very good name for himself early in life but along his career he made some mistakes which damaged his reputation.
Reputation starts at the top.
Commitment on the part of top management is essential in maintaining a good reputation, because if they don’t see it as a strategic value, it won’t be given the necessary priority.
Taurai Changwa is an Articled Accountant and ACCA finalist. He is the managing director of SAFIC Consultancy. He writes in his personal capacity and can be contacted at [email protected], or visit Facebook page SAFIC Consultancy, or WhatsApp on 0772374784.
