When you are running a large corporation or government department, you may think that just by virtue of your size, you will be more protected than the little guy. Unfortunately, that is not the case. In fact, the opposite can be true, because it can be the smaller things that end up blowing up in your face and taking your down. Of course, to be forewarned is to be forearmed in such cases. Therefore smart corporations will use the information below to come up with a proactive approach to the smaller issues that can potentially take down their entire organizations.
Marketing misfire
Large corporations spend millions of dollars on marketing campaigns every year. In fact, many have one running all of the time, so it may seem as if one small mistake wouldn’t make that much difference at all.
However, nothing could be further from the truth. In fact, the entire aim of marketing is to target and reach people that are most relevant to your business. An act that does not come cheap either. Therefore if your marketing misfires, your company loses twice.
Once in terms of the original cost, and then again in the damage that the lousy marketing causes. Something that means before you try something new or edgy, it is well worth really thinking through. Oh, and testing the potential reaction of both your target demographic, and the public at large isn’t a bad idea either!
In fact, an excellent example of how a small marketing boo-boo can escalate into an issue that threatens to take down an entire organization in the Cartoon Network Scandal. A situation where a small logo displayed around a city caused mass panic and suspicion of terrorist activities.
Ecological responsibility
Another issue that can easily take down a large corporation or business is not paying enough attention to ecological responsibility. In fact, in today’s climate, consumers are getting more and more concerned about the effect that producing items, and even throwing them away after has on the environment.
To that end, it is usual to find consumers taking their business elsewhere if a corporations’ practices do not stand up to ecological scrutiny. Unfortunately, some companies can make this situation even worse by only taking a cursory approach to being green, and spinning it our proportion. Others, like Toyota, have made it even worse by actually attempting to dupe consumers. Something they did by suggesting their diesel cars were more eco-friendly than they actually are.
Which aside from the legal implications that could have for your business, will make a merry hell of your PR, especially concerning the demographic you were initially trying to impress.
Unethically sourced supplies
It’s not just the ecological credentials of your business that have the potential to bring your organization to its knees. It fact, it is also how ethically and socially responsible you are.
Now, we are not necessarily saying that big corporations always have to be the bad guys here, because that isn’t the case. It’s just to remain competitive in the market, they need to operate efficiently in the system that is already set up. Unfortunately, this system is flawed when it comes to ethics and social responsibility, which can create a massive issue for a business.
In fact, a timely example of this issue in effect is the problem that Apple is currently facing over the sourcing of essential cobolt to be used in their devices. The problem being the providers that source this are using children for dangerous work. Obviously, this is something that then becomes associated with Apple. Thus damaging their reputation, as well as put them under a lot of pressure to change their process. Something which could in therapy cost them a great deal and so put the success of the organization on the line.
With that said, there are definitely some things that larger corporations can do to help improve in this area. The first is to be sure of the laws operating in countries that your business is working.
While the second is to compare these to the locations in which you will be selling as well. Then, favoring the latter where possible.
After all, if you are a global business, you will need to err towards the higher end of the spectrum of standards in this area. Then you will be able to ensure that you avoid a potential organization destroying scandal.
Additionally, opting for the most ethical and socially responsible options is essential. Even in the tiny things such as whom you source packing materials from, can make a massive positive difference. Yes, it may cost a little more, to begin with, and mean that your products or services need to retail at a slightly higher price. However, by operating in this way, you have an excellent chance of safeguarding your business from a disaster later on.
Getting sued
Unfortunately, getting sued or having legal action against them is a situation to which large corporations and organizations are not unfamiliar. In fact, many have legal departments designed to deal with any cases or issues that arise in this area.
Of course, being involved in a legal issue, even one that seems small, always has the potential to blow up into something much more severe. In fact, there are several ways that this can occur.
The first is that the media get wind of the case against you. Something that is very likely to happen and can cause a larger organisation to lose millions in terms of their reputation and PR.
Then there is the issue of the court case itself. Which is likely to be expensive to fight, and could leave you in a position where you need to pay extensive fees and compensation chargers. The like of which can be so high that they do have the potential to ruin your business.
Additionally, it has been known that broader issues are uncovered while investigation and court proceedings are going on for seemingly smaller ones. Something that absolutely has the potential to destabilize your organization financially and in terms of reputation as well.
With that in mind, making sure that you deal with any potential legal issue in the right way is one of the most important things you can do. Of course, that means equipping your legal department with no only the best minds but the best resources as well. Happily, there is now software available that can help make sure your corporate legal case management is as effective as possible. Something that means those in your legal department will be efficient and effective and can resolve cases before they gained enough momentum to take your organisation down.
Bad data management
Data, all organizations, and corporations have it. In fact, more often than not, it is data that is their most valuable resource. Of course, that means if all of your data suddenly goes missing, is deleted, or finds it way into the hands of a malicious party, it is terrible news. In fact, things can get very ugly very quickly.
Again poor data management can cause a distinct PR risk. Still, it does go beyond just fostering lousy publicity for your cooperation. In fact, if you manage the data that your clients entrust you with poorly, what you are doing is breaking their trust.
Sadly, broken trust can be something that takes a great deal of effort and invest to repair. Something that means that without considerable effort, you would risk losing the core base of people that your company caters too. Obviously, this being an issue that has the potential to ruin your entire organisation.
To that end, taking data management seriously is vital if you are to take a proactive approach here. That means having excellent and regularly updated security features such as firewalls and antivirus software. It also means but also making sure that small, simple things are taken care of. Such as backing up servers at the end of each day, and education staff of the risk of using unsecured networks if you want to avoid later disaster.
Summary
In summary, if your corporation wishes to avoid being taken down by seemingly small problems there are some issues that need your attention.
The first is that you seriously consider the impact of your marketing campaigns from all angles before you launch them. While the second is that you pay attention to trends relating to ecology and do your best to keep up. Additionally, doing your due diligence when it comes to social and community responsibility is vital too. What with the public being highly concerned as to whether the organizations they are involved with are ethical.
Also, effective legal representation and management are critical. If you are to avoid seemingly small issues snowballing into ones that have the power and velocity to take down your entire organization.
While finally, treating your data as one of the most valuable resources you have can pay dividends later. Especially when avoiding issues such as bad PR and branding client trust, which often have the potential to take down even the most robust of businesses.
