Responding to one of the biggest reputation risks leaders face today
One of the toughest reputation challenges for an organization is a corruption investigation that involves a few but tarnishes many.
A case in point is the current investigation into three Tourism Australia staff, sacked for allegedly charging taxpayers for personal travel.
Tourism Australia referred the matter to the National Anti-Corruption Commission and its chief executive then faced difficult questions before a Senate committee. With the investigation still in play, she was unable to fully explain her agency’s position.
If someone connected to your organization is being investigated, you’re effectively gagged from disclosing details about the incident under scrutiny.
But the media will hint at it, pushing enough boundaries to let the world know your organization and corruption are now room-mates.
The inquiry might involve a handful of people within a large entity, but you’re all tarred with that brush – and it’s tricky to defend while the investigation is continuing.
Back during my time with Wollongong City Council and a major corruption investigation that came to public light with a dramatic ICAC raid in 2006, I remember being strongly directed by the Commission not to release any information at all or I would be held in contempt.
There was intense pressure from others in the organization to clear our collective names, given the ICAC inquiry touched on a relatively small number of people in a large Council – but we had to stay silent and wait for events to play out.
With anti-corruption agencies around the country on high vigilance - often with equally high enthusiasm for claiming public scalps – there are compelling reasons for every leader to get their house in order.
Dodgy behaviour is never acceptable and every business and agency needs strong governance structures to guard against it.
Unfortunately, that doesn’t always deter people from doing dumb things that get both themselves and their organization into very hot water – leaving reputation wreckage that takes a long time to shift.
Three lessons for every leader:
-Do everything you can to reinforce a culture where people act according to your organizational values and know the lines that cannot be crossed.
-Ensure your governance and anti-corruption processes are water-tight and communicate about them regularly with your staff.
-Have a brief crisis communication plan for a corruption incident including key messages about your strong governance processes. You must be able to let people know the incident (depending, of course, on what it is) does not reflect the behaviour of your entire organization.
