Sustaining a positive reputation

A company’s reputation is one of its most precious assets, and a major uninsured risk. Ultimately much of the work of the risk manager feeds into protecting the brand and improving reputation.

Solicitors Berrymans Lace Mawer spoke to StrategicRISK about some of the current legal risks that, in an increasingly litigious world, companies need to be aware of.

With recalls almost a weekly occurrence, what a company does to protect its customers and supply chain is very significant, explained Helen Devery, a partner with the firm.

‘Toys, electrical goods and vehicles are among the most commonly recalled goods in the UK,’ added Alistair Kinley, head of policy development.

Ensuring a safe working environment for employees is just as important, continued Devery. ‘So you are not facing claims and have a happy, healthy and productive workforce.’

Regulatory scrutiny has also increased. ‘The Corporate Manslaughter and Homicide Act exposed businesses to potentially sever criminal fines as of April this year,’ said Kinley. He also pointed to the Equality Bill, a sweeping piece of equality legislation with relation to employment practices, expected to be announced in the Queen’s speech in November.

Commenting on the Corporate Manslaughter Act, Devery added: ‘There is no doubt we will see some major headline cases with significant fines.’

‘The publicity order that is attached to the legislation could be very harmful particularly for a major organisation that relies on its reputation,’ she said.