Case Study Week 1 – Article Example

Managing for Operational Integrity Managing for Operational Integrity The scandal and the alleged rumors of Baidu.com, it can be seen that the company’s reputation and strong profit growth has suffered a certain degree of damage. Under the US Stock Market NASDAQ, Baidu.com’s (BIDU) share price has dropped from $308 to $110 in a few months of 2008.[1]
2. If the damage to reputation continues, this could lead to problems in the future. Measurement of risks can be done by two basic methods: firstly, the ranking model which uses publishes information to compare reputations. The other is one that uses internal client information as an aid for reputation owners.
3. Baidu.com can manage its reputation in many different ways, namely, avoidance, management, mitigation, or transferring risks. The last one doesn’t apply to risk which aren’t or can’t be insured. It will be a challenge they will have to overcome because strictly speaking, reputation itself cannot be managed, and often there is so dedicated individual responsible for ownership of damaged reputation or risk.
4. Because of these delays in recognizing the diseases mentioned, the companies who manufacture products which spread them greatly benefit, with low production costs, and thus acquire a high profit margin. The public on the other hand, who buys and uses said products suffer adversely.
5. There should be a national or country-to-country consensus to not monitor the news, as well as organizations set up for the regulation of international legislation and treaties to ensure a smooth flow of uncensored information to prevent the ‘culture of secrecy’
6. a) One method is surprise checks and visits to the sites in other countries to ensure compliance with company policies.
b) Such organizations exist. E.g. is the United Nations initiative to stop child labour. http://www.un.org/en/globalissues/briefingpapers/childlabour/
c) They shouldn’t be held responsible, as the melanin tinted ingredients were of Chinese Company and not theirs.
d) Yes, it would be different, and more immediate.
e) Nike discloses its responsibilities and practices because it has a Corporate Social Responsibility (CSR) to do so, in particular the Kaksay Lawsuit. This is done by publishing a CSR report online.
References
[1] Pg. 40, Ch. 1, Managing for Operational Integrity