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Book Description

How to prevent corporate scandals and fix good companies that do wrong

The news media is replete with stories of corporate scandal, corruption and misdeeds. The need for effective crisis management and corporate governance strategies has never been greater. Broken Business explains why corporate scandals happen, what to do when scandals arise in your company, and how to prevent their future occurrence.

Offering real-world anecdotes and solutions, this book details how corporations can mitigate the risk of scandal, reform corporate image and install structures to create a more ethical and profitable company. This insightful resource dispels common misconceptions of corporate misconduct and its causes through fascinating research into human nature, and compelling storytelling that demonstrates fundamental flaws in corporate culture.

Author José Hernandez draws on decades of experience working with high-profile global corporations to present seven essential steps for transforming a company, including building a better culture, more effective compliance systems and re-focusing the strategy. This book allows you to:

  • Examine current and highly publicized cases of corporate scandal and their impact on corporate credibility
  • Employ practical methods to rehabilitate your corporation’s public image
  • Implement managerial frameworks to quickly address cases of misconduct
  • Promote a culture of compliance and integrity to encourage good conduct in your corporate environment

At its core, this book is a simple, engaging “how to” guide that offers practical advice on institutionalizing integrity in any organization. Broken Business: Seven Steps to Reform Good Companies Gone Bad is an essential text for leaders seeking a concise review at how things can go wrong, how to deal with scandal fallout and how to ultimately become a better company.

Table of Contents

  1. COVER
  2. ABOUT THE AUTHOR
  3. PREFACE
    1. WHY I WROTE THIS BOOK
    2. WHAT THIS BOOK CONTAINS AND HOW TO READ IT
    3. WHO SHOULD READ THIS BOOK
  4. ACKNOWLEDGEMENTS
  5. PART I: INTRODUCTION
  6. THE PROBLEM
    1. PART II: THE TALE OF WIND INTERNATIONAL
      1. THE CRISIS AT WIND
        1. THE STORY OF WIND INTERNATIONAL
        2. TWELVE MONTHS LATER…
      2. ANALYSING THE PROBLEMS AT WIND
        1. WHAT WENT WRONG AT WIND?
        2. SYSTEMIC BUSINESS FAILURES ARE THE ROOT OF PROBLEMS
    2. PART III: THE BIGGER PICTURE
      1. WHY THE SYSTEM FAILS
        1. PRESSURE
        2. POWER
        3. PERSPECTIVE
        4. THE PROBLEM IN THE SYSTEM
      2. A PATH TO REFORM AND CHANGE
        1. WILFUL BLINDNESS AND ITS REMEDY
        2. LEADERSHIP, INTEGRITY AND THE ‘PLAGUE’ ON THE WALL
        3. EMPOWERING INTEGRITY: THE SEVEN STEPS
        4. A NOTE ON REGULATORS AND PROSECUTORS
  7. THE SOLUTION
    1. PART IV: THE STEPS TO ADDRESS A CORPORATE SCANDAL
      1. STEP 1 – UNDERSTAND THE CRISIS
        1. NOW I AM IN CRISIS
        2. THE ILLUSION OF THE ‘PERFECT STORM’
        3. HOW COMPLEX SYSTEMS FAIL
        4. WHEN CRISIS STRIKES: WHAT NOT TO DO
        5. KNOWING WHAT'S MATERIAL
        6. NEVER LET A CRISIS GO TO WASTE
        7. NOTE
      2. STEP 2 – UNDERTAKE AN INDEPENDENT INVESTIGATION
        1. WHO'S IN CHARGE?
        2. COMMUNICATING THE INVESTIGATION
        3. GETTING TO THE FACTS – CORPORATE CSI
        4. EMPOWERING WHISTLE-BLOWERS
        5. CLOSING THE INVESTIGATION
        6. NOTE
      3. STEP 3 – DEFINE A ROADMAP TO RECOVERY AND REMEDIATION
        1. TEARING DOWN WHILE BUILDING UP
        2. AGENTS FOR CHANGE OR TENTACLES FROM THE PAST?
        3. RENEWING LEADERSHIP AND ACCOUNTABILITY
        4. THE CURSE OF THE GOLDEN PARACHUTE
        5. THE GATEKEEPERS: NO MORE SILOS
        6. SELLING A GREEN BANANA
        7. NOTE
      4. STEP 4 – ACHIEVE CRIMINAL AND CIVIL RESOLUTION
        1. A PRIMER ON CORPORATE CRIMINAL LIABILITY
        2. GOING AF TER THE COMPANY OR INDIVIDUALS?
        3. THE EFFECTIVENESS OF CORPORATE RESOLUTIONS QUESTIONED
        4. NOTES
    2. PART V: INSTITUTIONALIZING INTEGRITY AND GOOD CONDUCT
      1. STEP 5 – STRENGTHEN STRUCTURES TO PREVENT, DETECT AND RESPOND TO MISCONDUCT
        1. AN ETHICS AND COMPLIANCE PROGRAMME: WHY YOU NEED ONE
        2. THE HALLMARKS OF A GOOD ETHICS AND COMPLIANCE PROGRAMME
        3. A FOLLOW-UP ON GATEKEEPERS
        4. A NOTE ON INTERNAL AUDITS
        5. I HAVE A PROGRAMME IN PLACE BUT IS IT GOOD ENOUGH?
        6. SUMMING UP – WHY PROGRAMMES MATTER
        7. NOTES
      2. STEP 6 – RESHAPE THE CULTURE
        1. WIND INTERNATIONAL – TWO YEARS LATER (THE INTERVIEW)
        2. WINDS OF CHANGE
        3. TONE FROM THE TOP
        4. A PLATFORM FOR RISING STARS
        5. EMBEDDED ‘SPEAK UP’ CULTURE
        6. THE BIG STICK: ROBUST OVERSIGHT, INVESTIGATIONS AND GOVERNANCE
        7. NEW CULTURE = NEW INCENTIVES
        8. EXPANDED INFLUENCE
        9. JOHN KOTTER'S LEADING CHANGE
        10. ACHIEVING CULTURE 2.0
        11. NOTE
      3. STEP 7 – REFOCUS THE STRATEGY
        1. THE ROAD TO A REFOCUSED STRATEGY
        2. FOCUS ON CORE MARKETS AND LINES OF BUSINESS
        3. EXPAND WITH PURPOSE (OR: INTEGRATE, INTEGRATE, INTEGRATE)
        4. IMPROVE OVERALL GOVERNANCE: SEVEN LESSONS FOR THE BOARD
        5. A FINAL THOUGHT ON THE BOARD
        6. WRAPPING UP THE SEVENTH STEP
  8. A RECALIBRATED SENSE OF LEADERSHIP
    1. PART VI: CONCLUDING THOUGHTS AND LEADERSHIPROADMAP
      1. NOTES
  9. REFERENCES
  10. INDEX
  11. END USER LICENSE AGREEMENT
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