In this section, we present emblematic cases of good and bad practices in social responsibility and sustainability.
Cases of a bad reputation
By: Inés Guardia.
Because we are often asked about the priority a company should give to its stakeholders, we realize that there are concerns about the issue. Here is a brief explanation of why relationship audiences should be a priority:
Sears: had quality products, but its customers were unsatisfied with how its employees treated them. In 10 years, Sears became the lowest-rated department store in the United States in terms of satisfaction. Without further ado, straight to the point: in 2007, its income was $53 billion, and it had 3,467 stores. In 2017 its revenue was 22 billion dollars, and it had less than 1,300 stores.
Uber: Due to more than 6,000 reports of sexual harassment in the United States, suspected intellectual property theft, and false credentials in the United Kingdom, it was investigated by the FBI. It lost its license to operate in London. Straight to the point: the company threw away its largest European market, suffering a 6% drop in the stock market.
United Airlines: in 2017, a passenger was forcibly removed from one of its aircraft due to overbooking; direct and to the point: within days, the company’s shares fell by 4%.
Weinstein Company: a well-known company in the film industry, its owner was accused of sexual harassment and abuse; straightforward and to the point: the company went bankrupt.
These are emblematic cases. Many companies have gone under because they do not understand all aspects of their business. Maximum potential can only be achieved when companies know the society in which they operate.