Wednesday March 20, 2019

Credibility Is Everything

Credibility is everything to an auditing firm, and that is why KPMG cleaned house in South Africa as a result of a scandal.  An auditing firm cannot afford to fight regulators or to work through one with headlines detailing progress or lack of it.  Is it unfair to partners if they were not involved?  Yes, it […]

Absence of Credibility

Philip Morris International has pledged nearly $1 billion to fight smoking, but its critics don’t believe it.  After all, the maker of Marlboro cigarettes spent billions fighting anti-tobacco activists for decades.  Why should anyone believe them now?  The company has a strong economic interest in non-smoking tobacco, also known as vaping, which is growing rapidly. […]

Killing Credibility

Some of the toughest PR problems occur when a company has not been transparent.  Consider this case.  St. Jude Medical did not reveal that battery failures affected some of its defibrillators and had caused at least one death.  The company hid the fact from its medical advisory board and from medical management as well.  St. Jude […]

No Credibility

How can a security company continue to operate when it admits it lied about protecting customers?  This is the situation in which Lifelock, the so-called security firm, finds itself.  Lifelock has paid a $100 million fine to the Federal Trade Commission for deceiving customers.  Yet the business continues.  It lacks credibility.  It doesn’t do that […]

Network Credibility

The failure of two major networks yesterday points to the fragility of the digital economy.  Although there was no evidence of hacking, it is uncomfortable to know that a broken switch or burned-out router or other malfunction can bring down both a stock exchange and a separate airline booking network at the same time.  What is worrisome […]

Greece And Credibility

The head of the Eurogroup of Finance Ministers is warning Greece to come up with a credible debt restructuring package.  Needless to say, the European Union will define credibility and not Greece.  The country may have its citizens behind it, but they are bit players in the drama taking place.  Greece’s prime minister is scrambling to […]

Credibility Impaired

How does an organization maintain its credibility when this happens?  The world of professional soccer has been turned upside down with the indictments of vice presidents and executive committee members for graft.  The president, Sepp Blatter, has been left untouched, but the charges stop at the door to his office.  It is clear that FIFA […]

Fundamental Credibility

Tesco, the UK grocery chain, is learning the hard way about credibility and reputation.  You can’t fake numbers and maintain either.  It is obvious but someone (or a group of executives) did it anyway.  Now the facts are emerging and the company is under stress.  What would possess the executives involved in undertaking such a […]

Credibility Again

This credibility destroyer keeps happening and one wonders when people are going to learn.  Lying about one’s academic credentials opens the possibility that one will lie about other things as well.  It is embarrassing to every employer this fellow had that he was able to slip through credential screening and end up for eight years with Wal-Mart. […]

Credibility And The IRS

The IRS is having a hard time defending itself before the public — and well it should.  The claim that a hard drive with two years of e-mails had somehow been destroyed is beyond credibility.  As commentators and technical experts have pointed out in recent weeks, it could only have been enormous incompetence or outright […]