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This study aimed at studying the reputation risks regarding its causes, effects and strategies to overcome them using a case study of Acacia Mining. It developed three specific objectives which were: to identify the causes of reputation risk at Acacia; to identify the effects of reputation risk; and to suggest strategies to overcome reputation risk at Acacia. The study opted for the qualitative and quantitative research design, applying a case study approach involving 36 respondents whereby 20 were normal staff while 16 were top managers. The data was collected through questionnaire, interview and documentary review methods and analyzed through qualitative content analysis for data collected through interview and quantitative data analysis, particularly through the aid of SPSS, for the data collected through questionnaire. Then data were presented into tables, graphs and pie charts.
The study results indicated that reputation risk at Acacia was caused by cultural, managerial and external factors. It also found that the cultural factors were among of the factors that cause reputation risks categorized into legal and ethical risks. The managerial risks included operational and executive risks as the factors lead the company into reputation risks. The external factors that causes reputation risks to the company were such as environmental and association risks.
The effects to reputation risks were found to be devaluation of the goodwill and image of the company, devaluation share price, loss of revenue and profits, loosing association from other partners, weaken loyalty from employees, hard to hire good replacements, lowed attitude in decision making, and lowered the bargaining power. With regards to the strategies recommended for the company to overcome reputation risk, were developing an effective risk assessments team; extensive review of the prevailing operating conditions; the media engagement plan, education and awareness to the overall general public, map out high level reputational risks; improving the areas relating to the execution of stakeholder relationship; engage consistently with members of the public and the government; and employ an in-house company crisis manager. |
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