Mind my reputation on your way out...

How can companies avoid the reputational risk of employees very publicly airing their concerns?

While its customer base browses for the perfect comeback outfit, sending profits soaring, an online storm has been brewing for retailer Asos as it finds itself under pressure to respond to allegations of a toxic culture, shared anonymously on Instagram by employees earlier this year.

Reported first by The Daily Telegraph, employees lamented inappropriate behaviour which fostered complaints to senior members of staff. Allegations ranged from racism and homophobia to sexual harassment and bullying.

So far, reader responses to the story betray a lack of surprise that such behaviour exists at Asos. If we are somewhat numb to bad behaviour in the workplace and its airing in the public domain, how big is the reputation risk for companies?

As ESG in its broadest sense becomes not just trendy but compulsory, and even regulated, a company must consider the holes in its corporate culture or risk being accused of ESG-washing, or whatever the next buzzword may be to describe an organisation that promotes a physically and psychologically safe work environment and does not stand up to this promise.

Employment issues frequently hit the headlines. In terms of the bottom line, talent retention, and recruitment, this reputational issue has teeth and it bites all parts of a business.

Netflix recently raised eyebrows by firing three executives over messages shared ‘privately’ on Slack, criticising other employees. the decision taken by management is consistent with Netflix’s infamous Culture Statement which includes an expectation that its people “only say things about fellow employees that you say to their face”.

Netflix could potentially fall on its own sword for what might be perceived as a draconian response. Alternatively, given the decision aligns with its value statement, it might achieve a more cohesive culture, a psychologically safe workplace and, consequently, a reduction in disgruntled employees taking to the blogsphere with internal issues.

So, in an age of airing dirty laundry, how can companies maintain control of the narrative and manage potential reputation damage caused by vocal employees? The key is by taking proactive action and thoroughly assessing the reputation risk to which a company might be exposed (be it via consumers, employees, NGOs, or other stakeholders). Here are some quick tips for managing brand and reputation on social media:

1. Be aware of the potential reputation risks the company faces via the online activity of employees and have a plan in place to be ready to take active steps to react to a reputational crisis quickly and decisively.
2. Communicate a strong culture and values statement that the company commits to, delivers training on, and demonstrates accountability for through transparency and measurable targets.
3. Introduce mandatory social media training and dedicated social media monitoring to identify risk pre-hiring and track trends and patterns that might betray a culture hole.
4. Implement an authentic and impartial internal complaints and reporting process based the company culture and values statement. The key to this is following a model of transparency, rather than the problematic approach of utilising strategic NDAs to keep a lid on toxic culture. Post Weinstein, the age of the gagging clause is long gone – legislation is set to be brought in which would prevent the misuse of NDAs to silence victims of sexual misconduct and harassment.

It is imperative that a company does not hold itself out to be something that it’s not, that it follows through on promises aligned with its value statement and is accountable to meeting targets and standards it sets for itself with transparent reporting and shared learnings. A culture vacuum or value statement that clashes with employees’ experiences leads to whispers among staff and even a public display of dissatisfaction.

What about Asos? If there is deep concern about a specific Instagram account leaking war stories from inside the company which might damage its reputation or which Asos believes to be misinformation and libellous, Asos could take a very aggressive approach and pursue court orders to force Instagram to reveal details about particular accounts perpetuating the anonymous comments.

More likely, though, is that Asos will deal with the matter holistically – taking stock and using the independent investigation commissioned to perform a lessons learned exercise. For external observers, if the complaints have any currency, or permeate right to the very top, stay tuned for a changing of the guard.