Which of the following can enhance corporate reputation?

Study for the ACCA SBL Exam. Utilize quizzes with multiple choice questions, hints, and explanations to enhance your learning. Prepare confidently for your exam!

Improved transparency and effective communication with stakeholders are key factors in enhancing corporate reputation. When an organization openly shares information about its operations, decisions, and strategies, it builds trust among its stakeholders, including customers, employees, investors, and the broader community. Transparent practices demonstrate accountability and commitment to ethical standards, which are critical for fostering positive perceptions.

Stakeholders are more likely to engage positively with a corporation that communicates effectively and listens to their concerns. This two-way communication can lead to a more favorable understanding of the company’s goals and operations, thereby strengthening its reputational capital. Additionally, effective communication fosters a sense of inclusion and community, making stakeholders feel valued and heard.

The other options do not contribute positively to corporate reputation. Focusing solely on maximizing short-term profits can alienate stakeholders who may value long-term sustainability and ethical practices. Limiting information released to the public often leads to mistrust and speculation, which can harm the company's image. Regularly changing leadership may create instability and inconsistency in strategic direction, which can confuse stakeholders and detract from the corporate brand's reputation.

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