Transparency is the best policy : Avoiding corporate damage through appropriate crisis management

Purpose – The purpose of this paper is to highlight the financial consequences of corporate irresponsibility or malpractice. Design/methodology/approach – The author uses three case studies in different areas of corporate malpractice, to highlight typical consequences. Findings – The author demonstrates that transparency, even with difficult information or decision‐making, is the most desirable management strategy to avoid long‐term loss. Practical implications – The paper underlines the importance of transparency in corporate crisis management. Social implications – Corporate responsibility and transparency, especially with public health and environmental issues, will cause much less damage to a business than a strategy designed to minimize or cover up responsibility. It will encourage trust and accountability with the public. Original/value – Paper reaffirms obvious but important codes of conduct for management, using historical examples to highlight common mistakes or pitfalls.