Reputation Risks For Businesses In A Global Indian Marketplace

It is essential to ensure that in the course of managing reputation risks, all evidences likely to be relevant in consequential legal and remedial actions to safeguard the interest of businesses are duly protected for use

Reputation

The Subhashitas (compiled by ancient scholars around 5000 BC drawing from the Bhagwad Gita & Puranas) says, ‘One who possesses fame alone does live. One who has good praise does alone live. Who has no fame and negative praise is equal to one who is dead while alive.’

In modern times, the International Covenant on Civil and Political Rights (CICCPR) adopted by the United Nations in 1966 contains similar provisions and expressly subjects the right of expression of a person to the rights and reputation of the other.

The Supreme Court has also dealt with ‘reputation’ and the right to prevent loss of reputation in the Subramaniam Swamy Case (2016). Essentially, an exercise of a right of expression by any person under the law which is causing damage to reputation can be limited primarily by a defence that the allegations are untrue, if affected persons such as business entities have robust and effective processes and compliances to prevent reputation risk. A failure on these counts often leads to business risks, which are initially flagged as financial, operational, security, compliance or a legal risk, but which are capable of transforming into reputation risks capable of undermining the ability of organizations to operate in a manner so as to achieve their goals both business and strategic.

Reputation Risk