Live~NRGY

http://business.financialpost.com/2012/11/28/does-admitting-fault-lessen-liability/

“In cases like Maple Leaf, it can be more about optics,” he said. “The incremental cost that a company like that has to resolve the litigation quickly is offset by the obligation to make things right with the consumer. It is a matter of a company’s addressing an issue from a public perception, and lawyers have one perception and businesspeople have another. From a legal perspective I am not sure that resolving it quickly or not is going to increase or decrease the amount of damages that are flowing.”

The difference is clear and simple. While the financial settlements maybe the same, the issue is quickly resolved in a manner in which in the consumers mind is indicative of a companies moral/ethical conduct in correcting a deficiency. The faster something is resolved, the higher the probability that consumers will continue to trust and buy from that company. Drag out through litigation with protracted long hard fought battles and watch the erosion of brand name trust, company profits sliding and more financial pressures that ultimately must be paid, by all stakeholders. The ultimate is the closure through bankruptcy or selling off of the company.

Quick admission, quick action and resolution is the surest way to win from the perspective of a bad situation. It’s a win-win with a high cost to learning from mistakes. This is something that is often overlooked in financial ledgers.

The cost of learning from mistakes – legal costs + settlements + corrective measures + (goodwill loss). Somewhere in risk assessment model, that has to be taken into account.

Mr. McCain did the right thing – morally and ethically, within himself and to those affected.

No one’s perfect and I certainly don’t expect corporations to be better at it than an individual. Too many moving parts & pieces. While they may have more resources available, they have more complexities involved.

The degrees of separation in terms of time lag can be defined as the measures of legal advice between the onset of an issue and it’s public external/private internal response. Obviously at some point someone has to step up on stage and be the central figure head around which all else must be resolved. That is where the difference lies – the quality and integrity, of moral/ethical Conscious Choices. That’s the Real True Baseline Measure of Trust and Brand Name goodwill.