19 September 2017

South Africa: How KPMG Tried to Manage a Crisis - and Only Managed to Make Things Much Worse


There's always a danger that responding and admitting culpability - while absolutely necessary in a crisis response - can actually raise awareness about a problem, give journalists more information to latch on to and spark further outrage. And it seems that KPMG has blown a hole in its own foot.

It has long been acknowledged by practitioners and academics that crisis management is itself in crisis. Companies operate in a world where there is a crisis - with dire consequences for their reputations - lurking behind every rock, stone and pebble. They range from North Korea's nuclear ambitions and hurricanes to terrorism to tweets from staff members. The responses from businesses in South Africa embroiled in corporate crises of late have shown that they have simply failed to adapt; that they need to understand how accountability works now, and fast.

The case of KPMG is particularly fascinating, given the wide range of measures it announced last week as penance for doing business with the Guptas and writing a flawed report on the so-called "rogue unit" of the South African Revenue Service (SARS). There's always a danger that responding and admitting culpability - while absolutely necessary in a crisis response -...

South Africa

'Frustrating' Wait for Parents as School Sexual Predator Case is Delayed

Parents of the victims of the former Parktown Boys High School assistant water polo coach have described the wait for… Read more »

See What Everyone is Watching

Copyright © 2017 Daily Maverick. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.