Whilst reputation may be difficult to quantify on a balance sheet, it is impossible to deny that a damaged reputation can have an immediate and potentially long lasting effect on sales, share price and future growth. What steps can senior managers take to gain peace of mind when it comes to extraction reputation? Chris Scott partner at Schillings, will discuss the ways that extractives companies can identify threats around revenue transparency, what happens when the press wants to get involved and how companies can take proactive steps to protect themselves.

1. Revenue Transparency and
reputation impacts
Chris Scott,
13 June 2013
chris.scott@schillings.co.uk
0207 034 9000

2. Trend towards transparency
Taking a different approach encompasses many areas but
transparency and revenue transparency are a good illustration to
look at because of three characteristics:
1) that convergence between different functions whose
decisions will have a reputation impact;
2) substantial external interest in the topic; and
3) most importantly of all, the ability of businesses to heavily
influence what outcomes they face - and make their own
mistakes. Opposite of the situation BP and Statoil
discussed where no culpability.

3. Calls for revenue transparency
1) Sound, publicly disclosed anti-corruption programmes
2) Precise and public information about how much
revenue reaches state budgets, and
3) Full disclosure of third party relationships to show
where value is shared.

4. What are the risks to an organisation from
embracing or not embracing
Take those three limbs of revenue transparency:
1) anti-corruption;
2) taxes paid; and
3) third parties dealt with.
Many others in your organisation play significant roles in
deciding how your business behaves.

5. Questions to consider:
1) What reputation is at risk and does it really matter?
2) Are the issues and their impact fully understood by
those making decisions?
3) How is the issue tracked and reviewed?

6. Three take away points
1) Do you have an information strategy? If yes, who owns
it? Go and have a conversation with them
2) Look at the likely impact of regulatory changes
(implementation, cost/risk) and have a plan for how
you mitigate the reputation consequences
3) Make sure you understand the legal tools available to
you when things go wrong, and the reputation
implications of legal steps