How can disaffected employees damage a business's reputation?

Study for the CII Certificate in Insurance - Introduction to Risk Management (I11). Review key concepts, understand risk principles, and test your knowledge with multiple choice questions.

Disaffected employees can significantly damage a business's reputation through the leaking of confidential information. When employees who are unhappy or disengaged share sensitive or proprietary information, it can undermine trust in the organization. This breach of confidentiality can lead to public scandals, loss of customer confidence, and potential legal repercussions. The negative publicity associated with such incidents often results in long-term damage to the brand's image and customer relationships, as stakeholders may question the company's reliability and integrity.

In contrast, increasing product quality, promoting company values, and enhancing customer relationships are typically associated with positive employee engagement and performance, contributing to a stronger brand reputation.

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