CFOs value reputation over short-term profits.

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As corporate activities face growing scrutiny, organisations are becoming increasingly prepared to forego short-term profits if this would protect their reputations in the long term, a CGMA survey has found.

According to the global poll, conducted by CIMA and the AICPA. 76 per cent of CFOs and other senior finance professionals believe that their organisations are prepared to make such a sacrifice.

The respondents cited three main reasons for this increasing preoccupation with reputational risk:

* Growing market demand for greater transparency.

* Incidents at leading organisations or competitors leading to a loss of reputation.

* The rise of social media.

Of the CGMA designation holders surveyed. 65 per cent said that their organisations "often or always" considered the financial implications of reputational risks when making investment decisions. Almost half (44 per cent) said that their organisations had rejected a project that made financial...

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