Table Of Content“I recommend this book to all Corporate Directors and
Executives. It provides a concise look at how things can go
wrong, how to deal with the fallout and how to ultimately
become a better company. More importantly, Broken Busi-
ness provides insights to those who have not had to experience
an ethics crisis and therefore hopefully will not have to!”
Ian Bourne, former Chairman, SNC-Lavalin Inc.
“The Empowering Integrity process illustrated in Broken
Business properly describes the steps a company must take to
master the journey from crisis to successful transformation.
I got to know Hernandez in 2005 as part of his work for Daim-
ler. I appreciate Hernandez as a person, value his convincing
professional work and competence, as well as his understand-
ing of business.”
Bodo Uebber, CFO of Daimler AG
“José Hernandez’ “Broken Business: Seven Steps to Reform Good
Companies Gone Bad,” is a current and compelling treatise on
how to prevent, detect and fix corporate mismanagement, the
condition precedent to corruption, fraud, waste of shareholder
property, reputational harm and costly enforcement action.
Infused and instilled throughout this corporate governance
failure ‘post mortem,’ Hernandez drives home the core lesson
for corporate managers that ‘integrity’ is the sine qua non of
business success and sustainability. Beyond a good product
or service, good business strategy and leadership, a strong
commitment to integrity is critical in making a company strong
and profitable in the long run. Every CEO, board member,
CFO, general counsel and business manager should read and
embrace Broken Business.’ ”
Louis J Freeh, Former FBI Director, Former US
Federal Judge, Chairman of Freeh Sporkin Sullivan LLP
“Excellent reading: very clear and to the point, lively through
real-life examples, and ready to implement with practical rec-
ommendations based on deep corporate experiences. Broken
Business underlines the importance of culture and tone from
the top, and how crises are opportunities to make the company
stronger and more valuable for society.”
Klaus Patzak, CFO of Bilfinger SE;
former Corporate Vice President of Siemens AG
“From a European perspective, Broken Business is an extremely
important resource for boards, especially in the context of
today’s global regulatory environment. It provides invaluable
lessons learned about how to uphold your governance duties in
the face of a major crisis arising from misconduct, and how to
mitigate the risks to your organization. I would recommend it
to all corporate leaders, directors, and prospective directors.”
Peter Wakkie, former Executive Board member
of Royal Ahold NV; Chairman of TomTom NV;
Partner, Spinath+Wakkie
“This book brings together key insights from José Hernandez’s
career working with business leaders to navigate high-profile
corporate crises. In Broken Business, Hernandez shows how to
identify and address the root causes of such crises, which very
often lie in systemic failures of a company’s ethical leadership
and culture.”
Roger Dassen, former Global Vice Chairman
of Deloitte; CFO of ASML
“Every current and aspiring business leader should read Broken
Business. This foundational work shines a much-needed light
on the murky business systems failures that lead to corruption
and wrong-doing. It provides business professionals with a prac-
tical and clear seven-step-road map to fix the inherent problems
within their organizations. Author Hernandez conveys critical
insights through compelling stories illustrating how leaders
can take action to strengthen their organizations. Broken Busi-
ness is an easy yet inspirational read. Business leaders who take
up Hernandez’ challenge and adopt the Empowering Integrity
framework will be reshaping their organizations is ways that
generate real, sustainable and positive benefits for employees,
stakeholders, and society.”
Joy Thomas, President and CEO,
Chartered Professional Accountants of Canada
BROKEN BUSINESS
SEVEN STEPS TO REFORM GOOD
COMPANIES GONE BAD
JOSÉ R. HERNANDEZ, PhD
This edition is published by special arrangement with Vakmedianet, the Netherlands,
copyright © 2018 José Hernandez and John Wiley & Sons, Ltd.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
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Library of Congress Cataloging-in-Publication Data
Names: Hernandez, Jose R., 1974- author.
Title: Broken business : seven steps to reform good companies gone bad / Jose R. Hernandez.
Description: Hoboken, NJ : Wiley, 2019. | Includes bibliographical references and index. |
Identifiers: LCCN 2018035676 (print) | LCCN 2018045110 (ebook) |
ISBN 9781119547532 (Adobe PDF) | ISBN 9781119547525 (ePub) |
ISBN 9781119547501 | ISBN 9781119547501(hardcover) | ISBN 9781119547532(ePDF) |
ISBN 9781119547525(epub)
Subjects: LCSH: Corporate governance. | Corporations—Corrupt practices—Prevention.
Classification: LCC HD2741 (ebook) | LCC HD2741 .H47 2019 (print) | DDC 658.4/06—dc23
LC record available at https://lccn.loc.gov/2018035676
Cover Design: Wiley
Set in 12/18pt and Minion Pro by SPi-global, Chennai
Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK
10 9 8 7 6 5 4 3 2 1
I have a separate acknowledgements section. However, I must
make special mention of those who stand up for what is right,
not just what is convenient.
In my work, I have been honoured to meet courageous people
all over the world who speak up about corruption and miscon-
duct, and with good reason. We cannot progress as a society
without their voices. All too often, whistle-blowers are ostra-
cized, silenced and pushed out of the way by those with power
who are threatened by the truth coming out. A critical tenet of
this book is removing the muzzle and the stigma associated
with being a whistle-blower.
As such, is dedicated to those who speak up and question busi-
ness practices that cross the line. These individuals risk a great
deal and put their careers in harm’s way. Their voices are heroic.
They lead by example and strive for a better world.
