Download - Corporate crisis communications
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Chris Nelson3 May 2012
2012 Christopher Nelson
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Understand how issues work
Get your company to integrate its approach
Know your critic and what they really want
Recognize your credibility deficit Stick to your knitting
Look at the issue in the context of yourbusiness: whats the real impact? Financial impact
Audience perceptions
Ability to create customers over time
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2012 Christopher Nelson
Business Government
People
Consumers
Voters Employees /
Workforce
NGOs / Activists
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When stakeholder expectations divergefrom organizational reality
it can generate indignation that gains tractionas people with similar feelings come together
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In any democracy, business exists only with amandate from the public
Economic democracy is effective
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PublicCompany
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PublicCompany
Plaintiffs Attack Company
Voters Push Congress
Competition ChasesCustomers
Activists PressurePartners, BusinessCustomers, And
Consumers
Activists BoycottBanks
Activists Buy Shares /Introduce Resolutions
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Social / political forces that grow toundermine a companys public mandate
and ability to do business.
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Many forces influence therelationship business haswith its stakeholders
Trends take root and
change perceptions overtime
2012 Christopher Nelson
Political Social
Economic
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Monitor Trends &Stakeholder Perceptions
Sales data Business metrics Customer service data Competitive intelligence Analyst reports
(esp. industry reports) Consumer research Internet, news media,
opinion leaders Legislative, regulatory,
and legal developments Activist priorities
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Monitor Trends &Stakeholder Perceptions
Sales data Business metrics Customer service data Competitive intelligence Analyst reports
(esp. industry reports) Consumer research Internet, news media,
opinion leaders Legislative, regulatory,
and legal developments Activist priorities
Constantly ReviewBusiness Operations
Omnipresent business risks(ERM analysis)
Corporate strategy shifts Esoterics
2012 Christopher Nelson
Plan Against Scenarios
State of the business in threeto five years
Potential shifts in mindsets Multiple outcomes of key
initiatives
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Create a multidisciplinary team
Sensitize leaders to importance of issuesmanagement develop anticipatory mindset
Gather information from every corner of company Push information on sensitivities, issues, and
allegations
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Create a multidisciplinaryteam
Regularly review state of issues
Establish corporate policies Create leadership
positioning
Create strategies to close gaps
Drive stakeholderunderstanding
Report quarterly to CEO
2012 Christopher Nelson
IM Task Force Agenda
News: big issues stories this monthDevelopments on top-tier issues
Revise impact scenariosAssign to dos
New corporate policies / policy updatesStrategy discussion (if necessary)Sensitive business developments
Report from all departmentsNew issues identified
Discuss scenariosPrioritize / Assign to dos
New info from ally groups & GR Issue preparedness needsWhat does our CEO need to know?
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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Issue Begins to Develop
LegislativeResolution
2012 Christopher Nelson
Now issues can gainnational prominence and
political power almostimmediately
This used to take12 years
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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Some stakeholder expectations not metby organizational reality
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Catalyzing events
New issue champion self appointed
Shift in advocate/NGO group focus
Customer complaints
Customer service
Independent websites, blogs, Twitter
Trend data suggest shift in direction
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Begin initial analysis
Identify scenarios for business impact
Assign a priority level
Potential for escalation / speed Potential for impact
Determine next steps
Begin issue tracking
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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Several people arrive at similar dissatisfaction
Information sharing leads to unity
A leader steps forward
Community organizer Citizen journalist/crusader
Professional activist
Lawyer
Politician
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Determine nature of the organization Concerned citizens
Moderate special interest
Dyed-in-the-wool attacker
Review past tactics and campaigns
Forecast potential issue scenarios
Identify opportunities for dialogue and/or
compromise
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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Negative
Media
Inquiry
Immediate
Corporate Response -
Thats not true.
Stakeholders/
Advocates Find
News Hook
Victims
Villains
Visuals
Drama
2010 Ketchum Issues & Crisis Management
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Victimized
Stakeholders
Superficial
Corporate Denial -
No Real
Concern
Profit Motive -
Business As
Usual
Hidden
Practices
Exposed
Verdict:
Guilty!
2010 Ketchum Issues & Crisis Management
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Negative
Media
Inquiry
Immediate Response -
Were concerned. But,
look what were doing
to be leaders
Stakeholders/
Advocates Find
News Hook
Customer Service
Consumer Education
High Workplace Standards
Science/Tech and Safety Leadership Risk Management / Continuous Improvement
Positive Media Coverage
Third-party Allies
2010 Ketchum Issues & Crisis Management
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Maintain the high ground
Commit company resources Shape trends, understanding
Build consensus and commitment Identify mutually workable resolution,
where possible
Preempt flashpoints
Play your game, not theirs
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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Driven by legislative or regulatory body
Resolution will benefit key constituents(not often the company)
Diminished opportunity for gains
Forces company into defensive posture
Often very high profile
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With any luck: You never get to this point or
Youre driving strategically beneficial legislation
Ongoing work to build consensus aroundcorporate policies among pols and regs
Reinforcement of leadership positioning of thecompany
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Issue Begins to Develop
Critic GroupOrganization
Some Stakeholder Action
Growing Stakeholder Adoption
BroadStakeholderConsensus
Critic Group ActionIssue Escalation
IndustryCompliance
LegislativeResolution
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The game is over
Only one remaining option
Live with the law/regulation
Produce goods or services to meet dictatedstandards rather than company standards
Endure financial burden: skinnier margins
Evaluate overall damage to reputation
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Re-evaluate trends
Review initial scenarios
Measure stakeholder perceptions
Determine new options for issue actionprogramming
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Understand how issues work
Get your company to integrate its approach
Know your critic and what they really want
Recognize your credibility deficit Stick to your knitting
Look at the issue in the context of yourbusiness: whats the real impact? Financial impact Audience perceptions
Ability to create customers over time
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Poor Demand /Consumer
Uncertainty
ShareholderActivism
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All company actions
Executive Compensation
Force Reductions
Capital RaisesLabor Negotiations
Lobbying
Litigation
Proxy Contests
M&A
Bankruptcy
are being judged against anew standard by:
Congress
The Administration
Regulators
Shareholders/Activists
Employees/Unions
NGOs/Special Interests
Media
Plaintiffs Bar
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People severely disenfranchised Massive distrust of those in power
Consumers feel bad
NGOs fighting to regain tractionon big priorities of last decade
Environmental issues: nowfocused on local and tangiblegoals
Emergence of corruption issues
Support for dictators
Bribery / FCPA Workers rights
Child labor
Land grabbing
Rise of populist movements
2012 Christopher Nelson
Some Influences
Regulatory uncertainty
Deadlocked government
(Tea Party effect)Presidential elections
Slow NGO donations
Focus on:
Hard economic issuesLocal, tangible issues
Frustration
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VW: EU carbonemissions standards
Mattel: AsiaPulp & Paper
Toxic chemical release inmanufacture of clothing
Nike, Adidas, Puma, and H&M have folded
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Rising entitlement costs
Deficit spending
Aging populations
Increasing preference for
locally grown food; shift away
from factory farming
Fragmentation of journalism
Evolution of social media
Societal impact of video games
Increasing conflict between
open source and proprietary
technology Global migration to cities
Increasing religious tension
Increasing skills gap not
enough well trained workers
available and too many
structurally unemployed
Increasing prominence and
power of multinational
corporations Increase in transnational crime
Critical Sustained Trends Water security
Human rights
Arab awakening
Business social contract
Nanotechnology
Synthetic organisms
Geoengineering
Land grabbing / rights of
indigenous peoples
Socially responsible tourism
Food pricing, availability
Sustainable food production Fishing / Cocoa / Coffee
Energy consumption in
food production
Use of cooling agents
Plasticizers
Obesity / soda / HFCS
Asthma / allergic diseasesMultiple-chemical
syndrome
Microbial resistance
Pesticides
Preservatives
Phthalates
Economic issues
Jobs / stimulus
Taxation / tax dodging / tax
abatement / cash repatriation
Entitlement costs / austerity
Currency fluctuations
Financial stability / systemic
risk and interdependence
Cost cutting on activists
priority programs
Populism
Privacy / data security Energy
Deep-water oil exploration
Fracking, oil sands
Nuclear safety
Immigration
Workers rights / unions
Public sector
Private sector
Child labor
Homeland security
Healthcare financing
Housing finance
Energy
Fossil fuel dependence
Climate change / carbon emissions
Wind farms
Corporate governance / executive
compensation
Intellectual property
Intl legal framework
Piracy (esp. developing world) GMOs crops, animals, labeling
Environment
Biodiversity loss
Deforestation, palm oil prod.
Facility sites dams, plants, etc.
Corruption / FCPA
Diversity / multiculturalism
Corporate political involvement
Health issues Drug research ethics
Drug access / shortages
Drug marketing
Commercial education
Gambling social impact
Endocrine disruptors
Animal welfare
Humane agriculture
Animal research Marketing to children
Emerging
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Whats To Come?
Populists: frustrated,fragmented, and then focused
Activists adapt to austerity
2012 elections
Social media evolution
Recession will end & NGO
donations will reboundThe Giving Pledge
2012 Christopher Nelson
Some Influences
Regulatory uncertainty
Deadlocked government
(Tea Party effect)Presidential elections
Slow NGO donations
Focus on:
Hard economic issuesLocal, tangible issues
Frustration
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Chris Nelson3 May 2012