Bringing your reputation management strategies to the

next levelCrisis communications in the social media age

Objectives

• Understand reputation management in the age of social media

• Learn how to identify, detect, prepare and prevent crisis from escalating and effect damage control swiftly

• Dealing with media: pro-active engagement, during and post-crisis

• Learn from case studies of successful crisis management strategies by local and international organisations.

• Best practices and how to formulate a crisis communications plan incorporating social media governance and policy

Jakarta stock exchange floor collapses, 77 injured

Jakarta stock exchange collapses, 77 injured

Crisis communications:A turning point?

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“It takes 20 years to build a reputation and five minutes to ruin it,” Warren Buffett

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1. One bad interview can ruin your company’s reputation

Former BP CEO Tony Hayward made a series of gaffes during Gulf oil spill

2. Perception matters -- media visibility affects the bottom line

Takata shares plunge as Honda drops supplier

BP profits slump after

huge oil spill charge

Uber hits back at claims of thousands of rape and sexual assault complaints

Jury Orders J&J to Pay $72M in Ovarian Cancer Talcum Powder Case

Volkswagen Shares Dive on New Emissions Woes

Company CrisisShare price

loss

Union

Carbide Bhopal 35%

Texaco Discrimination 10%

Coca-ColaBelgium recall

after children ill22%

Firestone High tyre failure

in Ford Explorer 40%

BP Gulf spill 50%

ArlaOffensive

cartoons 50%

Toyota Recalls 50%

A crisis can destroy stock value

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3. Social media is growing in reach and influence

• 2.07b monthly active users

• Malaysia: >22 million

• 500m users• Malaysia: > 3m

• 1.5b unique users/month• 1b hours consumed/day• 400hrs of video uploaded/1 min

• 330m monthly active users• Malaysia: > 2m

Sources: Statista(Q1, 2016), Socialbakers.com, DMR

• 1.3b monthly active users• Malaysia: 77% penetration

4. Media diet has changed

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5. You are already a brand ambassador(so you need to know how to promote your company’s

agenda 24/7/365 to traditional and new media)

Case study: AirAsia

twitter.com/tonyfernandes

Parallel rise with brand

Socialbakers.com: Jan 7, 2015

In a crisis: Mistakes are made

Contrasting crisis responses

What does this mean for companies, brands, spokespersons?

• Social-media savvy activists, detractors, brand terrorists can easily organize against your brand

• Your messaging must be consistent – internally, externally, online and offline. But you can no longer control the conversations and reactions.

• Transparency, Integrity, Accountability: The virtues of corporate governance must be embraced – all across the board

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Exercise: 5Ws 1HHeadline: __________________________________________

(Determine 5Ws 1H, write a headline)

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1. Prevention/preparation

2. Detection

3. Damage control

4. Recovery

5. Learning

Five states in a crisis

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Regret, Reason, Remedy1. REGRET:

• Show genuine concern for victims, express regret, apologize if necessary but be specific

• Say what needs to be said to victims and their families• Who can the people affected call?

2. REASON:• How and why it happened. (Just the facts, do NOT

speculate). If you do not know say you don’t know –pending investigations

3. REMEDY:• What are you doing to fix it?• What resources have been allocated?• Is the environment secure now? Is the public still at risk?

Is it safe to go there?• How long is the remedial action going to take?• When can we hear from you again?

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When the media calls

1.“We know and here are the facts.” (Holding statement)

2.“We don’t know everything at this time. Here’s what we know. We’ll find out more and let you know by XX:00 time.”

3.“This is first we have heard of it - but we’ll find out more and get back to you.”

Note: Do not hang up or say no comment!

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Holding statement: eg. Fire• Provides the media with an initial statement of

facts that can be used immediately when crisis breaks

• Answer the four Ws: Who, What, When, Where.Explain WHAT the incident is. Identify WHO is involved, tell WHERE and WHEN the incident occurred, explain WHAT action is being taken to respond to the incident.

• Do not speculate on the How, How Much or Whyif you do not know the answer yet. When in doubt leave out.

• DO NOT disclose any names of dead or injured until next-of-kin is informed. (Reporters may get names from police or hospital. When you are ready to release names, appeal to media to respect the privacy of family and relatives in their time of bereavement.)

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Example: Holding statement

At approximately 9am today, Jan 24th, 2018, a fire occurred at _____________.

All our employees evacuated the building safely. The local police and fire services were alerted and the situation is now contained.

Our immediate concerns are for the safety and well-being of our staff and the public and to minimize the impact to the surrounding area.

We will keep you updated as more details become available. (Please check our website/blog or call the hotline_____________)

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Follow-up statement• State whether fire is put out, any people injured

and surrounding community is secure.

• Show empathy, regret and appropriate concern for victims, their families and those affected.

• State that the safety and security of your customers and employees is always your highest priority.

• Name the agencies you are working with – eg. police, hospital, local council, fire department, hazmat, search and rescue, enforcement – who are responding to this incident.

• State whether investigations and related follow-up activities are on-going.

Case study: Watsons Blackface Ad

“…fairness plays an important role”

“We are sorry that some of our fans

feel offended”

Not the first

Maids portrayed with darkened face, afro hair in Hong Leong Ad in Hong Kong

Mediacorp fined $5,500 for blackface content

UOB bank employees pose with blackfaces for Bollywood themed dinner

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Case study: KFC employee attacks customer

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Social media amplifies crisis

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KFC statements

Feb 7, 2012 Feb 9, 2012

Feb 8, 2012

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Resolution

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Do the right thing!

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A few things to remember…• You are not the only source – police, fire emergency

responders, bystanders are often a larger part of the story.

• All or nothing on info – you can’t choose what you want to talk about and what you do. Sticking to key messages in your statement is often your best bet.

• Media needs conflict. If one side is making noise and the other is not, the story dies out quickly. “Fighting” often makes stories longer.

• Internal messages can go external. Just one click and it goes viral. Make sure it is consistent withexternal messaging.

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ExxonMobil: Helicopter crash

• Helicopter crashes near platform

• Co-pilot and 19 people rescued but pilot missing

• Only one victim was from ExxonMobil, the rest were contract engineers and workers.

• Helicopter belonged to MHS Aviation Bhd

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First response matters

• People: "We are doing everything possible to assist the affected individuals and their families during this difficult time and our thoughts and prayers are with them," ExxonMobil E&P Malaysia Inc chairman Liam M. Mallon said.

• Action 1: Take care of victims: “Those rescued have been brought to the Kuala Terengganu Hospital for treatment. Their condition is reported to be stable.”

• Action 2: Investigate cause: “We are providing them (contract companies) our full assistance and cooperation. All relevant authorities have been notified. A full investigation will be initiated.”

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Remedial action taken• Action 3: Work with allies: “The Department of

Civil Aviation and Malaysian Maritime Enforcement Agency are leading the search and rescue efforts for the missing pilot.”

• Action 4: Secure environment: "We will stop chartering all Super Puma used for our operations in Malaysia until further notice.”

• Action 5: Set up hotline: “Family members and interested parties can call 03-2380-3677/ 3679/ 3675/3635 for details.”

• Action 6: Helped in recovery: 3 days later unmanned deep-sea remote operated vehicle (ROV) owned by ExxonMobil found the pilot’s body still in wreckage.

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Spokesperson tip: Ambush interview

• Be calm

• Don’t take it personally

• Don’t get angry or lash out

• Do not guess or speculate

• Get name and phone number of individual reporter

• Offer to be accessible as soon as you know the facts

Crisis case studies: Dealing with hoaxes, rumours, false

news, brand terrorism

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Emails you don’t want to receive

Dear Maybank Customer,Serious security treat in your account. Follow below reference to reactivate now.http://www.maybank2u.com.my/active.asp.html

Yahoo! Mail gives members random cash prizes. Today, your account is randomly selected as one of 5 top winners

I AM PRINCE DESMOND OKOTIEBOR ETETE. THE NEXT HEIR TO THE THRONE OF THE OIL RICH KINGDOM OF THE OGONI COMMUNITY. I HAVE A HUGE AMOUNT OF MONEY PRESENTLY IN THE PALACE.THE FUNDS WERE REALISED FROM OIL ROYALTIES THAT WAS PAID TO MY LATE FATHER. I NEED YOUR URGENT ASSISTANCE IN TRANSFERRING THE SUM OF US$330 MILLION IMMEDIATELY TO YOUR ACCOUNT.

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Verifying information

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Hoax: Ericsson free phone offer

• An email promising a free handphone from Swedish telco giant Ericsson

• Those who forwarded the email to 8 friends would receive a free Ericsson T18 handphonewithin two weeks. If forwarded to 20 friends, senders were promised "a brand new Ericsson R320 WAP phone."

• Reminded the recipient to send a copy to Anna.Swelund@ericsson.com of Ericsson Marketing.

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• Contacted Peter Bodor, PR manager of Ericsson Mobile Communications who confirmed the chain mail is hoax. No person named Anna Swelund in company.

• The company has received about 1,000 emails,mainly from Europe, and also from the US and Asia. Did not crash its server.

• This was not the first time Ericsson was hit by such chain letters, and that other companies like Nokia, Microsoft and Disney were similarly affected.

• Ericsson posted a notice on its website advising people to discontinue forwarding the email and apologized for the inconvenience.

• Link: http://www.trinetizen.com/archive/?p=113

How to kill a hoax

Fake or real?

Fooling the public is an agenda

Stem the fakery

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Case study: LRT 2012 Old pic from 2006 posted as new

• Be ready to act fast, get ahead of the rumour mill

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The problem with Internet rumours

• Difficult to identify source.

• Can’t tell how widespread.

• If you choose to ignore, it may go viral.

• If you choose to fight it, it may attract more attention.

• If partly true – “where there is smoke there is fire” – a denial may seem insincere and fan the flames.

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Strategies for fighting rumours

1. LOW-KEY: If source identifiable: disgruntled employee, irate customer, jealous competitor, then deal with it internally without publicity, if possible.

2. F2F: Engage and neutralize face-to-face: Often those hostile online, can be less prone to spread rumours once confronted.

3. COUNTER: If it can cause serious damage and has already gained traction publicly -- even if source is not identified -- it’s best to get your side of the story and facts out.

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The radio silence strategy

+ve• The best crisis case studies are the ones you

never hear about.• Time may resolve the problem on its own without

your intervention.• Sometimes a little goodwill can go a long way.

-ve• Doing nothing is always highly risky. You never

know when a rumour may become viral online.• Critics with long memories may point out how you

were silent before.• A lack of information fuels anxiety rather than

defuses it.

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Coca-Cola fights myths online

http://www.thecoca-colacompany.com/contactus/myths_rumors/

Staying engaged: Managing media

Case study:United Airlines

Passenger removed by force

Timeline of crisis

• United needed to make room on a full plane for four of its employees.

• United selected four passengers and offered vouchers and a hotel stay.

• One selected passenger, Dr David Dao, who had paid for his flight and was sitting on the plane, did not want to give up his seat.

• Three security agents yanked the passenger out of his seat and violently dragged him out of the plane.

• United CEO Oscar Muñoz issues statement describing the incident as "re-accommodating" passengers and leak email to staff called him “disruptive and belligerent.”

• Videos of assault of Dr Dao went viral

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First tweet

Anything internal can go external

New videos emerge

Doxing

Press conference lawyer, daughter

United CEO interview with ABC

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Case study: Dell vs Sony

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Dell laptop explodes at Japanese conference

By INQUIRER.net newsdesk: Wednesday 21 June 2006

An Inquirer reader attending a conference in Japan sat just feet away from a laptop computer that suddenly exploded into flames, in what could have been a deadly accident.

Gaston, our astonished reader reports: "The damn thing was on fire and produced several explosions for more than five minutes"…

For the record, this is a Dell machine," notes Gaston. "It is only a matter of time until such an incident breaks out on a plane," he suggests.

Our witness managed to catch all the action in these amazing pictures….

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Good news, get it out fastBad news, get it out faster*

*Caveat: Assess, verify, confirmIf in doubt, leave out.

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Dell to recall 4 million laptop batteries

CNET News.com,August 14, 2006

Dell and the U.S. Consumer Product Safety Commission plan to recall 4.1 million notebook batteries on Tuesday, a company representative confirmed.

The recall affects certain Inspiron, Latitude and Precision mobile workstations shipped between April 2004 and July 18, 2006. Sony manufactured the batteries that are being recalled, the representative said.

This looks like the largest battery recall in the history of the electronics industry, said Roger Kay, an analyst with Endpoint Technologies Associates. "The scale of it is

phenomenal."

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Sony delays response,problems deepen…

• Aug 15, 06: Dell recalls 4.1m batteries

• Aug 24, 06: Apple recalls 1.8m batteries

• Sept 15, 06: Virgin Atlantic, Qantas and Korean Air ban use of Dell and Apple laptops on board its planes, unless the battery removed.

• Sept 28, 06:Lenovo/IBM: 526,000 batteries

• Sept 29, 06:Dell increases recall to 4.2m

• Sept 29, 06:Toshiba recalls 830,000 batteries

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ThinkPad explodes in LAX airport, posting on

Gizmodo.com, Sept 16

“So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire….”

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Charred remains of IBM notebook on terminal floor

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Crisis Escalates, Goes Viral

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Sony finally responds…

Sept 30, 2006: Sony finally announces global recall of 9.6 million PC batteries. The recall and replacement would cost as much as 50 billion yen (about US$423 million).

…but profit plunges 94 percent for July-Sept quarter

Dell’s Response Post-mortem

• Determines cause – battery supplier, executes costly remedial action with safety in mind.

• Liaises with authority: Works with U.S. Consumer Product Safety Commission to announce global recall of 4.1 million laptop batteries.

• Used website: Sets up recall website for customers to check affected units.

• Assures safety: Guarantees replacement batteries are safe.

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'Alien' substance caused Dell notebook battery to ignite

By Julian Matthews, ZDNet Asia October 23, 2000

KUALA LUMPUR – An 'alien' substance was mixed into the production process of the battery that caused a Dell customer's notebook to burst into flames and prompted a recall last week.

"As a result of analysis, we defined the cause of the short circuit that occurred in one cell was due to mixing of an alien substance at one production process," said Yoshiyuki Arikawa, a spokesperson of battery-supplier Soft Energy Company, a unit of Japanese consumer giant Sanyo Electric Co Ltd.

In the e-mail response to ZDNet Asia, Arikawa did not define what the 'alien' substance could be or how it entered the production process…

Arikawa added, "The defect rate should be very small since it’s a specific occasion and (went through) normal inspection process after. The defect is limited only to the 27,000-set lot to Dell."

Dell Computer recalled the 27,000 batteries with a promise to replace them free of charge….

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The Concept Of

P.E.A.R

In Crisis Communications

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Safeguard People

Protect the Environment

Protect company Assets

Protect company Reputation

Response In A Crisis

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• Dell alerts customers, warns of danger, sets up website for recall & replacement

• Dell continues to work with safety authorities to monitor the situation

• Dell expresses confidence in Sony and safety of its products to customers and stakeholders

• Dell takes ownership, shows customers it cares

• P = Safeguard PEOPLE

• E = Protect ENVIRONMENT

• A = Protect ASSETS

• R = Protect

REPUTATION

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Sony execs’ bow not deep enough?

“We want to put this

behind us. I take this

problem seriously and

I want to finish the

replacement program

as quickly as possible

for the sake of our

users and corporate

customers,”Corporate Executive Officer

Yutaka Nakagawa, Oct 24,

2006

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Social Media Listening Command Center

Crisis communications reactions

POORDefensive – take it

personally

Decline to comment

Deny or lie

Deflect – taichi, play

blame game

Downplay

BETTERAccept – that it has

happened

Acknowledge – to those affected, media, public

Assure – show you care, calm fears

Apologize (if you have to) and be specific, express regret, suggest remedy

ACT – assess your allies, plan your action, act out your plan

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Preparing and rehearsing skills

• Ensure everyone on same page

• Understand their responsibilities

• Can execute their role effectively

• CEO and a deputy

• Local/ regional GMs/MDs

• Six-monthly refresher

• Simulate crisis rehearsals

• Involve all teams and departments

• Partner organizations if appropriate

• Access performance and fine tune

Training for comms team

Media training for spokespeople

Simulation for all teams

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Consider People, Environment, Assets, Reputation

• A crisis communications plan offers guided response but it must be adjusted according to the situation or how the crisis escalates.

• Act quickly, search for details, verify allegations, launch investigation

• Assess allies, call in your experts; notify affected parties, authorities and higher ups

• Show you care, don’t over-react or take it personally

• Openly and quickly share the facts with the public online.

Formulate key messages. Stick to them. Prepare a statement

and stand by it; when in doubt, leave out. Accept

responsibility when you are at fault

• The best crisis case studies are the ones you never hear about.

Summary

Thank you

Julian Matthews

012-9159528