The reputational impact of a crisis can result in risks to revenue and enterprise value, and may be felt for years if poorly handled. Dealing with messaging in a piecemeal fashion can, in fact, complicate the legal process, and keep bad news in public view for longer. A clear and consistent public response is often essential to protecting company reputation and can dovetail with an effective legal strategy.
Create a crisis-response working group to coordinate and ensure consistent messaging
Identify the audiences that need to receive messaging
Coordinate all messaging with input from counsel
Consider hiring a PR firm at an early stage
The Crisis-Response Working Group
It is important to put together a working group that can respond quickly if a crisis arises. Decide protocols and processes, and define individuals’ roles, to enable a swift and efficient response. Pay close attention to the people, which should include considering communications expertise, and those responsible for engagement with key stakeholders such as public relations, investor relations and regulatory liaison representatives.
If a situation calls for outside public relations assistance, it is important to consider this early. The quicker they are involved, the sooner they can help with messaging and plan for all the potential ways a matter could become public, as well as anticipate potential future developments and prepare for the most likely scenarios. It is also important to consider whether communications with PR advisors will benefit from privilege, and if counsel should be involved in managing the lines of communication.
Deciding when to Make Public Statements
Companies need to weigh the pros and cons of making a public statement, and carefully consider who they are addressing. The type of crisis will help determine the response needed. There are also legal considerations. In some jurisdictions, companies have a duty to disclose material information. In addition, they may also be obliged to correct or update previous communications.
There are typically two main approaches:
Defensive
Responding to negative press and, where possible, correcting misinformation
Offensive
Getting in front of the crisis and proactively managing the messaging
Delivering the Message
There is no one-size-fits-all approach to public messaging. From a legal perspective, public statements must be accurate and avoid creating liability by making misleading or inaccurate statements, and should be prepared in the knowledge that public statements may be later used against the company. From a practical point of view, they must also be easily delivered and understood, and not invite more scrutiny. Balancing these sometimes-conflicting viewpoints is important to delivering an effective message.
Using Social Media to Respond in a Crisis
Most companies communicate regularly with the public on social media. It can be a valuable tool in a crisis, but it is important to follow some basic rules.
- Maintain a social media crisis response plan
- Secure your accounts from unauthorized access and minimize the number of users
- Educate your employees and remind them of the procedures during a crisis
- Pause scheduled posts and re-assess your calendar, including whether to use social media at all
- Be honest and sincere, and acknowledge mistakes
- Bear in mind social media’s limitations
- Use social media to listen to what’s being said
This chapter includes relevant information on law and practice in responding to information requests in jurisdictions around the world, including the U.S., Brazil, China, France, Italy, Switzerland and the U.K.
Jennifer Kennedy Park
Partner
New York
T: +1 212 225 2357
jkpark@cgsh.com
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James Norris-Jones
Partner
London
T: +44 20 7614 2336
jnorrisjones@cgsh.com
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Nowell D. Bamberger
Partner
Washington, D.C.
T: +1 202 974 1752
Hong Kong
T: +852 2532 3785
nbamberger@cgsh.com
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