Michael Lang
Executive Vice President, Equity Markets - Computershare Investor Services
While no company wants to face a corporate crisis, in today’s unpredictable business environment many organizations will have to deal with this type of situation at some point. From geopolitical risks to trade disputes, government inquiries or activist investors, companies need to be prepared for these potential threats, and be ready to act quickly to minimize reputational damage.
Be aware of the current environment
No matter the industry in which your company operates, it is good practice to stay ahead of and be aware of any issues that may arise, today or in the future. Monitoring media coverage about your company and brand can help to identify any red flags before they become an issue.
Create a crisis communication plan
The saying, “expect the best, prepare for the worst” is fitting for these incidents. Consider having a plan in place before there is a crisis as you need to be able to make quick decisions.
As it is difficult to plan for every scenario, it may be more effective to look at assigning roles and responsibilities and a structure for responding to an event. Your communications team could work with company leadership, general counsel and external counsel to develop targeted messaging for various stakeholder groups. Crisis communications need to be carefully crafted with clear, disciplined and direct messaging.
Crisis plans typically include directions on how to communicate, such as engaging the external communications team, creating news releases or scheduling media interviews. In some cases, a message is more credible if not delivered by the company. Outside partners and supporters such as unions, trade groups, academics or local community organizations may be able to say things your company cannot. Maintaining these relationships would be helpful so you can immediately contact them and likely count on their support.
Be sure to review your plan at least annually to make any necessary changes. Or, if you have experienced an event, consider reviewing the execution of your crisis communications rollout to determine if any modifications need to be made.
In the event of a crisis
When a crisis occurs, you may wish to consider the following, which are based on observations of how successful companies have managed crises in the past:
- Speed is important – Activate your communication plan to get all hands on deck. Act quickly and provide as much information as possible to get ahead of the narrative so you can control it rather than having to react to what external sources are saying.
- Be honest – Do not misstate any details as inaccuracies can cause major damage.
- Show empathy – While you are reporting on facts, you also want to express concern for those affected and show the human side of the company. Consider identifying a subject matter expert who can be the spokesperson for the situation.
- Be vigilant – Closely monitor how the event is playing out and build in a feedback loop to address any external comments, or updates in the case of an ongoing situation. Plan messaging for each subsequent day to demonstrate your company is on top of and responding to the crisis.
Managing a corporate crisis can be a stressful experience. Having a crisis communications plan in place before a situation arises can help your company successfully navigate the event and protect your reputation.
If you have questions, please reach out to me at michael.lang@computershare.com.
Computershare is not providing, and does not intend to provide, any legal, tax or investment advice.