Risk Management Winner of ‘Risk Management Company Of The Year 2015’
Shane Russell Crisis Communications & Reputational Risk In this presentation we will be discussing brand and reputation and how poor decisions can impact your business. We will also explore different incidents and give you insight in to how these situations can be avoided.
SOCIAL MEDIA STATISTICS
SOCIAL MEDIA STATISTICS Cellphones and toilets A U.N. study showed that more people have cellphones than toilets!
SOCIAL MEDIA STATISTICS Facebook As of the fourth quarter of 2016, Facebook had 1.86 billion monthly active users Cellphones and toilets A U.N. study showed that more people have cellphones than toilets!
SOCIAL MEDIA STATISTICS Facebook As of the second quarter of 2015, Facebook had 1.49 billion monthly active users # Micro-blogging Cellphones and toilets As of the fourth quarter of 2016, the number of A U.N. study showed that monthly active Twitter more people have users averaged at 319 cellphones than toilets! million
FACTS AND FIGURES FRESHFIELDS 28% 69% Crisis spread internationally Crisis spread internationally within within 1 hour 48 hours
FACTS AND FIGURES A year later 53% of companies had not seen share prices regain pre-crisis levels In almost a third of all cases, social media played a major role in how the story spread globally
FACTS AND FIGURES A year later 53% of companies had not seen share prices regain pre-crisis levels In almost a third of all cases, social media played a major role in how the story spread globally
FACTS AND FIGURES A year later 53% of companies had not seen share prices regain pre-crisis levels In almost a third of all cases, social media played a major role in how the story spread globally
FACTS AND FIGURES A year later 53% of companies had not seen share prices regain pre-crisis levels In almost a third of all cases, social media played a major role in how the story spread globally
CRISIS COMMUNICATIONS CONTROL PUBLIC PERCEPTION OF HOW YOU ARE HANDLING THE CRISIS…
CRISIS COMMUNICATIONS …OR THE MEDIA WILL DO IT FOR YOU!
IMPACT OF SOCIAL MEDIA May be no lead – in time Needs different Open to approach – everyone language, style, speed Free Unedited
PREPARATION Monitor social media Identify warning signals Identify different levels of response Identify your target audience Ensure your strategy will meet their expectations
RESPONSE Make sure the company is seen as the credible , authoritative and reliable source of information Don’t say ‘No comment’. Don’t speculate Don’t forget to brief employees Monitor information on the crisis Prioritise monitoring of social media
RESPONSE Log incoming media phone calls Be courteous to journalists Use social media platforms to release information with links to more details on the website If possible, get complaints on social media handled off line ASAP
RESPONSE DON’T FORGET To keep the message consistent To keep all stakeholders updated To ensure the appropriate tone and language for the type of communication That media attention can happen at any time That internal communications can become public
CADBURY’S CASE STUDY Getting it Wrong
CADBURY’S CASE STUDY January - leaking pipe found Chocolate samples sent to lab Montevideo strain confirmed No recall FSA not notified
CADBURY SALMONELLA CONTAMINATION 45 cases in the UK in 4 months in 2006 12 in the same period in previous year Cadbury informs Food Standards Agency in June “Precautionary” recall by Cadbury
WHAT THEY SAID... “ “ Cadbury a precautionary measure “ “ Food Standards Agency Advising people not to eat the products
CADBURY SAID... “ “ Levels significantly below the standard that would be any health problem “ “ Absolutely satisfied its products were safe to eat
GOVERNMENT BACTERIOLOGIST SAID… “ “ the only safe level of salmonella in chocolate is zero “ “ The fat in chocolate actually preserves the salmonella “ “ You need a thousand times less than in meat… to get infected
OUTCOME Confectionery giant Cadbury was fined £1,000,000 for food and hygiene offences over a salmonella outbreak in which more than 40 people fell ill. It cost them £15 million to recall the products and a further £ 20 million on safety modifications.
WHAT COULD THEY HAVE DONE? Threat assessment Considered if actions were publically justified Once product had been identified as cause of salmonella, stopped trying to justify their actions Co-ordinated their media statements with the authorities
ALTERNATIVE MEDIA STRATEGY We would like to apologise to all our customers who have been affected by the salmonella in some of our products. Our priority is consumer safety and we appreciate that on this occasion we have fallen short of the high standards our consumers rightly expect of us. The cause of the contamination has been identifed and dealt with, and if you have any questions or concerns please call our freephone number 0800 800 800
TESCO HORSEMEAT SCANDAL Getting it right!
TESCO HORSEMEAT SCANDAL
TESCO TIMELINE 15 th January - FSA Ireland broke news re horsemeat in Tesco own brand beef burgers. Within minutes Tesco had uploaded statement online , tweeted a link and briefed journalists 16 th January – Tesco CEO posted a blog about trust on their website and an apology statement was given 17 th January - full page apology in newspapers 30 th January – Tesco put out a statement on the investigation into meat contamination 15 th February – announcement of new measures being put in place
WHAT THEY DID Quick response Apology Shifting the blame Corrective action and reputation boosting Recognized the opportunity for change
21ST DECEMBER 2013 wins CorpComms award for horsemeat scandal response
CLOSING THOUGHTS Be prepared Respond quickly If possible, take the lead (unlike Cadbury) Keep customers updated with clear information Ensure they know that you are sorry and working to fix the issue Ensure that all reporting is factual and accurate Play the long game for recovery from a crisis .
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