Companies who don’t take steps to ensure they can communicate effectively with the media in the event of a crisis are at serious risk of reputational damage – or going out of business
Major organisations that fail to ensure they can communicate effectively with the media during times of business crisis risk severe damage to their reputation. Indeed, a lax attitude and no pre-planning might even put the company out of business altogether if the situation becomes critical.

This was the hard-hitting message delivered by former award-winning BBC TV correspondent Alistair Macdonald when speaking at a seminar on crisis management organised by guarding contractor Reliance Security Services.

Macdonald argued that lower public perceptions of the business community have made corporates much more vulnerable to business failure in the event of adverse media publicity. Indeed, at least 80% of corporate concerns fail to survive a major crisis simply because their public image is so seriously damaged.

“The media is your greatest untapped asset,” said Macdonald in front of an audience of invited security and risk managers. “If you get it right, it can be an enormous advantage,” he added, pointing out that incredible growth in the number of UK radio stations (there are over 400 in existence now) and TV channels over the past 20 years has significantly increased opportunities for publicity.

“If you get it wrong, though,” suggested Macdonald, “you can really be causing yourself massive problems. Your shareholders may feel outraged and, at the slightest hint of a problem, will simply turn their back on the company by selling their share stock.”

Macdonald went on to explain that corporate scandals such as insider dealing have made companies in the blue chip arena far more suspect and, consequently, that much more accountable for their actions to both the public at large and the Government.

The Government’s own draft Bill on Corporate Killing – a proposed change to the law which will make organisations (as a whole) liable for deaths resulting from negligence – is a typical example of such tightening up.

In order to protect their reputations and ensure that public image isn’t tarnished should they experience a crisis, companies ought to provide their senior executives with ongoing training on how to handle the media.

“Business perceptions are crucial,” warned Macdonald. “It doesn’t matter what the truth really is if perceptions of the company aren’t what you want them to be.”

The importance of handling the media effectively during a crisis was also emphasised at the seminar by Ken Dietz, director of the renowned DMS Consultancy.

Dietz called on companies to draw up communication plans – well in advance of a possible crisis event – to handle the media and also their employees, employees’ families, the Government and other interested parties.

“In the aftermath of a crisis, companies should use every means at their disposal to offset any rumours that begin to circulate,” stated Dietz, adding that such plans should include establishing an information centre, mapping out a communications network, briefing everyone necessary, providing feedback channels and documenting everything that happens.

Source

SMT