Dec 18

9 Tips for Taking a Stand When a Societal Crisis Hits

Social injustice, gender issues, immigration, #MeToo, gun control, and trade wars. These are just a few of the many societal issues about which large and small businesses alike are finding themselves increasingly pressured to stand up and speak out.

We entrepreneurs may think our comparatively small size protects us from the slings and arrows of the hourly news cycle or employees picketing outside company headquarters. But it doesn’t. A Glassdoor survey of 1,000 employees from organizations of all sizes found that 62 percent expect their employers to take a stand on important societal and political issues of the day.

Do I have your attention? I should, since remaining silent or saying the wrong thing could imperil everything from employee recruiting and retention to business continuity and even your exit strategy.

Source: Getty Images

Credit: Getty Images

My firm, Peppercomm, has interviewed more than 150 chief communications officers in the past 18 months, and assembled the nine best tips for preparing, managing, and monitoring a whole host of issues that should (or soon will) be keeping you up at night.

1. Determine your team
Surround yourself with the very best thinkers in your firm. Include the CFO, CHRO, CLO, and CCO, as well as representatives from your various ESGs. It’s essential the CEO herself be part of the group. Set an initial meeting and then re-group every single succeeding month.

2. Determine your organizational purpose
Many organizations have mission statements, but those are short-term, tactical, and only address “what” a company provides (e.g. “Our goal is to provide the highest quality widget in the world”). A purpose explains why a company exists. For example, Lowe’s included representatives from every region and business unit of their organization before deciding theirs: “To help people love the homes in which they live.” A purpose is critical since it will be your North Star in determining if you will or won’t speak out on societal issues (as well as what you will say).

3. Identify every potential issue or crisis
First examine industry issues critical to your organization’s ongoing success. Then, based on your purpose, extend the list to include your values. Do you believe in inclusion & diversity, protecting the environment, stricter immigration policies, etc.? One major airline from Peppercomm’s survey, for example, identified 72 different societal and industry issues it felt would necessitate taking a stance during a crisis.

4. Examine every facet of your internal and external marketing & communications plan

Will your sponsorship of a right-wing radio pundit’s cable show alienate liberal stakeholder audiences? Would you take a position like Delta Air Lines CEO Ed Bastion, whose company rescinded fare discounts to NRA members following a mass school shooting? Bastion even doubled down when threatened by Georgia lawmakers to drop a jet-fuel tax break by saying, “Our values are not for sale.” Many organizations have already been caught unaware of the adverse impact a single tweet, outdoor advertisement, or stadium sponsorship might cause.

5. Know your audiences
Nike’s decision to hire former NFL quarterback Colin Kaepernick to be the face of the campaign celebrating the 30th anniversary of its “Just Do It” tagline seemed incredibly risky. But Nike knew its audiences. After experiencing a social media frenzy and an initial 3 percent drop in the stock price, the company rebounded and saw its market value increase by $8 billion.

6. Stress test your stand
Assemble the team to simulate a potential crisis such as a just-announced rollback of environmental protection laws, and gauge the reaction to your stance. In many instances, your team will overlook one key stakeholder audience or disagree which is the most important to communicate to first. We recently simulated a societal crisis for a group of 50 members of boards of directors. Two-thirds felt they should communicate first with employees. The other 33 percent chose shareholders.

7. Leverage the appropriate communications channel
One large retailer that had been attacked by President Trump chose not to respond with a tweet of its own. Instead it went to a trusted beat reporter at an industry trade publication who filed an objective, fact-filled story explaining why the company had made the decision it had. POTUS moved on and the crisis dissipated overnight. Sometimes the best response may be a tweet, a town hall meeting with employees, a full-page advertisement in a national print publication, or all three. You’ll never know if you don’t prepare.

8. When in doubt, double down on purpose

I don’t know the organization’s purpose, but I can assure you Edward W. Stack, the CEO of Dick’s Sporting Goods, overlooked his purpose and customers’ feelings when announcing the retail giant would no longer sell automatic weapons. The stance shocked and dismayed a wide swath of stakeholders. Sales and the stock price have dropped precipitously.

9. Semper paratus
Heed the motto of the U.S. Coast Guard and remain “Always Ready.” The only way to do so is to continually monitor and adjust (as needed) to every one of the above suggestions.

There are no guard rails in this new societal crisis du jour world of ours. The best protection is protection itself. Trust me, you do not want to read a front page article in The Wall Street Journal that includes an email from every employee demanding you immediately terminate your ICE contracts. By waiting until then, you’ve jeopardized the very survival of your organization.

Dec 17

What if Santa’s database were hacked

In the spirit of the season (and a sad reflection of the times), I’ve allowed myself to briefly escape to an alternate universe and imagine the ultimate Christmas crisis.

What if Santa’s database were hacked?

Let’s assume I’m the hacker and, thanks to a huge assist from a freelance elf named Yuri (a quick tip of the babushka to Yuri), I’ve gained access to the mother of all holiday databases: Santa’s list of who’s been naughty and who’s been nice.

I’d swiftly change a few of Santa’s decisions and create my own.

Here’s who would fill the top three slots on my naughty and nice lists, respectively (as well as the gifts an unsuspecting Santa will be putting in their stockings on Christmas Eve):

NAUGHTY:

1.) POTUS. No surprise here but, hey, the guy’s latest chief of staff has gone on record as calling him “a terrible human being.”

I wouldn’t fill the president’s stocking with coal (he’d misinterpret that as a high five from Kris Kringle for pouring fossil fuels into the atmosphere).

No sir. The Donald will receive an autographed copy of It Takes a Village.

2.) Bill Cosby. What better stocking stuffer for this serial rapist than an eight-year supply of Benadryl and a copy of Our Bodies, Ourselves?

3.) BCG, McKinsey and Booz-Allen Hamilton. These three global powerhouses not only refused to withdraw from the infamous “Davos in the Desert” forum in Saudi Arabia, they actually increased their presence by sponsoring every single speaking event.

Santa will fill the stockings of the three shameless CEOs of these firms with one-way tickets to the North Pole. That’ll teach ‘em. #BundleUp

NICE

1.) Pat Ford. I realize this name may not resonate beyond the wild and wacky world of public relations, but Pat Ford is the nicest person in a field that could benefit by his example.

Santa’s stocking stuffer for Pat is a press release announcing the smile emoji has been redesigned to reflect that of Mr. Ford’s.

2.)  Derek Jeter. It pains this lifelong Mets fan and Yankees hater to write this but, even in retirement, Jeter continues to personify the very best qualities I’ve ever witnessed in a celebrity.

Regardless, Jeter’s Christmas morning stuffer will be a retro Tommie Agee jersey from the the 1969 Miracle Mets.

3.) Every single person who has set aside personal political beliefs to help improve someone else’s life.

These selfless individuals’ stocking stuffer will be a signed photo of Santa worded, “Thanks for doing your part to end this insanity.”

Peace on earth and good will to every living creature (and Repman reader).

Dec 14

The year of the tireless spammer

I don’t know about you, but for me 2018 will be remembered as “the year of the tireless spammer.”

I’ve been receiving spam e-mails ever since Al Gore invented the Information Superhighway (remember that term?).

But I have never, ever seen as many completely absurd, off-the-mark spam e-mails as I have this year.

I’ve been approached by everyone from realtors and remodelers to temporary search firms and tug boat leasing companies.

What makes this year so special, though, is the individual spammer’s persistence.

I just can’t rid myself of these pests. I unsubscribe, but they come back like some monster that refuses to die in one of those horrible slasher flicks.

Here’s a typical example:

From: Kathy
Date: December 13, 2018 
Hi Steve,
Just a gentle touch base for my email below. Please suggest if you’d like to connect over a call to discuss our services. Help me with your best 30 mins time slot.
Regards,
Kathy

 

On Tue, Dec 5, 2018 at 6:12 PM Kathy wrote:
Hi Steve,
Trust you are doing well. I was following up per my previous email.
Wondering if you had a chance to review my initial email and would like to connect to explore our services further. Please suggest me a best 30 mins Tomorrow or sometime next week that works best for you.
Thanks
Kathy

 

On Tue, Oct 30, 2018 at 5:10 PM Kathy wrote
Hi Steve, 
Hope you are doing well!
My name is Kathy, and I represent Thrymr – An Outsourced Software Product Development Company. I am writing to see if we can schedule a brief call to discuss about your Development initiatives.
Our services include
  • Web & Mobile Rapid Application Development
  • ETL & Data Analytics
  • UX/UI Designing
  • Machine Learning & Artificial Intelligence
  • GIS & Map Services
  • Cloud Computing
  • Blockchain
  • Resources on T & M
How about having a quick call at your convenience? Please let me know a time to share the invites.
Thanks for your time. Look forward to speaking with you soon.
Regards,
Kathy

 

So how do YOU cope or, better yet, get rid of unwanted pests. Call the Orkin Man?

If I do that, I’m worried I will begin receiving spam e-mails from Ollie, the outbound marketing whiz from Orkin.

Dec 10

Peppercomm/Directors & Boards Survey Shows Societal Crises are Keeping Nearly ALL Board Directors Up at Night

Eight-in-10 admitted their companies aren’t prepared. 

A recent survey of 43 directors of public and private boards revealed that nearly 90 percent are extremely or somewhat concerned about a societal crisis striking the company of which they are a director. An additional 84 percent of the directors said their company wasn’t prepared for crises ranging from mass shootings and trade wars to #MeToo and Twitter attacks from President Trump.

The survey was fielded immediately following a day-long simulation of a fictitious societal crisis created by Peppercomm, in partnership with Directors & Boards Magazine.

Other key findings included:

  • 77 percent of the participating directors were worried about their personal exposure and reputation as a result of the crisis.
  • 14 percent were EXTREMELY worried about their personal exposure.

The directors’ biggest concerns about a societal crisis impacting their company included:

  • Reputational damage (86 percent)
  • Business disruption (58 percent)
  • A drop in stock price (44 percent)

NOTHING NICE ABOUT I.C.E.

The simulated societal crisis (created by Peppercomm) concerned a publicly-traded company that had historically taken strong stances on human rights, but had just been “found” by employees to be providing I.C.E. with sensitive data about undocumented immigrants entering the country. Many employees were threatening to go on strike, BUT the CEO refused to cancel the I.C.E. contract.

After presenting the simulated crisis scenario to the directors, Peppercomm executives asked the group to answer such questions as:

1.) What’s the first step you would take?

2.) Would you issue a statement? If so, what would the wording be?

3.) If you decide not to issue a statement, explain the reasons why you’d remain quiet.

4.) What questions would you ask of the CEO (and her/his C-Suite)?

5) If you do decide to issue a statement, who would make it? The CEO? A board director? The CCO? Someone else? Why?

6.) Which stakeholder audience would take priority? Shareholders? Customers? Employees? Another group entirely?

7.) Would you engage outside counsel? If so, which ones?

8.) How would you define post-crisis success?

The simulation, which was held at New York’s Harvard Club on December 5th, will further inform Peppercomm’s already considerable knowledge of societal crises.

The firm has conducted three co-branded research studies with The Institute for Public Relations and recently launched the PR industry’s first societal crisis service offering called StandSmartTM.

Every director surveyed agreed on one thing: the worst time to test a company’s societal crisis readiness is in the midst of an actual mega incident.