The Emerging Front in Crisis Communications

Volume 23/9

Mad Men, the AMC series about a 1960s ad agency, evokes a workplace culture where outrageous sexism is standard operating procedure—behavior which even hinted at today would unleash a firestorm of litigation.

Sometimes, virtually overnight, what was normal practice “then” can become unacceptable “now”—like corporate jets and  the auto industry, or bonuses and investment banking.  When public attitudes are in flux, or transformed by momentous events, business leaders need to be especially careful to keep in sync, lest they run the risk of serious PR crises.

This is the case today with respect to the environment, where public attitudes—as well as expectations for corporate behavior—are rapidly evolving in uncertain and unpredictable ways.  Consider that in the past five years:

• Climate change has moved from a disputed hypothesis to a generally accepted fact.

•  Al Gore has received the Nobel Prize for educating the world on global warming, leading universities have established advanced degrees in Global Environmental Politics and environmental activism has emerged from its local origins into a coordinated and sophisticated global movement.

•  Over 60% of Americans say it is “extremely” or “very” important that Congress take action to address the environment in the next 12 months (CNN), and over 80% have made lifestyle changes to help protect the environment (Gallup).

In short, how corporations address their environmental exposure is, increasingly, a touchstone of their reputation.  That means not only evaluating environmental policies, but insuring that its crisis planning reflects these volatile conditions. 

What should be done?  We have listed below some good starting points.
 

  • No Company is Immune.  A company’s environmental track record—for better or for worse—has never been more transparent.  We have seen the emergence in the past few years of sophisticated analytic and reporting organizations like KDL Research and Analytics, Trucost and Corporate Register.  These firms specialize in providing clients with quantitative environmental performance data for nearly all companies—including items like the total costs of a firm’s environmental impact (including its green office policies) and summaries of its environmental infractions.  This is the intelligence that Newsweek consulted in its recent Green 500 ranking of US companies.  You may not be an oil and gas company, but if you’re selling  something to the public, someone is watching.

 

  • Understand the Two Crucial Facts of Crisis Planning.  There are two basic truths of all crisis communication.  One, the court of public opinion is not a court of law; when crisis strikes, typically a company is presumed to be guilty.  This is especially true for environmental crises.  Two, communications mistakes in the first 12 hours of a crisis are often irredeemable.  Remember the Exxon Valdez.  These two facts explain why planning is so important.  Most organizations can anticipate their most likely environmental crises.  Given this, basic decisions about the structure of decision making, preliminary messages and external spokespersons can and should be pre-determined. 

 

  • Practice the Crisis.  Crises never respect corporate organizational lines—accusations of “greenwash” could undermine a company’s marketing strategies, its stock price, its supplier relations and its human resource management.  At most companies, these functions operate in silos.  Scenario planning is one of the best ways to tear down the walls.  In these kinds of exercises, an organization practices the crisis.  While admittedly time consuming, scenario planning is invaluable in that it forces management to consider and react to a probable crisis in its full dimensions, and it requires collaboration from leaders in every corporate department.

 

  • Go to School.  There is nothing new under the sun, and the odds are that someone in your industry has faced an environmental crisis similar to what you fear or anticipate.  Which of these historical incidents are most relevant to you?  How did a competitor respond?  What worked and what did not?   Why?  What would you consider the best-in-class responses?  What were the root causes of communication errors?  How can we avoid them?  Such research can be performed by a high-level intern, and can be an invaluable addition to your planning.

 

  • Forewarned is Forearmed.  Companies targeted by environmental activists are often discussed in the blogosphere well in advance of attacks and long before the mainstream media becomes involved. Your company should have a mechanism in place to monitor what’s being said about it—as well as key competitors in your industry—online, and a policy about when and how to respond.

 

  • Rehearse Spokespeople.  Environmental crises often necessitate placing technical experts into the role of public spokespersons.  The results can be disastrous.  During America’s worst nuclear accident—the near-meltdown at Three Mile Island in 1979—public trust and confidence in the utility owner operator as well as the Pennsylvania Governor’s office and the US Nuclear Regulatory Commission was undermined by the sheer difficulty of explaining technical issues to audiences that demanded easy, immediate answers.  Special care needs to be taken to develop technical spokespeople well before crisis strikes.

 

  • Be Accessible and Err on the Side of Caution.  During a crisis, especially when companies feel under siege, there is a great temptation to hunker down.  This is usually a mistake.  Management needs to project an image of accessibility during crisis.  That doesn’t mean, of course, that communication should be loose or unscripted.  In crisis, caution is usually the prerequisite for credibility.  If there is any doubt about a fact or development, demonstrate both candor and determination: “We don’t yet know, but we are working hard to find out.”  Ultimately, good-faith observers will respect caution; they will find it hard to forgive hyperbole or undelivered promises.

 

  • Crisis as Opportunity.  If a crisis is short-lived and management has presented credible remedies, take the offensive to use media opportunities to strengthen your reputation (for example, your company’s environmental track record as well as involvement in various socially responsible causes).  Chances are that media coverage will be fair and balanced.

 

Environmental crises could represent one of the big emerging threats to businesses—regardless of size and industry.  The imperative is clear.  Have a plan in place—and continuously review and update it.  This will assist greatly in recovering your reputation and standing in the eyes of your various constituents, constituents who care increasingly about environmental responsibility.