Crisis Communication Plan
Response to Worker Mistreatment Accusations in Factories Producing Disney-Branded Products
Prepared by: Teresa Suits April 4, 2015
Planned Test Date: June 1, 2015
1 Table of Contents
Message from the CEO...... 3 Acknowledgments...... 5 Purpose and Objectives...... 7 Internal Key Publics...... 8 External Key Publics...... 10 Crisis Communication Team...... 11 Media Spokespersons...... 12 Interview Tips...... 13 Potential Questions...... 14 Internal Experts...... 16 External Experts...... 17 Emergency Contact List...... 18 Crisis Control Room Equipment & Supplies...... 19 Crisis Control Room Setup Plan...... 20 Key Messages...... 21 Dissemination of Key Messages...... 22 Pre-Information …...... 23 Evaluation...... 24 Closing Statement...... 25
2 A Message from the CEO
For almost 100 years, the Disney Company has been creating miracles and dreams for children and adults all over the world. Through our heartwarming stories, characters, and experiences Disney has built a respectable reputation as a corporation and “home away from home”. Since becoming Chief Executive Officer, I often like to remind my employees that our business practices should reflect these same miracles and dreams that are produced in our parks and media. It is not only a goal, but also a requirement, to deliver quality care to our customers and our employees.
In recent years, the Walt Disney Company has made citizenship an essential part of our corporation. From initiating new programs to associating characters with healthier habits, Disney is making its citizenship a priority. Our commitment to ethical and responsible business can be seen in our new policies regarding topics such as human rights, the environment, etc. In the same way that we foster the happiness of customers, we promise to foster a healthy and professional work environment for our employees. Evidence of this promise can be seen in our Standards of Business Conduct. Respect of employees is a key component of our standards. Additionally, we have also created a Code of Conduct for Manufacturers and an International Labor Standards Program.
In 1996, we began our International Labor Standards Program (ILS). The goal of this program is to ensure that Disney-branded products are made in an environment that is appropriate for workers. Since the Disney Company does not officially own the factories that we work with, there are many difficulties that accompany this issue. However, this program assists the process of addressing them. The ILS program goes above and beyond the normal requirements for factory inspection. Not only do we conduct regular audits, but we also have engaged with experts to further the betterment of our business relationships. We work closely with our licensees and vendors to ensure proper working conditions are met.
In 2005, Charles Kernaghan of the National Labor Committee accused our own company of mistreatment in factories and unjust working conditions. Although we handled the situation and resolved the issue accordingly then, similar issues have risen in 2011. Other companies, such as Apple and Walmart, have also been accused of unfit working conditions in as recent as September 2014. Newspapers such as NY times, LA times, Huffington Post, and other reputable sources have written pieces on
3 this issue several times. I believe that because of this we should prepare ourselves for a situation like this to occur again.
This crisis communication plan will benefit our company tremendously if a crisis like the ones previously stated were to occur again. In previous situations, our company has been slow to respond and in some cases did not make any statements at all. This plan will provide possible answers to difficult questions as well as appropriate responses to the media. It is our duty as a role model for our customers and other corporations, to be prepared if this issue were to arise again. I ask that every Disney employee, from an “imagineneer” to our Chief Financial Officer, to review this plan and become familiar with its format. I would like to personally thank each of you for your time and continued dedication to our high standard of care. It is because of the combined work that our company continues to thrive and be a global leader. As Walt Disney would say, “Whatever we accomplish belongs to our entire group. A tribute to our combined effort”.
Sincerely,
Robert A. Iger President and Chief Executive Officer The Walt Disney Company
4 Acknowledgements
Robert A. Iger Chief Executive Officer and Chairman of Board of Directors
Corporate Management
Andy Bird Jayne Parker
Chairman, Walt Disney International Executive Vice President and Chief
Human Resources Officer
Alan Braverman
Senior Executive Vice President, General Jay Rasulo
Counsel and Secretary Senior Executive Vice President and
Chief Financial Officer
Ronald L. Iden
Senior Vice President, Global Security Thomas O. Staggs
Chief Operating Officer
Kevin Mayer
Executive Vice President, Corporate Strategy Brent Woodford and Business Senior Vice President, Planning and
Control
Christine M. McCarthy
Executive Vice President, Corporate Real
Estate, Alliances, and Treasurer
Zenia Mucha
Executive Vice President and Chief
Communications Officer
5 Acknowledgements Continued
Board of Directors
Susan Arnold John S. Chen Director since 2007 Director since 2004
Jack Dorsey Aylwin B. Lewis Director since 2013 Director since 2004
Fred H. Langhammer Robert W. Matschullat Director since 2005 Director since 2002
Monica C. Lozano Orin C. Smith Director since 2000 Director since 2006
Sheryl Sandberg Director since 2010
The information contained in this crisis communication plan is for internal use only. The contact information provided is to be used in a manner only associated with this plan unless otherwise specified by the Chief Communications Officer or Chief Executive Officer. It is not to be distributed or used for personal daily contact.
6 Purpose and Objectives
Purpose
The purpose of this plan is to provide guidance and minimize chaos when a crisis related to Working Conditions in Factories Producing Disney Related Products arises. This plan species the actions that will be necessary in regarding statements deemed appropriate to say on behalf of the company. It will ensure our customers, stakeholders, and investors trust in our company. If this plan is followed and used accordingly, it will lessen the tension created by the media and will allow for a smooth transition back into the normal “magical” Disney routine.
Objectives
This plan provides appropriate responses to be used that properly represent the beliefs of the company. The following objectives will assume that the plan has been initiated and followed correctly. This plan can be used when there is factual evidence and when there is only public concern for the issue. By activating this plan, the integrity of the company can be saved. The objectives are listed below.
Notification of corporate executive management within one hour of any media published regarding factories or mistreatment of workers (this first hour is now referred to as zero hour) Crisis communication team, that has previously been assembled, is prepped within 2 hours of zero hour Internal Stakeholders, which are listed on the following page, are notified of crisis within 4 hours of zero hour Pre-approved media response is released to the media within 7 hours of zero hour All contact with the media is to remain honest and stable. The message, specifically stated later on in plan, does not change throughout the crisis. Direct as much of as possible to the crisis communication team or Zenia Mucha our Chief Communications Officer A press conference with CEO and panel of qualified experts is to be planned within 7 hours of zero hour Return to normalcy as soon as possible
7 Key Publics
Internal
It is highly important to keep clear ways of communication between internal stakeholders if this crisis were to happen. They are vital to the success of our company and recovery after a crisis such as this. The Board of Directors, Corporate Management, and legislative team will be informed through phone calls. All other staff, shareholders, and investors will be informed of the severity of the crisis through emails. For the purposes of this crisis communication plan, the following individuals are to be considered internal stakeholders.
1. Board of Directors
Susan Arnold Board Director 310-123-1111 [email protected] Jack Dorsey Board Director 310-123-1112 [email protected] Fred H. Langhammer Board Director 310-123-1113 [email protected] Monica C. Lozano Board Director 310-123-1114 [email protected] Sheryl Sandberg Board Director 310-123-1115 [email protected] John S. Chen Board Director 310-123-1116 [email protected] Aylwin B. Lewis Board Director 310-123-1117 [email protected] Robert W. Matschullat Board Director 310-123-1118 [email protected] Orin C. Smith Board Director 310-123-1119 [email protected]
2. Corporate Management
Andy Bird Chairman, Walt Disney 310-123-2221 [email protected] International
Alan Senior Executive Vice 310-123-2222 [email protected] Braverman President, General Counsel and Secretary
Ronald L. Senior Vice President, 310-123-2223 [email protected] Iden Global Security Kevin Mayer Executive Vice 310-123-2224 [email protected] President, Corporate
8 Strategy and Business Christine M. Executive Vice 310-123-2225 [email protected] McCarthy President, Corporate Real Estate, Alliances, and Treasurer Zenia Mucha Executive Vice 310-123-2226 [email protected] President and Chief Communications Officer Jayne Parker Executive Vice 310-123-2227 [email protected] President and Chief Human Resources Officer Jay Rasulo Senior Executive Vice 310-123-2228 [email protected] President and Chief Financial Officer Thomas O. Chief Operating Officer 310-123-2229 [email protected] Staggs Brent Senior Vice President, 310-123-2230 [email protected] Woodford Planning and Control Robert A. Chief Executive Officer 310-123-2231 [email protected] Iger and Chairman of Board of Directors
3. Shareholders and investors
Contact through positive social media and personal contact such as phone calls or emails
4. Employees
Contact through internal communication channels such as emails
5. The Audit Committee of The Walt Disney Company’s Board of
Directors who will contact factories/manufacturers in question
Contact through phone calls or emails
9 External
Disney is different from other fortune 500 companies. We take pride in creating miracles and happiness for our customers and employees. It is because of this that we greatly value our public appearance. We are committed to offering open, honest, and transparent communications with the external stakeholders listed below in order to lessen the chaos created from the given crisis.
1. Media News Outlet Name Phone Number Email ABC News Diane Sawyer 310-230-4928 [email protected] CNN News Becky Anderson 310-989-0980 b.anderson@cnn.com Fox News Bill O’Reily 310-555-6254 [email protected] NBC News Brian Williams 310-592-4795 [email protected] The NY Times Dean Baquet 310-048-0813 [email protected] Washington Post Martin Baron 310-984-2952 [email protected] Univision Jorge Ramos 310-493-5937 [email protected]
2. Customers
The Walt Disney Company values its customers and consumers greatly. During this entire process we will maintain our commitment to serving them with the best of our ability. We will provide information about the severity of the crisis on our social media pages, call center, and website.
3. Government Agencies
The government agency that we will work with primarily is the Bureau of Democracy, Human Rights, and Labor. Our contact will be through Jane Smith. Her phone number is 310-989-0284 and her email is [email protected]
10 Crisis Communication Team Zenia Mucha Executive Vice 310-123-2226 [email protected] President and Chief Communications Officer (includes media) and primary English spokesperson Jose Rodriguez Primary 310-222-2123 [email protected] Spokesperson- Spanish Lolita Martinez Director of Public 310-222-1111 [email protected] Relations Charlotte Smith Public Relations 310-222-1112 [email protected] Officer/ Event coordinator Alyssa Alverez Public Relations 310-222-1113 [email protected] Officer Morgan Johnson Call Center 310-222-1114 [email protected] Director Alex Williams Call Center 310-222-1115 [email protected] Operator Meredith Grey Call Center 310-222-1116 [email protected] Operator Christina Yang Call Center 310-222-1117 [email protected] Operator Bailey Jones Social Media and 310-222-1118 [email protected] Web Manager Alfred Davis Social Media 310-222-1119 [email protected] Specialist Rachel Wilson Web Designer 310-222-1120 [email protected] Max Brown Web Developer 310-222-1121 [email protected] Michael Print 310-222-1122 [email protected] Anderson Communications m Manager Liam Thomas General Counsel 310-222-1123 [email protected] Austin Legislative Affairs 310-222-1124 [email protected] Hernandez m
11 Media Spokespersons
The primary English spokesperson for this entire process will be our Executive Vice President and Chief Communications Officer Zenia Mucha. Our primary Spanish spokesperson will be Jose Rodriguez. If either Mucha or Rodriguez cannot represent the company for an appearance, then our CEO Robert A. Iger will step in and perform their duties. If it is a Spanish media session, then Iger will still substitute for Rodriguez, but Lolita Martinez will translate for him when needed. If a situation arises where the issue becomes highly debated, then the CEO Iger can replace either Mucha or Rodriguez.
The spokespersons selected for this position are highly qualified and professional in the field of media relations and interviewing. Additionally, they are equally knowledgeable of the Walt Disney Company’s procedures, corporate culture, and viewpoints. However, it is an important responsibility for each of them to update their knowledge of the latest administrative actions, decisions, and changes before any media interaction. They will follow the messages provided in this plan and remain as honest and open as they can be.
Zenia Mucha English Spokesperson Office: 310-123-2226 Personal: 310-111-2233 Email: [email protected]
Jose Rodriguez Spanish Spokesperson Office:310-222-2123 Personal: 310-111-2121 Email: [email protected]
Robert A. Iger Chief Executive Officer Office: 310-123-2231 Personal: 310-321-2376 Email: [email protected]
12 Interview Tips
If a determined reporter approaches you do not stress or worry, remain calm and well mannered. As Helen Parr from The Incredibles would say, “Don’t think and don’t worry. When the times comes, you’ll know what to do.” The tips below will ensure you represent yourself and the company respectably.
Remain up to date with the issue and responses of fellow employees to the best of your abilities. If a reporter asks a question that you are unsure of or simply don’t know the answer, do not make up an answer. Be honest with the reporter and respond with, “I am very sorry, but I cannot answer your question. I do not know the answer at this time.” Remain polite and offer alternatives such as responding to their question after you have contacted a superior or informing them of the media section of the Crisis Communication Center.
No matter how intense the reporter questions you, keep your composure. As a company, we need to remain calm so that our customers will feel the same way. Customers will question our integrity if we do not keep composure during interviews.
Continue to represent the company in a positive manner and refer to our scripted messages as much as possible. Do not represent the company on social media or in person poorly. Remain professional and polite. Remember that you represent this company as well as yourself.
Try to keep a positive attitude throughout the entire process.
Keep accurate documentation of all dates, details, etc. before entering the interview. If a reporter discovers false data or misinterprets it, the consequences could be disastrous.
13 Potential Trick Questions
There is always a possibility for a negative outcome in any given scenario. Below are potential questions that reporters may ask. Remember, if you do not know the answer it is okay to respond saying so. It is better for you to say that you do not know than to not respond at all. Nonetheless, we would still like you to be equipped for any kind of situation. We want our employees to be like Scar and “Be prepared for sensational news”.
“Does Disney care about human rights in the work environment? Why have you not done a better job of protecting them?”
The Walt Disney Company supports human rights fully in the work force. We are dedicated to running business in an equally moral and responsible manner. This can be seen in our Human Rights Policy Statement. We follow the United Nations’ Universal Declaration on Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. We realize that our company is a global leader and we strive to demonstrate that through our opposition of human trafficking and exploitation of children.
“There have been recent public concerns with the working conditions in China. What has your company done to further investigate those claims?”
Working conditions in factories producing Disney-branded products are very important to us. When an issue regarding such arises, we not only audit, but also investigate immediately. We are fully aware of the claims that were made by China Labor Watch in November of 2014. As a result of further investigation, we have ended our production with Dongguan LC Technology. This example further signifies how serious we are about working conditions.
“What is Disney’s policy on child labor?”
Our Code of Conduct for Manufacturers does not allow children under the age of 15 (sometimes 14 depending on local area) to produce Disney branded products. If child labor is discovered within the facility, we seek to work with the facility and other licensees to find a solution as soon as possible.
14 “What is the company policy on forced overtime?”
Forced overtime is not something Disney supports. In fact, it is a violation of our Code of Conduct for Manufacturers, which states “Manufacturers will not use any forced or involuntary labor, whether prison, bonded, indentured or otherwise.” This includes penalizing employees for not agreeing to work over time.
“Recently, Bangladesh has had several accidents at manufacturing facilities. Are Disney branded products produced there?”
No. After reviewing our policies and procedures, we have made adjustments to our sourcing guidelines in an effort to properly balance the global supply chain and our ILS objectives. Disney-braded production sites were eliminated from high-risk countries such as Bangladesh in March of 2013. Beginning in March of 2014, Bangladesh will no longer be a Permitted Source Country, making it unfit for Disney- branded products to be produced there.
15 Internal Experts
The people listed below can offer expert testimonies on the internal affairs of the Walt Disney Company.
Robert A. Iger Chief Executive Officer and Chairman of Board of Directors 310-123-2231 [email protected] Iger will provide information regarding company policies
Jayne Parker Executive Vice President and Chief Human Resources Officer 310-123-2227 [email protected] Parker will serve as the expert for all information relating to employee relations
Andy Bird Walt Disney International 310-123-2221 [email protected] Bird will address all questions relating to all of Disney’s business outside of the United States
16 External Experts
The people listed below can offer expert testimonies relating to human rights, mistreatment of workers, or unjust working conditions.
Sarah Sewall Secretary for Civilian Security, Democracy, and Human Rights 310-294-9284 [email protected] Sewall can offer information about the governmental agency that we will work with during this crisis
Ruth Taylor Executive Management Member of Walmart Company International Business 310-098-0374 [email protected] Taylor would be beneficial by describing how other fortune 500 companies handle their international business and relationships with manufacturers.
17 Emergency Contacts
U.S. Department of Labor 200 Constitution Ave., NW Washington, DC 20210 Phone: 1-866-487-2365 Email: [email protected]
Local Police Department If a protest is occurring, the local police department of that given area should be contacted.
18 Crisis Control Room Equipment & Supplies
Equipment: Supplies: 25 Tables Pencils 50 Chairs Pens 10 Printers (accessible with Markers scan and fax settings) Printer/Copier Paper 1 Projector Toner Cartridges 15 Computers Calculators 5 Laptops Erasers for dry erase board 10 Tablets USB Drives 1 Dry Erase Board CDs 10 Dry Erase Markers DVDs 15 Telephones Snacks 5 TV’s with cable access Water 2 Radios Soda 1 Internet Router with wireless 15 Staplers internet access Staples 2 Video Cameras 3-Hole Puncher 20 Extension Cords Thumbtacks 15 Power Strips Post it notes 3 Microwaves Paper Clips 5 Coffee Machines Batteries 100 Cups Trash Cans 1 Refrigerator Trash bags 1 DVD/CD player Hand Sanitizer 4 Bulletin Boards Paper Plates 10 Paper Shreaders Napkins 4 Speakers Plastic Cutlery Coffee Coffee Creamer Sugar / Sweetener Milk (whole & 2%)
19 Crisis Control Room Set-up
Coffee/Snack Area/ Announcements on Progress Made Here Web Developers/ Administrative Operators Social Media Team Meeting/ Conference room
Public Relations Media Analysts Crisis Communication Call Center
IT Support TV TV TV
The layout above is the suggested floor plan for how the room should be set up if this crisis were to actually occur. Each group is color coordinated and separated based on their specialization of communication. There is a separate room for the call center so that the continuous phone calls do not interrupt other crewmembers. There is also a separate area for the administration to meet and analyze the progress being made. The long table in the front of the room serves as the snack area as well as the area for general announcements and debriefings each morning or hour (depends on severity of crisis).
20 Dissemination of Key Messages
In preparation for this crisis, I have created key messages that should be used when addressing media. In previous situations the company has been relatively slow to act and create messages like these. By having these messages prepared, we can reassure our customers, investors, and stakeholders that the crisis is being managed and that there is no need to lose faith in the Disney Company. These messages should be used as the framework for all media encounters.
The health and welfare of the persons who create Disney-branded products are a priority to this company.
Disney conducts regulatory audits and inspections through our International Labor Standards Program.
The Walt Disney Company is further investigating the (factory name) claims. We will inform our customers as soon as we know more information.
These messages will be promoted through a social media campaign, our company website, and any news outlets. They will be emphasized throughout the entire process. The social media team will use these messages to create a positive social media campaign to counteract the negativity created by private organizations. This will target a vast number of people since most people will refer to the Internet for their information. Our website will promote these messages on the homepage as well as additionally information about the crisis. This will target the information seeking audience. Finally, we will be open to press conferences and other news outlets to target those who do not seek the information themselves.
21 Pre - Information
The following pieces of information are necessary in the event that protests against factory conditions producing Disney-branded products occur. They should be provided to the crisis communication team and added online to the website for the general public. Only Chief Communications Officer can add information to this list.
Disney Mission Statement General summary of the goals, morals, and viewpoints of the Walt Disney Company relating to human rights, working conditions, and international manufacturer regulations.
Human Rights Policy Statement Reference the Disney Code of Manufacturers, definition of child labor, and our Standards of Business Conduct.
Disney Facility List Provide the 2014 list of all manufacturers producing Disney-branded products. Demonstrate the commitment to transparency in our supply chain operations.
Letter from Disney CEO Robert A. Iger will write a letter on behalf of the company displaying our dedication to the proper treatment of those who produce Disney-branded products.
Information about Project Kaleidoscope Collaborative project designed to promote approved labor standards through mandated corporate codes for manufacturers.
Contact Information The crisis communication team and media will receive the approved contact list generated from this plan. The pre-information kit that is posted to the web will receive the phone number to the crisis call center.
Frequently Asked Questions Offer honest answers to questions that are frequently asked.
22 Media/Press Release
FOR IMMEDIATE RELEASE [Insert date here]
Contact: Zenia Mucha Phone: 310-123-2226 Email: [email protected]
For Immediate Release
There have been claims made that the factory [insert name here] in [insert country name here] has mistreated its workers and violated our Code of Conduct for Manufacturers. The response plan for this incident is to investigate immediately. If the claims made prove to be true, then [name of factory] will no longer be permitted to produce Disney-branded products. The claims were made by [name of organization that made claims] and we plan to fully investigate.
The Walt Disney Company is dedicated and committed to having its products produced in an equally professional and safe environment. In 1996 the program International Labor Standards (ILS) was founded. It was based on the principles of the International Labour Organization (ILO). This program has 3 main goals. These are to foster safe work environments, work cooperatively with local governments or other organizations to improve working conditions, and to have stronger business relationships so that we are more aware of individual factory issues.
We understand that Disney serves as a global leader in business. It is because of this that we strive to do our business with high ethical standards and as transparent as possible. Beginning in 2014, the Walt Disney Company provided a list of all factories that created Disney-branded products for the general public to see. We have also partnered with other organizations to form Project Kaleidoscope, a collaborative project designed to promote approved labor standards through mandated corporate codes for manufacturers.
Our number one priority at the moment is to ensure that our products are produced in safe environments. We have discontinued relationships with several factories because they did not foster a healthy environment. We will investigate and resolve this issue to the best of our abilities. If you have any further concerns, please contact our crisis communication call center at 310-222-1115 or visit our company website.
23 Evaluation
After the crisis has occurred and the plan has been completed, an evaluation of its effectiveness will take place. The purpose of this evaluation is to determine what aspects of the plan were successful and what aspects need improvement. This will help make this plan and future plans more effective. The evaluation will be measured through several surveys and examinations.
Evaluation Team The evaluation team will be composed of 10 members from the crisis communication response team and the Chief Executive Officer if he chooses to accept. They will construct a public survey for the entire communication team to respond to. Additionally, they will each reflect on the entire experience with one another honestly. Putting aside bias and judgment, each member will have the opportunity to speak freely and decipher what parts of the plan need improvement. They will also be asked to anonymously write a short free response if they felt threatened by speaking the truth during the shared reflection time.
Surveys There will be two portions to the survey that is distributed to employees. The first portion will focus on the management skills of the crisis communication team. It will contain questions referencing how well they followed the plan and how well the plan benefitted the employees of the company. This portion will only be sent in to the internal publics because they had full access to this plan. The second portion of the survey is based upon the public perception of the company. It will ask the employees if they thought that we handled the crisis appropriately. It will also ask them about their perception of our company pre-crisis and post crisis as well as how accessible information was regarding the crisis. This second portion will also be sent to our stakeholders, investors, and customers who contacted our company regarding the crisis. Overall, the surveys will produce a wide variety of results that will help better the company.
Interviews The evaluation team will conduct separate interviews with stakeholders and internal publics who were apart of the crisis. The stakeholder interviews will provide the company with insight as to how they thought the crisis should have been solved and how the crisis reflected on the company’s perception. The interviews with internal publics will provide tips on how to improve the communication in a future crisis. This will prove to our stakeholders and internal publics that the company genuinely cares about their input.
24 Closing Statement
The Walt Disney Company is dedicated to protecting the rights of its customers and employees. Here at Disney consider them to be apart of our “Ohana” and no one is to be left behind regardless of the situation or crisis. That is why a crisis communication plan is necessary and a top priority. By being prepared we can respond quickly and can ensure that our “Ohana” is not forgotten. We take pride in our missions and core values and hope that they are accurately reflected in this plan. Thank you for taking the time to carefully read it over. I would like to also thank you for your continued dedication to this company. Although it did all start with a mouse, this company would not thrive without loyal individuals like you. Thank you.
Robert A. Iger Chief Executive Officer
25