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Evaluating Post-COVID-19 Vulnerabilities

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Evaluating Post-COVID-19 Vulnerabilities February 2021 CRISIS INSIDER Insights, Strategies and Analyses for Brand Reputation Management INSIDE THIS ISSUE The Risks and Data Behind Brands Taking a Stand 3 Navy Pier Improves Crisis Communication Stance 4 Exploring Steps to Repair Reputation After a Crisis 5 How Brand Filters May Lower Crisis Risk 5 Is it a Good Plan to Re-visit a Hostage Crisis? 7 Rep. Mary Miller: Crisis Averted on Capitol Hill? 8 HOT ZONE CrISIS forecast Boards Need to Ask Many Difficult Questions About Crisis Management This Year Evaluating Most organizations have a crisis plan. A pandemic age, so many organizations Post-COVID-19 PRNEWS survey shows 62 percent of or- fail to address such a critical strategic ganizations have one. Not surprisingly, weakness. Vulnerabilities the survey also shows fewer than half Increasingly, it is boards of directors of those polled said their plan was up to that must take the lead in assuring that The extent of damage to health and oth- date. I’m not a mathematician, but that their organizations are well prepared for er areas that COVID-19 has caused will tells me that in reality, fewer than one- a crisis. This is appropriate and import- not be visible for some time. Yet, com- third of organizations are well prepared ant to directing management to take the panies and communicators need to be- for a crisis. It is disturbing that in this (Continued on page 2) gin preparing now for the new risks and realities of a weakened world emerging BUZZ BOx from the pandemic. Personnel problems will get more Terms You Need to Know common and complex. The health, ra- Equity Compensation: Non-cash payments, such as options and stock, made to cial, economic and political upheaval of employees. Companies increasingly are requiring equity grants to mature before 2020 transpired largely during WFH. leaders can access them. It’s easier than clawing back compensation already in the When we finally come back together pockets of misbehaving CEOs. With 3,000 groups seeking $26 billion in opioid cases, there are bound to be new lines and some investor groups are urging drug makers to defer equity and other bonuses. elevated expectations discovered. Not everyone will manage those uncharted Travel Corridors: Crowded areas where coronavirus may spread. In a Feb. 5 letter waters well. Internal incidents around to the White House, two Boeing officials argued all travel corridors are problemat- these issues invariably are going to unfa- ic, not just those in airports. Why, then, was the CDC considering COVID-19 tests at vorably spill into the public view. airports only? Other travel officials were irked. Reuters saw the letter. CDC relent- Speaking of shifting societal standards, (Continued on page 2) PRNEWSONLINE.COMed on tests. Still, never memorialize what you don’t want seen in the media. HOT ZONE (Cont’d from p. 1) actions needed to be crisis-ready. To thirds or more of crises that make the that end, there are several questions news are smoldering issues that could CRISIS that boards need to ask executives to have been prevented and mitigated be- hold them accountable for a lack of cri- fore they became full-blown crises. INSIDER sis planning and preparedness: u Is there a clear chain of command Vol. 2 No. 2 u Does the company culture support when a crisis strikes? honest, timely and transparent u Do we have a crisis communication Editorial Director, Erika Bradbury, communication with stakeholders? plan that includes specific strate- [email protected] Can employees report a concern gies and messaging for all the po- without fear of retaliation? tential crises that are high proba- Editor, Seth Arenstein, If there is a ‘shoot the messenger’ cul- bility and/or high impact? Does the [email protected] ture, it may be difficult to uncover is- messaging incorporate care, com- Senior Content Manager, Sophie Maerowitz, sues that put organizations most at risk, passion and empathy? [email protected] including mismanagement, discrimina- u Do we have the communication tion, cybersecurity, and other crises that infrastructure and technology to Senior Editor, Nicole Schuman, [email protected] can crush reputation and brand value. deliver relevant messaging quick- u Do we have a robust risk-man- ly across all priority stakeholder Director, Marketing Production, Tracey Lilly agement function that continually groups, 24/7? scans the environment and assess- u Have we identified spokespersons SVP, Marketing Group, Dan Hanover es risks as they emerge? Do we have and provided annual media train- Divisional President, Kerry Smith a risk-management committee that ing to sharpen their skills? meets regularly to discuss trends u Do we have a crisis-management Chief Operating Officer, Heather Farley and changes in our risk profile? team? Do they meet at least quar- President & CEO, Don Pazour u Do we have a comprehensive, up- terly? Do they know their roles in a dated crisis-management plan that crisis? Have they been trained on addresses operational and reputa- how to use crisis plans effectively? tional crises and business continu- This list provides a foundation for Group Subscriptions — ity/recovery? If yes, were the plans the crucial discussions that boards and [email protected] exercised in the past year? If no, executives should be having now. So, why not? Do the plans include sce- what are you waiting for? CI Additional Copies & Article Reprints — Contact Wright’s Media, 877-652-5295; nario-specific action steps? –Deb Hileman [email protected] Our research at the Institute for Cri- Deb Hileman, SCMP, is president and sis Management has shown that two- CEO, Institute for Crisis Management CrISIS forecast (Cont’d from p. 1) consumers will more closely scrutinize ed to a product or process, questions will businesses beyond the bottom line. be asked about why you did not do more. I have said the days of getting away Published monthly by Access Intelligence, LLC with a thin veneer of CSR programs are TRUST EROSION AND CRISIS 9211 Corporate Blvd, 4th Floor done. Instead, we will see pressure for Rockville, MD 20850 Recent crises have eroded trust and con- ©2021 Access Intelligence LLC. executives and companies to regularly fidence. They are making businesses’ re- Federal copyright law prohibits unauthorized and robustly engage on a wide range of lations with communities and consum- reproduction by any means and imposes fines of national, and global, challenges. Those up to $150,000 for violations. ers less personal. Convenience and costs who do not will find themselves subject- are benefits in the short-term. But, when Client Services: ed to departing investors and clients. things go wrong, it will be much harder Phone: 888.707.5814 • to draw on the reservoirs of goodwill Fax: 301.309.3847 that come from real, regular contact. e-mail: [email protected] HEALTH ISSUES REMAIN Health concerns will not end with So, even if engagement isn’t required New York Editorial Office: COVID-19. The significant support and to successfully deliver our products or 40 Wall Street, 50th floor safety measures some in the private services, we need to seek out more op- New York, NY 10005 sector have offered to protect employ- portunities to participate in non-digital Phone: 212.621.4890 • Fax: 212.621.4879 ees and customers will remain. discussions with clients and customers. In addition, there will be long-term Otherwise, in the absence of that per- sonal relationship, the price of recov- For subscribers only: full access medical issues for those infected with to Crisis Insider archives at the virus and many other ailments that ering from the next crisis will be much, www.prnewsonline.com went untreated during this time. Both much higher. CI constituencies will look to businesses -Brett Bruen to continue investing in a range of mea- Brett Bruen teaches crisis at Georgetown sures to create safer conditions. University and served as President Obama’s Anytime a health problem arises relat- director of global engagement. He is presi- dent of the Global Situation Room. 2 CRISIS INSIDER | FEBRUARY 2021 PRNEWSONLINE.COM DATA VAULT Is it risky for Businesses to Take a Political Stand? The Jury is Out It’s almost an axiom to say companies must take social and political stands. Many observers argue it’s dangerous for companies of significant stature and their CEOs to remain silent on import- ant issues. Still, there are risks. When Nike supported Colin Kaeper- nick after he’d knelt during the national anthem, it assessed the risk its position could have on revenue. It calculated the risk was acceptable–the poten- tial sales lost, Nike figured, would be small enough to absorb. It turned out, of course, that Nike lost some business but overall sales spiked. The company’s base supported its stance. Speaking out when you possess Ni- ke’s coffers and reputation is one thing. What about small businesses? A Skynova survey of some 434 small-business owners (SBO) found two in threes felt there’s “too much pres- sure” on them to take political stances. Half of the politically conservative SBOs and 40 percent of liberal ones said they “regularly feel pressured to hide their political beliefs.” 194 SBOs said they were conserva- tive, 167 identified as liberal and 73 as Speaking Out: The top 17 issues ranked in order small business owners’ willingness to take a moderate. 194 respondents were fe- stand on them. Source: Skynova, September 2020, (434 small business owners) male, 238 respondents were male; 2 did not identify with either gender. One in four SBOs (29 percent conserva- Conservative SBOs were more willing to foster division (40 percent). tives, 23 percent liberals) said they’d taken to take a political stance for the sake of The chart shows the top issues SBOs overt political stances, the survey found.
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