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