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 Corporate
Reputation
Welcome to another issue of CP Notes; our observations on
the latest news media and public policy issues as they relate to
industry.
CP Notes provides O'Brien'sRM clients with the benefits of our insights
and observations based on our years of experience and expertise as to how
the news media-rich environment we operate in these days can affect your
business and influence business decisions. We also provide links at
the bottom of this e-newsletter to additional recent articles of
interest, which you may find valuable.
As you review this week's CP Notes, ask yourself how would your business
handle these issues, all of which touch on that most ephemeral of
corporate assets; reputation.
We'd like to hear from you if you have your own thoughts and are willing
to comment. In addition, if you think we could help your business
address similar issues, please let us know. I can be reached by e-mail at
toleary@obriensrm.com
or by calling +1 (281) 379-7173.
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The Yellow Flag
Recently, some U.S. Navy ships bound for the
South Pacific were forced to return to port after some of the crew and
embarked Marines were diagnosed with Swine Flu.
Flu and other infectious diseases have been the bane of ship crews for
thousands of years. Avoid having to fly the Yellow Flag during enforced
in-port quarantines...in addition to making a vessel unprofitable, it
also results in bad press, further compounding troubles.
Swine flu is now at the pandemic stage and the prudent mariner should
heed advice offered by health ministries, the World Health Organization
and companies like O'Brien'sRM.
We have full-time staff members with advanced degrees in epidemiology and
ample experience developing pandemic influenza plans and flu advice for vessel clients.
If interested, you can contact us by calling +1 (281) 320-9796 or by
emailing Clint
Ladd.
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Astroturfing?
Have you heard of "Astroturfing?" Astroturfing
refers to a fake "grassroots" advocacy campaign. Recently a series of
stories appeared in the media describing an incident where a coal
industry group hired a PR firm to do some advocacy work for them and the
PR firm allegedly misrepresented the identities of "advocates".
This term has also been applied to the recent practice of one political
party sending their operatives to the other party's town hall meetings on
health care.
There always seems to be a myriad of non-governmental organizations
(NGOs) representing a multitude of views, opinions and policy positions
that gather around each significant issue. How do you know which of the
various groups out there clamoring for media attention are in fact, who
they claim to be? That very question shows that enough ambiguity exists
to allow some unscrupulous operators to conduct grassroots campaigns
under false colors. Needless to say, this is an entirely toxic practice,
which damages public discourse.
As various NGOs and industry trade groups exercise their rights of free
speech, it would behoove all concerned to be as transparent as possible.
If you're a company hiring a firm to send mass mailings out on your
behalf (especially to elected officials) run a sanity check with your
external agency. Ask to see their mailing list and ensure that your legal
and PR staff have had an opportunity to review the material before it
goes out the door.
Also, ensure that you know what kind of activities your trade association
is engaging in...if your trade group slides off the rails it may damage
your reputation too. You could be "guilty" by association.
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"Stiff, Stinky and
Sleepless:" CNN headline on story
Since many of us fly quite a bit, I know you'll appreciate
this story. A Continental Airlines regional
aircraft recently spent the night on the tarmac in Rochester,
Minnesota. That in and of itself wasn't unusual, but what was notable was
that this particular aircraft contained 47 people who spent nearly 14
hours in transit that included a 6 hour ground delay-without leaving the
aircraft. The aircraft wasn't quite full; there were three vacant seats!
Of note in this story was that Continental initially referred all media
and public questions to ExpressJet, the much smaller airline that
operated the flight on behalf of Continental; flying with Continental's
livery on the aircraft. Using this story as a proxy for incidents of a
similar nature that may affect our industry, such an approach raises
three very important issues. First, was Continental's referral of
the media to ExpressJet a well reasoned policy decision or simply a
reaction to events? Did the larger company really want ExpressJet
to act as the spokesperson for Continental and all other parties
involved? Second, does this segregated approach naturally lead to
"finger pointing" between companies, when a team approach may
be the better solution? The possibility of conflicting information
is real when the responses are not coordinated. Thirdly and
possibly most importantly, did the handling of this incident damage the
credibility of this company and the airline industry overall? Airlines
are often perceived to be hiding behind their contractual relationships with
other carriers or operators when attempting to explain away incidents and
accidents. This apparently, was not an exception.
In our view, this manner of handling the media coverage following an
incident is not a formula for long-term success, if the tenor of
resulting news coverage is any indication. Whether your partners use your
logo or not, it is best to be prepared. You should have plans in place
that evaluate these types of scenarios and through consultation with your
executives and partners, set the appropriate policies and procedures for
effective coordination. The planning should then be followed by
training and exercises if you want to effectively manage a media crisis.
The public (and customers) demands corporate accountability. Bad PR advice
and yes, bad legal advice sometimes results in management making bad
decisions resulting in reputational damage; be it by airlines perceived
to hiding behind "networks" or ship management companies
perceived to be hiding behind layers of holding companies and owners.
Don't let your company contribute to the perception that you are avoiding
responsibility and suffer the associated consequences.
Remember, bad news does not improve with age. After nearly a full day of
bad press, Continental finally apologized, but too late, that didn't stop
the damage. As of this writing, members of the U.S. Congress and
President Obama have both expressed their outrage and have called for an investigation.
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"Not so fast..."
After a headlong rush into embracing social networking
sites (SNS), the U.S. Marine Corps has pulled the
plug on Twitter, Facebook & etc. In an administrative message to
the troops, U.S. Marine Corps brass said: "...these internet sites
in general are a proven haven for malicious actors and content and are
particularly high risk due to information exposure, user generated
content and targeting by adversaries. The very nature of SNS creates a
larger attack and exploitation window, exposes unnecessary information to
adversaries and provides an easy conduit for information leakage that
puts OPSEC, COMSEC, personnel and the MCEN at an elevated risk of
compromise. Examples of internet SNS sites include Facebook, Myspace and
Twitter...."
In plain language, the Marines said "You are not to use Social
Networking Sites because the enemy can use the information you're
providing."
The datasphere is laden with all manner of information and is expanding
and becoming increasingly utilized as wireless services continue to grow.
While we don't necessarily agree with the Marines' strategy of
isolationism, we do believe that a company should not become overly
enamored of Web 2.0 technologies to the point of not exercising common
sense and good business judgment in the adoption of new trends in
communications. You should always have clear policies and controls on the
types and content of information leaving your company. But you
should also monitor the social media sites for issues that may affect
your company's reputation and be prepared to respond via these new media
channels.
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One-way communications?
The late Michael Jackson's physician, Doctor Conrad
Murray, recently posted a video on YouTube
thanking his supporters. Since Jackson's, death, Dr. Murray has been at
the center of a media firestorm. Since he surfaced as Jackson's physician,
Dr. Murray has maintained a very low public profile, offering no public
statements (until now). Notably, he has also not taken any media
questions. His only public response has been this video, which is
garnering widespread distribution by traditional broadcast news media.
YouTube is an amazing platform. Dr. Murray's PR advisors certainly know
how to work the platform. Through the use of YouTube, Dr. Murray:
-Controls the timing of his message
-Controls the message content 100%
-Offers no chance of being questioned by the media
-Assures one way communications
It can be argued that this kind of event is a "one of" type;
that it can only (effectively) be done once (a lot depends on the news
value of the video of course). We'll see. But another lesson to take away
is the willingness of media outlets to broadcast video content they
didn't produce...you see it increasingly on CNN through the use video
shot by "I-Reporters," i.e regular folks providing mobile
phone video to the networks.
YouTube is an important and no cost platform that allows you to get your
message out. It should probably not be seen as a primary method of
communications, but it does make an attractive adjunct. Have you used
YouTube? If so, we'd like to hear about it.
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Are you ready?
Incidents can quickly escalate into a business crisis and
a business crisis will last as long as there is news media interest in
the incident. Is your business ready for global news media scrutiny in
the event of an incident involving one of your ships? Does your company
have processes in place and the ability to field a team to respond to an
incident and return your business operations to normal as soon as
possible? Have you managed this risk?
Let us assist you with your news media and public relations needs.
Contact us today for a quote or more information at (281) 320-9796
or at mediarelations@obriensrm.com.
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Thank you - Please let us know
if you have any stories or items of information that we should know and
you'd like to pass on to other readers
Tim O'Leary, Vice President, Communications
O'Brien's Response Management
toleary@obriensrm.com
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