Recall: Product liability group - June 2003
Damage control: The art of effective crisis communication
In brief: In the wake of the Pan Pharmaceuticals product recall, Partner Annette Hughes and Articled Clerk Tami Dower discusses the importance of having a crisis communication plan.
The difference between a 'situation' and a 'crisis' can be as simple as having an effective communication plan. Whether your company is faced with a large-scale catastrophe or a minor organisational disruption, it is critical to have a crisis communication plan in place prior to the event.
What is a crisis communication plan?
It is a strategy designed to ensure that a clear, consistent and accurate message is provided by the company to minimise potential damage to brand reputation. Depending on the nature and scale of the crisis, this may involve: responding to concerns from staff, shareholders and affected customers; notifying and liaising with the relevant regulatory authorities, police and insurers; and dealing with the media.
The plan should be documented and should identify a trained team of individuals who can be easily contacted and mobilised in the event of a crisis. Alternative personnel should be identified for each role in case the nominated individual is unavailable. As a rough guide, the crisis communication team should comprise:
- Official spokesperson: it is important that a 'human face' of the company be presented to the public. Ideally, this should be the managing director or a senior executive.
- Media/government relations representative: this person should be the sole source of contact for media, government or police enquiries. They should preferably be media-trained and able to understand the legal implications of what they say. Where appropriate, this person may also be the official spokesperson.
- Media monitor: where the event has attracted media attention, someone should be appointed to monitor all media coverage and to prepare appropriate responses. (A legal representative should also be consulted on all media releases and public announcements.)
- Brand manager: to manage the system (which should already be in place) that monitors and registers all consumer calls/complaints and provides an appropriate response.
- Human resources director: to keep staff adequately informed about the situation as it unfolds.
- External advisers: public relations, consultants, solicitors and relevant experts should be consulted in determining the company's response.
During a crisis
It is critical that the company takes, and is seen to be taking, appropriate steps in response to the situation. Cooperating with the relevant authorities not only makes sense from a crisis control and public relations point of view, but penalties (including criminal penalties) may be incurred for failure to do so.
Initial contact with the media should acknowledge the situation but refrain from speculating. The spokesperson should simply state that investigations are underway and the company is cooperating with the authorities. Communications with the media should be concise in order to minimise the risk of being taken out of context. Similarly, jargon and technical terms should be avoided, as should remarks such as 'no comment', speculation or going 'off the record'.
Without assigning any blame, the company should demonstrate concern and empathy for those affected. Where the crisis involves injury or death of an employee, the company should obviously contact the family and offer any necessary assistance.
Keeping the media informed will help to avoid damaging speculation. Careful media monitoring should ensure that any inaccurate reports are detected and corrected promptly.
Obviously a company's response to a potential crisis will vary according to the resources of the company and the extent of the crisis. However, the important message to be heeded from the Pan Pharmaceuticals' experience is that preparation and open communication is essential – irreparable damage to the company may otherwise result.
For further information, please contact:
- Peter O'DonahooPartner,
Melbourne
Ph: +61 3 9613 8742
Peter.ODonahoo@aar.com.au
