Rumors pose an increased risk to corporate reputation due to the global use of social media combined with people's natural tendency to gossip and/or share unproven or speculative information. This presentation discusses a basic methodology that organizations can use to defend themselves from potentially damaging rumors.

1. Reputation & Rumours
Defending the Corporate Reputation
July 29, 2014

2. Reputation and Rumors
The way stakeholders
perceive the organization
based on multiple inputs
including actions, product
quality and communications
Unverified information spread
initially through informal
channels about the
organization. Can be positive
or negative; true or false, or
a mix of true and false
How the organization
responds to the rumor
through words and/or
actions. No response
counts as a response.
The impact of the
response on the rumor
and on the
organization’s
reputation
Reputation
Result
Respons
e
Rumor

3. Current Reality - Rumors
Rumors are a fact of life – people seem to enjoy
gossiping and spreading rumors
Rumors may be false, true or partly true – it is up
to the organization to clarify the facts of the
matter
Some rumors are the result of a malicious hoax
or the attempt to advance a cause
Modern technology makes spreading rumors
faster and easier than ever before
Facebook is an excellent tool for spreading rumors

4. Current Reality - Rumors

5. Case Study – Cambodian Exodus

6. Case Study – Cambodian Exodus
Approximately 200,000 migrant workers from Cambodia
left Thailand over the course of a week in June 2014
The primary factor leading to this unprecedented
movement was a rumor that Thai authorities would soon
crack down on illegal workers
At the time of their departure there had been no major
crackdown and no formal announcement of one
Why was this rumor so powerful:
- Cambodian workers were unregistered
- The NCPO had stated policy toward controlling illegal
workers
- The Thai government is controlled by the military

7. Case Study – Cambodian Exodus
The effects of this rumor included short-term damage
to the Thai economy
Damage to Thailand’s reputation – especially
considering its recent ILO vote and TIPs downgrade
Damage to Thailand’s relations with Cambodia

8. Defending Your Reputation
Reputational
risk areas
Monitoring for
new rumors
Response to
damaging
rumors
The first stage in
reputational
defense is to
determine where
you are at risk
The second stage
is to stay alert to
new rumors
The third stage is
to quickly and
decisively respond
to damaging
rumors

9. Risk Assessment –
Know the Environment
To help prepare to respond to rumors it is
necessary to first identify areas of risk
Internal – operations, products, services, employees
External – NGOs, regulators, community groups
Once risks have been identified they should be
prioritized according to likelihood and impact
Likelihood – the odds that they will happen in the near
to mid-term futures
Impact – the financial, operational, reputational
ramifications of the rumor – how much will it cost

10. Risk Assessment –
Know the Environment
Monitor the
situation and key
players
Prepare reactive
materials and
conduct training
Monitor & seek to
proactively engage
relevant
stakeholders
Actively engage
stakeholders and
address root
causes
L
L
H
HIMPACT
LIKELIHOOD

11. Risk Assessment –
Know the Environment
Analyzing stakeholders
Internal / External
Friend / Foe
Power
Influence
Access to resources
Your current position – reputational audit
Based on insights re. key issues and key stakeholders
obtain benchmark information on the state of your
reputation and the reputation of your competitors

12. Media Relations

13. Media Relations
Media relations is not hard but it is a time-consuming
and long-term process
Building good relations with media requires a
commitment to transparency
Need to be willing to work with media in both good
and bad times
Balance between key media and ROM
Understand growing importance of online/new media

14. Media Relations
During a rumor driven reputational crisis:
A response of some kind is required
Speed is essential
Know the facts (be able to separate facts from
fiction)
Be consistent in your message
Communicate broadly – across platforms
Have a crisis communications command structure in
place

15. Media Relations
RumorProactive Proactive
Reactive
False True
Kill it with
facts
Explain
Context
Don’t
Know
Seek
Resolution
Determine T/F
Go
Proactive
Go
Proactive

16. Media Monitoring

17. Media Monitoring
Media monitoring can provide early warning as well
as current status of a reputational issue/crisis
Types of Media Monitoring
General – everyday process focused on your news and
your competitors (daily)
Issue specific – regular review of media to track issue
development and key players (weekly/monthly)
Social media – can be related to first two but often
requires special skills and tools (daily)
Crisis monitoring – intensive issue-specific monitoring
executed as close as possible to real-time

18. Media Monitoring
The key to effective monitoring is determining the
important search areas and channels
Narrowing the subject matter and the range of channels
makes the monitoring process more efficient
A primary point of failure for many organizations is
effectively using the output of media monitoring –
especially regarding issues
There needs to be an individual or team responsible for
analyzing issues coverage and alerting management to
important trends or developments

19. Operations: It’s what you do

20. Operations: It’s what you do
At an operational level an organization can do
several things to mitigate the impact of a rumor:
Maintain clear and open communications
Leverage a history of transparency and good governance
Ensure fast decision making followed by appropriate
actions
Use employees as ambassadors to reach out to key
stakeholders
Make sure that regular operations do not suffer
Have patience
Most Internet-based rumors do not last long and if your
response is appropriate and honest the impact is likely to
be limited

21. Case Study – KFC
In early June 2014 a rumor started to spread that a KFC
in Mississippi, USA asked a 3-year old girl who was
recovering from a pit bull attack and her grandmother to
leave because ‘her injuries were disturbing the other
customers’
The story was picked-up by local TV news and from their
it went national

22. Case Study – KFC
KFC’s initial response was to say that this action was
against its policy and that it was investigating the situation
The company launched two investigations (one internal
the other with an independent agency)
KFC also offered to contribute to the girl’s medical
expenses
In the face of significant social and traditional media
scrutiny KFC never admitted to wrongdoing in this case

23. Case Study – KFC
The result of the investigations were that the claims
against KFC were a hoax and there was no evidence the
girl and her grandmother had been to the KFC in question
The company simply announced the results of its
investigation without taking action against its accusers
The family initially maintained that it did not lie and the
incident happened, but offered no further evidence
Shortly after KFC’s statement the little girl’s Facebook
page and donation website were deactivated

24. Case Study – KFC
Why would this rumor spread?
Why would the hoax be perpetrated in the first
place?
Was KFC’s response appropriate?

25. Wrap-up
Rumors have always been a part of the business
environment and a reputational threat - this will not
change
Today technology makes it possible for rumors to
spread very quickly and very far
Media still plays a role in helping to make a rumor
‘viral’
Understanding your risks and monitoring the
environment are keys to defending yourself
Your response to a rumor should be based on facts
and proportionate to the potential damage

26. ขอบคุณ มาก ครับ
Thank You!
jeremy.plotnick@gmail.com