1. Metrowest Funders Group Discussion
July 27, 2010
Mike Lawrence, EVP & CRO
e a e ce, C O
Alison DaSilva, EVP
2. Two Missions Today
1.
1 Answer the question: Is it okay to communicate
good deeds in a crisis?
2. Identify keys to crisis preparedness and employee
communication
Confidential and Proprietary 2
3. Guiding Principles
1. Build a goodwill bank before a crisis
takes place
p
2. Continue to feed your goodwill bank
during times of crisis
3.
3 Also communicate about the crisis;
be humble, accept responsibility
4. Be sure your good-deed
communications do not reinforce
perceptions from the crisis
Confidential and Proprietary 3
5. Goldman Sachs’ Bad Timing
“We participated in
things that were
Nov. 17, 2009
Made Apology clearly wrong and we
have reasons to regret
and apologize for”
-Lloyd Blankfein
Chief Executive, Goldman Sachs
A few hours later…
Nov. 17, 2009
Announced Program
ou ced og a
Confidential and Proprietary 5
8. Discussion: Was it okay for
y
Goldman Sachs to communicate
during the crisis?
9. Toyota Communicates Commitments During Crisis
September 29, 2009:
Toyota issues a warning about
potential brake pedal risks
October 5, 2009:
Toyota launches ad campaign
focusing on commitments to
community, environment and
economy
November 25, 2009:
More than 5 million
cars recalled
Confidential and Proprietary 9
10. Toyota’s New Campaign & Continued Commitments
“We see ways to enrich the community. At Toyota,
building great partnerships is as important to us as
building great cars. It’s why we value being part of
the places where we work and live We employ
live.
locally, partner with area vendors and suppliers and
collaborate with local organizations to better the
community. Can a car company work in harmony
with a community? Why not? To us, it’s all part of
y y p
the big picture.”
Confidential and Proprietary 10
11. “Good Deed” Communication Yields Positive Results
Toyota is communicating about its good deeds the same,
if not more, following recalls:
• 2009: 26 releases about community/philanthropy
• 2010 (first 6 mo.): 15 releases about community/philanthropy
Net
N t sentiment for the brand in 2009:
ti tf th b di
Confidential and Proprietary http://mashable.com/2010/02/22/toyota-brand/ 11
13. Reebok Builds a Goodwill Bank
1986-88: Reebok 1996: Labor and
establishes Human sweatshop crisis
Rights Foundation explodes
and Awards
1996-1997: Reebok
communicates human
rights work throughout
crisis, while Nike is
barraged with criticism
1997-1998: Nike
1997 1998 Nik
continually mentioned
in Reebok media
coverage as the “do
g
not” to Reebok’s “do”
Confidential and Proprietary 13
14. Reebok’s Goodwill Bank Minimizes Negative
Media Coverage
1996 Media Coverage Denoting
“Labor or Sweatshops :
Labor Sweatshops”:
VS.
918 articles 2,348 articles
(mostly positive/neutral, (mostly negative,
mentioning Human Rights mentioning labor
Awards) violations)
Confidential and Proprietary 14
15. Reebok Communicates its Good Work Before,
During and After
Media Coverage Denoting
Citizenship Efforts:
June 1996-June 1997: 142 articles
June 1997-June 1998: 106 articles
“By Wednesday, Nike had placed a full-page ad in The New York Times
regarding the Young report, Bloomberg business wire had released nine
g g g p g
headlines on Nike, and Garry Trudeau had churned out yet another
derogatory Doonesbury strip about Nike's labor practices […] But
Reebok […] is able to go about its business more quietly.”
-The Boston Globe
June 28, 1997
Confidential and Proprietary 15
16. Meanwhile…Same Articles, Different Tone for Nike
“Can’t Just Do It Anymore”
-The Boston Globe
June 28, 1997
“Sweating Over Sweatshops, Nike Fights Bad
Press on Asian Factories”
-The Washington Post
September 30, 1997
Confidential and Proprietary 16
17. Discussion: Did the industry’s
y
crisis strengthen Reebok’s brand
in the long term?
19. In Reaction, Walmart Works to Restore Image
Ad Campaign Counters Accusations;
Healthcare, Wages and Jobs…
“Thousands of new
Thousands
American jobs”
“New Wal-Mart TV Ads Promote Company
Transformation; Spots Highlight Values, Health
Care, Savings
Care Savings, and Philanthropy”
Philanthropy
– Walmart Press Release, August 29, 2006
Confidential and Proprietary 19
24. Guiding Principles
1. Build a goodwill bank before a crisis
takes place
p
2. Continue to feed your goodwill bank
during times of crisis
3.
3 Also communicate about the crisis;
be humble, accept responsibility
4. Be sure your good-deed
communications do not reinforce
perceptions from the crisis
Confidential and Proprietary 24
26. How to Be Ready for a Crisis
1. Risk Assessment
– Media and online audit
– Leadership interviews
– Process and procedural review
2. Crisis Plan Development
– Crisis management team and process
– Activation protocol
– Template materials and tools (statements, fact sheets, “Dark Site”)
– Crisis management guidelines for field employees
3. Media/Crisis Training
– Spokesperson interview training with on-camera interviews and critique
– Staff/field training on crisis plan and reporting process
– C i i simulation exercises
Crisis i l ti i
4. Ongoing Risk Identification & Crisis Management Support
– Media and online monitoring
– Quarterly cross functional risk review meetings
cross-functional
– Risk mitigation and crisis plan updates, etc.
Confidential and Proprietary 26
27. Communicating to Employees in a Crisis
WHAT to Communicate HOW to Communicate
• Top-of-mind concerns • Be as transparent as possible
• Resources for further • Identify appropriate written
information & answers and non-written
• E
Employees not t serve as
l t to communications vehicles
company spokespeople for • Understand the unique
media communications needs, such
• When/where appropriate
appropriate, as translated documents
empower employees with • Create mechanism to gather
communications tools important questions &
• Reassure your appreciation feedback
for their continued • Communicate regularly &
dedication, loyalty, hard provide timely updates
work, customer service, etc.
Confidential and Proprietary 27
28. Mike Lawrence Alison DaSilva
Chief Reputation Officer & EVP Executive Vice President
MLawrence@coneinc.com ADaSilva@coneinc.com
617-939-8328 617-939-8360
Twitter: @Mike Lawrence
@Mike_Lawrence Twitter: @Alison_DaSilva
@Alison DaSilva
www.coneinc.com
www coneinc com
www.coneinc.com/whatdoyoustandfor
Twitter: @ConeLLC
Confidential and Proprietary 28
