While certain claims about the impact of the Internet may be exaggerations, few would argue that it has not fundamentally changed the way we think about and manage our business. Surprisingly little has been said or written about the threat that the Internet represents by creating events or crises that can harm a company’s reputation and its ability to carry on business. Nor has much been said about how a company can use the Internet to manage a crisis. In fact, there are three ways in which the Internet can play an integral role in crisis management:
As a crisis “trigger”
As a stratagem used by advocacy groups to organize opposition to corporate initiatives
As a valuable weapon in a company’s arsenal for managing crises
One recent product contamination case illustrates just how instrumental the Intranet can be in creating - and managing - a crisis. Recently, questions were raised in the European media about how a particular company had handled accusations of product contamination.
The questions focused on the company’s sluggish reaction to how the story was being discussed and spread on the Internet. That story began to build one Friday last June, when a search on DejaNews found that many discussions were under way about the “poisonous” consequences of ingesting the company’s product.
(DejaNews tracks and catalogues on-line dialogues in more than 75,000 chat and news groups.) On the uk.food+drink.misc forum, a consumer wrote that his son had become sick after ingesting the beverage in question. This was picked up by an activist on the mis.invest.stocks forum, who quoted a PR executive as having said, “There is no health risk” in drinking the beverage. (By the way, the writer could be categorized as an activist because tracking the “thread” of the writer’s commentaries revealed that he or she had posted more than 200 messages on such forums as alt.rush-limbaugh and alt.impeach.Clinton.)
That same Friday, the company’s web site made no mention of the possible health hazard and it still hadn’t one week later. It had posted a news release that questioned the validity of the concern. However, the company didn’t post anything about what it was doing to resolve the problem, the nature of the contamination or what people should do if they had ingested the “contaminated” product.
Unfortunately, the company missed an opportunity to use an important medium to communicate with customers, regulatory authorities, politicians and the media. This example also underlines how the Internet has become a forum for the disaffected, the angry and the concerned to reach out to others, and to find common ground with other complainants and organize dissent.
CRISIS MANAGEMENT AND THE INTERNET
THE INTERNET AS A CRISIS “TRIGGER”
The Internet can create a crisis in a variety of ways - through rumours, hacking and other forms of cyber-terrorism - whether intentional or not, such as through the relatively benign actions of bored computer geeks. There are now crises that start and exist only on the Internet, or, in the worst case, quickly become the stuff of mainstream news. Many of these are the actions of an angry employee or a customer that vents frustration by creating a parody or “shadow” web site.
RUMOURS
Internet rumours already have a relatively long history. Some are now the stuff of web legend, such as Intel’s misstep about the computing integrity of the Pentium chip, for example. Other cases are on their way to becoming similar classics. A rumour that Phil Condit of Boeing was about to step down or be dumped by Boeing’s board caused Wall Street to take notice and analysts of question the financial strength of the company (although the stock actually went up on the rumour!). One particularly damaging practice is short-sellers’ use of Internet forums such as Yahoo’s bulletin board to force a company’s share price down.
There are two reasons why rumours that first appear on the Internet are becoming a problem for many companies. First, because they appear in virtual “print,” they are deemed to be truths. And sometimes, they are taken as truth by mainstream media, which gives the rumour an audience well beyond the reach of the Internet.
A rumour that starts and remains on the Internet will not have the same impact. But when a rumour is reported as news by mainstream media, it can develop into a crisis of confidence or credibility for companies and organizations. However, not responding to a rumour reassuringly means that credibility can be called into question, no matter how unjustified the claim or accusation. And credibility questioned on the Internet can be just as harmful as integrity questioned by a major shareholder at an annual meeting.
A company’s public or corporate affairs department should have a specific program in place to deal with Internet rumours. That program should include:
- Identifying and monitoring web sites which could take an interest in the company’s products and services, especially web sites of disgruntled employees or advocacy and special interest groups
- Monitoring on-line news services and renegade newsletters (The Drudge Report, for example)
- An action plan which includes:
- a means of responding quickly and authoritatively with clear and open messages and factual information about the subject of any web-based rumour
- steps to line up your allies so that you can challenge rumours on your turf
- using your own web site to clarify rumours and ensure that employees are kept informed about your efforts to challenge them
HACKERS
Hacking usually refers to the actions of individuals who create viruses, threaten networks’ security or break applications’ security. Hackers use a variety of techniques including “denial of service” attacks, which send so many requests for web pages to a server that the server crashes… or mail bombs, which target a victim’s mail server and also cause it to crash. The consequences, of course, can be major.
In fact, many hackers simply try to crack networks to see if they can do it. As Emmanuel Goldstein, editor-in-chief of the 2600: The Hacker Quarterly, describes it, “Hackers, in their idealistic naïveté, reveal the facts that they discover without regard for money, corporate secrets or government cover-ups. The fact that we don’t ‘play the game’ of secrets also makes hackers a tremendous threat in the eyes of many who want to keep things from the public.” Although virus scanners and well-enforced security measures are a defence against hackers, the very existence of security systems provides the challenge that motivates them. Given this, you can always try something different: For example, if you can find out who the hackers are, arrange a meeting with them and discuss their concerns or their motivations. After all, in most cases, their actions aren’t those of terrorists, but of “adventurers,” trying to be the first to find a particular weakness in a computer system.
SPOOF, COPY-CAT OR ATTACK SITES
Web pages set up by people who want to vent criticism or right a perceived wrong are known as spoof, copy-cat or attack sites. Some examples are those targeted at Mercedes-Benz (www.mercedesproblems.com), purported bad service at United Airlines (www.untied.com), and “mismanagement” of U.S. national parks by the National Park Service (www.nps.org).
These sites are usually launched by disgruntled former employees or people with an activist political agenda. Such sites can become more than just an annoyance, especially when they direct people to your site with complaints or publish the home phone numbers of your senior executives.
What can you do?
Prepare rebuttal pages for your own web site that directly answer charges on the spoof or attack site - Offer to discuss - or attempt to resolve - the underlying cause of the dissatisfaction with the web originator, especially if he or she is an angry ex-employee or dissatisfied customer
Register all possible domain names, especially ones that lend themselves to negative connotations
Consider legal action. For example, if a web site copies your logo, it may infringe your copyright
Attempt to persuade the ISP to shut the site down if it is making slanderous or questionable accusations
Remember, dealing with a minor problem or one that clearly distorts your corporate behaviour when it first appears may prevent an irritant from becoming a full-blown plague. Act quickly; take a stance and provide the facts before they are distorted.
ORGANIZING ADVOCACY ON THE INTERNET
Advocacy groups are far more assertive in their use of the Internet than many companies and organizations. The Council of Canadians, for example, is now recognized as having guided global opposition to the Multilateral Agreement on Investment, in large measure through the Internet. More recently, Greenpeace, the Council of Canadians and the Sierra Club launched a campaign to eliminate genetically modified crops and to urge the federal government to mandate labeling of genetically modified foods. Their campaign did not begin on the Internet, but as it swung into high gear, the organizations began to use their web site to communicate among themselves and to organize support.
In October 1999, the youth division of the Sierra Club coordinated what is called its “Days of Action,” leading up to a Halloween celebration on the Sierra Club web site. Though their actions failed to attract much media attention, the organizing technique they used is becoming increasingly common. Activists were provided with draft letters, draft media statements and recommendations on guerilla theatre tactics. Contact information was also provided for supporters who wanted to write letters to politicians or the presidents of grocery chains.
In general, Canadian advocacy groups are more advanced than most corporations when it comes to using the Internet as a tool for managing public and internal communication. Very few industry coalitions have recognized the benefit of coordinating reaction to advocacy and special interest group actions using intranets, for example, although such sites can usually be activated very quickly.
In the case of genetically engineered food, an industry coalition used a sophisticated, detailed intranet to do what activist groups do so well: Keep coalition members informed with news reports, action plans, templates and reports on events and media interviews of interest to all members.
There is little a company can do about advocacy group sites, except to keep very close - even daily - track of the current news and action update sections of activist web sites that may affect your company or organization.
THE INTERNET AS A TOOL FOR MANAGING CRISES
Canadian companies are not far up the learning curve when it comes to harnessing the Internet to manage information flow during a crisis. There are many reasons why they should be, not the least of which is the fact that the media is increasingly using the Internet as its first source of information about a company in crisis. To get background for their stories, reporters are increasingly turning to a company’s web site. Reporters expect a company or organization’s web site to be a source of this information. This expectation can benefit companies if they react quickly on their web site or include rapid web response as part of their issue or crisis management planning.
WEB MONITORING AND TRACKING
Active monitoring of news and chat groups, activist web sites and on-line news services should be the starting point for Internet-based management of issues or crises as they unfold. Any company or organization that anticipates public scrutiny should frequently monitor a variety of sites. Analysis of on-line commentary could provide early warning of events, opinions or beliefs that could damage a company’s reputation. Issues that are raised in their public forums need to be classified and ranked to indicate their importance. Appropriate response should be developed, even if the response is to take no action.
RAPID-RESPONSE WEB SITES
A Rapid-Response web site is a microsite designed to centralize and control information flow during a special event or transaction. Developed for a specific situation, the site provides immediate, accurate and comprehensive information that is managed by the company sponsoring it. During a crisis, the site can provide reliable information to the public and the media through postings of news releases, emergency response updates and contact numbers. It can even become a virtual “newsroom” and a means of holding real-time news conferences for national or international media. The web pages can be mocked up in advanced and kept “dark” until they are ready to be activated if a serious, negative event occurs.
CRISIS COMMUNICATION MANUALS ON INTRANETS
Most large organizations have a crisis communication manual, usually a binder stored somewhere in the communication department cupboard and updated irregularly. Very few - if any - companies have recognized the payback possible from an on-line crisis communication manual stored on the company intranet that can be accessed by the emergency response or crisis team. Intranet-based crisis communication manuals can:
- Be easily accessed and updated
- Include detailed background information cumbersome to maintain and update in hard copy
- Include easily accessible databases and comprehensive media and stakeholder e-mail lists
- Facilitate the rapid dissemination of media releases, stakeholder updates or announcements by web-ready electronic lists
USING THE INTERNET DURING A CRISIS
The Internet is an extraordinarily powerful and flexible means of communicating, both within a company or organization and to its many audiences, including stakeholders, shareholders and the media. Used properly, a company’s web site and its intranet can become the focal points for effective communication with external and internal audiences.
CRISIS MANAGEMENT AND THE INTERNET
In a crisis, the focus of a company’s communication activities should be the events during the crisis. The public, shareholders and media should not have to search through various web layers to find information about the crisis, especially if it has a broad impact on the public. The events should be front and centre on the home page. More than that, and especially if the crisis affects different audiences, the company’s web site can become the central means of communication. One good example exists for natural disasters in the U.S. where regional authorities have posted information on emergency response plans and actions on the web. By using the web site in this way, a company demonstrates that it is committed to rapid, sensitive, ongoing and reliable communication during a crisis.
The Internet is still a largely untapped resource for managing issues or dealing with crisis events that can damage a company’s ability to carry on its business. There is enormous potential for an organization’s web site to become the central pathway for communicating with concerned and angry publics.
There are nine basic ways to be sure that your company or organization is web-ready for a crisis:
1. Have an Internet plan in your crisis communication manual.
2. Plan to use your intranet as a virtual crisis command centre so that crisis team members, senior executives and other employees can be updated on your emergency response program and plans.
3. Regularly monitor appropriate news and chat groups, advocacy group web sites and on-line news services.
4. Include an IT expert or web specialist on your crisis team.
5. Become familiar with the way issues and rumours develop, migrate to and escalate on the web.
6. Practice downloading and transferring documents, pictures, video and audio on to your web site.
7. Consider Rapid-Response web pages that can be activated when needed, complete with templates (holding statements, company backgrounders, fact sheets, media contact forms, etc.)
8. Plan to use your web site to update the public and the media during a crisis by posting statements, FAQs, speeches and photographs.
9. Maintain an e-mail database of key media and stakeholders so that information can be “blasted” to them quickly.
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Crisis Rules
RULE ONE
Take Responsibility. This is not the same as accepting blame. The fact of the matter is, if your name is on a toaster, for example, it doesn't matter whether the company that made the connections for it caused the toaster to blow up. Your name is on the product, so you're responsible. Your brand equity is wrapped up in the logo and people want to know what you're going to do about it. And people want you to accept responsibility, whether you're actually to blame for it or not. There is a difference. The public wants companies to step up to bat and accept responsibility.
RULE TWO
Recognize the difference between bad publicity and a crisis and calibrate your response accordingly. If you have a bad or embarrassing story in the paper, even if it is about an incident that is somewhat embarrassing, it doesn't mean that it's a full-blown crisis. It could very well be bad publicity that will blow over. You can make it worse by overreacting and creating your own publicity, giving a dying story new life. So recognize the difference and get some help in recognizing that difference.
RULE THREE
Use research to determine how to respond. One of the most effective things that we do is use polling to understand what consumers are thinking about a particular crisis situation and what they think the company ought to do. A lot of times we've used research data to plan a response. And a lot of times we'll find that what the company thinks is a crisis is indeed only bad publicity and you get to that conclusion by doing research.
RULE FOUR
Recruit and use third parties to speak on your behalf. Third parties are becoming critically important. Given the landscape that shows lack of trust on the part of large institutions like big business, it is very important to have other people, hopefully friends, saying the things you want to say about yourself. They are more credible than you are.
RULE FIVE
Treat the media as conduits, not enemies. Again, they've got a job to do. You can do one of two things. You can hunker in the bunker and let them use other sources, hostile third parties, people with axes to grind, bones to pick, people who have an interest in giving you trouble - or you can deal forthrightly with the media yourself. We advise the latter.
RULE SIX
Assume you'll be sued. It doesn't make any difference what you do, how you act, whether you accept blame, take blame, take responsibility or don't take responsibility, you are going to be sued. So the issue will then become, how did you behave and what was your conduct all about? We have been in situations where the way a company handled the crisis and how it behaved enabled that company to avoid punitive damages in a lawsuit. So, again, openness in communications can actually help you in the litigation process. But assume you're going to be sued and don't act on the basis that somehow you can avoid it.
RULE SEVEN
Watch the Web as closely as the traditional media. Forty million people out there could be chatting away about your situation, spreading information or misinformation. So you must have an Internet monitoring service in place to make sure that you're seeing not only what the traditional media is saying, but also what's going on in chat rooms and on the Web.
RULE EIGHT
Demonstrate concern, care and empathy. You want to be sympathetic. You want to empathize. People will not listen to your rational arguments about what happened and why it happened until you get past the emotion of the moment. And the way to do this is to empathize with the people who have been affected.
RULE NINE
Take the first 24 hours very, very seriously. You might do all the right things, but the perception of your company and how you manage the crisis is shaped in the first 24 hours. For example, one company alleged that an investigation against them was politically motivated. During the critical time period, they used an outside attorney to be their spokesperson as opposed to speaking on their behalf. For all the good that the company did following that first 24 hours, its reputation was already damaged and the perception of how it handled that crisis was framed by what was done and said in the first 24 hours.
RULE TEN
Begin your crisis management program right now by doing the things you need to do to build your reputational assets. Corporate reputation does matter in a time of crisis.
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Further reading
Corporate Social Responsibility
http://www.hillandknowlton.ca/assets/csr_brochure2003.pdf
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