BadNewsHandbook.com by Steven Silvers
I was speaking at a legal workshop when a general counsel asked about evading reporters to delay or kill a negative story. Isn't it best to refuse to communicate with news media until all the facts are known, he asked, and there’s some “good news” to tell?
No. You can’t stop media from reporting a legitimate breaking news story any more than you can push water uphill with a fork. Not only do your pants get wet, but you look like an idiot.
What drives media coverage of your company's crisis or controversy is being first with the headline, and then being first with new information as the situation unfolds. An editor or producer has no obligation to include -- much less wait for -- your company's spin of the story.
In the analog days, we'd say that a story didn’t have to be complete because “there’s always another newspaper tomorrow.” Then we’d wait for it on the porch while enjoying our Tab and Space Food Sticks.
Today, however, updated and expanded versions of a story are delivered as fast as it takes to upload. Confirmations and clarifications, new discoveries, allegations, comment strings, Facebook posts, Tweets and real-time video spread across the ether with mind-blowing speed to form an information ecosystem that didn’t exist only hours before.
Not responding to a negative news story means you're adding another layer of risk to your company's reputation. You leave it to reporters to discover details you don’t have or don’t want to share. Information and speculation get rushed into the narrative, regardless of accuracy.
In most cases you prolong the bad publicity you were trying to avoid.
One more thing. The more obstinate your company in not responding to bad news, the more it becomes part of the story -- even the more damaging PR crisis.
Does that mean you must have answers to every question? Of course not. But there’s a huge difference between hiding under the desk and making a sincere effort to explain what you can and can't discuss. Engaging news media with sincerity during an emerging crisis -- including why you can't comment -- is a credibility factor. You may even get some breathing room to put new information in your context before it goes live.
The rule is the same whether you’re dealing with good or bad news: Say only what you know to be true.
But say it. Your company will be better for it.
Government, media and public reaction to Yahoo's massive data breach could do for cyber-privacy what The Jungle did for the meat-packing industry.
Congresspeople are again calling for a notification standard requiring consumers to be told about a data breach "in a more timely manner," a phrase that means nothing until lobbyists and activists representing a dozen different agendas fight it out. But there will be some form of federal regulation, where none exists currently.
Read on below about the four considerations that make cybercrime a uniquely complicated corporate PR crisis:
Bad News Handbook -- With cybercrime against U.S. corporations increasing beyond already epidemic levels, its victims remain largely ambivalent about when, why and how to communicate about it.
According to the advocacy group Privacy Rights Clearinghouse, U.S. companies have been hit with more than 2,600 significant network hacks and breaches since 2010. Yet the Wall Street Journal reports that in that same period, barely one percent of all publicly traded corporations disclosed any cyber-crimes in their Securities Exchange Commission filings – an apparently glaring contradiction in this era of hyper-transparency.
For some of these companies it’s also a precarious position. Consider the potential fallout should a company be forced by events or law to disclose a significant data breach, which in turn unveils previous incidents that were kept hidden from investors and customers.
So why are so few companies not communicating beyond what's required by current disclosure regulations? Here’s one reason: As a reputation risk management problem, a network hack or data breach constitutes a uniquely complex corporate PR crisis:
It’s no wonder that senior execs are more concerned with managing cyber threats than with almost any other risk to their companies’ reputations.
And it’s why many tried-and-true rules for crisis communications no longer apply.
(CorpComm Blog) How'd you like to slog off to work every morning knowing that your customers don’t trust you? That sums up the life of local journalists, say two recent reports. Here’s why it matters: Because it will likely skew how your town's news media cover your company’s next PR crisis.
A recent Gallup Poll found that barely three out of every ten Americans trust what they see in the news. And on CareerCast’s 2016 list of the 200 worst jobs, newspaper reporter ranked dead last, with broadcasters taking bragging rights for being only the nation’s third-worst career. The annual list takes into account working environment, income, growth potential and stress factors.
Of all which means that too many local reporters are overworked, underpaid, unappreciated and isolated in newsrooms that have neither time nor money to let them truly engage and understand the arenas they cover – especially the business world. This can lead to a fatalistic, cynical view of the world that steers even talented reporters down the path of least resistance, characterized by shallow, clichéd conflict stories that provide inaccurate or no context, and that give equal weight to any “contrasting” source, no matter its lack of credibility.
For companies responding to complex crisis situations, this dog-tired and formulaic approach to journalism can result in undeserved damage to their hard-earned reputation.
While it certainly doesn’t exist in every market, it’s important to anticipate this predisposition to fast-food local journalism, especially if your company’s crisis communications strategy is to speak with reporters. The best way to prepare -- aside from knowing your facts, messaging and how to handle interviews -- is to deliver as much concrete, articulate information as possible. Dish it up on the proverbial silver platter in easily digestible portions.
A seasoned and solid journalist will appreciate the directness, which will help ensure an accurate story. And for the over-worked and disconnected reporter, the closer you approach “add water and stir,” the better the chances the resulting story will accurately represent your company's position. Quite often it’ll be included verbatim.
What’s happened to local journalism – and especially local business reporting – is tragic. But the unvarnished reality is that today’s lean media environment, with its ratings pressures and “pay by the click” compensation, forces many local reporters into being glorified stenographer-provocateurs looking for edgy or emotional angles.
Be aware and ready.
(BadNewsHandbook.com) -- Brand and reputation. It’s a critical distinction that drives a company’s ability to minimize the impact of its next public relations crisis.
Brand is how your company talks to the world.
Reputation is how the world hears your company.
Some people say reputation and brand mean the same thing. But that’s like saying the pitch and the swing are the same because they’re part of the same baseball game.
Closely related, but very different.
Reputation risk management is a paradox. On one hand the company's reputation is its most important asset. On the other hand it is the asset most vulnerable to damage by conditions largely out of the company’s control.
A brand is a promise, but more than just deliverables. It’s what the brand’s owner needs people and institutions that matter to believe to be true.
Reputation, on the other hand, is what stakeholders and influencers actually believe. It's a mix of personal experiences and influences, all weighed against motivations that drive every decision to trust a brand, buy a product or support an idea:
The wider the gap between a company's brand and reputation, the more potentially damaging a controversy or crisis.
But the more a corporate and brand reputation jive with what stakeholders want to believe, the stronger the company’s ability to navigate and even prosper through bad markets, complex public issues and crisis events. It’s no wonder that companies with solidly good reputations have market caps of 30 to 70 percent more than their book value.
Illustration courtesy Huffington Post.
Influence Chronicles Blog
Field notes on the forces and sources of public truth.
Influence Chronicles blog and executive e-letter are published by SilversJacobson, a corporate reputation and crisis management firm based in Denver and Washington, D.C. Call anytime at (720) 645-1164.
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