InfluenceChronicles.com -- 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.
InfluenceChronicles.com -- 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. Why it matters? Because it impacts how your local newspaper or TV Action News Team covers your company’s next crisis.
A 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.
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 leads 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 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 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.
InfluenceChronicles.com -- When Facebook deleted the iconic “Napalm girl” photograph because it violated policy on showing nude children, the Norwegian newspaper editor who posted it wagged a sanctimonious finger at CEO Mark Zuckerberg.
"The media have a responsibility to consider publication [of stories] in every single case," wrote Espen Egil Hansen, editor at Norway’s largest newspaper, in an open letter to Mr. Zuckerberg. "This right and duty, which all editors in the world have, should not be undermined by algorithms encoded in your office in California."
Facebook allowed the photo after members around the world protested -- underscoring the power of social media communities to police themselves. The outcome was as it should be.
But in reporting the reversal, most news media -- some treating the controversy like it was another Scopes trial -- failed to clarify that the commercial Norwegian newspaper was using Facebook first and foremost as a free marketing and publicity tool. “You are offering us a great channel for distributing our content,” Hansen wrote. “Even though I am editor-in-chief of Norway’s largest newspaper… you are restricting my room for exercising my editorial responsibility.”
It's doubtful that Mr. Hansen read through Facebook's investor prospectus to find where it says the company is beholden to his “exercising of editorial responsibility.” Because it's not there.
Here's the thing about the internet. Over time, the relationship between social and news media will either achieve mutually-beneficial equilibrium or reshape itself completely -- just like what happened with personal home pages and other content aggregation platforms. Mr. Zuckerberg sees this as making Facebook the "perfect personalized newspaper for everyone in the world."
However things play out, we should be cautious about holding Facebook and other corporate-owned social media services accountable for not behaving like the news journalism companies they aren’t.
Delivering the milk doesn’t make you a cow.
InfluenceChronicles.com -- Five takes on EpiPen, virtual reality, surrender ceremonies, Roger’s fall and how Donald Trump’s campaign is like one very long Twitter feed. I don't know, but that is what people are telling me, it’s so beautiful. Really really something. And it’s going to be amazing, believe me.