Forum: Building success in reputation management and stakeholder engagement

1. Bringing your reputation
management strategies to the
next level
Crisis communications in the social media age

2. Objectives
• Understand reputation management in the age of
social media
• Learn how to identify, detect, prepare and prevent
crisis from escalating and effect damage control
swiftly
• Dealing with media: pro-active engagement,
during and post-crisis
• Learn from case studies of successful crisis
management strategies by local and international
organisations.
• Best practices and how to formulate a crisis
communications plan incorporating social media
governance and policy

3. Jakarta stock exchange floor
collapses, 77 injured

4. Jakarta stock exchange collapses, 77
injured

5. Crisis communications:
A turning point?
5

6. “It takes 20 years to build a reputation and five
minutes to ruin it,” Warren Buffett

7. 7
1. One bad interview can ruin your
company’s reputation
Former BP CEO Tony Hayward made a series of gaffes during Gulf oil spill

8. 2. Perception matters -- media visibility
affects the bottom line
Takata shares plunge as
Honda drops supplier
BP profits slump after
huge oil spill charge
Uber hits back at claims of thousands of rape
and sexual assault complaints
Jury Orders J&J to Pay $72M in
Ovarian Cancer Talcum Powder Case
Volkswagen Shares Dive on
New Emissions Woes

9. Company Crisis
Share price
loss
Union
Carbide
Bhopal 35%
Texaco Discrimination 10%
Coca-Cola
Belgium recall
after children ill
22%
Firestone
High tyre failure
in Ford Explorer
40%
BP Gulf spill 50%
Arla
Offensive
cartoons
50%
Toyota Recalls 50%
A crisis can destroy stock value

10. 10
3. Social media is growing
in reach and influence
• 2.07b monthly active users
• Malaysia: >22 million
• 500m users
• Malaysia: > 3m
• 1.5b unique users/month
• 1b hours consumed/day
• 400hrs of video uploaded/1 min
• 330m monthly active users
• Malaysia: > 2m
Sources: Statista(Q1, 2016), Socialbakers.com, DMR
• 1.3b monthly active users
• Malaysia: 77% penetration

12. 4. Media diet has changed

13. 13

14. 5. You are already a brand ambassador
(so you need to know how to promote your company’s
agenda 24/7/365 to traditional and new media)

15. Case study: AirAsia

17. twitter.com/tonyfernandes

19. Parallel rise with brand

21. Socialbakers.com: Jan 7, 2015

22. In a crisis: Mistakes are made

23. Contrasting crisis responses

24. What does this mean for companies,
brands, spokespersons?
• Social-media savvy activists,
detractors, brand terrorists can
easily organize against your
brand
• Your messaging must be
consistent – internally,
externally, online and offline. But
you can no longer control the
conversations and reactions.
• Transparency, Integrity,
Accountability: The virtues of
corporate governance must be
embraced – all across the board

25. 25
Exercise: 5Ws 1H
Headline:
__________________________________________
(Determine 5Ws 1H, write a headline)

26. 26
1. Prevention/preparation
2. Detection
3. Damage control
4. Recovery
5. Learning
Five states in a crisis

27. 27
Regret, Reason, Remedy
1. REGRET:
• Show genuine concern for victims, express regret,
apologize if necessary but be specific
• Say what needs to be said to victims and their families
• Who can the people affected call?
2. REASON:
• How and why it happened. (Just the facts, do NOT
speculate). If you do not know say you don’t know –
pending investigations
3. REMEDY:
• What are you doing to fix it?
• What resources have been allocated?
• Is the environment secure now? Is the public still at risk?
Is it safe to go there?
• How long is the remedial action going to take?
• When can we hear from you again?

28. 28
When the media calls
1.“We know and here are the
facts.” (Holding statement)
2.“We don’t know everything at
this time. Here’s what we
know. We’ll find out more and
let you know by XX:00 time.”
3.“This is first we have heard of
it - but we’ll find out more and
get back to you.”
Note: Do not hang up or say
no comment!

29. 29
Holding statement: eg. Fire
• Provides the media with an initial statement of
facts that can be used immediately when crisis
breaks
• Answer the four Ws: Who, What, When, Where.
Explain WHAT the incident is. Identify WHO is
involved, tell WHERE and WHEN the incident
occurred, explain WHAT action is being taken to
respond to the incident.
• Do not speculate on the How, How Much or Why
if you do not know the answer yet. When in doubt
leave out.
• DO NOT disclose any names of dead or injured
until next-of-kin is informed. (Reporters may get names
from police or hospital. When you are ready to release names, appeal
to media to respect the privacy of family and relatives in their time of
bereavement.)

30. 30
Example: Holding statement
At approximately 9am today, Jan 24th, 2018, a
fire occurred at _____________.
All our employees evacuated the building safely.
The local police and fire services were alerted
and the situation is now contained.
Our immediate concerns are for the safety and
well-being of our staff and the public and to
minimize the impact to the surrounding area.
We will keep you updated as more details
become available. (Please check our
website/blog or call the hotline_____________)

31. 31
Follow-up statement
• State whether fire is put out, any people injured
and surrounding community is secure.
• Show empathy, regret and appropriate concern for
victims, their families and those affected.
• State that the safety and security of your
customers and employees is always your highest
priority.
• Name the agencies you are working with – eg.
police, hospital, local council, fire department,
hazmat, search and rescue, enforcement – who
are responding to this incident.
• State whether investigations and related follow-up
activities are on-going.

32. Case study:
Watsons Blackface Ad

33. “…fairness plays an
important role”
“We are sorry that
some of our fans
feel offended”

34. Not the first
Maids portrayed with
darkened face, afro hair in
Hong Leong Ad in Hong Kong
Mediacorp fined $5,500 for
blackface content
UOB bank employees pose
with blackfaces for
Bollywood themed dinner

35. 35
Case study: KFC employee
attacks customer

36. 36
Social media amplifies crisis

37. 37
KFC statements
Feb 7, 2012 Feb 9, 2012
Feb 8, 2012

38. 38
Resolution

39. 39
Do the right thing!

40. 40
A few things to remember…
• You are not the only source – police, fire emergency
responders, bystanders are often a larger part of the
story.
• All or nothing on info – you can’t choose what you
want to talk about and what you do. Sticking to key
messages in your statement is often your best bet.
• Media needs conflict. If one side is making noise
and the other is not, the story dies out quickly.
“Fighting” often makes stories longer.
• Internal messages can go external. Just one click
and it goes viral. Make sure it is consistent with
external messaging.

41. 41
ExxonMobil: Helicopter crash
•Helicopter crashes near
platform
•Co-pilot and 19 people
rescued but pilot missing
•Only one victim was from
ExxonMobil, the rest were
contract engineers and
workers.
•Helicopter belonged to
MHS Aviation Bhd

42. 42
First response matters
• People: "We are doing everything possible to
assist the affected individuals and their families
during this difficult time and our thoughts and
prayers are with them," ExxonMobil E&P
Malaysia Inc chairman Liam M. Mallon said.
• Action 1: Take care of victims: “Those rescued
have been brought to the Kuala Terengganu
Hospital for treatment. Their condition is reported
to be stable.”
• Action 2: Investigate cause: “We are providing
them (contract companies) our full assistance and
cooperation. All relevant authorities have been
notified. A full investigation will be initiated.”

43. 43
Remedial action taken
• Action 3: Work with allies: “The Department of
Civil Aviation and Malaysian Maritime
Enforcement Agency are leading the search and
rescue efforts for the missing pilot.”
• Action 4: Secure environment: "We will stop
chartering all Super Puma used for our operations
in Malaysia until further notice.”
• Action 5: Set up hotline: “Family members and
interested parties can call 03-2380-3677/ 3679/
3675/3635 for details.”
• Action 6: Helped in recovery: 3 days later
unmanned deep-sea remote operated vehicle
(ROV) owned by ExxonMobil found the pilot’s
body still in wreckage.

44. 44
Spokesperson tip: Ambush interview
• Be calm
• Don’t take it personally
• Don’t get angry or lash out
• Do not guess or speculate
• Get name and phone number of individual reporter
• Offer to be accessible as soon as you know the facts

45. Crisis case studies: Dealing
with hoaxes, rumours, false
news, brand terrorism

46. 46
Emails you don’t want to receive
Dear Maybank Customer,
Serious security treat in your account. Follow below reference to reactivate now.
http://www.maybank2u.com.my/active.asp.html
Yahoo! Mail gives members random cash prizes. Today, your account is
randomly selected as one of 5 top winners
I AM PRINCE DESMOND OKOTIEBOR ETETE. THE NEXT HEIR TO THE THRONE OF THE OIL
RICH KINGDOM OF THE OGONI COMMUNITY. I HAVE A HUGE AMOUNT OF MONEY
PRESENTLY IN THE PALACE.THE FUNDS WERE REALISED FROM OIL ROYALTIES THAT WAS
PAID TO MY LATE FATHER. I NEED YOUR URGENT ASSISTANCE IN TRANSFERRING THE SUM
OF US$330 MILLION IMMEDIATELY TO YOUR ACCOUNT.

47. 47
Verifying information

48. 48
Hoax: Ericsson free phone offer
• An email promising a free handphone from
Swedish telco giant Ericsson
• Those who forwarded the email to 8 friends
would receive a free Ericsson T18 handphone
within two weeks. If forwarded to 20 friends,
senders were promised "a brand new
Ericsson R320 WAP phone."
• Reminded the recipient to send a copy to
Anna.Swelund@ericsson.com of Ericsson
Marketing.

49. 49
• Contacted Peter Bodor, PR manager of Ericsson
Mobile Communications who confirmed the chain mail
is hoax. No person named Anna Swelund in
company.
• The company has received about 1,000 emails,
mainly from Europe, and also from the US and Asia.
Did not crash its server.
• This was not the first time Ericsson was hit by such
chain letters, and that other companies like Nokia,
Microsoft and Disney were similarly affected.
• Ericsson posted a notice on its website advising
people to discontinue forwarding the email and
apologized for the inconvenience.
• Link: http://www.trinetizen.com/archive/?p=113
How to kill a hoax

50. Fake or real?

51. Fooling the public is an agenda

54. Stem the fakery

56. 56
Case study: LRT 2012 Old pic from
2006 posted as new
• Be ready to act fast, get ahead of the rumour mill

57. 57
The problem with Internet rumours
• Difficult to identify source.
• Can’t tell how widespread.
• If you choose to ignore, it may go viral.
• If you choose to fight it, it may attract more
attention.
• If partly true – “where there is smoke there is fire”
– a denial may seem insincere and fan the
flames.

58. 58
Strategies for fighting rumours
1. LOW-KEY: If source identifiable: disgruntled
employee, irate customer, jealous competitor, then
deal with it internally without publicity, if possible.
2. F2F: Engage and neutralize face-to-face: Often
those hostile online, can be less prone to spread
rumours once confronted.
3. COUNTER: If it can cause serious damage and
has already gained traction publicly -- even if
source is not identified -- it’s best to get your side
of the story and facts out.

59. 59
The radio silence strategy
+ve
• The best crisis case studies are the ones you
never hear about.
• Time may resolve the problem on its own without
your intervention.
• Sometimes a little goodwill can go a long way.
-ve
• Doing nothing is always highly risky. You never
know when a rumour may become viral online.
• Critics with long memories may point out how you
were silent before.
• A lack of information fuels anxiety rather than
defuses it.

60. 60
Coca-Cola fights myths online
http://www.thecoca-colacompany.com/contactus/myths_rumors/

61. Staying engaged:
Managing media

62. Case study:
United Airlines

63. Passenger removed by force

64. Timeline of crisis
• United needed to make room on a full plane for four of its
employees.
• United selected four passengers and offered vouchers
and a hotel stay.
• One selected passenger, Dr David Dao, who had paid for
his flight and was sitting on the plane, did not want to give
up his seat.
• Three security agents yanked the passenger out of his
seat and violently dragged him out of the plane.
• United CEO Oscar Muñoz issues statement describing
the incident as "re-accommodating" passengers and leak
email to staff called him “disruptive and belligerent.”
• Videos of assault of Dr Dao went viral
64

65. First tweet

66. Anything internal can go external

67. New videos emerge

70. Doxing

73. Press conference lawyer, daughter

74. United CEO interview with ABC

76. 76
Case study: Dell vs Sony

77. 77
Dell laptop explodes
at Japanese conference
By INQUIRER.net newsdesk: Wednesday 21 June 2006
An Inquirer reader attending a conference in Japan sat
just feet away from a laptop computer that suddenly
exploded into flames, in what could have been a
deadly accident.
Gaston, our astonished reader reports: "The damn thing
was on fire and produced several explosions for more
than five minutes"…
For the record, this is a Dell machine," notes Gaston.
"It is only a matter of time until such an incident breaks
out on a plane," he suggests.
Our witness managed to catch all the action in these
amazing pictures….

78. 78

79. 79

80. 80
Good news, get it out fast
Bad news, get it out faster*
*Caveat: Assess, verify, confirm
If in doubt, leave out.

81. 81
Dell to recall 4 million
laptop batteries
CNET News.com,August 14, 2006
Dell and the U.S. Consumer Product Safety Commission
plan to recall 4.1 million notebook batteries on Tuesday, a
company representative confirmed.
The recall affects certain Inspiron, Latitude and Precision
mobile workstations shipped between April 2004 and July 18,
2006. Sony manufactured the batteries that are being
recalled, the representative said.
This looks like the largest battery recall in the history of
the electronics industry, said Roger Kay, an analyst with
Endpoint Technologies Associates. "The scale of it is
phenomenal."

82. 82
Sony delays response,
problems deepen…
• Aug 15, 06: Dell recalls 4.1m batteries
• Aug 24, 06: Apple recalls 1.8m batteries
• Sept 15, 06: Virgin Atlantic, Qantas and
Korean Air ban use of Dell and Apple laptops
on board its planes, unless the battery
removed.
• Sept 28, 06:Lenovo/IBM: 526,000 batteries
• Sept 29, 06:Dell increases recall to 4.2m
• Sept 29, 06:Toshiba recalls 830,000 batteries

83. 83
ThinkPad explodes in LAX airport, posting on
Gizmodo.com, Sept 16
“So we're waiting for a flight in the United lounge at LAX, this guy
comes running the wrong way, pushing other passengers out of the
way and quickly drops his laptop on the floor. The thing
immediately flares up like a giant firework for about 15 seconds,
then catches fire….”

84. 84
Charred remains of IBM
notebook on terminal floor

85. 85
Crisis Escalates, Goes Viral

86. 86
Sony finally responds…
Sept 30, 2006: Sony finally announces
global recall of 9.6 million PC batteries.
The recall and replacement would cost as
much as 50 billion yen (about US$423
million).
…but profit plunges 94 percent for July-
Sept quarter

87. Dell’s Response Post-mortem
• Determines cause – battery supplier, executes
costly remedial action with safety in mind.
• Liaises with authority: Works with U.S.
Consumer Product Safety Commission to
announce global recall of 4.1 million laptop
batteries.
• Used website: Sets up recall website for
customers to check affected units.
• Assures safety: Guarantees replacement
batteries are safe.
87

88. 88
'Alien' substance caused Dell
notebook battery to ignite
By Julian Matthews, ZDNet Asia October 23, 2000
KUALA LUMPUR – An 'alien' substance was mixed into the
production process of the battery that caused a Dell customer's
notebook to burst into flames and prompted a recall last week.
"As a result of analysis, we defined the cause of the short circuit
that occurred in one cell was due to mixing of an alien substance at
one production process," said Yoshiyuki Arikawa, a spokesperson
of battery-supplier Soft Energy Company, a unit of Japanese
consumer giant Sanyo Electric Co Ltd.
In the e-mail response to ZDNet Asia, Arikawa did not define what
the 'alien' substance could be or how it entered the production
process…
Arikawa added, "The defect rate should be very small since it’s a
specific occasion and (went through) normal inspection process
after. The defect is limited only to the 27,000-set lot to Dell."
Dell Computer recalled the 27,000 batteries with a promise to
replace them free of charge….

89. 89
The Concept Of
P.E.A.R
In Crisis Communications

90. 90
 Safeguard People
 Protect the Environment
 Protect company Assets
 Protect company Reputation
Response In A Crisis

91. 91
• Dell alerts customers,
warns of danger, sets up
website for recall &
replacement
• Dell continues to work
with safety authorities to
monitor the situation
• Dell expresses
confidence in Sony and
safety of its products to
customers and
stakeholders
• Dell takes ownership,
shows customers it
cares
• P = Safeguard
PEOPLE
• E = Protect
ENVIRONMENT
• A = Protect ASSETS
• R = Protect
REPUTATION

92. 92

93. 93
Sony execs’ bow not deep enough?
“We want to put this
behind us. I take this
problem seriously and
I want to finish the
replacement program
as quickly as possible
for the sake of our
users and corporate
customers,”
Corporate Executive Officer
Yutaka Nakagawa, Oct 24,
2006

94. 94

95. 95
Social Media Listening Command Center

96. Crisis communications reactions
POOR
Defensive – take it
personally
Decline to comment
Deny or lie
Deflect – taichi, play
blame game
Downplay
BETTER
Accept – that it has
happened
Acknowledge – to those
affected, media, public
Assure – show you care,
calm fears
Apologize (if you have to)
and be specific, express
regret, suggest remedy
ACT – assess your allies,
plan your action, act out
your plan
96

97. Preparing and rehearsing skills
• Ensure everyone on same page
• Understand their responsibilities
• Can execute their role effectively
• CEO and a deputy
• Local/ regional GMs/MDs
• Six-monthly refresher
• Simulate crisis rehearsals
• Involve all teams and departments
• Partner organizations if appropriate
• Access performance and fine tune
Training for comms team
Media training for spokespeople
Simulation for all teams

98. 98
 Consider People, Environment, Assets, Reputation
• A crisis communications plan offers guided response but it
must be adjusted according to the situation or how the crisis
escalates.
• Act quickly, search for details, verify allegations, launch
investigation
• Assess allies, call in your experts; notify affected parties,
authorities and higher ups
• Show you care, don’t over-react or take it personally
• Openly and quickly share the facts with the public online.
Formulate key messages. Stick to them. Prepare a statement
and stand by it; when in doubt, leave out. Accept
responsibility when you are at fault
• The best crisis case studies are the ones you never hear
about.
Summary

99. Thank you
Julian Matthews
012-9159528