Why so important? !! " Journalists and analysts are likely to break the news of misreported earnings.!! " Shareholders are likely to bring class action lawsuits against the company.!! " Security and Exchange Commission (SEC) is likely to investigate the case.!
Why so important? ! CE is facing one of the ! greatest threats ! in its history! !
Aim of crisis communication !Build good relations with all related stakeholders, mitigate reputation damage.!
Aim of crisis communication !Even if the possibilities come true, reduce lost to the minimum.!
Who are the key stakeholders in this event? !! " Media!! " Wall Street Analysts!! " Brokers!They decide all the other stakeholders’ thoughts.!
Who are the key stakeholders in this event? ! ! " Investors! ! " Board members ! ! " Employees! ! " Stockholders! Their support will help us come through this crisis.!
Who are the key stakeholders in this event? ! ! " Government and regulatory agencies! ! " Customers and suppliers! Maintaining credibility among them is the key.!
What shall we tell them? !Corrective Action!! " We are launching an internal investigation to determine how this occurred. !! " We are creating stringent guidelines and policies to prevent this from happening in the future.!! " We are committed to investigating the matter thoroughly and taking immediate action as appropriate. !
What shall we tell them? !Mortiﬁcation!! " Regardless of how this happened we are sincerely apologetic for the oversight and consequences that have occurred as a result.!! " ConsoE is extremely concerned about this matter and look forward to having the issue resolved in the fastest manner as possible, for the beneﬁt for the all parties involved.!
What shall we tell them? !Bolstering!! " ConsoE has a strong commitment to the most honorable relationships with its investors. !
What shall we tell them? !Internal Message/ Image Restoration!!" Educate employees on media relations’ procedures. !!" At this moment no jobs will be affected by this situation.!!" We will communicate information regarding 401(k) and other employee stock options as it becomes available. !!" We are working to restoring the reputation of the company.!!" Until further notice business should continue as usual. !
How can we save our company? !! " Chairman of the board should make clear that ConsoE will fully cooperate with any investigations!! " Set up audit committee!! " Determine company solvency (restate ﬁnancial results) !! " Speak with legal council before speaking to press!! " Communication that actions were the result of a mistake!! " Create constant contact with ﬁnancial community!
When shall we do this? !Timing Message Medium Evaluation9:00am Top management meet Face to face Ensure that speciﬁc with legal advisors to responses to any media determine what inquiries are agreed information will be upon disclosed to public10:00am Invite all shareholders to Telephone RSVP teleconference11:00am Top management debrief Face-to-face Management feedback to supervisors in their communications unit respective units conﬁrming they have debriefed supervisors12:00pm Supervisors meet with Face-to-face Supervisor feedback their respective regarding employee employees to provide concerns/questions essential facts (a ﬁnancial oversight has been discovered)
When shall we do this? !Timing Message Medium Evaluation1:00pm! Clearly deﬁne procedure Intranet and supervisors! Supervisor feedback employees should use about employee for press inquiries! concerns/questions!2:00pm! Meet with shareholders Invitation only Shareholder feedback ! to inform them that teleconference! there has been a ﬁnancial oversight! Establish section on Accessible via ConsoE Number of hits & Investor Relations website! content of Q & A forum website solely devoted (see Appendix)! to the current situation w/ current info. ! Establish toll free Toll-free line to ﬁnance Number of calls and telephone line for department! content of inquiries! shareholders to obtain up-to-date information regarding ﬁnances!
When shall we do this? !Timing Message Medium Evaluation3:00pm! Inform media that there Newswires & call Media monitoring (print, has been an accounting reporters at major online, and TV)! error and that the ﬁnancial news outlets! company is investigating it!4:00pm! Inform media that Newswires and ConsoE Media monitoring! ConsoE has launched its website! own internal investigation of the situation!5:00pm! Shane hold press In person! Media monitoring! conference for major ﬁnancial media!6:00pm! Re-convene crisis Face-to-face! Identify key messages management team (top that should be adjusted management, or reiterated! communications department, legal counsel, CFO) to analyze results of media monitoring!
But, whenever there is a threat, there is an opportunity… !