GT Anti-corruption legislation around the world Canada, UK, US
Environmental Scanning Report #1
1. Marissa Ferguson
COMM3320: Principlesof PublicRelations
Environmental ScanningReport#1
Client:FrostBank
09/10/15
What: Followingthe financial crisisof 2008 and billionsof dollarsthatwere pumpedintocorporations
whofacilitatedthe crisisthroughcorruptspendingandunqualifiedloans,the JusticeDepartmentnow
seekstoestablishclearpunishmentandlegal actionagainstemployeesof companiesfoundguiltyof
illegal actionsratherthan the companyas a whole (See “JusticeDepartmentSetsSightsonWall Street
Executives”,NewYorkTimes).
Whyit’s important: Large corporationsheadedby Wall Streetexecutivespossessthe fundsto payoff
legal finesandfees initiatedbylawsuits.Strategically,alarge corporationfoundinlegal trouble
insulated its employeesby withholding recordsuntil aftera deadlinehad passed to file individual
charges. Withinnovative legislationforming,large bankssuspectedof corruptionface publicoutrage as
well aspossible prosecutionof executives.However, thememo laysoutguidelines,not laws,its effect
will be determined largely by howJusticeDepartmentofficialsinterpret it. Companiesfavoredbythe
publicandseenas honestandtrustworthystand withgreaterfavoragainstinvestigation.
Currently,FrostBankCEO Dick Evanspreparestobestow hisrole to PhillipD.Green.The vice president
of humanresourceswill alsobe replacedafterretirement.The additionof agroupexecutive vice
presidentof TechnologyandOperationsandagroup executive vice presidentof Culture andPeople
Developmentwill diversifythe departmentsalreadyineffect.Withtransitionoccurringwithinthe
company,keepingatrustworthyreputationremainsvitaltocorrespondingpublicapproval.(See
“Cullen/FrostAnnouncesExecutive LeadershipTransition”,New YorkTimes).
The Plan: Prepare forinformationanalysisof the financialcrisisof 2008 byformulatingdefense of
reputation.Create publicsupportbyhighlightingtrustworthyactionsof FrostBankbutrefrainfromany
actionor speechagainstbanksfacingcharges. Convince FrostBankto researchactionstakenbytop
executivesanddetermine where weaknessesandoptionsforpublicdissentmayoccur.Prepare for
publicdemandof banksecurity.
Anticipate investigationbythe Justice Departmentandensure thatdocumentsandevidence of
compliance tothe laware readilyavailable.Investigationof corruptionconcerningthe largest
banksin Americaislikelytocause distrust anddissentamongthe public.Remaintransparent
and release detailsandactionsFrostBanktakesto preventcorruptiononthe official FrostBank
website.
SendPublicRelationsExecutivesorFinancial Executivesforinterviewswithnewsbroadcaststo
speakaboutcorruptionwithinthe bankingsystem.Despitethe needtoretaintrustwiththe
public,refrainfromnegativecommentsaboutotherlarge banks.Speakonlyof general issues
and explainwhyFrostBankremainstrustworthyissuchasystem.
2. Remindofficialsandthe publicthatFrostBank refusedbailoutmoneyin2008 and regainedits
stance as one of the most prestigiousbanksavailable.Use thisassupportof a “hardworkingand
honest”image of the company.
Informthe publiconthe bankingsystemitself byprovidingfreeorinexpensiveworkshopsto
teachfinancial responsibilityaswell asthe loansystemsandtransactionprocessesthatbanks
thrive on.By teachingthe publicandbrandingsuppliesprovidedatthe workshops,apositive
perspective of the educationarrangedbyFrostBank will reflectonitsoverall consumerattitude.
Holdconferenceswithotherbanksanddetermine how the memowilltransformthe processby
which bankingsectordetermines eachemployee’saccountability.Bysettingupa common
procedure forreviewingactionsandpracticeswithinthe company,the JusticeDepartmentwill
have lessreasontocreate restrictingorinvasive legislationconcerningbanksecurity.
Throughadvertisement,financial workshopsofferedtothe publicand openconcernforthe welfare of
customerprivacyand security,Frostbankwill remainunscathedinthe publiceye.Transparencyand
openconcern,alongwithdocumentssupportingFrostBank’sdecline of governmentbailoutmoneyin
2008, create an image of independenceandresponsibility ratherthana dependence onhelpwhen
trouble arises.Providingdocumentsandinterviewsalongwithgeneral coverageof the bankingsystem
will setFrostBankapart as a leaderandprogressive force againstcorruption.Such actionswill develop
the sense thatFrost leadsbyexample andthusrequiresnoconcernfromthe publicaboutcorruptionor
any scandalsof top executives.