This session was presented at the LSA18 event in Chicago, April 30 - May 2, 2018.

1. STOP, DROP AND ROLL
BROOKE GABBERT

2. REPUTATION RISK IS
THE NUMBER ONE
DANGER TO
BUSINESSES TODAY

3. UNPRECEDENTED POWER SHIFT
Power shift away from corporate narratives toward individual experience
“Web-enabled” stakeholder vigilance for the success of a company
What once could be contained locally now has national implications

4. In 2017, Colorado-based coffee chain,
Ink! offended not only its customers, but
the community, and elected officials
with their insensitive sign.
COFFEE CONTROVERSY

5. TRUST IN BUSINESSES
IS DECLINING WHILE
ESCALATING
EXPECTATIONS FOR THE
C-SUITE.

6. EDELMAN TRUST BAROMETER
0
15
30
45
60
2016 2017 2018
expect CEOs to inform
conversations and
policy debates on one
or more issues
84%
4851 58
Trust in Business

7. REPUTATION RISK DOES NOT FIT
NEATLY INTO A SPREADSHEET.
IT IS THE LARGEST, SCARIEST,
LEAST MANAGEABLE RISK.

8. EXTERNAL
Political
Social
Economic
Technological
Environment
Regulatory
INTERNAL
Infrastructure
Personnel
Process
Culture
GOVERNANCE
STRUCTURE
Risk Management
Philosophy
Values, Ethics
Oversight
ENTERPRISE RISK MANAGEMENT

9. BAD SERVICE
Starbucks employees in Philadelphia called the
police to remove two African-American men from
the store. Due to social media, the news spreads like
fire and CEO is forced to take immediate action.

10. A London Krispy Kreme designs a week-
long children's program and oblivious to
the meaning, thinks it cute to include the
acronym KKK for Krispy Kreme Kids on
promotional materials.
KKK WEDNESDAY

11. THE SINGLE BIGGEST MISTAKE
IS NOT KNOWING THE
BUSINESS'S CORE VALUES

12. ASK YOURSELF
Is the issue important to our business and stakeholders? #1
Is the issue central to our values? #2
Would silence be inconsistent with our values? #3
What are the short & long-term implications for the brand? #4

13. ADVERTISERS FACE
BACKLASH
FOX News host, Bill O'Reilly, lands himself in hot
water mobilizing watchdog groups to pressure
advertisers to pull out.

14. NO SMOKING
In 2014, CVS stops selling cigarettes after reflecting
on their wellness core values and rebranding to CVS
Health.

15. THE SHARING ECONOMY AND
LOCAL ARE UNIQUELY
SUSCEPTIBLE TO REPUTATION
RISK

16. LESSONS FOR LOCAL
Be prepared before crisis hits #1
#2 Don't forget employees
Be transparent, diplomatic, and show humility #4
#3 Build community ambassadors before crisis

17. THERE IS A HIGH COST TO
A BAD REPUTATION
Uber CEO Dara Khosrowshahi sent a sobering, self-
reflective email to employees following the London
transport authority’s decision not to renew the
company’s license.

18. Airbnb partners with the NAACP and
ACLU, plus local governance to address
and find solutions for racism in their
marketplace.
#AIRBNBWHILEBLACK

19. THANK
YOU
720.295.5025
brooke@pennstreetcommunications.com
www.pennstreetcommunications.com