Reacting to a media crisis is one skill set. Anticipating the ill winds before they blow is quite another, as it requires a combination of media, business and political
acumen. As a science, such "media meteorology" is the best corporate umbrella, allowing the company and its spokespersons to control the ripples before they swell into a Martha
Stewart like tsunami.
The early warning signs are best spotted when you know where to look for them. Below are a number of the danger zones. By recognizing and understanding the forces that play
out in each, the company and its spokespersons can begin preparing for the inevitable rainy day well before the first cloudburst.
Industry environment:
Other cases of a crisis nature in your industry are being covered in the media. A reporter in an industry trade publication has started to ask about facts related to what now
looks to be a trend story. Is the industry bleeding, like telecom? The perception is that, as profits go south, everyone is a suspect because everyone is desperate. Is the
industry rife with new public offerings, with capital sources either so abundant or so at a premium that entrepreneurs are perceived to be cutting corners? Is the industry such a
repository of public trust that one betrayal of that trust - by, say, Arthur Andersen - guarantees media interest in your accounting firm or department?
Regulatory environment:
An agency like the DOJ or SEC or a member of Congress has indicated they want to watch a particular issue more closely, or political pressure is building to find a whipping
boy. And you should monitor State Attorneys General in all states where your client or firm has a major presence. The AGs are political animals and your back may be a good
stepladder to power.
Stock performance:
For two consecutive quarters, your numbers are down. Coverage of the corporate stock decline is painful enough, but reporters will jump at any suggestion that shareholder
pressures are forcing inappropriate or illegal responses. At the very least, they will be inspired by the down numbers to sniff around for other negatives.
Stockholder actions:
Any action by shareholders legitimizes media interest in every aspect of the company's life. Lawsuits that name directors and officers often lead to personal interest in the
directors and officers themselves. The media plan must anticipate full background checks by reporters. Read the D&O resumes very carefully. Were any of them ever short
sellers? Were any of them ever sued before? How did they get their current jobs, and why?
Dangerous practices:
Enron got into a lot of trouble with off-balance sheet assets. Crooked financiers in the 1980s were associated with junk bonds. In fact, off-balance sheet assets and junk
bonds are both perfectly legitimate. But if Enron misuses its instruments, or Boesky his, you can expect to be called by a suspicious reporter and asked to explain what you're up
to.
NGOs:
You don't need to be the target of a non-profit organization to go on full alert. Simply be in the industry - as a NAFTA trade partner or an international lender - and you may
become the next target. Monitor the NGO Web sites and press appearances and think differently about the media if they are targeting the firm or industry next door.
Hot button issues:
Are you the next likely obesity target? Are the hottest selling automobiles - SUVs - turning into gas guzzling, polluting targets? Is an industry product considered unsafe,
even though you are not the manufacturer? All of these are early warning signs that you may be next.
Past escapes:
Past scandals offer media "proof" that a corporation "knew or should have known" about a problem. Never forget a past brush with scandal, or fail to prepare for the media's
unwanted return to an unpleasant subject.
Whistleblowers:
What internal dynamics might lead to a public crisis? Have there been widespread layoffs? Is the company known for tough, unreasonable managers? Is there union trouble?
Such an environment can foster whistleblowers who will talk to the press, as well as to the government, just a little more readily, and a little more enthusiastically, than in a
less strained culture.
Faulty products:
Any genuine product liability that crosses the desk of media professionals should be treated, for media purposes, as if lawsuits have already been filed and reporter inquiries
phoned in. The problem may go away quietly, assuming a responsible corporate initiative. But don't assume it will, and prepare as if it won't.
Not all crises arise or can necessarily be detected from scenarios similar to the above. In fact, some crises come from nowhere, often involving, say, a hostile reporter who's
picked up on something that, from your perspective, is breathtakingly trivial. But tracking your industry and reporters, with an eye to "the other guy" is wise counsel. Know who
the tough reporters are and where they're working. As the Godfather counseled, "Keep your friends close and your enemies closer."
Richard S. Levick, Esq., [email protected] is president of Levick Strategic Communications, which has handled several recent media
crises including the colapse of Enron and the Catholic Church controversy. Larry Smith, [email protected], contributed to this article.
Their forthcoming book (November), "Stop the Presses: The Litigation PR Desk Reference," is available to readers for free by e-mailing [email protected].
PR NEWS subscribers can receive discounts at the following two litigation and crisis PR conferences by writing "Levick discount" on their application.
Los Angeles - November 3, 2003: A one day conference presented by CLE International on November 3rd in Los Angeles, Media Management for High Profile Litigation
Washington, DC - December 3: A full-day interactive program in Washington, DC, "The Essential Media Skills for Law Firm PR Professionals: What Every Law Firm Marketing
Professional Needs to Know About the Media, From Publicizing Mergers and Big Wins to Surviving Crises."