How do you protect your organization’s reputation before and after scandal strikes? Using real-life examples, this session looks at the core elements of reputational protection from a legal and public relations perspective. This seminar covers the following topics: - The importance of reputation management - Stakeholder management over the long term - Communicating when crisis erupts - Legal liability and public statements - Legal mechanisms to protect reputation - Brand management post crisis Gowling WLG’s “Risk to Reward” series is designed to address the most important legal, regulatory and corporate risks facing your organization. With 18 offices around the world, Gowling WLG is uniquely positioned to provide risk advisory services wherever your business takes you. Our legal teams are in tune with your world, your sector and your goals. Join us for one or all of the presentations in this series to transform the risks you face into rewards. https://gowlingwlg.com/risktoreward

1. 8 September 2016
SCANDAL AND THE
ROAD TO REDEMPTION:
How to prepare for & recover from a
corporate crisis
TODD J. BURKE – Gowling WLG
ANGELA CARMICHAEL – Fleishman Hillard

2. • Maintains the confidence and trust of existing
stakeholders and clients;
• Attracts new business, investments and talent;
• Creates strong brand loyalty; and
• Mitigates the negative consequences when crisis
strikes.
The Importance of Reputation
Management
2

3. • Loss of reputation impacts:
• competitiveness;
• market positioning;
• the trust and loyalty of stakeholders;
• media relations; and
• and the legitimacy of operations.
CONSEQUENCES?
3

4. REPUTATION,
WHAT’S THE BIG
DEAL?

5. LOCHTE WINS GOLD!
5

6. 6
• Reputation as a
protective mechanism.
• Communication with the
public and controlling the
message.
• Owning the mistake.

7. • “I want to apologize for my behavior last weekend
— for not being more careful and candid in how I
described the events of that early morning,” –
Lochte’s Instagram apology
• Weak apology, on a weak platform
• No admission of lying
APOLOGIZING,
LOCHTE STYLE
7

8. 8
SIMPLY
PUT…
Poor crisis performance
is bad business.
PREPAREDNESS
BOOSTS CRISIS
PERFORMANCE…
A good crisis
communications plan
isn’t a PR “tool”, it’s a
business necessity.

9. 9
BEFORE A
CRISIS HITS
Five things that will
help any company
prepare and
respond to crisis

10. Step 1: Conduct Risk Assessment
10
Attacks /Terrorism
Fire
Natural disasters
Labor issues
Compliance failure
Data security
IT systems failure
Financial irregularity
Litigation
Web cyber attack
Pandemic
Food borne illness
Senior management scandals
Kidnapping Owner/developer activities
Owner/developer defaults
Quality issues
Employee misconduct
LowProbabilityHighProbability
Low Risk High Risk

11. Step 2: Identify & Rank Stakeholders
11
INTEREST PRIORITY
HIGH INTEREST HIGH PRIORITY
INTEREST PRIORITY
MILD INTEREST LOW PRIORITY
NO INTEREST LOW PRIORITY
HIGH INTEREST HIGH PRIORITY
HIGH INTEREST PRIORITY
HIGH INTEREST HIGH PRIORITY
STAKEHOLDERS
EMPLOYEES
CUSTOMERS
SUPPLIERS
UNIONS/COUNCILS
POLITICIANS
NGO’S
MEDIA
RELATION
++
+
+
--
0
--
0
POWER
0
+++
+/-
+
++
+
++

12. 12
Step 3:
Identify Third-Party
Experts & Analysts
Research and identify
key influencers:
 Reporters
 Industry analysts/experts
 Advocates
 Online influencers
 Politicians
 NGO’s

13. 13
Step 4:
Build A Crisis
Playbook
 Determine key scenarios
 Define crisis team per scenario
 Draft potential responses (w legal)
 Holding statements
 Tweets/hashtags
 FAQs
 Talking points
 Include resources, tools, templates
 Recommended processes
 Specific stakeholder matrix/map per
scenario

14. 14
Step 5:
Train &
Stress Test
 Media train all spokespeople
 Simulate with entire crisis team
 Stress test the plan and team
 Record challenges
 Update plan

15. LEGAL LIABILITY AND
PUBLIC STATEMENTS
15

16. • Communicate, communicate, communicate.
• Every crisis is different, so should the public
statement.
• Bottom line: act fast and be authentic.
PUBLIC STATEMENTS
16

17. • Apology Act, 2009, SO 2009, c. 3.
• Individual or Corporation.
• Not admissible in civil proceedings.
• Be wary of exceptions.
• Protection limited to Ontario under this Act.
My lawyer said I can apologize
17

18. LEGAL MECHANISMS
TO PROTECT
REPUTATION
18

19. 1. Document management and preserving
privilege;
2. Coordinating and implementing
investigations;
3. External remedies.
• Passivity vs. Proactivity – what do you need?
• Eg. Injunctive relief.
ROLE OF COUNSEL
19

20. WHEN CRISIS STRIKES
20

21. COMMUNICATING WHEN CRISIS
ERUPTS
21
WHEN CRISIS
STRIKES
1. Speed
2. Transparency
3. Control the narrative
4. Great Leadership

22. 22
RECENT CASE STUDIES
• 275 on board
• Media tweet within 4 minutes
Crisis comms plan activates
immediately:
Leveraged all platforms
Twitter, Facebook, Website updated within an hour
Shared up-to-date, known facts
No spin, no “safety record” statements
Established simple way for media to contact
Emirates
Utilized CEO as key spokesperson
Released shareable video statement in multiple
languages, press conference, written
statements
Emirates Airlines crash – Aug3/2016

23. 23
RECENT CASE STUDIES
 Speed, Transparency, Narrative,
Leadership:
• Within an hour established itself as an
information authority on all platforms
• Maintained consumer trust
• Conveyed empathy, authority and
willingness to “do right” in a high-stakes
environment
 Preparedness, Training, Activation:
• Statements, tweets and posts were pre-
prepared for exactly this kind of incident
• Freed Emirates to focus key resources on
access to up-to-date information
• Their corporate values and brand promise
led the response
Why it Worked?

24. • Home Depot faced at least 44 lawsuits in the United States and
Canada over a massive data breach that affected 56 million
debit and credit cards in 2014.
• Class action in Canada – Ontario Court approved the
settlement.
• No cover up - responded as a “good corporate citizen”.
• Doing the right thing – PR vs. Legal perspective.
RECENT CASE STUDIES
24

25. QUESTIONS?
25

26. gowlingwlg.com
Gowling WLG (Canada) LLP is a member of Gowling WLG, an international law firm which consists of
independent and autonomous entities providing services around the world. Our structure is explained in
more detail at gowlingwlg.com/legal
CONTACT US
Todd J. Burke
Gowling WLG - Partner
Todd.burke@gowlingwlg.com
613-786 0226
Angela Carmichael
Fleishman Hillard – General Manager
Angela.Carmichael@fleishman.ca
416-305-0408