Friday 1 October 2010

Humans cause crises more often than “acts of God”: plan accordingly

As we enter the second week of our 28 day snapshot of organisations managing reputational issues, it’s clear that most situations are not created by physical events or accidents (although some are). Many more are the result of people issues or management decisions: fraud, security, closures, redundancies and customer service are just five examples of this (see today’s list for a handful of examples). Crisis and issues management plans need to reflect this: if your plans only deal with physical events then you are exposed to the many “softer” – but equally damaging – issues that may arise.

Air France/KLM: airlines; legal action following allegations of a cartel

Apple: technology; Italy demands it removes “offensive app”

HBOS: financial services; arrests related to alleged fraud by three staff members

Thomas Cook: travel; job cuts predicted in light of poor financial results

Walkers Crisps/Omnichem: food/chemicals; HSE fine following death of worker in toxic cloud

Lloyds Banking Group: financial services; tops the FSA’s league table of complaints

Vox Sciences/Spinvox/Nuance: telecoms/technology; allegations of text spam

Tetley: food/drink; allegations of human rights violations after the death of three workers in India

Kiddicare.com/Tesco/Mothercare: retail; products recall of “baby positioner” over fears it may be linked with infant deaths

Nintendo; entertainment; profit warning based on delay to new 3D console causes share price slump

Crises can be caused by explosions, accidents or natural disasters – but not exclusively. Make sure that a regular reputational risk assessment identifies the other potential issues and crises that could hit your business and plan your contingencies accordingly.