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.