All posts by Shannon M. Wilkinson

About Shannon M. Wilkinson

Shannon Wilkinson is the founder and CEO of Reputation Communications.

Crisis management

After editing the “Crisis of the Week” column for The Wall Street Journal for nearly five years, it is safe to say Ben DiPietro has seen it all when it comes to crisis management. When he left the Journal in August, we asked him about the landscape of online and public-opinion crisis cycles, and what you need to know if you find yourself face-to-face with a reputation-based crisis to manage.

Genesis of the Crisis of the Week Column

Ben-diPietroWorking with Nick Elliott, his editor at the WSJ, DiPietro launched the inaugural “Crisis of the Week” column on Sept. 20, 2014, following the emergence of video footage depicting NFL running back Ray Rice violently abusing his wife–and the ensuing public opinion backlash. There is a great deal of nuance in the way affiliated professional organizations handle such crises and they saw the column as an opportunity to pull apart the narrative threads behind media messaging and crisis management.

During his time at WSJ, DiPietro and his stable of prominent crisis-management experts pulled the covers back more than 100 crises, all corporate-focused in nature, offering insights into what was being done well–and not so well–in the crisis response, messaging and delivery. The column ended with an Aug. 7, 2018 column on the Urban Meyer crisis at Ohio State University. (As one of Ben’s Crisis commentators, I had the opportunity to weigh in on that one.)

The column profiled a wide range of crisis scenarios–sexual misconduct, corporate malfeasance, product-related deaths, stupid comments–that resulted in everything from major reputational disasters to more favorable outcomes. “Location, cultural mores and political climate all are factors in how big a crisis becomes,” said DiPietro.

Results Range from Disastrous to Mundane

There is great variety in the ways organizations handle emerging crises, with results that range from disastrous to mundane. In some cases, DiPietro said companies gamble they won’t suffer much negative fallout and so they don’t even bother to manage a crisis.

“If you have a garden-variety crisis, companies often rely on the intuition that it will blow over,” or that more consequential news will drive their crisis out of the media spotlight, he said. “Their best bet might be not to engage.”

On the other hand, being proactive can be valuable in re-establishing trust in a company or brand. By clearly outlining the situation in question and what they are doing to improve, companies can double-down on following their stated ethical standards and brand values.

A code of conduct can be important in such instances, as it sets expectations for how an organization wants to be thought of, and sends a strong signal for how it wants employees and partners to act. DiPietro said a code is “only as good as the organization’s overall culture, and how much senior and middle management live the values spelled out in it. Employees and stakeholders will see through empty words, and a leader who doesn’t lead by example won’t have much of an organization to lead.”

Additionally, being the first to draw attention to an issue can afford a company narrative control. When it comes to a complex or significant crisis, “get the bad news out first — companies that don’t do that get sucked into the vortex,” he advises.

How to tell garden-variety from five-alarm fire?

How to tell garden-variety from five-alarm fire? Check first for how much attention is the crisis receiving on major media and in the social media octagon; look for how other groups are using your crisis to advance their cause, DiPietro said. Are federal law enforcement and regulators involved? That could spell trouble, react accordingly.

Other questions to ask:

  • Did the company/individual respond appropriately?
  • Is there a perceived systemic issue or an individual case that needs to be addressed?
  • How much trust do people have in a company/individual and its reputation?
  • How much trust is there within the organization?

Whatever a company does, it’s important it doesn’t bluff to obscure wrongdoing or poor behavior, as DiPietro warns “the cover-up is worse than the crime,” and can inflict permanent damage on public and private trust.

When corporate crises arise, they don’t always have to be considered as negative moments for a company; they can prompt growth and change that improves internal culture and the bottom line. In taking the initiative to correct for any issues highlighted by crises, DiPietro indicates there is an opportunity for good publicity: “Bad news travels fast now. But on social media, good news does, too.”

Follow Ben @BenDiPietro1  

 
 
defamation

When in 1989 Tim Berners-Lee wrote the code underlying the World Wide Web—and then released it for free use—he was aware of the fantastic and terrible potentials for the new technology. He has been “horrified” to see some of those worst possibilities realized in the last year. Now he is working on a platform at MIT to re-decentralize and re-democratize online life: Solid.

The Solid project “aims to radically change the way Web applications work today, resulting in true data ownership as well as improved privacy.” It is based on the belief that Internet users should have the freedom to choose where their data resides and who is allowed to access it. Solid is sponsored by the Qatar Computing Research Institute and Mastercard. Follow it on Twitter @SolidMIT.

Berners-Lee is the founder of the World Wide Web Foundation, which is working for a world where everyone has the same rights and opportunities online. That includes establishing the open Web as a basic right and a public good. It publishes the Web Index, the world’s first measure of the World Wide Web’s contribution to social, economic and political progress in countries across the world. Follow it @webfoundation.

 
 
Introducing You(Online) Magazine: Reputation Management

I am pleased to introduce You(Online): The Magazine.

In the era of “fake news,” varying content and privacy laws, and an Internet that is murkier and more enigmatic than ever, we aim to enlighten you about what is and is not possible online and how to utilize the Internet to your utmost advantage. 

Humble Beginnings

You(Online) began in 2008 as just a Xeroxed handout. I created one-page FAQs with diagrams to show our clients, which included CEOs and C-Suite types, why some websites ranked higher than others, and what is necessary to do to overcome and replace lower-ranking content on Google with higher-ranking material.

Everyone had questions about how this worked, so much so that during the first years of my business, I spent as much time educating prospective clients as running my business. So, I took those handouts and turned them into articles and blog posts to teach readers how to establish, amplify and expand their online presence.

Today, the mission of You(Online): The Magazine remains the same: to provide readers with access to free expert and trusted information about all aspects of crisis and online reputation management, personal branding, social media usage, and other topics related to this field.  It is now the most extensive educational resource in the online reputation management industry. 

Thank you for visiting. Please visit our Reputation Reboot advice column and check out our new eBook. It comes out in May.

 
 

Outdoor apparel brand Patagonia was in the news last spring, and not just for designing a bikini that always stays in place. Business Insider reported that the company is poised to fight the Trump administration’s threat to America’s national monuments. No wonder Patagonia is a role model for reputation-building in the corporate world. 

“We’re watching the Trump administration’s actions very closely and preparing to take every step necessary, including legal action, to defend our most treasured public landscapes from coast to coast,” said company CEO Rose Marcario. According to Business Insider, “The executive order would specifically put 25 national monuments — named protected lands under the 1906 Antiquities Act — under review, in danger of losing their status. A national monument has never had its protected status rescinded before, and it’s unclear if the laws allow such a maneuver.” The move is classic Patagonia, and illustrates why the company enjoys such strong support from its loyal customer base. Its reputation is enviable…and strategically earned.

Five years ago, Yvon Chouinard, the company’s founder, published The Responsible Company: What We’ve Learned From Patagonia’s First 40 Years. Chouinard offers not just a story about how to create a responsible company. It is also a story about creating a company that is known for that responsibility.

A Passion Project Patagonia’s beginnings can be traced back to a California falconry club, where a young Chouinard discovered his love of climbing. Unsatisfied with the equipment available for climbers, he began making his own. He and his new wife Malinda soon ventured into apparel, founding Patagonia in 1972. “The point was not to focus on making money; focus on doing things right, and the profits would come,” according to a 2007 Fortune cover story. That mentality has been a defining part of the company’s image.

Environment First Patagonia became a leader in environmental responsibility by giving it an equal priority to profits—reportedly without sacrificing profits. In 1985 the company began donating one percent of its revenue to environmental organizations, a move that has since inspired more than 1,400 companies to join its 1% For the Planet initiative. It was also one of the first companies to switch to more environmentally friendly organic cotton, despite its higher costs.

Limitations Following accelerated growth spurred by the unintended trendiness of its brand, Patagonia’s limits were revealed when the early 1990s recession hit. Growth skidded to a halt and the company was forced to lay off a fifth of its employees. Rather than yielding to the economic circumstances, however, Chouinard doubled down on his original mission. “I decided the best thing I could do was to get profitable again, live a more examined corporate life and influence other companies to do the same,” he told the Wall Street Journal‘s Seth Stevenson.

Beyond Transparency Since that crisis Patagonia has placed even more emphasis on its environmental agenda. Chouinard started “The Footprint Chronicles,” a soul-searching online project dedicated to “exhaustively cataloging the environmental damage done by his own company,” as the WSJ described it. Taking a stance against consumerism, one holiday season Patagonia even ran a Black Friday ad asking people to buy less of its products. At the same time Chouinard’s perspective has rubbed off on other, larger corporations. Through all of this Patagonia has been consistently reported as profitable, despite its large donation programs, the extra costs it imposes on its supply chain and other activities whose direct effect on the bottom line would seen to be negative. And other companies have seen the value in Patagonia’s approach. The Wall Street Journal detailed how even Walmart turned to Chouinard, seeking his advice and working with Patagonia to form the Sustainable Apparel Coalition, which has attracted other top brands.

Hopefully, this is part of a growing trend.

 
 

The December issue of Security Management magazine features an article by Interfor International COO Don Aviv and me about the importance of social media policies. A few key points:

“In 2016, public consumers were nearly twice as likely to recall a company’s social media campaign as to recall a print advertisement. That’s good news for social media, but bad news for any organization experiencing a crisis there.

“Employers should define what is prohibited conduct on social media—such as offensive, demeaning, defamatory, discriminatory, harassing, abusive, inappropriate, or illegal remarks, as well as personal gripes.

“Whether employees are the cause, source, or target of such issues, understanding and amplifying your organization’s social media policy is as essential as having both IT and legal on speed dial.”

You can read a longer excerpt here: A New Social World.

Related Reading: How to Create Effective Social Media Policies.

 

 
 
reputation management for lawyers

For all the attention that fake news, mistaken identity and bad reviews attract, a more common issue for many people are lawsuits they or their organizations are involved in. Legal notices always rank highly on the Internet. They can dominate search results for years, blemishing an otherwise stellar online profile. Now law firms publish information about such “news” on their sites, even when they have no involvement in a case. That, too, can appear on the first page of a Google search in your name. When legal blogs also republish the information,  it saturates your Google results. None of it is easy to displace.

In 2015, we blogged about Jodi Kantor’s New York Times article, “Lawsuits’ Lurid Details Draw and Online Crowd.” She observed how the details of certain lawsuits—especially lawsuits pertaining to sexual harassment—are gaining large online audiences. The parties involved in those lawsuits saw their online images dominated by those details.

University of Maryland law professor Leigh Goodmark foresees “a future in which virtually no legal document — an eviction notice, a divorce pleading with embarrassing details — would be safe from public consumption.”

Effective online reputation management, and building a strong online presence, is the best way to protect yourself from the damage those documents could cause. That’s because when you do not own and manage your own message online, you have no defense against such content, however frivolous or unmerited it is.

 
 

The full impact of film executive Harvey Weinstein’s sexual harassment scandal is yet to be seen. But the collateral reputational damage is spreading to his associates, company, employees and, reportedly, some movie stars.  Even a prominent lawmaker is not exempt.

Daniel Bukszpan of CNBC interviewed me and several other experts on this topic. “It is far too early to predict what outcomes will transpire from this crisis,” I told him. “It touches on many issues and has sparked a multifaceted conversation within and beyond the industry…one that has just begun.”

We have written extensively about the power of women’s activism when directed toward corporations and public figures. Now, we are seeing how such activism plays out 24/7.  Stay tuned: there is more to come.

To gain insight into the forces that are playing into this issue, watch the livestream of this week’s S.H.E. Summit, taking place in New York City on October 19 and 20th. The annual conference is dedicated to “accelerating the global advancement of women and gender equality.” Gretchen Carlson is one of many speakers.

Related reading:

Activist Groups, Social Media & Corporate Reputation Risk

Diversity and Corporate America’s Reputation #Crisis

Women’s Hashtag Activism Hits Corporate Reputations

 
 

This week, The Wall Street Journal‘s “Crisis of the Week” column focuses on Equifax. An excerpt:

“The massive hack of personal information of around 143 million people has put credit-monitoring service Equifax Inc. in the crisis bullseye as the company contends with the legal, financial and reputational fallout. Cyberthieves swiped Social Security numbers, birth dates, addresses and driver’s license numbers, leaving consumers trying to figure out their next moves—and very unhappy with how Equifax was handling the situation.

“The breach is under investigation by the FBI and at least one state attorney general.

“Equifax issued a statement notifying the public about the breach on Sept. 7—weeks after it first learned of the incursion. It followed its initial statement with progress updates on Sept. 8 and Sept. 11. The company also is under pressure after Bloomberg reported three executives sold stock days after the company learned of the breach in late June, but NPR said Equifax said in a statement not posted on its website that the executives “had no knowledge that an intrusion had occurred at the time they sold their shares.”

My Wall Street Journal Analysis

My commentary in that column uses the statements made by the company to evaluate how well it has handled the communications side of this crisis:

“Few firms possess as much detailed information about the financial and personal data of Americans as Equifax. That is why Equifax’s response to this crisis has been so disappointing. In tone, timing and execution, Equifax has failed to convey the gravity of its responsibility to consumers.Waiting one month to inform the public of the breach increased peoples’ risk of identity theft. Had they known sooner, their credit freezes could have been quickly put in place; now Equifax is overwhelmed with requests for freezes and its systems can’t handle them.

“The CEO’s short apology failed to resonate with consumers who now face the potential cost of protecting their data more securely. It lacked empathy and a sufficiently apologetic tone appropriate for the impact of this crisis. Equifax did the right thing in quickly creating a website to provide consumers with one year’s worth of free credit monitoring and protection and a $1 million identity-theft service. Only after consumers complained did Equifax remove the fine print requiring consumers who registered for the free service to waive their legal right to sue.

After that, two executives, including the security director, left the company–an important symbol of Equifax’s steps toward rebuilding its security system, albeit after the fire has destroyed the firehouse. What Equifax will do after its free credit protection services run out in one year is unclear. Millions of consumers will need protection for decades as a result of this breach and accommodating that need is a process the company needs to prepare for.”

If you are following this story, the article can be accessed (behind a paid firewall) here: Crisis of the Week: Equifax Hit With Massive Reputation Breach.