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The Guardian - UK
The Guardian - UK
Business
Dan Tench and Jack Gilbert

A guide to managing a corporate reputation in the 21st century – part one

Social media
If a negative story on social media breaks, it can be difficult to control the fallout. Photograph: Anatolii Babii / Alamy/Alamy

In today’s internet age, consumers have at their fingertips a vast amount of information about the companies and brands with which they engage.

This fragmented new media landscape presents opportunities for businesses of all sizes to promote their brand and engage with their customers in ways not possible before. However, as even some of the world’s largest companies have learned to their cost, should a negative story break or a social media strategy backfire, it can be very difficult to control the fallout.

Be prepared

Whether the company faces allegations from regulators or competitors, criticism from customers over its business practices or products, or is the victim of a data or security breach, it is essential for it to have appropriate response plans in place and to act quickly to respond to issues as they develop.

It is no longer possible to adopt a “one-size-fits-all” approach when dealing with media issues, and companies must adopt different strategies for different media platforms. A coordinated communications strategy should have input from senior management, PR advisors, lawyers and other key stakeholders to ensure that messaging stays consistent. Consider the following:

  • Identify key internal stakeholders (for example, operational, communications and legal) and establish clear roles and responsibilities
  • Agree on an internal strategy, appointing external advisors where necessary
  • Establish a clear and consistent message from the outset
  • Identify a single spokesperson or small team to act as main point of contact with the media to ensure a consistent message

Engaging with the media

A company will often be made aware of forthcoming media coverage before it is published, either because the company is at the centre of an event that is already public knowledge or because the company has been approached by journalists to comment on allegations or respond to specific enquiries.

When media issues arise that may lead to negative coverage, keep these factors in mind:

  • Calibrate your response to the media carefully. Sometimes it is appropriate to maintain a constructive dialogue with a journalist, other times, for example when a journalist seems determined to adopt a hostile approach, more aggressive legal engagement may be appropriate.
  • Require that a journalist set out in full the allegations he or she is proposing to publish (the journalist can be told that this has been held in law to be a requirement for responsible journalism and thus is likely to be important if he or she wishes to rely on the public interest defence to any defamation claim)
  • Consider carefully co-operating and contributing to the story as opposed to providing a “no comment” response. Although there are times when it is beneficial to deny involvement, by avoiding journalists, you will forego any opportunity to shape the story or add an angle.
  • While there is no legal right of reply under English law for printed content, and therefore, no way to force a journalist to publish a comment, most responsible reporters will actively seek and include comments to achieve a balanced story (and again, this can be said to be a requirement for responsible journalism). Broadcasters, however, have an obligation to treat subjects fairly under the Office of Communications Broadcasting Code.
  • Establish clear parameters by which the information the company is willing to provide, and on what basis (eg “on the record,” “off the record,” or background information/“not for publication”)
  • If more aggressive legal engagement is appropriate (a) consider the possibility of an injunction (if for example there is a threat to publish confidential or private information), (b) identify to the journalist the potential financial damage which might arise from publication and which might be sought to be recovered in any defamation claim, and (c) consider advancing data protection complaints, the new frontier in media law.

Online publications

Since the advent of social media, some of the largest threats to a company’s reputation have come from online channels, which create a host of new challenges to bear in mind:

  • Most major traditional news organisations publish stories online, in addition to print or broadcast media, so watch this space for additional reports and coverage.
  • Many of the same rules apply when corresponding with an online media outlet, but always consider the source, especially if it is based in another jurisdiction.
  • Have an active presence on social media platforms that are pertinent to your company, and engage regularly with stakeholders online so when an issue arises you already have a following and can disseminate your message accordingly.

It can often be difficult to predict when the next negative news cycle or media crisis may hit. Whenever this does happen and whatever its severity, companies that have a clear response strategy will weather the storm better than those without.

Part two of this series considers the legal tools at a company’s disposal to manage its reputation.

This advertisement feature is provided by Olswang, sponsors of the Guardian Media Network’s Changing business hub

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