Types of Issues and Crises

Various business transactions, client or legacy issues, regulatory, failed products or services, acquisition or shareholder-related issues can lead to litigation. Complex legal issues can span years, attach to multiple business owners or management teams, and involve detractors or highly active interest groups or other irate and vocal complainants. Navigating delicate and often confidential and commercially sensitive issues requires a trusted core group of people to create a pathway to manage communication of tightly held information.

Alexander PR often works with legal firms (and has legal expertise on its panel of professionals) to coordinate between parties to develop a timeline of events or statement of record and create relevant reactive materials. A comprehensive plan will help the organisation or individual effectively communicate elements of the issue as and when required, while reactively handling requests for information that are unable to be answered due to commercial sensitivity and/or active court proceedings.

Long-term planning is also an essential part of navigating complex legal issues to ensure the business can trade through the issue and maintain or repair its reputation to minimise opportunity costs.

When disaster strikes, there is often little to no warning. The impact can include damage to property, injuries or fatalities, and loss of communication or company resources via technology fault. The health and safety of staff and customers would be the first priority and a major focus for a business owner or manager in the crucial first hours or days.

Alexander PR has stepped in for several clients as a temporary communications hub, with calls diverted to our team and access to online platforms granted to log, manage and respond to urgent enquiries on behalf of the business. Whether its related to Covid-19, the aftermath of an earthquake or any 100-year event, our team can be there at ground zero to help reduce chaos, assist with immediate issues and also create a plan to move forward.

Once the nature of the issue and its impact has been established, developing a range of communications materials (including databases and trackers) which are useful to staff, customers, stakeholders, investors and media is essential to inform your audience of how and when they can engage with your business.

For a business experiencing a brand attack, this can often feel unjustified and unfair, and trigger the business and management team to go into ‘defence mode’. Whether or not there is any foundation to the attack, handling public activism professionally and calmly will ensure you maintain the high ground with evidence-based communication and responses. The reasons for which a group or individual may become a vocal detractor are many and varied – from environmental through to ethical concerns or perceived service or product issues. Either way, acknowledging the viewpoint of others is just as important as presenting your side.

If detractors (either a customer, interest group or driven by suspected competitor activity) undertake a sustained and aggravated attack against your brand, calling on the support of industry associations and stakeholders can be applied as a strategy to move them on. Or perhaps there has been an honest mistake in a manufacturing process, or a partnership has turned sour, and an apology and change of tack is in order. Creating an evidence-based communications strategy is critical to earning or retaining credibility in the middle of an attack.

Many businesses encounter difficulties. In a post Covid-19 economy, businesses may face new and different challenges, which can create additional roadblocks to success. But these need not be a dead end.   Whether your company is planning to restructure informally, is entering voluntary administration or liquidation, or receivers have been appointed by a secured creditor, communication is an essential tool to help you navigate this transitional time in your business.   Alexander PR has supported companies and insolvency specialists over many years to ensure consistency of message across internal (staff, suppliers etc.) and external audiences (customers, stakeholders, industry associations etc.), and that media enquiries are handled appropriately to allow the insolvency process to run as smoothly as possible, with the goal of returning the company to business as usual or navigating a sale process or formal closure.

Whether a large or small company, employment issues can escalate via disputes resolution and legal channels, which requires careful navigation and communication.

Conduct, culture, equality and fairness in workplace environments are regularly scrutinised by industry bodies and the media. In today’s world, businesses are undertaking restructures and pivoting, which in many cases has necessitated moving staff across or out of roles. Communication within teams, company staff, clients and media, where required, is an opportunity to correctly position the company’s handling of an individual or collection of staff changes.

Disgruntled staff and dispute resolution presents some risk of information becoming public, in which case a company will require thoughtful reactive communication materials to isolate and explain the issue and reassure existing staff and customers.

Accidents happen. According to WorkSafe, there were 88 workplace fatalities between September 2019 and August 2020, and 32,070 workplace injuries between February 2019 and January 2020.

The manufacturing industry represented the highest number of injuries resulting in at least one week away from work. The related issues are many and varied – there are opportunity costs to a business, as well as potential regulatory issues, director responsibilities and reputational harm.

A workplace injury or fatality will automatically trigger investigation by the relevant authorities. Communication with the authorities, stakeholders, staff and the public is a necessary part of the process. Alexander PR can support your business as it complies with any investigation and to communicate appropriately and effectively to interested parties.

Sometimes, things don’t go to plan. An intended deal close date may be missed, but public and staff have already been informed – this requires careful navigation and mop up so as not to disrupt any last-minute negotiations that may upset the deal.

Perhaps you need to set the scene for the deal, and pre-announcement communication work is required to ensure that your landmark deal is positioned as the right thing for your business and/or the wider industry.

A solid timeline of events is crucial to navigating any major business deal. This should include scenario planning for unforeseen bumps in the road, including reactive materials based on any issues that may arise during the process.

People and companies become shareholders out of a shared and vested interest in the entity’s success. However, disputes can arise when shareholders don’t unanimously agree on changes in the company’s direction, deals, staff/management structure or numerous other causes of potential fall-out.

Alexander PR and its panel of experts can help company boards work through issues before they become major disputes, such as through the development of a risk and issues matrix. We can also help a board and management team to prepare for and effectively communicate any changes in shareholding.

Social media is a powerful tool. When it’s good, it’s terrific, and businesses can prosper through high engagement with an audience and the positive effects this brings. But when it’s bad, it can have devastating consequences, and quickly.

As Benjamin Franklin once said, “It takes many good deeds to build a good reputation, and only one bad one to lose it.” Social media gives any customer who has a negative experience with your brand a platform to vent their concerns, which it turn can be amplified by other followers jumping on the bandwagon. Issues can escalate far more quickly, so it is vital that any company with a social media presence is prepared with reactive responses to common issues, and that pages are monitored regularly so that issues can be responded to and contained quickly.

In some cases, separate social pages can be set up calling for boycotts, organising protests and spreading information to damage a brand. This harmful scenario requires a strategic approach to shut the page/s down, which Alexander PR is experienced in and can support you through.

Regulations, particularly in financial services, are often challenged and updated. Companies operating within strict regulatory environments can find themselves falling foul of legislation either through misunderstanding of unclear laws or by following poor, incomplete or outdated advice.

Commerce Commission investigations or other regulatory issues that lead to court proceedings can be protracted and distracting. Being clear and transparent with messaging about the company’s operations and services will help ensure current customers are not deterred by the active regulatory issues.

Sometimes marketing campaigns or initiatives, even if well meant, don’t always hit the mark or can cause unintended offence.

Research indicates that people, particularly millennials, are more often actively considering company values when making a purchase decision – if a marketing campaign shows morals or values that go against those held by consumers, this can cause backlash and a negative response.

In these scenarios, humility or standing your ground will determine the outcome and immediate to medium term effects on your brand’s reputation.

Whether a manufacturing fault or an issue within a retailer’s store or the supply chain, product recalls can be a stressful time for a business. There are legal parameters that companies must follow and comply with, particularly when food/consumable products are being recalled. An effective communication strategy with a) materials that clearly identify the reason for the recall, b) a list of exactly which product/s are being recalled (so consumers know which other brand items are still safe to buy and use), and c) reassurance from the company that the issue is isolated and will be rectified will help ease pressure on your brand.

Alexander PR can advocate on a business’ behalf if there are issues beyond the company’s control which have contributed to or caused the issue, and help you develop communications for your staff, customers and stakeholders to mitigate the reputational and financial risks associated with the recall.

Good governance is imperative to a company’s continued and uninterrupted success and to keeping stakeholders assured of the company’s progress.

Data and privacy breaches can cause pain to both the consumer/s involved and the company. Good corporate governance and a risk mitigation strategy will help companies and boards to identify and plan for any potential breaches. However, when a breach occurs, stoppage to systems where required to prevent any further breaches, while auditing how the breach occurred, will be just as important as preparing communication materials to affected people and your wider audience.

Our method includes creating a risk matrix for the board of directors – which helps leadership understand on a “no surprizes” basis what could go wrong and how to address it. Whether your team is being proactive or behind the 8 ball, we can assist.

Branding is one way to communicate to your audience what you do and what you stand for. Some high-profile cases of brand issues demonstrate how just because a brand has been around for a long time, doesn’t make it right – for example, ‘Eskimo’ lollies, which have been renamed after awareness grew about the racist, derogatory roots of the word.

Acting quickly to either diffuse misunderstandings or putting your brand right will be vital to how your audience perceives you and your business. In some cases, ‘taking it on the chin’ and acknowledging when you have got it wrong is the most powerful form of defence.

A solid customer value proposition and elevator pitch are key elements to creating buy-in to your brand identity and helping to avoid confusion in cases where it is not immediately clear what your brand is trying to articulate.

Identifying and acting on issues of financial dishonesty or wrongdoing within your business can highlight either the gaps and flaws in your own auditing systems or show that they have worked as intended by picking up the issue.

Depending on the nature of the issue, it may involve the authorities and require delicate handling of information, enforcement of name suppression, and be subject to legal proceedings, limiting what a company can say in the public domain.

However, transparency and clear messaging will help minimise damage to the company’s reputation, particularly if the issue involves a large amount of money and affects clients. Demonstrating that the company will ‘set things right’ and there will be no cost to clients will be important to your messaging.

The 2019 fire at the SkyCity New Zealand International Convention Centre construction site in Auckland (which effectively shut down a large portion of the CBD for several days) highlighted just how far-reaching an on-site issue can be – from air quality, health and safety and breathing issues in the general public to the legal ramifications once the cause and responsibility is determined. Then there is the major disruption to completion timeframes and costs, with multiple stakeholders involved and one of the most high-profile projects in recent memory.

Construction is a low-margin, high-stakes industry. Falling foul of compliance obligations or being caught up in leaky building issues can see operators become tangled in lengthy and costly legal proceedings; some companies do not survive, leaving customers and contractors potentially out of pocket and vocal about their grievances.

With a wide range of stakeholders involved in any building, development and construction project, a stakeholder matrix will be key to determining appropriate communications channels and lines of responsibility if/when issues arise. In cases where the quality or performance of construction materials is in question (steel, steel mesh, waterproofing materials etc), regularly updated supply chain and compliance documentation will be one of your most valuable assets.

Professional communication is central to all Government and public sector organisations, particularly with the prevalence of Official Information Act requests and the high visibility of responses.

As an official supplier to Government, Alexander PR has worked with several Government departments and Crown-owned entities and is adept at navigating and managing the various stakeholders and requirements of working with Government agencies.

From forestry investments to afforestation to the felling of trees and export of product – forestry is a dynamic industry but can be susceptible to various issues. Workplace accidents, H&S issues, on-farm processes, production and pricing, mining incidents and import/export matters can be called into question at a moment’s notice.

This sector requires strong risk mitigation and scenario planning, along with well-equipped and media-trained company spokespeople. Alexander PR can assist companies and leaders in this sector to prepare for issues and navigate them as they unfold.

Consumer fall-out with brands can trigger protests at or outside your premises. The journey that has led to the protest will determine how you engage with and handle protestors. If all measures taken to engage with and appease the group and prevent the protest have failed, the company can demonstrate it has taken all reasonable steps to work with the aggravated person/s. If the protest forms part of a sustained and ongoing attack against your brand/company, a strategy to work with industry associations and build a base of ‘friends’ for your business will be vital to its recovery and to maintain your profile.

Protests commonly attract mainstream media interest and can trigger viral social media activity, prolonging the impact of the activity.

If an individual has picketed outside your premises, and overaction or forced removal can be considered too heavy-handed, regardless of the issue or what has led to this one-person protest. Care and professionalism coupled with clear communication to external audiences will help usher protestors on and preserve your reputation.

Food quality issues can lead to product recalls if a consumer has fallen ill, or if a product is found to contain an undeclared allergen based on regular auditing and testing.

Thorough communication trails will help to guide messaging to internal and external audiences and demonstrate the appropriate processes and action taken by the organisation to remedy the issue.

Animal welfare is an important and impassioned/emotive topic. Where issues are identified, how a company works with regulators, interest groups and the public to rectify issues and reassure customers will determine your long-term reputational recovery. Proactively working with the public to show due care and that the company’s practices are compliant and compassionate will be a key driver of protection for your brand. Professional communication support and landscape monitoring to manage issues before and as they arise is also a key factor in ensuring your customers understand your practices, and that they are transparent.

Carbon emissions, use of plastics, packaging, water preservation and energy efficiency are all topics of great importance. Plus, chain of custody of materials has become a vital asset. Businesses often openly communicate and proudly display their sustainability practices, especially if awards and accolades have been won.

However, environmental disasters can happen – oil or chemical spills, gas leaks, water leaks and other such events will draw attention to your business’ practices. And, if your business is shown to be a heavy carbon emitter or has culpability in an environmental disaster, your first response will set the tone for how you and your company emerge from this issue.

If improvements are warranted, own up to it and take reasonable steps to implement a plan of action that can be openly communicated with milestones ‘ticked off’ to show transparency, accountability and care.

Technology creates enormous efficiencies and enables greater access to your services. However, in the event that a tech failure results in full black-out of services, Alexander PR can step in to support you with vital communications to all stakeholders while you ascertain the cause of the issue and work to have the technology back up and running.

In cases where a technology malfunction has caused a data or privacy breach, or sent erroneous communications to clients, reactive materials will need to be drafted to explain the cause of the issue and the actions being taken by the company to rectify it.

Planes, trains and automobiles – whether a private mode of transport or a public carrier, issues can occur that can disrupt traffic flows and affect numerous people. Technology malfunctions, breakdowns and accidents can be enormously inconvenient and costly, and potentially dangerous, even leading to injury or loss of life. In these scenarios, dealing with the authorities will determine what communication is required from your company and to whom.

In cases where major infrastructure projects come to a halt or have caused an issue due to an engineering flaw, thorough and timely communication will be required as the company navigates the issue.

The health and safety of children attending early childcare education facilities is constantly scrutinised and highly regulated, from the activities children do to the food they are served. Issues such as accidents are highly publicised.

Regular auditing of ECE centres by the Ministry of Education makes record-keeping an essential practice for all operators so that if/when an issue arises, it can be communicated clearly and resolved quickly to minimise disruption to families, teachers and operations.

Alexander PR has worked with several ECE providers and all year levels of education providers, from state-funded and private schools to online education providers and universities, to help education leaders and administrators manage sensitive issues.