The best defense is usually a good offense: how to prepare for and manage a crisis

By Caroline Roseman

Some of the biggest corporate crises may be the ones you have never heard of. For every data breach, major reorganization or product recall you read about in the newspaper or see on social media, there are countless others which have been addressed effectively and privately. When companies maintain a strong defensive posture and have a robust crisis preparation plan in place during peacetime, they can more resiliently and tactically address corporate issues before stakeholders go public with their concerns.

Companies cannot prevent every corporate issue from becoming public. This is especially true if they are publicly traded and required by the SEC or their stock exchange to report issues which could have a material impact on financial performance. But it may also be true if a broader communications plan is required to inform other parties who may be adversely impacted by a crisis, such as in a cyber-attack.

No matter the scenario or the disclosure requirements, by looping the communications team into early planning sessions, executives gain a head start in understanding how stakeholders may react to potential crisis situations and anticipate reputational risk, much as they do with more normal course business decisions.

Here are seven crisis preparation considerations companies should factor into in their everyday communications activities:

1. Consider potential impacts of company announcements: It is easier than ever for a disgruntled customer or employee to gain significant traction by criticizing companies on TikTok, X and other social media platforms. In this charged landscape, even seemingly innocuous business initiatives, such as an advertising campaign or business partnership, should be closely evaluated for potential reputational and business risks before being publicly launched.

2. Avoid using charged language in both written and verbal communication: Companies and executives are increasingly being scrutinized for what they say and how they communicate to their stakeholders. Thoroughly testing the language you use in announcing key company developments will help companies effectively deliver their messages rather than inviting criticism over the wording they choose.

3. Provide employees with updated communications policies:Ensure employees are aware of their companies’ media and social media communications policies and the repercussions for not abiding by them. Making these policies a core part of the employee onboarding and training process will establish clear guidelines for employees to follow, particularly during an evolving crisis situation.

4. Communicate directly to your key stakeholders and through their preferred channels: Audiences need to hear directly from the company versus a third party or the media, particularly when an event has occurred. The media can and typically will pick up on what gets communicated to company stakeholders, so companies should be prepared for that likely inevitability. As such, messages should be clear, consistent and strike the appropriate tone.

5. Address the needs of impacted stakeholders: Meeting stakeholders’ priority needs during a situation, such as providing customers with full refunds after a product recall or addressing employee concerns directly, can position the company as a good corporate citizen and disincentivize the possibility of an affected party going to a reporter or airing grievances over social media.

6. Provide a channel for open communications and continue actively listening to stakeholders: The company should understand how stakeholders are feeling once the news of an event or crisis is rolled out and be prepared to address additional questions and concerns. Additionally, setting up an email alias or hotline for stakeholders to quickly receive assistance can further help companies respond to concerns directly so individuals can feel heard.

7. Rebuild trust with key stakeholders: Promising to do better is rarely enough. Depending on the situation, companies can and should take actionable steps, including reassessing their policies or creating a new role to increase oversight.

As with all challenges, it is less about what happens to a company but what they do about it that matters. By thinking through potential communications challenges during all stages of business planning, companies will be best positioned to address any issues which may arise.