In the News–Crisis Management
PR Nightmares: United Fiasco Among Worst Corporate Gaffes
Christopher Palmeri and Jeff Green, Bloomberg, April 11, 2017
When it comes to bad public relations, it’s pretty tough to top the sight of a United Airlines passenger being dragged, bloodied and screaming, from a flight.
The incident, including two attempts at apology by Chief Executive Officer Oscar Munoz, has been airing on cable TV and raging on social media for days. But the fiasco is hardly the first self-inflicted corporate blunder. Munoz can take comfort that it’s happened to others, and in many cases the bosses didn’t lose their jobs, as our PR Tales From Hell illustrate.
Over Easter week in 2009, two Domino’s Pizza employees in North Carolina posted a video on YouTube showing one sticking cheese up his nose and pretending to sneeze on a customer’s sandwich. With the clip reaching one million views, management fired the employees, sanitized the store and produced its own video with a formal apology from President Patrick Doyle.
The company’s response was to show outrage and take action, said Davia Temin, head of the New York-based crisis-management firm Temin & Co. CEO David Brandon kept his job and now runs Toys “R” Us Inc. Doyle succeeded him. […read more]
Crisis of the Week: Hacked Twitter Account Gives McDonald’s Indigestion
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, March 27, 2017
The crisis magnifying lens puts it focus on McDonald’s Corp. after a message was sent on the company’s Twitter account calling President Donald Trump “a disgusting excuse of a President” and trolling him by saying he has “tiny hands.” The White House did not comment, but some supporters of the president called for a boycott of the burger chain.
McDonald’s said it was notified by Twitter that its account was hacked. McDonald’s deleted the tweet, secured its account and said an internal investigation found the account had been hacked by “an external source.” The company put out a statement apologizing that “this tweet was sent through our corporate McDonald’s account.”
The experts evaluate how well McDonald’s handled this crisis.
“The fake tweet sent from McDonalds’ Twitter account on March 16 that disparaged President Donald Trump catapulted the company into the land of alt-tweetdom,” said Davia Temin. “Today, as companies and individuals alike struggle to delineate truth from fiction in public discourse, McDonalds had an immediate imperative to let the public know it had not officially sent the insulting tweet. It had to act quickly to set the record straight, before it even knew what really had happened. It couldn’t let a lie stand. It did an excellent job.” […read more]
Rex Tillerson Isn’t the Only CEO With an Extra Email Address
Vanessa Fuhrmans and Joann Lublin, The Wall Street Journal, March 15, 2017
The news that Secretary of State Rex Tillerson used an email alias while he was chief executive of Exxon Mobil Corp. surprised much of the business world—if only for his moniker’s creativity.
Many executives have an alternate company email address, or even two or three, business leaders and executive coaches say. But it is rare that those aliases take on an entirely different identity.
There is a distinction between using an alternate email address and adopting an alter ego, said Davia Temin, chief executive of reputation- and crisis-management firm Temin & Co., who says such an alias is often an attempt to maintain privacy “in such a porous world.” She advises against the urge. Even if messages from the alternate address circulate solely among company executives, “it looks as if it is meant to hide” something, she said.
More common, Ms. Temin says, is for executives to set up a social-media alias to join a Twitter conversation or other debate without disclosing their identities. […read more]
Keep Calm and Manage a Crisis
Erica Christoffer, REALTOR Mag, February 2017
A crisis in real estate can occur because of poor market conditions, hampered cyber security, a natural disaster, and even threats to your reputation. But Davia Temin, CEO of Temin and Co., a crisis management firm, wants brokerage owners to know that when your business faces trouble, it’s an opportunity to exercise leadership.
Temin, who has served as a spokesperson for major organizations during crises over the last 20 years, shared some universal tips about how to respond to a business-oriented emergency during the 2017 REALTOR® Broker Summit in San Diego. “I try not to put lipstick on a pig,” she said. “Figure out what the situation is and what you can do within the bounds of the organization to address it in the right way.” […read more]
Trump CEO Brain Trust Huddles as Corporate America Splits
Justin Sink and Matt Townsend, Bloomberg | Quint, February 3, 2017
President Donald Trump has needled Mary Barra at General Motors Co. He’s troubled Doug McMillon at Wal-Mart Stores Inc. and gone after Boeing Co., once headed by Jim McNerney. Those business leaders, and about a dozen others, sat down on Friday with Trump to talk trade, regulation and more.
In his first two weeks as president, Trump has rewritten the Washington playbook for corporate America, as he has for U.S. allies. In the process, he has opened rifts between companies over how to approach matters ranging from taxes to immigration and revealed the first cracks in companies’ tentative embrace of him, drawing criticism from some of the chief executives who were in the room Friday morning.
The meeting is the latest in a series of White House events designed to allow Trump to solicit feedback from business leaders — and burnish his image as a can-do businessman ready to strike deals. The events usually start with pictures and video clips to feed the news cycle and then a closed meeting with the president and top aides.
After the photo ops is when it gets interesting, of course, and it could be up to Blackstone’s Schwarzman to keep things in order, said Davia Temin, founder of the crisis-management company Temin & Co. in New York. If he’s allowed to be in charge, he should run it like a board meeting, with vigorous but respectful debate.
“One model is a high degree of professionalism and politeness, even while being tough and entrenched in your questioning,” she said. But “some boards are different — some boards you have knock-down, drag-outs.” […read more]
Crisis of the Week: Qualcomm Chips Away at South Korea Probe
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, January 9, 2017
Chip maker Qualcomm Inc. takes crisis center stage this week after a regulator in South Korea said it would fine the company $853 million for alleged antitrust violations related to its patent-licensing business.
Qualcomm denounced the decision by the Korea Fair Trade Commission, calling it “inconsistent with the facts and the law” and vowing to appeal. “For decades, Qualcomm has worked hand in hand with Korean companies to foster the growth of the wireless Internet,” the company said in a statement. “Qualcomm’s technology and its business model have helped those companies grow into global leaders in the wireless industry. This decision ignores that win-win relationship.”
The experts evaluate how well the company is handling this crisis.
Davia Temin, chief executive, Temin and Co.: “Qualcomm’s press release response to the ruling of the Korea Fair Trade Commission threaded the needle very well. It is cogent, nuanced, well-stated and argued, and persuasive without being overly aggressive or over-wrought. The communication had a number of goals: to respond to the markets and investment community, to put Korea on public notice that it will appeal and begin to frame the elements of that appeal while trying to not antagonize the Korean government or the court, since Qualcomm is relying on the court’s favorable hearing of the appeal.
“Qualcomm is facing a severe threat to its business model worldwide with this ruling, and in answering it appears to be setting its defensive arguments for many countries to come. Given the importance of a nuanced response, Qualcomm could not offer up a marketing or PR-like overstatement; it needed a clear but lawyerly response, delivered by its general counsel–and that is exactly what it provided. The right person is quoted, and Don Rosenberg’s pull-out quote is effective.
“Will it win the day? Yet to tell, but the response is thoughtful, strategic and understatedly persuasive. [The company has not] answered questions from the media…but it will have to answer questions from analysts on its next earnings call, and the media will be listening in, so they will need to be consistent and additive as this story unfolds.
To read the full article, CLICK HERE.
Think that email is private? Think again — then think some more
Anna Robaton, CBS MoneyWatch, October 24, 2016
Email hacks have apparently become the new normal. Just over the last several months, hackers have leaked emails belonging to several highly influential people. The hacked emails, some containing embarrassing tidbits, have been a major theme in the presidential campaign.
The recent spate of public-figure hacks also serves as a reminder to think twice about what you write in your emails, said Davia Temin, an executive coach and crisis manager who has worked with victims of hacks.
Many business and government leaders, she said, have long known that they shouldn’t expect privacy with regard to email, which can be subpoenaed in lawsuits or government investigations or land in the wrong hands through forwarding.
“Folks who are in high levels of leadership within corporations or other organizations pretty much know intellectually that they should never put in an email something they wouldn’t want” covered by the media, said Temin. She noted, though, that many still find it difficult to censor themselves. […read more]
Crisis of the Week: Tyson Finds Itself in Game of Reputation Chicken
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, October 19, 2016
Food processor Tyson Foods Inc. takes crisis center stage after being accused of rigging poultry prices. Lawsuits filed against Tyson allege the company and other producers engaged in fixing prices for its poultry products, prompting one analyst to issue a report suggesting the issue could become a big problem for Tyson—news that sent the company’s stock price lower. Other reports struck a different tone about the company, and the stock rebounded the next week.
Tyson sent out a statement in which it vowed to defend itself against the allegations, saying: “While we don’t normally make substantive comments regarding pending litigation, we dispute the allegations in the complaints as well as the speculative conclusions reached by the analyst, and we will defend ourselves in court.”
Using the company’s statement, the experts break down its response, how well it communicated its message, and what it should do next?
“Tyson Foods felt it had to respond when an industry analyst advising hedge funds issued a report that sent the company’s share price into a dive,” says Davia Temin. “And probably, to its lawyers, it did seem like a spirited and substantive response–but not really. In reality it was a three-sentence statement that said almost nothing.” […read more]
For Business Leaders, Hacking Attacks Get Personal
Rober McMillan and Rachel Feintzeig, The Wall Street Journal, October 3, 2016
Businesses have spent years fighting off internet intruders bent on stealing corporate secrets. Now, leaders of those businesses must also worry whether hackers will use personal information or private emails to embarrass them or seriously damage the company.
Davia Temin, an executive coach and crisis manager who has worked with victims of hacks, says her clients fret about a Sony-style hack happening to them. Fast-rising executives are particularly worried that a leak could derail their careers, so she advises them to keep their communications bland.
“You can’t let your entire personality necessarily come out in your email,” she said. […read more]
Crisis of the Week: Signet Confronts Diamond Debacle
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, June 13, 2016
The crisis this week involves Signet Jewelers, which is battling allegations employees substituted premium diamonds with cheaper, man-made substitutes. The company’s stock price declined following the reports.
Signet—which owns national jewelry-store brands Jared, Kay Jewelers and Zales—issued a statement strongly refuting the allegations. “Signet Jewelers’ entire team culture is directed toward ensuring that we earn and maintain customer trust,” the company said. “Incidents of misconduct, which are exceedingly rare, are dealt with swiftly and appropriately.”
Using only the statement issued by the company, the experts break down the effectiveness of its communications, highlighting what’s good about its messaging and tone and delivery, and what’s not so good. How should the company proceed?
Davia Temin, chief executive, Temin and Co.: “Disparagement of a company’s reputation these days can come from all sides, including Wall Street and social media. Signet has just experienced incoming on both fronts, with Wall Street’s questioning of its credit business far more worrisome, as it appears to have some validity and can affect share price valuation immediately, necessitating real business-model changes. It is very difficult to respond publicly to such a situation, as it is changing rapidly, and one can never make assertions that might need to be taken back later, as more information comes to light. Signet has done what it can, so far, although a more fulsome statement will have to be forthcoming at some point.
“As to attacks on social media regarding gem swapping, Signet has done many things quite right in its response, but it just did not go far enough and was not quite as earnest as it could have been in my opinion. The statement it issued was comprehensive, specific and acknowledged what consumers are looking for when buying a diamond. Wisely, it did not mention the specific allegations against it until the second paragraph. I might not have mentioned them at all. Moreover, I would not have relied on trite phrases that, when used, serve to fuel disbelief because they are so trite, such as ‘take seriously,’ ‘earn trust,’ etc.
“Trust is a hard thing to claim you have earned: You earn it or you don’t. Signet says rightly it ‘seeks’ to earn trust, which speaks to its intent, and that is good. But what it does not do is speak to the specifics of whether there is any merit in the reports of its detractors, and what it has done about it. It needs that one element added to its proclamations of good intent to be really believable, and not to be viewed as press release double-speak.
To read the full article, CLICK HERE.
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