In the News–Reputation Management
CEO Health: Shareholders Want to Know More
Lindsay Frost, Agenda, June 26, 2017
Newly minted CSX CEO Hunter Harrison is lauded as transforming the railroad game for Canadian Pacific and several other railroad networks. Although he took his post at CSX in March, investors were tasked with ratifying the $84 million pay package it would take to keep him. While considering the vote, shareholders voiced concerns about his health after a report was leaked noting that he has to work from home sometimes and uses an oxygen tank to help him breathe.
Harrison’s situation has put the question of materiality, and when and if to disclose CEO health issues, back in the spotlight. Considered the board’s responsibility, making health disclosures can be a difficult decision depending on the situation, sources say.
“[When boards are considering disclosing], they are caught in this world between privacy and HIPAA [Health Insurance Portability and Accountability Act of 1996] and material information,” says Davia Temin, CEO of strategy and communications consulting firm Temin and Company, who has served on multiple boards. “Clearly shareholders and analysts want the information immediately, and very often CEOs who are ill want more time [before disclosing]. Different companies have threaded the needle differently and walked that thin line differently.” Subscription required for full access. […read more]
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Crisis of the Week: Fujifilm Addresses Accounting Problems
Ben DiPietro, The Wall Street Journal’s Risk & Compliance Journal, June 19, 2017
Fujifilm Holdings announced that losses from accounting irregularities in New Zealand were much larger than first thought and extended to the company’s Australian office-equipment unit. The announcement left some to wonder how much control the company has over its overseas units.
The company said it conducted a review and found the losses would widen further but did say it found “a problem” with controls at its Fuji Xerox subsidiary. Fujifilm said inappropriate accounting occurred in part because of commission and bonus “incentives” for managers and employees that “placed an emphasis on sales.” It said six board members at Fuji Xerox would resign to take responsibility for the losses that now total around $340 million. It also docked the pay of all Fuji Xerox board members and two other senior executives.
Using Fujifilm’s statements and those of its executives, the experts break down the company’s crisis management performance in this instance.
“Fujifilm’s public response to its ‘inappropriate accounting’ crisis was enough to be effective as witnessed by the fact the story lasted no more than a few days in the global news cycle,” said Davia Temin. “While the company’s public responses were terse, minimal and occasionally odd, they were unprecedented in their openness and disclosure.” […read more]
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]
Navigating the United PR crisis
Amara Walker, CNNi, April 11, 2017
Amara Walker talks with public relations expert Davia Temin about United Airline’s handling of their latest crisis that sparked worldwide outrage, in which a passenger was dragged off the airline when he wouldn’t give up his seat on an overbooked flight, and how they can recover from the blow to their reputation.
To watch the interview on CNN, CLICK HERE.
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]
Davia Temin, Crisis and Reputational Risk Expert, Honored with the 2017 Lifetime Achievement Award from Trust Across America
T&C Press Release, Yahoo! Finance, January 30, 2017
Crisis and reputational risk strategist and leadership coach Davia Temin has been honored by Trust Across America-Trust Around the World with its 2017 Lifetime Achievement Award. The award recognizes leadership in advancing organizational trust on a global level; Temin has been named one of the group’s “Top Thought Leaders in Trustworthy Business” for five consecutive years. […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.
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