Social Media Crisis Communications for PRSA-NY

PRSA-NY Social Media Crisis Communications @PRSANY #SMCRISIS

October 23, 2012

Presented By Sponsored By

October 23, 2012 PRSA-NY: Social Media Crisis Communications

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Sandra Fathi is founder and president of A!ect, a public relations and social media firm specializing in business-to-business and business-to-consumer technology, healthcare and professional services, located in New York.

She started her career as a technology journalist, quickly moving to the corporate communications field by joining Nokia, where she led marketing teams in the company’s multimedia display products division. She also provided consulting services for Nortel on marketing the company's first VoIP product line and oversaw global marketing e!orts for VCON, a video conferencing company.

Sandra went on to work for Edelman Public Relations Worldwide, where she specialized in the networking, telecommunications, computer hardware, so"ware and Internet business verticals. Before founding A!ect in 2002, Sandra led corporate communications and investor relations for RADVISION, a provider of video conferencing infrastructure products.

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Michael Clendenin is the Director of Media Relations for Con Edison, electric, gas and steam providers for New York City and Westchester County.

Before joining Con Edison, Clendenin served as Director of Communications for the New York City Council, where he was responsible for all public relations and media strategy e!orts. He also handled public relations activities for the Council Commi#ee hearings and special events, supervised sta! press aides and coordinated assignment of all City Council press releases, speeches and interviews for print and broadcast media.

Prior to his position at the City Council, Clendenin was a Vice President with Connelly & McLaughlin, a public relations and lobbying firm with a wide range of clients in politics, real estate, health care, labor and other industries. There, he developed media strategy and arranged meetings for clients with government sta! and elected o$cials.

A native of Queens, New York, Clendenin holds a bachelor’s degree in Journalism from Northeastern University.

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Jenny Dervin is the Vice President of corporate communications for JetBlue airlines. A"er joining JetBlue in 2005 as director of corporate communications, Dervin held a number of communications positions within the company until 2011 when she became a Vice President.

Prior to joining JetBlue, Dervin worked at Delta Airlines from 1999 to 2005. She began her career in the airline industry at Trans World Airlines in%Chicago%in 1993.

Dervin received a Bachelor of Arts degree from Columbia College in Chicago.

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Gary Kibel is a partner in the Technology, Digital Media & Privacy, Intellectual Property, Advertising & Marketing and Promotions practice groups of Davis & Gilbert.% Kibel regularly counsels clients with respect to digital media and advertising law, privacy and data security and information technology ma#ers.

Kibel is a Certified Information Privacy Professional (CIPP) and advises clients in many industries regarding privacy and data security issues, including internal information security policies, contractual obligations and requirements, security breaches and incident responses, audits and cross-border data transfers.%

Additionally, he co-chairs the International Association of Privacy Professionals (IAPP) and New York City KnowledgeNet group.

Prior to becoming an a#orney, Kibel worked as an information systems analyst in the Investment Banking Division of Merrill Lynch & Co. Kibel received his MBA from Binghamton University and his JD from Brooklyn Law School.

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Sandra Fathi President, A!ect www.a!ect.com www.techa!ect.com

Email: sfathi@a!ect.com Twi"er: @sandrafathi

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CRISIS COMMUNICATIONS

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4 Phases of Crisis Communications

•  Readiness

•  Response

•  Reassurance

•  Recovery

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•  Internal

Employees

Facilities

Vendors/Suppliers

Distributors/Resellers

Product

•  External

Acts of Nature

Market

Legal Restrictions/Law

Customers

Advocacy Groups

Anticipating & Understanding Threats to a Business

People, Products, Facilities, Environment

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1.  Senior manager accused of inappropriate conduct including lewd photos with employee – Now on Instagram

2.  Employee arrested for hit and run accident – Now Appearing in Google Search

3.  Employee caught abusing drugs – Now Posted on his Facebook Profile

4.  Customer credit card details leaked – Now On Twi#er

5.  Employee posts rant on company and exposes confidential information – Now on YouTube

6.  Company accused of making children’s toys with poisonous lead paint – Now on a Mommy Blog

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Anticipating a Crisis

1.  Crisis Mapping (SWOT Analysis)

2.  Policies and Procedures (Prevention)

3.  Crisis Monitoring

4.  Crisis Communications Plan

5.  Crisis Action Plan

6.  Crisis Standard Communications Template

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How long before the $@!& hits the fan?

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What’s in the Toolkit?

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Preparing a Response

1.  Don’t delay

2.  Acknowledge situation

3.  Acknowledge impact and ‘victims’

4.  Commit to investigate

5.  Commit to sharing information and cooperation with relevant parties

6.  Share corrective action plan if available

7.  Respond in the format in which the crisis was received**

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Who to Reassure? How to Reassure?

1.  Develop full response plan

2.  Put plan into action: Immediate remedy

3.  Communicate results of plan and impact

4.  Rea$rm commitment to correction

5.  Demonstrate results of program

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Preparing a Long-term Recovery Plan

1.  Review need for operational, regulatory, environmental and employee changes

2.  Develop long-term plan including policies and prevention tactics

3.  Reassess crisis plan

4.  Regain customer/public trust

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SOCIAL NETWORKING – 3 PERSPECTIVES

1. Social networking by company employees

2. Social networking by the company itself(or its authorized representatives, such asits ad agencies)

3. Social networking by the public (either on asite set up by the company or a third partysite/service)

SOCIAL MEDIADISCLOSURES

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FTC’S GUIDES CONCERNING THEUSE OF ENDORSEMENTS ANDTESTIMONIALS IN ADVERTISING

»Endorsement/Testimonial = Any advertisingmessage which message consumers are likely tobelieve reflects the opinions, beliefs, findings, orexperience of a party other than the sponsoringadvertiser.”»Must be honest and not deceptive»Disclosure of material connections:“When there exists a connection between theendorser and the seller of the advertised productwhich might materially affect the weight orcredibility of the endorsement (i.e., the connectionis not reasonably expected by the audience), suchconnection must be fully disclosed.”

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FTC’S REVISED ENDORSEMENT GUIDES

»A blogger/word-of-mouth marketer has a duty todisclose any “material connections” with an advertiser(e.g., payments or free products that the consumerwould not expect)

»Celebrities have a duty to disclose their relationshipswith advertisers when making endorsements outsidethe context of traditional ads, such as on talk shows,blogs or in social media

»Employees who promote their employer’s products orservices in social media should clearly andconspicuously disclose their employment relationship

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FTC ENFORCEMENT ACTION(REVERB COMMUNICATIONS –AUGUST 2010)

»FTC Action Against Reverb Communications andSnitker: In August 2010, the FTC settled withReverb Communications, Inc., a California-basedpublic relations firm in the video game industry,and its sole owner, Tracie Snitker»Endorsed their clients’ gaming applications byconsistently giving their client’s applications four orfive stars or by positively commenting on them(e.g., “Amazing new game,” “ONE of the BEST”and “One of the best apps just got better”)

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HOW TO MAKE A DISCLOSUREIN SOCIAL MEDIA

»How should a disclosure be made?- There is no special language but goal is to effectivelycommunicate your relationship with the marketer• Acceptable:- “Company X gave me this product to try ...”- “I work for Company X, so ...”

»Not acceptable- Button that says DISCLOSURE or LEGAL- ABOUT US or GENERAL INFO

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HOW TO MAKE A DISCLOSUREIN SOCIAL MEDIA

»How can I make a disclosure on Twitter?- #paid ad- #paid- #ad

»WOMMA also suggests- #spon, #paid, or #samp

SOCIAL MEDIA SERVICESTERMS OF SERVICE

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TERMS, CONDITIONS, POLICIES,GUIDELINES, yada yada…

»Facebook

- Statement of Rights and Responsibilities

- Promotions Guidelines

- Platform Policies

- Advertising Guidelines

- Brand Resource and Permissions Center

- Data Use Policy

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FACEBOOK POLICIES – STATEMENTOF RIGHTS AND RESPONSIBILITIES

»Profiles vs. Pages

»Pages vs. Application

- “You may not use your personal profile for yourown commercial gain.”

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»FINRA – NASD Rule 2210

- Websites = advertisements

Therefore, need review and registered principalapproval prior to posting

- Interactive Communications (i.e., chat rooms)= public appearances.

Therefore no prior approval necessary

- Blogs and Bulletin Boards = advertisements (ifstatic); = interactive communications (if real-time)

- Social Networking = combination of static andinteractive content

FINANCIAL SERVICESAND SOCIAL MEDIA

EMPLOYEE ISSUESWITH SOCIAL MEDIA

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CORPORATESOCIAL MEDIA POLICY

»Create a Corporate Blogging Policy

- Permitted conduct

- Encouraged conduct

- Prohibited conduct

- Company’s rights and remedies

»Personal vs. Professional Uses of Social Media

»Intellectual Property Rights (i.e., copyrights, trademarks)

»Confidential Information

»Company’s right to review – no expectation of privacy

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CORPORATESOCIAL MEDIA POLICY

»Discussions Regarding Competitors»Disclosures Regarding Relationships (no astroturfing)»Acceptable lingo – LOL vs. WTF»Opinions»Don’t Use for Harassment / Objectionable Content»Supervisory Procedures in Place»Changes To Accounts Upon Termination With TheCompany (i.e., LinkedIn)»B.Y.O.D.

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NLRA IMPACT

»Section 7 of the National Labor Relations Act(NLRA) protects the rights of most non-supervisory employees to act together to improvetheir working terms and conditions, includingcommunicating about their pay, benefits and otherwork-related issues

»This is called “concerted activity” and is protectedwhether or not the employees are unionized

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