When a public authority or its representatives suddenly find themselves in the public spotlight, communication must function effectively under time pressure.
Crisis Communication & Litigation
When decisions have to be made under stress and uncertainty, IRF shows what those decisions mean for reputation and recommends an approach appropriate to the situation. IRF also provides operational support, from developing the messages and preparing executives to coordinating and implementing internal and external communication. And we remain a critical mind and constructive partner until the crisis has been overcome.
Typical challenges
Compliance violations
Corruption, cartel agreements, money laundering or sanctions violations become public.
Accounting or financial manipulation
Irregularities in accounting, profit warnings or subsequent corrections shake confidence.
Cyberattacks and data leaks
Customer data, trade secrets or internal communication are compromised.
Regulatory intervention
New laws, official investigations or licence withdrawals hit the business model.
Employment and HR issues
Mass layoffs, allegations of discrimination, criticism from unions.
Leadership failure or management misconduct
Private misconduct, abuse of power or unprofessional behaviour by the CEO or board of directors.
Strategic misjudgements
Failed expansions, costly acquisitions or missed market shifts.
Liquidity or financing crises
Insolvency, refinancing problems or loss of confidence among banks.
Experience and insights
Be careful with overly optimistic promises
Crises rarely occur in isolation. The first problem that emerges may only be the tip of the iceberg. Crises tend to bring other problems to light. Therefore: be careful with overly optimistic statements at the beginning of a crisis.
Legal considerations matter - but so do others
Many legal premises clash with the principles of reputational protection. In an acute crisis, from a reputational perspective it is wise to communicate the facts as quickly as possible. Lawyers usually prefer to wait much longer before communicating. This makes a careful balancing of interests necessary.
An apology?
In the corporate world, avoidable crises are common. If their consequences are serious, an apology suggests itself. There are many forms this can take, from expressing regret over what happened, to acknowledging any harm or suffering caused, to offering some form of compensation.
Now the CEO must demonstrate leadership
When the company’s reputation is at stake, an effective public appearance by the CEO is crucial. It needs to be well thought through and well prepared. Not only the right words matter - how the messages are delivered is equally decisive.
Do not invest too much energy in the critics
Every crisis has harsh critics. Perhaps they have a score to settle and are taking advantage of the moment. The temptation is great to devote substantial resources to blunting at least the sharpest edge of their criticism. A change of heart is usually unrealistic, however. That is why it is equally important to involve and mobilise supporters and natural allies.
Specialisations
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Relevant insights
IRF employees have given considerable thought to crisis communication. More nourishment for the hungry mind can be found here.
Book “Scandals and Crises”
What should you do when a good reputation begins to wobble? Martin Meier-Pfister published the book “Scandals and Crises - Reputation and Communication Strategies for Leaders” with NZZ Libro. It is aimed at board members, CEOs, communications heads and executives who need to take responsibility in critical moments. It provides practical insights into the mechanics of crises, outlines typical scenarios and sources of error, and delivers concrete recommendations for action.
Ingredients for successful collaboration between communications and legal teams in a crisis situation
The way in which a company or an individual handles a crisis can ultimately make that crisis stronger or weaker:
- Professional communication alone cannot make a problem disappear, but it will hopefully lead to much faster de-escalation.
- Professional legal advice can minimise or even avoid legal risks - but being right from a legal perspective is not always the same as being right from a moral perspective.
- For successful crisis management, it is therefore crucial that PR and Legal work closely together.
Together with the law firm Advestra, IRF has compiled the ingredients for successful collaboration between communications and legal teams, including concrete examples and the specific requirements for listed companies. The article (in English) is available for download:
