Manage Your Association's Reputational Risk

hand holding a mic September 19, 2016 By: Christine Umbrell

An important part of your association's risk-management toolset is a savvy communications strategy for a public-relations crisis. Here's a list of seven steps one association follows whenever it needs to respond.

These days, one negative tweet or social media post can go viral, causing catastrophic damage to someone's reputation. But it's not just people who are victimized by reputational threats; entire industries can also be damaged in an instant.

In the fast-paced digital world of 2016, how well does your association speak for the industry it represents? How do you respond when that industry comes under attack from potentially adverse press situations? Knowing how to protect your members when your industry is being criticized or threatened is key to your association's long-term survival.

Associations "never exist in a vacuum," says Chuck Wellard, CAE, senior vice president of operations for the American Bakers Association (ABA). "We exist in our members' worlds, their customers' worlds, and others," he says. ABA, which serves as the voice of the wholesale baking industry, represents and advocates on behalf of baking facilities that produce items such as breads, rolls, crackers, bagels, and sweet goods.

Wellard has seen ABA face reputational and organizational threats "when we took a position on legislation or policy that is best for our members but might not be congruent for others in the food industry," he says. Such threats can be extremely damaging, says Wellard: "It can take years to build and sustain a valuable relationship and minutes to fracture that relationship with negative publicity."

According to Wellard, an industry's reputation can be called into question when misinformation is communicated to the public via blogs, social media posts, and other forms of media. In addition, the "character" of an industry or association can even be damaged by "face-to-face or phone conversations with misinformed key members and stakeholders," he says.

During a crisis, facts get obscured by perception. Communicate the facts, but do so in the context of your audience's most pressing concerns.

Because negative PR can be so damaging, ABA has created a set of rules to follow when responding to threats to the baking industry's reputation. To generate these rules, the organization worked with its long-time marketing partner, Marketing Design Group (mdg), to conduct a stakeholder analysis and formulate "a clear lens of how our reputation was viewed," says Wellard. Then ABA and mdg developed a "7 Take-Aways" list to reference once a reputational crisis occurs. "The 7 Take-Aways provide key tools for ABA to use to monitor and proactively respond to negative communications, with responses based on sound science and facts, and with empathy," says Wellard.

Consider following these rules when the "character" of your industry is called into question:

1. Recognize that you will suffer in the short term. If damaging information is publicized, it will be painful at the outset. Wellard advises associations to play the long game; the way you respond to a crisis may ultimately enhance your reputation and increase stakeholder loyalty.

2. Communicate immediately. Early on, Wellard suggests that you let members and other stakeholders know you recognize that something has occurred that could damage their reputation and promise to respond soon. Then, "survey to see how widespread the challenge is," says Wellard. "Define what the crisis is, who's involved, who should get involved, and how the members will play a part."

3. Remember that, if you don't talk, others will. As soon as you have information you can share with the media about the situation, do so. The media will be looking to gather information and get quotes, and it will turn to others if you are not forthcoming, says Wellard.

4. Avoid saying, "No comment." Refusing to comment is tantamount to admitting guilt, says Wellard. Instead, share as much information as possible, to avoid looking as if your association is out of touch or indifferent to the situation.

5. Tailor your response to focus on those who are negatively impacted. Avoid discussing how the situation affects you personally, and instead explain what your organization and your members are doing to assist those who have been damaged by what has occurred. "Align your communications and actions to human safety, as well as members', customers', and stakeholders' needs," says Wellard.

6. Understand that facts are not enough. During a crisis, facts get obscured by perception, says Wellard. Communicate the facts, but do so "in the context of your audience's most pressing concerns."

7. Get it all out. Tell the whole story; trying to bury the negative aspects of a situation may extend and exacerbate a crisis, says Wellard. Transparency will keep your industry's integrity intact and build trust among members, stakeholders, and even the media.

The next time a damaging tweet, post, or article maligning your industry comes to light, remember these 7 Take-Aways. Used in conjunction with sufficient resources in your association's reserves to "deal with the unknown," says Wellard, these rules can prepare you to weather the storm and ultimately repair damages to the reputation of your members and the industry they serve.

Christine Umbrell

Christine Umbrell is a freelance writer based in Herndon, Virginia.