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Issues management in the digital age

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CPC&

ISSUES
MANAGEMENT
IN THE DIGITAL AGE
Charlie Pownall | CPC & Associates Ltd

BANGKOK | November 28, 2014


CPC&

© 2015 CPC & Associates Ltd. All rights reserved

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What is ‘issues management’?

The activity of thinking about
problems that might affect
companies, government or
consumers and then planning
ways to solve them.
Source: Cambridge Dictionary
© 2015 CPC & Associates Ltd. All rights reserved

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INTERNAL

EXTERNAL

Issues versus crises










Political pressure
Regulatory changes
Religious/cultural/political
controversies
Societal outrage









Cyber attacks
Health scares
Hostile takeover bids
Natural disasters
Political unrest
Sabotage & extortion

Corporate/strategic failure
Corporate governance
failure
Fraud/malpractice
Poor employee behaviour







CEO dismissal
Employee injuries/death
Industrial disputes
IT system failures
Product quality recalls

ISSUE
© 2015 CPC & Associates Ltd. All rights reserved

CRISIS

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What we’ll cover today

• How issues are changing
• How to identify, assess
& plan for issues
• How to manage issues
© 2015 CPC & Associates Ltd. All rights reserved

5


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Reputation today

• Evolving expectations, volatile behaviours
• Broader range of risks & vulnerabilities
• Threats escalate faster & travel more widely
• More voices, opinion-formers, channels
• Demands on openness & accountability
• Pressure to respond immediately & openly
© 2015 CPC & Associates Ltd. All rights reserved

6



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Thefocus
roleofof
social
Risk
boards

© 2015 CPC & Associates Ltd. All rights reserved

media

Source: EIU, Clifford Chance - 2014

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The
role
of social media
Impact
of issues/crises

© 2015 CPC & Associates Ltd. All rights reserved

Source: EIU, Clifford Chance - 2014


8


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The
roleof of
social
media
Incidents
concern
to boards

© 2015 CPC & Associates Ltd. All rights reserved

Source: EIU, Clifford Chance - 2014

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Theofrole
social
Role
socialof
media

IGNITE


© 2015 CPC & Associates Ltd. All rights reserved

AMPLIFY

media

DEEPEN

SUSTAIN

10


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What we’ll cover today

• How issues are changing
• How to identify, assess
& plan for issues
• How to manage issues
© 2015 CPC & Associates Ltd. All rights reserved

11


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Identify stakeholders


Investors

Civil groups

Customers

Government

Employees

NGOs

Suppliers

© 2015 CPC & Associates Ltd. All rights reserved

Media

12


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Identify threats

SOCIETAL
BEHAVIOURAL

TECHNOLOGICAL


STRATEGIC
OPERATIONAL

LEGAL
FINANCIAL

© 2015 CPC & Associates Ltd. All rights reserved

13


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Listen to online discussions

© 2015 CPC & Associates Ltd. All rights reserved

Source: Crimson Hexagon

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Identify opinion-formers

© 2015 CPC & Associates Ltd. All rights reserved

Source: Salter Baxter


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Prioritise threats

LIK
ELI
H
O
O
D
+

MODERATE

SEVERE

High likelihood,
low impact

High likelihood,
high impact

LOW

HIGH

Low likelihood,

low impact

Low likelihood,
high impact

© 2015 CPC & Associates Ltd. All rights reserved

IMPACT

+
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2. Listenthreats
to audiences
Categorise
Critical





Extensive breach of customer data
Kidnapping of an employee
Major damage to a firm’s physical assets during an earthquake or terrorist
operation

Severe






Allegations of corruption amongst a firm’s senior leadership
External leak about serious and unexplained injuries to employees at work
Threat of legal action by a major investor over the accuracy of a firm’s
financial statements

Significant





Escalating allegations of use of child labor amongst a company’s suppliers
Community protests about local environmental damage
Campaign by a global NGO to boycott a company’s products

Moderate





An escalating online rumor about a controversial product ingredient
A public complaint about a faulty product by a celebrity customer
A backlash to an unexpected price increase or brand marketing campaign


Low





Known though uncontroversial concerns about a product circulating online
Negative online feedback to a media article on employee compensation
A one-off complaint on Facebook by a customer about poor quality
product packaging

© 2015 CPC & Associates Ltd. All rights reserved

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Strengthen foundations

• Reputation management
system
• Transparency strategy
• Stakeholder engagement
© 2015 CPC & Associates Ltd. All rights reserved

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Reputation management system

• Listening
• Governance
• Policies & protocols
• Resources
• Training
• Tools
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Online listening

© 2015 CPC & Associates Ltd. All rights reserved

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Online response protocol

© 2015 CPC & Associates Ltd. All rights reserved

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Transparency strategy

• Strategic
• Operational
• Technological

© 2015 CPC & Associates Ltd. All rights reserved

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© 2015 CPC & Associates Ltd. All rights reserved

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© 2015 CPC & Associates Ltd. All rights reserved

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Stakeholder engagement strategy

WI
LLI
N
G
NE
SS
TO
CO
OP
ER
AT
E
+
© 2015 CPC & Associates Ltd. All rights reserved

RESPOND

CO-OPERATE

MONITOR

ENGAGE

-

INFLUENCE


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25


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