Journal of International Peace Operations
Volume 6, Number 1 – July/August 2010
We want answers.
IN February of this year, a multinational aerospace and defense contracting company paid nearly $500 million to the U.S. Department of Justice and the British Serious Fraud Office to settle a case involving allegations of corruption. Given the sheer size of the penalty – and that of the company that paid it – one would think that the company would soon play the role of poster child in the ongoing debate surrounding proposed reforms of the defense procurement system. But that has not been the case. In fact, the company just won a multimillion contract from the Army Research, Development and Engineering Command, just one of the many pieces of new business they have garnered since the settlement was announced.
How did the company emerge unscathed? Not only was its performance for the customer as close to impeccable as exists in this day and age; it aggressively articulated that record to public and private stakeholders that run the gamut from the general public to members of Congress. When taken alongside its well-publicized charitable and educational initiatives, the company had conditioned the marketplace to be forgiving of its missteps. Simply put, the company’s efforts to build a strong brand before a reputational crisis arose elicited a “that’s not the company I know” response when a blemish inevitably occurred.
The word “inevitable” is key, because the current reputational landscape is as challenging as it has ever been for defense contractors and the peace operations industries. Budget deficits and good-old-fashioned politics have dovetailed to drive vastly increased government scrutiny. Meanwhile, every unfortunate misstep by a government contractor involved with either large weapons systems or on-the-ground operations has emboldened opponents’ attacks and claims of “war profiteering,” an incendiary charge in today’s environment.
The reality that most of these incidents are isolated – or that accusations are often inaccurate or politically motivated – simply does not matter, even in cases where a single bad actor in a company has blatantly ignored stated corporate policy. Time and again, we have seen companies that lacked the reputational strength of the case study above taken to task on the front page, in the nightly news, online and, eventually, in Congress, the White House and the Pentagon. By the time remediation efforts are underway, the news cycle has moved on and often irreparable damage has been done.
In such a perilous setting, the best – and often only – way to protect a company from catastrophic reputational damage is to proactively build a strong corporate reputation that earns the ongoing admiration and respect of customers, key stakeholders and the public at large.
Simply put, it is about making enough deposits in the corporate trust bank during periods of relative calm to ensure that withdrawals during crisis do not leave an organization in the red. In a world where the media drives government policy and decision-making, effectively publicizing a strong record of results, an excellent management structure and commitments to safety, ethics and Corporate Social Responsibility (CSR) is what enables a firm to emerge from a crisis with its reputation intact.
Firstly, it is important to maintain an appropriate level of communications resources either in-house or via consultants. Develop and implement a sound communications plan with experienced strategists and tacticians. Hiring a strong Director of Communications with proven expertise and knowledge of digital communications is a must. In today’s 24-hour news cycle, controversies begin with online chatter, and even after the mainstream media is finished reporting on an issue, the topic can live on for months or years in the blogosphere or on social media sites. In many cases, it makes sense to augment your staff with an outside firm who understands your issues and your industry to provide strategic counsel and tactical execution when necessary.
Second, build a strong Web presence that provides positive information about the company. This includes placing messages on the company website, monitoring third-party sites such as Wikipedia for damaging or misleading content, engaging prominent bloggers who cover the stabilization industry, creating your own blog, or developing a following on social media sites such Facebook and Twitter that can act as brand ambassadors should crisis strike. In addition, Web properties should be fully-optimized via search engine optimization (SEO) and marketing (SEM) to drive as much traffic to promotional messages as possible.
Third, develop a list of journalists, editors and bloggers who cover your industry and engage them through informal meetings and briefings. Contrary to popular opinion, the media can be an embattled company’s best friend if relationships are nurtured before the company needs them. Develop these connections by providing reporters with an ongoing stream of information – either “on the record” or for background purposes only. Tell the story about your company that you want the public to hear and always be as open and transparent as possible. Further, create a press kit that highlights the company’s background and mission. This familiarizes journalists with your company’s history and exposes them to the positive stories a company has to tell. Make sure the press kits are updated once every six months at a minimum and include recent news articles that provide an accurate portrayal of company performance, as well as financial information if the company is publicly traded.
Fourth, recruit third-party allies who are experts in the defense field and can speak to the excellent return on investment that an organization provides. Encouraging these thoughtful leaders to write op-eds or make the cable news rounds – and facilitating these opportunities wherever possible – lends credibility to corporate messages and provides a powerfully supportive voice in times of crisis. Again, cultivate these relationships before you need them – for once a company finds itself in the eye of the storm, it will likely be too late.
Finally, ensure that the CSR program is well-publicized. Charitable contributions, employee volunteering, fundraising events and pro-bono work for non-profits are all elements of a comprehensive CSR campaign and should be liberally articulated. If a company has yet to establish a CSR program, now is the time to create one. Societal contributions are not only the right thing to do; they protect companies when faced with daunting public relations challenges.
A significant communications offensive may seem intimidating – and especially so for companies that have not traditionally focused on reputational strength. But remember: While many companies wait until a crisis erupts to speak publicly, it is the organizations that invest in their public perception that build long-term brands and are best able to weather an otherwise crippling crisis. A positive corporate reputation yields invaluable benefits and bulletproofs organizations in the event of a future crisis.
