{"id":5364,"date":"2018-12-18T14:42:48","date_gmt":"2018-12-18T14:42:48","guid":{"rendered":"https:\/\/thesocialelement.agency\/us\/?p=5364"},"modified":"2018-12-18T14:42:48","modified_gmt":"2018-12-18T14:42:48","slug":"three-crisis-trends-2018","status":"publish","type":"post","link":"https:\/\/thesocialelement.agency\/us\/three-crisis-trends-2018","title":{"rendered":"Three crisis trends in 2018"},"content":{"rendered":"
Author: Lisa Barnett<\/span><\/h5>\n

 
\nFrom Elon Musk\u2019s Tesla tweet to Facebook\u2019s data breach, the crises came thick and fast in 2018. Lisa Barnett takes a look at three of the year\u2019s biggest trends in crisis communications. <\/span>
\n <\/p>\n

Trend 1: The CEO can bring down the reputation of a company<\/b><\/h2>\n

The CEO is in the spotlight like never before. Elon Musk\u2019s ill-judged tweet (\u201cAm considering taking Tesla private at $420. Funding secured\u201d) cost him and the company $20 million each in SEC fines for misleading investors (the $420 was a cannabis reference, designed to make his girlfriend laugh). Although Tesla had informed the SEC it would be communicating material information to the market via Musk\u2019s personal Twitter account, the SEC said Tesla did not have adequate controls over his posts. Here, the CEO really was Tesla\u2019s biggest asset and its biggest liability. <\/span>
\nPay has always been the subject of intense scrutiny – but possibly never as much as for Jeff Fairburn, the former CEO of <\/span>Persimmon<\/span><\/a> – the UK housebuilders that focus on first-time buyers, and benefit from the UK government\u2019s \u2018help to buy\u2019 scheme. Fairburn agreed to leave his job over furore about his \u00a375million pay award – paid under a structure that had been agreed, based on a strong company performance. Shareholders said the company\u2019s \u2018reputation had been tarnished\u2019, despite Fairburn saying he would give a proportion of his pay to charity. Was it the way he handled it that caused the problem? One analyst suggested that walking out of a media interview, refusing to discuss pay could have been the \u2018final straw\u2019. <\/span>
\n <\/p>\n

Trend 2. Brands should prepare for ideological backlash <\/b><\/h2>\n

As we saw with Nike, doing the right thing for your brand doesn\u2019t always win you fans from all quarters. Its campaign with Kaepernick saw sales increase, company value increase – and people burn trainers in the street. For Nike, no stranger to controversy, this was a price worth paying. <\/span>
\nFor other brands, the backlash is less planned. In September 2018, <\/span>Salesforce\u2019s <\/span><\/a>CEO, Marc Benioff, hit the headlines when it came to light that Salesforce provides technology to the US Customer and Border Protection (CBP), which carries out Trump\u2019s border policies (including the controversial practice of separating families at the border). Salesforce came under pressure – including from its own employees – to cancel the contract, and Benioff ducked out of a call to discuss the issue with Raices, a refugee support group, saying he was \u2018scuba diving\u2019. Brands won\u2019t just be judged for what they do, but for what their customers do. <\/span>
\n <\/p>\n

Trend 3. Massive data breaches are now mainstream <\/b><\/h2>\n

Everywhere we looked, a brand was losing data. <\/span>Marriott <\/span><\/a>hotels had 500 million guest records stolen, including (for 327 million of those) passport number, date of birth and mailing address. The data was encrypted, but the hackers stole the encryption code, too. <\/span>
\nFacebook was hacked towards the end of an extremely bad year for the network\u2019s reputation, and the details of 50 million users were exposed, the biggest breach in its history. It didn\u2019t do much to support a battle-weary Zuckerberg in his assertion that Facebook has \u201ca \u00a0responsibility to protect your data.\u201d<\/span>
\nAnd the Indian government came under fire when its <\/span>Aadhaar <\/span><\/a>biometric data identity scheme was found to be insecure – a journalist managed to buy 1.1 million citizens\u2019 records for a reported 500 rupees (around \u00a36). The police are now investigating the journalist for illegally accessing data. <\/span>
\nWhatever your organisation type, data breaches are now a fact of life and something all businesses must prepare for. <\/span>
\n <\/p>\n

In summary<\/b><\/h2>\n

There is more pressure than ever before on brands from consumers, journalists, stakeholders and observers, holding them to account for how they behave, how they uphold their values and their promises, and how they fulfil their responsibility to customers. Being crisis-ready to face that pressure is something that should be on every brand\u2019s agenda for 2019. <\/span>
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Lisa Barnett   From Elon Musk\u2019s Tesla tweet to Facebook\u2019s data breach, the crises came thick and fast in 2018. Lisa Barnett takes a look at three of the year\u2019s biggest trends in crisis communications.   Trend 1: The CEO can bring down the reputation of a company The CEO is in the spotlight…<\/p>\n","protected":false},"author":11,"featured_media":5366,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","transcript_file":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","date_recorded":"","explicit":"","block":"","filesize_raw":"","footnotes":""},"categories":[2],"tags":[],"yoast_head":"\nThree crisis trends in 2018 - The Social Element USA<\/title>\n<meta name=\"description\" content=\"From Elon Musk\u2019s Tesla tweet to Facebook\u2019s data breach, the crises came thick and fast in 2018. 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