What risks do ‘accused’ companies face, and what steps can they take? Media reports about carcinogenic chemicals in lakes, concerned citizens and politicians worried about potential contamination of drinking water, and serious allegations against local industrial firms – in such situations, it is essential to remain calm, analyse the situation and prevent the crisis from escalating.

Initial situation:

A popular small bathing lake in the Franconian countryside attracts public attention through local media coverage. Samples taken by the Middle Franconia Water Management Authority show an elevated concentration of perfluorooctane sulfonate, or PFOS for short. This substance is suspected of causing cancer. The pollutant breaks down in the environment only very slowly, if at all. Politicians and the public are also concerned about the quality of drinking water due to the high concentration of pollutants. Suspicions and accusations are being levelled at local industrial firms.

Objectives:

• To make the bathing lake usable again and to avert or minimise harm (to health and the economy) to the population
• To assist in informing the public and to play a part by clearly defining our role and responsibilities
• To avert or minimise damage to the affected company and, particularly as a company involved, to dispel the unjustified suspicion that it is the cause
• To act as a responsible company in the region, but also towards employees, partners and customers, and to be perceived as such

Procedure

Preparation:

Step 1:
Firstly, the management identified the allegations against the company as a potential crisis risk. To protect the company’s reputation and limit potential financial damage, the decision was made to seek professional external assistance.

Step 2: Kaltwasser
then convened an internal crisis team at short notice – comprising management, plant management, environmental officers, technical engineers and corporate communications. An internal project name was assigned that did not contain the word ‘crisis’. This is a key element in avoiding secondary crises.

Step 3:
Subsequent project team meetings were held predominantly in person on site – with short decision-making processes. At the outset, responsibilities and the project scope were also defined.

Step 4:
In parallel, information was gathered and processed. This formed the basis for defining tactics, messaging guidelines and key messages.

Step 5: We
promptly carried out stakeholder mapping to identify the relevant interest groups. It was particularly important here to consider potential conflicts of interest, historical events, and the geographical and geological conditions. 

Step 6:
The search for experts and eyewitnesses was part of the issue management process. Establishing contact with the authorities and local organisations were the next important steps. In parallel with media monitoring, regional and national journalists were contacted.

Step 7:
The project team managed the crisis within a few years. The course of the crisis was fluctuating, particularly due to seasonal factors.

Conclusion

As a general rule: keep calm, analyse the situation and assess and categorise the potential risks – in this case, particularly the damage to reputation. If you can then put together an experienced team within the company to handle this, the issue will not escalate into a crisis. And perhaps this situation will even lead to new business relationships and positive developments. As you know: every crisis also presents an opportunity.

Every crisis can be managed professionally – with the following steps:

• Gather sufficient information (including studies, background information, historical events)
• Assess the risk and evaluate the threat appropriately
• Identify the stakeholders and their sensitivities and motivations
• Identify experts and influencers/opinion leaders
• Appoint a spokesperson, define their role and their decision-making powers
• Draw up a roadmap, including a messaging strategy and key messages
• Communicate regularly and make your activities and background information visible – on websites, in press releases and background reports
• Get in touch with stakeholders – in an appropriate and suitable manner – via a wide variety of channels and formats
• Organise suitable events, e.g. a round-table discussion in the community, an information session for residents/interested citizens
• Document events as the project progresses