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When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
business builder law
by Steven Marino
In today's world, business owners and managers must be prepared to communicate effectively with the news media about company-related legal disputes or suffer brand damage among other consequences. All businesses can benefit from addressing this area before they face a crisis situation due to negative publicity.
Although the legal problems of businesses frequently attract media attention, business leaders often operate on the assumption that the safest and hence best response to all media inquiries is “no comment,” or at most a denial of wrongdoing without explanation.
Although this mindset is understandable, it is flawed for at least two reasons.
First, it totally concedes the public arena to opponents and critics. Even if the business ultimately wins in court or resolves its legal problems favorably out of court, losing in the court of public opinion in the meantime will usually far overshadow any legal victory.
Second, how an organization reacts to adverse events can be more important in the public mind than the events themselves. That is why cover-ups after the fact usually are more harmful to reputations than the underlying conduct was.
Some major businesses operating in Minnesota seem to understand these realities. For example, Target Corp.’s general counsel, Jim Hale, recently acknowledged that news reports about litigation involving Target can create instant customer perceptions that often are more important than what happens later in the litigation. Thus, Target has decided that it must candidly and publicly respond to negative news reports in order to protect its brand.
Similarly, Microsoft Corp. has regularly communicated its own views and contentions to the media and public concerning the merits of high-profile class action antitrust suits against it.
How does a business effectively pursue a participatory strategy with the media? Here are several suggestions for more effective communications after a legal problem or dispute surfaces on the public radar screen.
When speaking publicly, tell the truth and avoid any appearance of a cover-up. Since you can’t change bad facts and there are very few true secrets, admit the facts and move on. Present the good facts and bad facts and then discuss the steps you are taking to fix or prevent future problems.
Choose an appropriate spokesperson to handle all media inquiries and give that person effective speaking points and a written fact sheet handout to help convey a clear, consistent and credible public message.
That spokesperson should have excellent communications skills and an unflappable personality under stress. Avoid using technical jargon and acronyms in public communications. Also, build in a “white knight scenario” so that if public opinion deteriorates, you can bring in another spokesperson such as a senior executive to clarify key points.
Direct your spokesperson and your attorneys to work together closely to harmonize your public relations strategies and your legal strategies.
When the stakes are significant, get help from a public relations professional with substantial industry and crisis management experience.
Avoid a waiver
When using a PR expert, structure the relationship to avoid a waiver of legal privileges. Your attorneys alone should retain and direct the expert unless he or she is your employee, and the engagement should be limited to assisting the attorneys with the legal problems.
Also, the expert should only create documents at the attorneys’ request, and all expert-created documents should state via header or footer: “privileged and confidential, prepared at the request of legal counsel.”
If you have a strong preference for the PR firm you already use, then identify the individuals who will work exclusively on the legal issues.
Consider the pros and cons of communicating through different forms of media. For example, providing a press release to wire services may be the best way to send a story out fast. Also, electronic media’s news cycle is faster but print media has more time to investigate matters and spell out details in a complex situation.
Be ready to respond quickly as a story evolves. If you truly believe that a news report is or will be inaccurate or incomplete and the news outlet hasn’t consulted you, take the initiative. Ask for a meeting and provide details that will improve the story’s completeness and accuracy. The best approach is to suggest that the news outlet’s story will be stronger and fairer if it includes the viewpoint of the business.
While the best public communications strategies for legal problems depend on the specific situation and involve consideration of many factors, an ostrich mentality simply isn’t a viable strategy. Instead, the wisest approach is carefully considered participation in public communications.
[contact]
Steven Marino is an attorney with Marino Law Firm in St. Paul, and handles business disputes and commercial litigation: 651.631.8508; st***@***********rm.com; www.marinolawfirm.com
