Bronwynne Howse*
Instantaneous news cycles combined with social media which can amplify an issue irrespective of whether there’s any factual basis, means reputation management has never been more critical for individuals and organisations.
For lawyers advising clients, it’s essential to recognise that legal advice, while paramount, is just one piece of the puzzle. Equally important is the consideration of reputational impact—a hard-earned asset that can be easily lost if not protected.
The Fragile Nature of Reputation
Reputation is the perception stakeholders—clients, investors, employees, and the public—have about an organisation and a person. It is built over time through consistent behaviour, transparent communication, and demonstrated integrity.
However, this valuable asset can be tarnished so quickly, especially in the face of a crisis. An ill-considered response to an issue can not only damage trust and loyalty, which are far more challenging to rebuild than to maintain, but can also have financial ramifications.
Nearly every day we see examples that highlight how mismanaging an issue can put reputations at risk, not only undermining trust and credibility that took years to build, but also having an impact on the bottom line.
The recent EY crisis which has unfolded over several months is a good example of not only how an issue impacts individual and corporate reputations but also the financial fallout that comes with it. Even though the managing partner has now spoken out and apologised, the damage is done.
The New Media Landscape
The traditional media cycle, which once allowed time for strategic response and communication, has been replaced by a relentless 24/7 news environment.
Social media platforms like X, Facebook, Instagram and TikTok enable instantaneous sharing of information, with misinformation and disinformation spreading just as quickly. This reality means that public, customer and client sentiment can shift in an instant, magnifying the importance of a proactive and integrated approach to crisis management.
The Role of Communications
Interestingly, there is a tendency to dismiss reputation as an ethereal concept.
We also see, and this happens more often than you think, boards and executives choosing a legal strategy over a combined approach that balances both legal and reputation imperatives.
Sidelining communications means reputation management is relegated to being the ambulance at bottom of the cliff, and believe us when we say it’s a long, hard road back. While legal counsel is indispensable in navigating regulatory and compliance issues, communications professionals bring an understanding of stakeholder expectations, media dynamics, and public sentiment.
Their expertise is crucial in crafting messages that not only comply with legal requirements but also resonate positively with the public.
Integrated Crisis Management Strategy
A successful crisis management strategy necessitates a holistic approach where legal and corporate affairs teams work in tandem.
Ideally, an organisation will have already developed comprehensive issues and crisis communication plans that include both legal and reputational considerations, have conducted regular simulations and undertaken training to ensure readiness.
But in reality, these plans are likely to be either in a bottom drawer somewhere in the hope an issue or crisis will never happen, or because busyness gets in the way, they’re outdated and irrelevant.
So where to from here when a client is facing an issue or crisis?
Importantly, the first step is to establish a cross-functional crisis response team that includes legal and communications.
While organisations might have their own corporate affairs teams, having an external communications professional on the team is beneficial for a number of reasons, namely they can bring an independent voice to the table and provide an outside, not inside perspective on the issue.
Next is to ensure that all public communications are consistent and aligned with both legal advice and reputational strategies. Mixed messages can lead to confusion and erode trust. Importantly, in times of crisis, transparency is paramount. While not always favoured by lawyers, admitting mistakes, taking responsibility, saying sorry, and clearly communicating steps being taken to address issues can mitigate reputational damage.
To conclude, for lawyers advising clients during a crisis, understanding the critical role of reputation management is essential. Legal strategies must be complemented with proactive and transparent communication efforts to preserve and protect the organisation’s position.
By recognising the interconnectedness of legal and reputational considerations, lawyers can help their clients navigate crises more effectively, safeguarding not only their legal interests but also their most valuable intangible asset—their reputation.
