To Gain Public Trust, CEOs Must Dare To Engage Risk

By Tony Shelton, Executive Vice President, Crisis and Training

In the wake of the BP spill, automotive recalls and banking fiascos, the public is even less interested in giving the benefit of the doubt to companies that seem more interested in positioning for a legal defense than in making things right.

In fact, Edelman’s 2011 Global Trust Barometer shows unmistakably that today’s CEOs have to be able to demonstrate accountability and action in a crisis. Trust must be earned, and companies today must work even harder to earn it.

Recently, Edelman’s U.S. Crisis Leadership Team -- including Edelman Southwest’s Allen Caudle and Tony Shelton -- met in San Francisco to examine how best to prepare and support executives in successfully engaging new levels of reputational risks in this age of heightened expectations.

The Edelman crisis network is uniquely qualified and experienced to prepare executives for increased scrutiny and responsibility.

For example, Edelman is the company that:

• First used the Internet as a crisis response tool

• Counseled U.S. Airways following the emergency landing of US Airways Flight 1549 in the Hudson River

• Headed up communications for Air France following the disappearance of its flight off the coast of Brazil

• Counseled Imperial Sugar following a deadly explosion at its plant in Georgia.

With this experience as a foundation, Edelman’s crisis practice leaders are preparing executives to engage reputational threats of a ferocity that could hardly have been imagined even five years ago.

A major concept is that the expression of the risk -- whether it is a company whistleblower on 60 Minutes, a Congressional investigation or a sudden crisis event -- must be seen as basic subject matter. The higher level of reasoning that will guide the executive in communication in such situations crosses boundaries of skill sets, media and stakeholder groups.

Successful risk engagement goes beyond protection of the corporate reputation. Its goal must be nothing less than advancement of the reputation.

Whenever the next major oil spill or high-profile recall comes, Edelman’s crisis and risk experts across the country and around the world will be ready to support, advise and guide their clients in this critical pursuit.