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Dealing with a digital crisis

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What we're going to cover today Burson-Marsteller

" \W/hat“s driving Issues and crisis today

" Crisis communications approach and framework " How to manage issues before they escalate

=" How to respond during a crisis

=" Recovering from a crisis

ee You À

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Companies feel vulnerable Burson- Marsteller

Q: Which, if any, of the below are reasons why you feel it is more difficult to plan for a crisis today? (Among those who feel it is more difficult to plan) 50% m Global 31% 35% ° 0 0

Need to respond ‘Overall challenges More globalized Increased public Increased anti- Rise of citizen

extremely quickly of digital nature of demand for corporate sentiment journalism/ social

communications communications transparency In public and/or media (e.g

media Facebook, Twitter)

Source: Digital Crisis Preparation Study — Burson-Marsteller/Penn Schoen Berland, August 2011 `

oT You ^

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Digital seen as an ever bigger threat Burson- Marsteller

Q: How likely do you think it is that your company will experience any of the following potential crisis in the next 6-12 months? (Top 2 Very + Somewhat likely to experience this type of crisis)

Global Controversial company developments

Online or digital security failure Logistic difficulties

Intense regulatory scrutiny of your product or company

Critical or negative new media campaigns Danger to product safety

Technical accidents

ld Likely to experience a potential crisis Intense political scrutiny of your product or company ud Not likely to experience a potential crisis Criminal actions

Source: Digital Crisis Preparation Study — Burson-Marsteller/Penn Schoen Berland, August 2011

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Product safety the top concern in Asia Burson- Marsteller

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Issues & crisis triggers Burson: Marsteller

Product quality Data loss

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Customer service Burson- Marsteller

no need to give me until september, netflix I'm canceling

immediately just don't use it enough to justify $16/ month

zpower YH July 13, 2011 at 1:30

I'm with @zpower Netflix's price hike was enough for me

to cancel service today http:/ /zatz.tv/n7Oso9

davezatz

YW July 13, 2011 at 1:59 ,

@nettlix You've gotta be kidding me How bout I choose

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The role of the Internet Burson: Marsteller

DISTRIBUTES

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Truth, half truth, untruth sa

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Every day people discuss debate and embrace The Coca-Cola Company

and our brands in Mousands of online conversations

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Crisis preparedness — community guidelines Burson- Marsteller Coca-Cola » House Rules Food/Beverages House Rules

This is your Fan Page and we encourage you to leave comments, photos, videos,

and links here However, we will review all comments and will remove any that

are inappropriate or offensive We will leave what you share that relates to the subjects covered on this Page Please understand that comments posted to this Page do not represent the opinions of The Coca-Cola Company

Coca-Cola Facebook Terms of Use

The Coca-Cola® Facebook page is intended to provide a place for fans of Coca-Cola® to discuss Coca-Cola® beverages and promotions All comments, visuals, videos and other type of material posted by fans on this site (User Content’) do not necessarily reflect the opinions or ideals of The Coca-Cola Company (TCCC’), its employees or affiliates TCCC (a) does not represent or warrant the accuracy of any statement or product claims made here, (b) is not responsible for any User Content on this site, and (c) does not endorse any opinions expressed on this fan page

All users must comply with Facebooks Terms of Use and TCCC’s Terms of Use for the Coca- Cola Facebook Page TCCC does not monitor every posting of User Content on the Coca-Cola Facebook Page TCCC expects, however, that users will not post any materials that fall into any of the following categories and may have removed any materials that:

¢ Defame, abuse, harass, stalk, threaten or otherwise violate the legal rights (such as rights of privacy and publicity) of others

¢ Publish, post, distribute or disseminate any defamatory, infringing, obscene, indecent, misleading or unlawful material or information

e Upload or attach files that contain software or other material protected by intellectual property laws (or by rights of privacy of publicity) unless you own or control the rights thereto or have received all necessary consents

e Upload or attach files that contain viruses, corrupted files, or any other similar software or programs that may damage the operation of anothers computer ¢ Delete any author attributions, legal notices or proprietary designations or

labels in any file thatis uploaded

| | You À

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Crisis preparedness — social media listening Burson-Marsteller

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4 Demographics 8 Geography Message Center

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Burson- Marsteller

Crisis leader, core team & alternates Crisis team roles & responsibilities Spokespeople Approval processes Stakeholder & influencer lists Communications channels Monitoring tools (online & offline) Communications templates

— FAQ, holding statement, press release etc

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#1 Listen continuously

Chronicle f Kim Komenich

Burson-Marsteller | Asia-Pacific | Evidence-Based Communications Burson: Marsteller KRYPTONITE’S BLOGSTORM How ten days of Internet chatter crippled a company's reputation 1,800,000 1,700,000

Complaint posted to bikeforums.net

that a Bic pen can open a Kryptonite lock Videos showing how to

pick a lock are posted

Company assures public Company

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#2 Move fast

e 10.38am: A consumer went to Drugstore X to purchase nutritional product and was told they had been recalled and they had no stock at the moment

e 11.46am: Rumor up in online that a hero nutritional products had just been recalled in a leading drugstore (Drugstore X) in Hong Kong

e 12.56pm: Apple Daily caught the rumor online and called ABC company to clarify

e 1.15pm: Internal assessment and confirmed there was no such recall It was just a rumour e 1.30pm: Confirmed with Drugstore X that it was misunderstanding among the Drugstore staff e 1.50pm: Take immediate action to liaise with the website with a clarification note posting

online to cease the rumor spreading

e 2.15pm: Alert immediately the retail chains and aligned them with the agreed media messages

e 2.30pm: Prepare Customer Relations Representatives (hotlines) with agreed key messages that align with media statement

e 3.00pm: Negotiate with retail outlets on stock availability

e 3.30-4.30pm: Reply to in-coming media enquiries online and in print

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#3 Be accurate

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Experts nad fearec the Deepwater Horton Geaster Could Nave 6 Io One Of Ihe wore! envronmental Catastroches ø\ US ntory Burson-Marsteller | Asia-Pacific | Evidence-Based Communications Burson- Marsteller BP Olli Oficial Public Apology (SPOOF) ty tcovyens 76.700 views Featured Vide Cute new BP ad

Exctusrve: Satellite Zoom of

Ov Spill trom the by lerochhemnarvelous '* Ol! spill Wajectory 20100504 y Porpctie*Oull Of Removal - 5 As Simple AS Hay - er

BP CEO Hayward Predicts

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#5 Be transparent Burson- Marsteller

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Burson-Marsteller | Asia-Pacific | Evidence-Based Communications

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Burson-Marsteller

Pogue’s Posts J search this so =

The Latest in Technology From David Pogue

4 Twittering Tips for Transfer Jet: Ready > January 19, 2009, 10:00 PM Beginners For Its Close-Up

elkin Employee Paid Users for Good VIDEO» ¬Aaa

Reviews

Over the weekend, reader Arlen Parsa, a Chicago filmmaker, dropped me an intriguing e-mail message concerning accessory maker Belkin

“T found out the other day that Belkin’s lead online sales rep has been paying people to write fake positive reviews of his products on sites like

Amazon.com and Newegg,” Mr Parsa wrote “He’s been using Amazon’s Mechanical Turk program to do so (it’s a service where people can get paid to do small menial tasks) This is pretty awful, especially when you consider that the products whose rankings this guy is trying to boost are consistently

rated the lowest by real reviewers who say they don’t work as advertised.” ° =< «(Cl

TECHNOLOGY

Mr Parsa sent me links, and sure enough, it was all true Here were online Pogue & Friends 2009 Holiday Guide ads, seeking people who would write positive reviews of Belkin products for E-Books With David Carr

6s cents; here was a link to Mike Bayard’s LinkedIn profile, identifying him ¬

is PF

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#/ Be responsive Burson-Marsteller ¢ or “ HOME MEET THE TEAM ABOUT SOUTHWEST.COM DOWNLOADS A ` NUTS AB0UT Ng MORE WAYS T0 GO NUTS -_ 90UTHWEST i aan “<- Tu LU TY T CñDIAI CT

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Not So Silent Bob

By: Christi McNeill

® Christian Morris earned the McFly badge

FEB 7 hours 9 min ago

Many of you reached out to us via Twitter last night and today regarding a situation a 14 Pe a a ee SIE RD Pun RR

Customer Twittered about that occurred on a Southwest flight It is not our customary SN Shuffle badge

method of Customer Relations to be so public in how we work through these 7 hours 9 min ago situations, but with so many people involved in the occurrence, you also should be

involved in the solution First and foremost, to Mr Smith: we would like to echo our Christian Morris earned the First Flight

badge

Tweets and again offer our heartfelt apologies to you We are sincerely sorry for your mi 7 hours 9 min ago travel experience on Southwest Airlines

SouthwestAir: @witwim We just had our As soon as we saw the first Tweet from Mr Smith, we contacted him personally to Te en a ee ee

apologize for his experience and to address his concerns on both Twitter and with a 13 hours 14 min ago personal phone call Since the situation has received a lot of public attention, we'd like

to take the opportunity to address a few of the specifics here as well SouthwestAir: @trmmars Sorry you weren'†

notified We do our best, but sometimes

Mr Smith originally purchased two Southwest seats on a flight from Oakland to 12 hours 51 min ago Burbank — as he's been known to do when traveling on Southwest He decided to

change his plans and board an earlier flight to Burbank, which technically means flying standby As you may know, airlines are not able to clear standby passengers until all

Customers are boarded When the time came to board Mr Smith, we had only a

single seat available for him to occupy We are responsible for the Safety and comfort

of all Customers on the aircraft and therefore we made a judgment call that Mr Smith Southwest Culture

or " ae! You ^

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#8 Be human Burson- Marsteller Videos In The News

Read whz ¬ese respected news Sources are reporting about us

is your vehicle involved?

in the recent recatls

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#10 Don’t be heavy-handed Burson-Marsteller TrueLocal b2 c FOXSPORTS es CareerOne Carsquide mah com.au

NEWS WEBSITE OF THE YEAR

news.com.au Newspapers MySpace AU

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Business Bars Entertainment Travel Technology Blogs Video

Breaking News Markets Money&Me BusinessSmarts Archive Business

AUSTRALIAN IT

Fr

Nestle accused of pulling Greenpeace

‘orang-utan finger Kit Kat ad’ from YouTube

By staff writers | news.com.au | March 18,2010 12:58pm

GREENPEACE has accused the world's leading food and drinks company, Nestlé, of having an ad featuring an office worker eating orang-utan fingers removed from YouTube

The video, which was launched overnight, parodies Nestle's KitKat ads and shows an unwitting office worker taking a break to enjoy a KitKat but instead bites into an orang-utan’s finger, causing blood to stream down his face

The video can be viewed at www_qreenpeace orq/kitkat

“Nestlé today admitted that they have been using palm oil from the destroyed rainforest homes of the last orang-utans in some of their products, but having our video removed proves they are still trying to hide that fact," Greenpeace Head of Campaigns, Steve Campbell, said "This is an apparent attempt to silence the truth that some of its most popular brands use palm oil fom destroyed rainforests and peatlands

Burson-Marsteller | Asia-Pacific | Evidence-Based Communications AYA ch Share + 4, * x ˆ Tá Tm e ¥, ` x ˆ ` fr Z4

FOX SPORTS CLASSIFIEDS NEWS NETWORK

Nestle Thanks for the lesson in manners Consider yourself embraced But it’s our page, we set the rules, it was ever thus 8 hours ago * Report

Darren Smith Freedom of speech and expression 8 hours ago * Report

Nestle you have freedom of speech and expression Here, there are some rules we set As in almost any other forum It's to keep things dear

8 hours ago * Report

Paul Griffin Your page, your rules, true, and you just losta customer, won the battle and lost the war! Happy?

8 hours ago ~ Report

Nestle Oh please it's like we're censoring everything to allow only positive comments

8 hours ago - Report

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Make people feel involved

Dream it Share it Make an impact Burson- Marsteller Watch this space for details idea Storm Storm Sessions 7

View _ Post Vote ip) See

All posted = Your idea for Promote ` Your ideas ` ` ideas by the = Dell products or demote c2 in action

community or services ideas

Sort ideas By: G2 Fares) Recentideas Topldeas Comments | All vị

taki Standardize Power Cables for Laptops

Promote By badblood, Aug 27, 2007

+ Nothing is more annoying than laptop power cables that are not interchangeable from one computer model to another or from one brand of computer to another Power cables have been standardized w on most electrical applicances, including desktop computers for decades

Demote

Make an effort to promote and implement standard power cables for laptops D@ALL Status Update

Please see dawn_I’s comments below

Comments: 144

Categories: Accessories (Keyboards, etc.) Laptops

Burson-Marsteller | Asia-Pacific | Evidence-Based Communications Login to IdeaStorm Don't have an IdeaStorm account? Register Now Username: r Passw/ord: 7 Forgot Password?

Your Ideas in Action

| Ideas in Action Update

| wanted to give a quick update on what is happening on IdeaStorm —— We have anew Storm Session

* and a few

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