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Challenges in crisis communications readiness in Asia

Challenges in crisis communications readiness in Asia. Genevieve Hilton Head of External Communications, Asia Pacific, BASF East Asia Regional Headquarters Immediate Past President, International Association of Business Communicators / Hong Kong Chapter.

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Challenges in crisis communications readiness in Asia

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  1. Challenges in crisis communications readiness in Asia Genevieve Hilton Head of External Communications, Asia Pacific, BASF East Asia Regional Headquarters Immediate Past President, International Association of Business Communicators / Hong Kong Chapter

  2. Challenges in crisis communications readiness (CCR) in Asia • Define terms: Crisis communications readiness is a specific area of expertise Crisis readiness Crisis readiness Ops Legal Comms Crisis management Ops Legal Comms

  3. SMEs in Asia are unprepared, large companies somewhat more prepared • Size of company is the best predictor of readiness • Regardless of “foreign” vs. “local” origin • Regardless of country of operation • This is a problem • 95% of companies in Asia are SMEs • SMEs are also vulnerable

  4. The central element of CCR: The Manual • Who has a crisis manual? • ~ 80-90% of global companies operating in Asia • ~ 30% of red chips / Asia-based MNCs • 0% (?) of SMEs • Crisis communications manuals are: • Often part of, or synonymous with, crisis management manuals • Usually inferior to the crisis management part of the manual • Often out of date • Often prepared in isolation • Usually a hodge-podge of policy, best practices, tips and hints, etc. • … therefore invariably ignored during a crisis

  5. Tension between local / regional / global is highly pronounced in Asian CCR • Companies believe that important decisions must be taken by higher level, and CCR is an important decision • However, “all politics is local” • Confusion arises from several areas: • Role of Hong Kong, especially wrt mainland China • Globalization of media

  6. Example: McDonald’s Hong Kong and China • Case: 2001 child labor allegations • Crisis handling system provided toll-free, “1-800” number (in USA) for handling any kind of crisis • However: • Media enquiry from Hong Kong-based paper • Actual situation in Guangzhou, so little information available • Hong Kong was a bottleneck for decisions • Result • Huge resources spent in Hong Kong; impact felt globally (“Our worst crisis ever” – McD’s Sweden MD; “Little Slaves Make Unhappy Meals” – US newspaper)

  7. Most CCR theory (often from Europe or US) assumes Homogeneous environment Centralized location Professional media Asia is / has: Geographically dispersed Culturally diverse Multiple languages Multiple levels of development / expertise Rapid change Multiple types of media At least two locations (Hong Kong and Singapore) vying for “media hub” positioning Much advanced CCR theory simply doesn’t apply to Asia

  8. CCR origin (Europe) Centralized production Few languages BASF: a household name to every reporter, neighbor; “our” company Permanent, 24-hour fire department and crisis communications center at Ludwigshafen HQ Types of crises: production related CCR application (Asia) 99 sites in Asia 15 languages BASF: <30% TOM awareness in most markets; “foreign” company At most, one communications professional stationed at each production site (most sites have none) Types of crises: transportation related Example: BASF

  9. Most Asian CCR doesn’t go beyond the “reactive statement” • Forms center of most CCR discussions • In fact, rarely used for its intended purpose The concept of the reactive statement is created for an environment in which media call to verify stories … which doesn’t happen in Asia

  10. Engagement of non-media stakeholders forms just a tiny part of Asian CCR • NGOs have been in Asia for years (some foreign, some local) • >100 environmental NGOs in China alone • First dramatic demonstration of their influence in 1997 • But Asian CCR tries to pretend they don’t exist • Notable exceptions • Vice industries: Tobacco, gaming, liquor (some) • Oil & Gas • Airlines

  11. CCR efforts go for consultancy based on relationship rather than expertise • “Everything is based on guanxi” is not 100% true in Asia (any more) … • … but CCR is sensitive and it still applies in this area • Result: sometimes efforts are done in good faith, but amateurishly

  12. Mainly due to size, Asian CCR is poorly resourced • Few (no?) specialized consultancies • Few (no?) specialized in-house positions • Budget is allocated after the crisis hits

  13. The good news: pockets of innovation • Things are changing fast • Asian subsidiaries of MNCs are not infrequently ahead of their HQ! • Asia-based MNCs may be a completely different story (Lenovo, Arcelor-Mittal, etc.)

  14. What’s next? • My predictions: • There will always be a need for crisis communications specialists • The distinction between “crises” and “issues” will fade • Companies will get more aggressive in CCR, but not much better • Newswires will become the driving media force in crises • The involvement of NGOs (not media) will become the key signal of a crisis out of a control • Crisis manuals will be replaced by a combination of crisis policy, audits, and drills • The measurement of successful CCR will continue to elude us

  15. Thank you

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