Story: The head of India's embattled Satyam Computer Services resigned on Wednesday after stating that the firm's profits had been inflated, sending the stock down more than 80 percent and roiling investor confidence.
Buffalo Communications MD, Kerry Hallard, comments:
“This is a massive media crisis for Satyam that is en route to completely destroy its reputation. Investor confidence is already gone and customers are also going to be very worried. Derogatory online comment abounds and is growing by the second with some branding it the ‘Enron of India’. Yet comment from the company is scarce and its website largely lacking comment. A press conference in 24hrs simply isn’t quick enough when one’s reputation is falling apart by the minute.
“It’s clear that Satyam must act decisively if it is to salvage its tattered reputation, allay customer fears and ultimately rebuild its once impressive reputation. Effective and rapid communication during a crisis such as this is absolutely paramount especially when the online conversation is passing judgement on a second-by second basis. Silence now will only help to fuel rumours and detrimental speculation.
“Satyam should take the following steps to make sure that all stakeholders get the information they need as quickly as possible:
- A clear action must be taken, such as an external investigation. This concrete action must be conveyed, directly and indirectly, to audiences through the website, press, blog, YouTube and other available routes.
- The PR team should be assembled and appropriately briefed with FAQs for every possible question. PR teams should be aiming to effectively communicate what went wrong, why it happened and how the problem is being rectified. The FAQ should also be released as above.
- The most appropriate spokesperson should have his or her diary cleared, be briefed on what the company is doing to resolve the situation, and be made available for comment through all major news channels.
- The company should not let an information void occur. The internet is rife with speculation and lack of company comment is quickly replaced with derogatory conjecture. The company should ensure a constant stream of communication, even when there is nothing new to say, creating transparency is key.
- Internal communications should also be taking place. Resignations and possible fraudulent activity will cause concern amongst the workforce. Briefing and reassuring employees is vital to maintain morale. PR crises will get worse if disgruntled employees give damaging statements to the press. Making sure that they understand what the company is doing about the situation and the effect it has on them will mean that they feel valued and in safe hands.”
Comments