USA Law and Practice Contributed by: Jeff McAndrews, Megan Bouchier and Peter Gardner, FGS Global
sation. Typically, HR or compliance departments will mandate that these trainings be taken during onboarding or at a yearly cadence. This aligns with best practice, which is to ensure that all employees at all levels are aware of how to iden- tify risk, how to assess it, the potential ramifica- tions of their actions as they relate to potential crises, common policies that govern behaviour at work and interaction on public channels, and how to escalate situations that may arise in their course of work. 4.6 Policies and Procedures Empowering Employees Through Policy Codes of conduct and policies on press, social media, cultural sensitivity, cybersecurity and more are all directly tied to how well equipped employees are to prevent and prepare for crises. Like with other traditional training courses, these policies and procedures can be mandated at an organisational level to ensure all employees are acting in a way that is commensurate with the overall crisis preparedness plan. 5. Legal Strategy 5.1 Legal Challenges Sample Legal Challenges or Crisis Situations to Watch The definition of a crisis will change from one organisation to the next, as will the relevant legal challenges. Some common issues that could stem from or result in litigation could include: • allegations of executive or employee miscon- duct, malfeasance or corruption; • significant workplace accidents; • labour disputes; • IP theft; • unexpected regulatory developments; • shareholder litigation or other actions; and
• congressional investigations or oversight. 5.2 Dealing With Enforcement Authorities There are a number of different enforcement authorities and regulatory bodies at the federal and state level that represent potential legal lia- bility to companies and management. Considering State-Level Enforcement In a legal and mass claims context, one trend in this market is an increased use of delegated authority by state attorneys general to private plaintiffs’ attorneys. As a result, there are more opportunities for state-level enforcement actions against companies. 5.3 Co-Operating With Enforcement Authorities Companies co-operate with authorities fre- quently, and as needed based on jurisdictional and industry requirements. Heavily regulated industries, for example, frequently work in close consultation and co-operation with the appropri- ate regulatory bodies before, during and follow- ing a crisis. 5.4 Litigation Risk Assessment Legal Counsel’s Role in Reputation and Crisis Whether internal or external, an experienced attorney can help evaluate liability, limit expo- sure and mitigate damage by crafting a robust legal strategy from the outset. Sometimes, this action alone can be sufficient to prevent a situa- tion from escalating. In other cases, a full-blown crisis may not be avoidable. In that event, the legal team and communications advisors must be aligned. A legal strategy that takes into account how its actions will be perceived by key stakeholders and the public will provide the company with the best opportunity to identify and navigate the legal and reputational chal- lenges a crisis might present.
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