INTRODUCTION Contributed by: Thiago Jabor Pinheiro, Rômulo Silveira da Rocha Sampaio and Lucas Guimarães Ribeiro, Mattos Filho
es. Organisations are under increasing pressure to adopt sustainable practices, reduce their carbon footprint, address climate-related risks associated with their activities, and comply with new regulatory requirements on industry stand- ards. In the Australian chapter, Briggs, Wong, Smyth and Dougherty touch on this topic, dis- cussing examples of the increasing complexity of Australian regulatory and enforcement sce- narios concerning environmental issues during the past few years. The failure of an organisation to adequately address those risks can lead to regulatory enforcement, pressure from investors, and repu- tational damage – all in an ever-changing envi- ronment. Therefore, effective management of this type of crisis requires science-based deci- sion-making, transparent reporting, and proac- tive stakeholder engagement. It also requires adequate climate risk assessments, which are essential to build climate resilience and better response mechanisms. Diversity, equity, and inclusion (DEI) In recent years, diversity, equity, and inclusion have become critical sources of potential crises. While different jurisdictions may adopt different approaches and requirements as to the extent of the adoption of such practices by companies, there is increasing accountability and demand for inclusive cultures, equitable policies, and transparent communication. Workplace harass- ment and discrimination are serious threats to the well-being of employees and communities; organisations need to respond accordingly. Speed of the modern news cycle Crisis management professionals in the 1950s could go to bed after the evening news and only worry about the following day’s morning papers. Nowadays, such professionals can barely be
away from their phones for a few minutes as a cri- sis develops. The pace of the modern-day news cycle and the ability for information to instantly spread have significantly increased the pressure on organisations and their advisers. With the rise of social media and digital platforms, information can become global within minutes, requiring a more agile, proactive approach. This has also amplified public scrutiny and demands for accountability. Crises can have a more profound and immediate impact on an organisation’s reputation, as negative news can quickly go viral and disrupt a company’s opera- tions in several jurisdictions at once. In this scenario, organisations need to be prepared to engage in real-time communication, monitor media coverage, and address stakeholder con- cerns promptly. By examining US trends in crisis management, the chapter by McAndrews, Wachter, Kimberly, and Pickler discusses the impact of media frag- mentation and the consequences of eroding public trust in the media and the professional press for organisations. The authors recommend practices to ensure an effective crisis response on that front, which include ensuring that the organisation’s message is consistent and clear. The ability to provide timely, accurate and appro- priate updates to stakeholders – demonstrat- ing a commitment to resolving the crisis – may determine whether an organisation is able to survive. Miscommunication during a crisis can
easily become another crisis. Adaptability and resilience
As we delve into the complexities of crisis man- agement in this guide, we want to highlight the importance of planning, adaptability, and resil- ience. By working in advance to understand what may lead to or amplify crises and by implement-
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