GERMANY Law and Practice Contributed by: Rainer Wilke, Ingo Theusinger and Ralph Schilha, Noerr
After a crisis, companies must assess the impact on their reputation. Indicators are media analy- sis, customer feedback, stakeholder interviews and financial performance. Tools such as social media monitoring, brand perception surveys and analysis software aid in assessing public opin- ion. Additionally, share prices, customer reten- tion rates and regulatory audits are key indica- tors of reputational damage. To restore reputation after a crisis, companies take several steps: • transparent communication and accountabil- ity – taking responsibility, issuing public state- ments, openness, apologies and updates to rebuild trust with stakeholders and the public, to demonstrate commitment to solving the issues; • corrective action and monitoring progress – evaluating and implementing policy changes, compliance measures and training of employ- ees; • stakeholder engagement – rebuilding relation- ships with employees, customers, investors and regulators through proactive dialogue, as well as providing updates on recovery efforts and ongoing improvements; • corporate social responsibility (CSR) initia- tives – investing in CSR initiatives and launch- ing sustainability projects, ethical business practices or community engagement pro- grammes to improve public perception; and • rebranding and marketing initiatives – running PR campaigns, adapting brand messaging or emphasising corporate values to restore credibility. 5.10 Mandatory Report There are various crisis reporting requirements in Germany – in particular, including the following.
• Listed companies must promptly disclose price-sensitive information to meet ad hoc publicity obligations, especially during crises that could impact on the company’s value. • In accordance with Article 33 of the GDPR, data breaches must be reported to the relevant data protection authority within 72 hours. • Financial institutions are subject to supervi- sion by the BaFin and must report significant risks and changes in their financial situation. This includes crises such as fraud, money- laundering incidents or other regulatory breaches. • Operators of critical infrastructures must report IT security incidents to the BSI. • Companies are often obliged to report environmental damages (Section 4 of the USchadG). • Management boards of stock corporations and limited liability companies are obliged to call for a shareholders’ meeting when half the capital stock is consumed through losses (Section 93 of the AktG, Section 49, para- graph 3 of the GmbHG). • Insurance policies may also require that the company notify its insurers immediately upon becoming aware of a potential claim, which may arise from a crisis. Establishing crisis management teams and col- laborating with legal and compliance depart- ments is essential for companies to effectively navigate crises and meet regulatory require- ments. Legal teams ensure compliance with reg- ulations to avoid penalties, while crisis manage- ment teams handle the operational response. This collaboration minimises the risk of legal repercussions (such as fines for data breaches), protects the company’s reputation and ensures that communications with stakeholders are
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