GERMANY Law and Practice Contributed by: Rainer Wilke, Ingo Theusinger and Ralph Schilha, Noerr
communications, and overpromising can lead to reputational damage. Therefore, it is crucial to avoid definitive commitments that may need to be retracted later. Furthermore, all communications should deliver consistent messages. After a crisis is resolved, companies provide follow-up communication outlining what has been learned, changes that will be made and how future incidents will be prevented. Another key strategy for effective crisis com- munication is proactive media engagement. This enables the company to have established points of contact and trusted sources when a crisis arises, helping to ensure that information is communicated quickly and accurately. Proactive engagement includes providing regular updates to the media, holding press conferences when necessary and giving interviews. This approach helps companies control the narrative, reduce speculation and prevent misinformation. Main challenges faced by companies include the rapidly changing situation during a crisis. There- fore, a challenge for companies is keeping pace with new information or changing circumstances while deciding on the proper extent and timing of communication. Companies must filter through an overwhelming amount of information, mak- ing it difficult to provide a clear response. Suc- cessful crisis communication should explain the incident, simplify complex issues and point out possible solutions. 6.4 Investor Relations Companies communicate with investors and shareholders about crises and potential legal disputes through official channels such as ad hoc announcements, corporate news, quarterly reports and investor conferences/calls. They aim
to communicate clearly and transparently about the nature of the crisis, potential impacts, and the steps being taken to mitigate risks. Transpar- ency and immediate communication are crucial to maintain investor confidence. After the crisis, companies often provide follow-up reports to investors. In addition, companies engage in direct com- munication with key institutional investors and major shareholders. This personalised approach helps address any specific concerns and pro- vides a more detailed understanding of the com- pany’s crisis management. The supervisory board – in particular, the chair – needs to be addressed in a timely manner, as it ensures that the company’s response complies with legal and regulatory requirements. This is sometimes delayed due to reliance on manage- ment or lack of established protocols for escala- tion in critical situations. 6.5 Customer Relations During a crisis, addressing customer concerns and maintaining trust is critical for companies. The following strategies are commonly used. • Transparent communication – companies should be open and honest about the situa- tion, providing clear and accurate information. This includes acknowledging the issue, detail- ing the steps being taken to resolve it, and setting realistic expectations for resolution. • Timely updates – frequent updates help reas- sure customers that the company is actively managing the crisis. Timing is crucial to pre- vent misinformation and to keep customers informed of new developments. • Empathy and support – demonstrating an understanding of customers’ concerns helps maintain trust. Companies should offer sup-
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