What to Do When You’re in the Headlines.

Archive for April, 2008

Sovereign Wealth Funds and the Selective Media Spotlight

Wednesday, April 2nd, 2008

In late March, global investment banking analysis provider Dealogic released new data about sovereign wealth funds’ investments in U.S. and European financial institutions. According to this data, investments by global sovereign funds hit a record-setting $48.5 billion in 2007, and already stood at $24.4 billion by the end of February 2008.

Beyond the staggering numbers, there are a few other interesting information points. First, the announcement shows Singapore in the lead, with transactions accounting for 57% of the total amount invested in 2007. So why haven’t we heard very much about these large Singapore investments? (more…)

The Online Rumor Mill

Tuesday, April 1st, 2008

In late March, the New York Times Magazine took a look at the growing role of the Internet in spreading rumors. Recalling the persistent rumor about Barack Obama being a Muslim, the story examined how the Web is making it easier for misinformation and urban legend not only to spread, but to stick.

Urban legends and outrageous rumors, of course, have always been a vexing problem for crisis managers–just ask the marketing managers at Sara Lee and Starbucks, or the people at the Federal Trade Commission how it feels to have the phones ringing off the hook with confused and angry customers. To watch the story continue to fester–despite your best efforts to calm fears and reassure consumers by providing accurate, factual information–is a frustrating place to be, indeed.

So is it better to say nothing and simply let the rumor die down, or should you aggressively defend yourself against the unfounded rumor? Every case is different. Some companies, such as SC Johnson, choose to address online rumors by working with rumor debunking sites like Snopes.com to ensure that misinformation is corrected. Other companies, like Coca-Cola, take rumors head-on in the pages of their own web site. And Proctor & Gamble actually filed a lawsuit and won against competitors who were intentionally propagating misinformation.

Companies, countries and high profile individuals are all potential rumor targets–the “run on the bank” scenario is, today, more likely than ever to be accelerated online–and while there’s no one-size-fits-all answer, your communications counsel can help identify areas of your brand that are most vulnerable, and can make suggestions on things you can do–both online and in the real world–to be better prepared.

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