McDonald's, Grilled By #MeToo Movement, Serves as a Lesson for Brands to Prepare for Societal Crises
Peppercomm Launches StandSmart, Groundbreaking Service to Help Companies Safeguard Reputation and Bottom Line in Today's Volatile Society; Agency Also Develops Early Warning System and Awards Brands That Take a Smart Stand
NEW YORK, Sept. 20, 2018 /PRNewswire-PRWeb/ -- When McDonald's workers across the U.S. went on strike Tuesday to protest alleged widespread sexual harassment at the fast food chain, it marked a reputational low-point in the brand's 63-year history. Although strike organizers had announced the work stoppage one week in advance, McDonald's seemed powerless to stanch the flow of criticism against the company from all sides.
McDonald's stock plummeted four percent in the week leading up to the strike, as the S&P 500 rose 0.5 percent over the same period.
The McDonald's fiasco is just the latest reminder that all brands need to consider the severe risks of societal crises impacting their organizations and prepare to take a smart stand on key issues their stakeholders care about. Every executive responsible for brand reputation — from the chief marketing and communications officers to the general counsel, chief risk officer and compliance head — must consider how to guide their CEOs and organizations on if, when and how to speak out on these divisive issues.
Now executives and boards have a strategic solution for predicting the types of controversies that are likely to occur around societal issues so that they can make data-driven communications decisions. Communications and marketing agency Peppercomm today announced StandSmart(SM), a new service to help companies prepare for inevitable societal crises and decide whether or not to communicate about issues such as sexual misconduct, immigration, gun violence, tariffs or any other trend.
For example, should a company that values diversity and inclusion support protesting NFL players? Should a brand with a customer base of Trump voters back the president's criticism of the league and players? Questions like these are not just reputational. As evidenced by McDonald's share price, they are critical business challenges that are top of mind with executives everywhere.
Intuit Senior Vice President and Chief Communications Officer Rob Lanesey told Peppercomm in a recent Q&A: "We do not want to do something just because others are. Our principles remind us of that and keep us focused on the outcome we want to achieve first, then choosing the method of influence that best helps us to achieve that outcome second."
Preparing for a societal crisis before it happens can mean the difference between managing its impact effectively or having it disrupt operations and damage the brand. As a key component of StandSmart, Peppercomm's analytics team has developed an early warning system, StandSmart Advance, to alert companies to societal issues rising to the surface, providing them with valuable time and assistance to avoid being blindsided.
StandSmart launches just as midterm Congressional campaigns heat up. "Every brand needs to assess its political risks immediately in this contentious climate," said Steve Cody, founder and CEO of Peppercomm, who has been managing crisis communications for leading brands for more than 20 years. "Your executives are making public campaign contributions and your employees are openly debating issues like immigration on Twitter. Your customers and partners are going to notice. Does your brand have predictive analytics and a plan in place to forecast and manage a political firestorm?"
Peppercomm's StandSmart methodology is based on research the agency conducted with the Institute for Public Relations (IPR). After interviewing more than 50 Fortune 500 CMOs and CCOs, Peppercomm discovered that two-thirds believe they are unprepared to effectively manage emerging societal issues.
Peppercomm's research found that many CMOs and CCOs have not proactively led their CEOs and organizations to take a stand on critical issues – despite the fact that 80 percent of consumers and 60 percent of employees expect companies to take action on important societal matters. * StandSmart ensures companies are completely prepared when the unexpected becomes a reality.
To highlight best practices, Peppercomm has developed the StandSmart S.T.A.R. Award, which recognizes individual companies for outstanding management of societal crises. The award will be issued monthly. "S.T.A.R. is an acronym for the criteria we use to analyze how a brand reacts: the Stand a company takes, its Timing, Accountability and Response," explained Cody. "Every company should understand how to effectively handle a societal crisis, yet too few do. Recognizing those who do it right will help other businesses understand best practices."
Peppercomm's StandSmart program can also guide a company to develop or activate its purpose. Adhering to corporate purpose— the larger "why" a company exists beyond generating revenue – is critical for successfully managing a societal crisis. Peppercomm has partnered with brand and culture experts BrandFoundations to help companies articulate and activate a purpose that provides a sustainable brand in good times and bad.
"A company's purpose is its north star, guiding it during tumultuous times and aligning with its DNA," said BrandFoundations' Principal and Chief Connector JP Laqueur. "It's impossible for a brand to effectively respond to a societal crisis without a stated purpose that it lives by and embraces every day."
To learn more about the StandSmart program, email StandSmart(at)peppercomm(dot)com.
*Global Strategy Group and Glassdoor surveys
About Peppercomm
Peppercomm is an award-winning strategic, integrated communications and marketing agency headquartered in New York City with offices in San Francisco and London. Combining 23 years of expertise serving blue chip and breakout clients with new forward-thinking service offerings, the firm has the freshness of a start-up. This unique mix of experience and energy enables the firm to attract and empower teams with a creative edge, drive and passion for promoting, protecting and connecting clients in a fast-changing marketplace. Peppercomm has been awarded The Holmes Report's North American Corporate/B2B Agency of the Year, Bulldog Reporter's Midsized Agency of the Year, one of Fortune's 10 Best Workplaces in Advertising and Marketing, 100 Best Workplaces for Women, 50 Best Small and Medium Workplaces and 50 Best Workplaces for New College Grads. For more information, visit http://www.peppercomm.com.
About BrandFoundations
BrandFoundations helps organizations articulate and leverage their higher purpose to unlock the value of their two biggest intangible assets: brand and culture. Developers of the proprietary Purpose-Way-Impact or "PWI" messaging model, BrandFoundations is sought out by private equity sponsors and purpose-driven CEOs – especially those rapidly pivoting, growing or transforming their companies as a result of M&A – to develop powerful brand messaging that energizes a company's culture, creates competitive separation, enhances exit valuation and prepares any organization to more effectively respond to societal crises. For more information, visit http://www.brandfoundations.us.
SOURCE Peppercomm
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