Law Times

Law timeS • SEPTEMBER 29, 2008 NEWS PAGE 5 A 'case study' in effective crisis management M BY ROBERT TODD Law Times possible role in a deadly listerio- sis outbreak, thanks to a pub- lic relations crisis response that tossed aside legal considerations, say communications experts. Boyd Neil, senior vice presi- dent and national practice direc- tor for corporate communica- tions at consultancy firm Hill & Knowlton Canada, calls Maple Leaf's response to the listeriosis outbreak "a case study in how to effectively handle a crisis." Susan Reisler, who works with law firms as a partner at commu- nications firm Media Profile, says Maple Leaf took the high road as soon as the crisis erupted. The company didn't deny anything, committed to investigating the problem, and issued full-page apology ads in newspapers. The swift and forthright re- sponse followed the outbreak of bacteria in one of its plants that was linked to at least 17 deaths. The media campaign has been so successful that at least one newspaper columnist suggested Maple Leaf Foods CEO Michael McCain — who immediately took responsibility for the plant outbreak — might give federal political leaders a few pointers on leadership. One of Neil's main reasons for hailing the response is Mc- Cain's public statement, made shortly after the outbreak was discovered, that legal consider- ations were secondary. "Going through the crisis aple Leaf Foods is likely to restore its reputation, despite its there are two advisors I've paid no attention to. The first are the lawyers, and the second are the accountants," McCain was quoted in the Globe and Mail. "It's not about money or legal liability, this is about being ac- countable for providing con- sumers with safe food." Noting that McCain likely did listen to legal counsel, Neil says the statement was an ac- knowledgment that if limiting legal liability was the main objec- tive of the company's response, it would be near impossible to restore its reputation. "That, I think, set the tone of [the response]," says Neil, not- ing that renowned lawyers like Purdy Crawford — a Canadian Business Hall of Fame inductee — hailed McCain's response. "The whole reason that Ma- ple Leaf has been successful, and even though the recall has cost them $20 million in product [recalls], their reputation is in- tact," says Neil, who leads Hill & Knowlton's crisis response team. "People continue to trust them, and that is critical in crisis communications. Your goal as a crisis communications counsel- lor is to assist the company in creating a communication pro- gram that defends the reputa- tion of the company." While company directors shouldn't ignore legal counsel, Neil says lawyers need to under- stand that legal liability isn't the only factor to consider in a crisis. But that's not an easy pill for many lawyers to swallow. Neil, noting many non-trigger happy litigants can be pacified with a simple, "I'm sorry." "Lawyers have to take that into account, and they frequently don't," he says. Neil says lawyers play a key role in shaping the presentation of apologies, or statements of re- gret, to mitigate damage. The Ontario Bar Association continues to lobby the provincial government to introduce legisla- tion giving legal protection to com- panies that express regret or apolo- gize publicly following crises. Aside from issuing a prompt 'I can't think of anything they did badly,' Susan Reisler says. 'They did everything extremely well.' They believe future litigation is prejudiced if a CEO makes an apology, says Neil. "That may well be true, but apology, Neil says Maple Leaf effectively used different medi- ums to deliver its message directly to the public. Its web site was utilized to de- it's only the lawyer's advice," he says. "What the lawyer has a re- sponsibility to do, I think, is to provide evidence of how in that particular circumstance, making an apology will indeed preju- dice the future ability to defend yourself in a legal action." Evidence suggests apologies ac- tually help mitigate damages, says liver information during the crisis, including a detailed action plan. A television commercial featuring a statement by McCain also has played out well for the company, says Neil. He notes that the com- mercial has been posted online on YouTube, and nearly 60,000 views have been registered. "To me, that's as effective as advertising in some ways, al- though in this case mass advertis- ing was useful because it's a mass consumer product," he says, adding the popular web video posting site is becoming a more frequent spot for companies to post CEO responses to crises. "I think it's very good, be- cause in the case of Michael McCain and the YouTube video . . . these are people that are keen- ly interested in knowing what Michael McCain said about this. That means he's reaching an audience that will listen. It's unfiltered, and how much did it cost him? Nothing." Reisler notes it's unclear whether McCain chose to take the lead in the company's re- sponse, or if it was part of a con- certed PR response. Maple Leaf, ironically, couldn't comment to Law Times for this story in time for publication. While journalists tried to find missteps in the company's response to the listeriosis out- break, there doesn't seem to be a single wrong turn, says Reisler. "I can't think of anything they did badly," she says. "They did everything extremely well." She adds that, although class actions have been put in motion due to the outbreak, lawyers will be better able to defend the company "because they did the right thing. "I'm not a lawyer, but I would argue that by removing all this antagonism, negativity, all of that, they'll be able to defend it on the basis of the law, and not on emotion," says Reisler. Silvie Kuppek, executive direc- tor of the Canadian Corporate Counsel Association, says the or- ganization can't comment directly on the Maple Leaf crisis response. But she said in-house law- yers are spending an increasing amount of time dealing with requests for media comment. In response, the association has started to offer seminars and workshops to help them deal with crisis communications, as well as media communications training. "It is now becoming a part of the corporate counsel role," she says. LT The Law Foundation of Ontario is pleased to announce A. Alan Borovoy as the recipient of the 2008 Guthrie Award The Law Foundation of Ontario is proud to select A. Alan Borovoy as the recipient of the 2008 Guthrie Award. His inspired leadership as General Counsel of the Canadian Civil Liberties Association since May, 1968 has been instrumental in making the CCLA the country's foremost advocate for freedom of speech and expression. Marketplace FOR RENT FOR RENT - Executive office, full service within a North York CA firm. Available immediately. Please call Saveria Raffin 416- 631-9800. OFFICE SUPPLIES PAPER OVERFLOW? - Make all your records digital so you can retrieve anytime, anywhere, securely! www.paperdigitizer.com Tel: 416-565-9114 To advertise call 905-841-6481 www.lawtimesnews.com ntitled-3 1 9/22/08 10:00:25 AM www.lawfoundation.on.ca The Guthrie Award was created in 1996 to recognize the outstanding contribution of past LFO Chair, H. Donald Guthrie. Since its inception, the award has been bestowed upon individuals or organizations which demonstrate outstanding public service, make significant contributions to access to justice, or symbolize excellence in the legal profession. The LFO is a grant-giving organization committed to the advancement of legal knowledge, excellence within the legal profession, and community participation in the legal system. The LFO funds programs and initiatives that promote and enhance access to justice for all Ontarians.

• Cover