Published on February 24, 2016
1. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 1 de 6 Crisis Management Protocol Campofrío 1
2. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 2 de 6 The Crisis Management Protocol (CMP) has been created to ensure an adequate response in the event of a high impact threat or vulnerabilities to CFG’s corporate brand, product brands, or general market reputation. This is done in order to mitigate potential shocks to the company’s image and operations, reduce economic losses, brand/image damage and ultimately protect shareholder value. In short, it deals with an established process that guides us in critical moments to act with greater speed, determination and efficiency. Throughout the process, communication appears transversally, a concept that allows the established process to develop in the best and safest possible way. Communication is at the heart of every crisis management structure and it requires sound alignment and coordination between all areas and teams involved. Occasionally, and above all in moments of crisis, we are not conscious of what bad communication or communication that can’t be defined may mean for our company. Below, we will show some examples of situations in which, if we are not able to manage information well, we can put our company and its interests at risk. Social Media Actions: Social media networks are delicate and it is necessary to know how to handle them. The power of broadcasting can be immediate but very loud. Therefore, it is of vital importance to know who should say what and when they should say it. Campaigns Meant to Discredit (from the Competition) When campaigns meant to discredit arise from the competition or a specific individual, it is necessary to have a high level of awareness and to know that a leak of sensitive date can cause these situations to escalate. An organization’s communication is present in every moment, even more so at a time of crisis when the whole world wants to know what is happening. In this case, an effective Crisis Communication Plan must be designed to provide guidelines for communicating internally within the CFG organization as well as externally to the media and the public in the event of an emergency or crisis. 2
3. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 3 de 6 Therefore, the communication Plan will define the following aspects: • Determining whether the situation requires invoking a Crisis Communication Plan. • Assembling the Investors Relations & External Communications Area, as well as the Internal Communications Area, to recommend responses. • Compiling information from various sources and double-checking for accuracy. • Coordination with the Crisis Management Leader (or the Crisis Management Executive Committee) and Legal Counsel prior to determining a specific communication strategy to ensure its agility and effectiveness and minimize rumors. • Identifying CFG audiences prior to defining key messages to adapt the messages accordingly. • Identifying and training the competent spokesperson. • Implementing and monitoring the agreed upon communication strategy. • Keeping track of media and other stakeholders’ requests and communication materials distributed for consistency and coordination purposes. • Training of CFG staff to be potentially contacted by consumers or media, and development of communication materials (i.e. guidelines for receptionists with pre-defined messages, guidelines for hotline agents, escalation model from hotline, contact lists, etc.). We we talk about communication, it is important to differentiate between two different types of communication: the internal and the external. The communication plan must keep both in mind in order to be effective. If one of the two fails, it will not fulfil the objective. Some of the elements of internal communication to keep in mind are: Dealing with internal … Do not be afraid to say “I don't know”. Do not cover up the problem and fail to acknowledge it. Ensure consistency between internal and external communication to avoid contradictions. Stick to the facts. Keep an honest, timely, proactive, consistent and credible approach. Define the level of information to be shared based on severity. 3
4. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 4 de 6 Create a sense of trust by emphasizing that CFG is taking all necessary measures to handle and monitor the situation. Undertake a multichannel and multilingual approach. Monitor social media platforms for factual errors and provide information proactively. A crisis is likely to draw more attention CFG than many “good news” stories, because it is much more sensitive in nature. Therefore, accuracy, completeness and truthfulness in the information released about a crisis is essential Do not provide any answer without the previous approval of Global External Communication. Always be kind, but also remain steadfast with regards to not providing unapproved information. Escalate immediately the received request for information from a target group. Wait for specific instructions from Global External Communication. In case of incoming audiovisual journalists within CFG premises, be kind to them but do not grant access until receiving specific instructions. Be aware that they can record from outside the premises – do not try to obstruct the recording! Ask always for contact data: name, company, mobile, mail, and and contact purpose. For those in charge of delivering external communication: always report to those in charge of functional and external communication regarding the outcome of the response. Communication in crisis processes become so important that it is necessary to have an established procedure. This procedure defines the people that take part in the communications team as it does the different steps that must be undertaken to maintain a coherent and established communication process. Overall Crisis Communication Procedure The following points detail the groups and important agents when it comes to implementing the communication procedure. Decision Making: • Given the key role of communication in the response to a crisis situation, CFG Communication Areas (Investor Relations & External Communication, and Internal Communications - and Marketing, if required), must support the Crisis Management Operations Committee. • The CML, consulting the Global Legal & General Counsel, must be the final arbiter of information disseminated from CFG about the crisis. 4
5. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 5 de 6 Spokesperson • Responsibility usually assigned to an CFG employee at Global or BU level. • Occasionally, it may be advisable to have the President speak, or a subject matter expert in a particular field to address an issue within a certain area of expertise. SPOKESPERSON TRAINING PROGRAM One of the protocol’s intentions is to train those who in the case of a crisis assume responsibility for publicly speaking in specific critical moments. • Hence, the primary spokesperson should be reinforced with an additional technical spokesperson (Plant Manager or Quality Manager, depending on the nature of the incident), in order to emphasize technical competence and lending even more credibility to externally sent messages. • Additionally, it is also necessary to identify and designate SPOC spokespeople in order to deal with local security stakeholders (i.e: police, fire dept, etc.) Investor Relations & External Communication • Investor Relations & External Communication must have unimpeded access to all CFG employees with critical knowledge and pertinent information about the crisis. • Additionally, Investor Relations & External Communication work closely with the media agency for the preparation and dissemination of media releases and public statements. Internal Communications • Internal Communications is responsible for the development and implementation of the internal communications strategy agreed through the following channels: Global e-mail, CFG Intranet and, to a lesser extent, bulletin boards located in CFG production facilities. Depending on the particulars of the situation, a combination of these internal communication channels may be used. To conclude, an established process should exist to guarantee order and progression throughout the communication process. 5 Convening the Crisis Communications Team
6. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 6 de 6 IR&EC convenes with the Crisis Communications Team to work on the definition and execution of the overall crisis communication plan. • As soon as possible after the incident, a fact sheet will be prepared by IR&EC to supplement communication with key constituencies. • Holding statements released publicly or posted on the Internet must be time stamped and updated as information changes. • The Crisis Communications Team will determine which groups need to be informed first. • It is important to keep in mind that people will seek - and believe - other sources of information (e.g. media) in the absence of official communication. • Following the event of a crisis, before a week has passed, IR&EC will convene with the Crisis Communications Team to determine which parts of the Crisis Communication Plan worked and which need to be improved. 6 Preparing and updating the Holding Statement Notifying key constituencies After-action report / review
7. CAMPOFRÍO DATE 12/05/2015 Crisis Management Protocol 6 de 6 IR&EC convenes with the Crisis Communications Team to work on the definition and execution of the overall crisis communication plan. • As soon as possible after the incident, a fact sheet will be prepared by IR&EC to supplement communication with key constituencies. • Holding statements released publicly or posted on the Internet must be time stamped and updated as information changes. • The Crisis Communications Team will determine which groups need to be informed first. • It is important to keep in mind that people will seek - and believe - other sources of information (e.g. media) in the absence of official communication. • Following the event of a crisis, before a week has passed, IR&EC will convene with the Crisis Communications Team to determine which parts of the Crisis Communication Plan worked and which need to be improved. 6 Preparing and updating the Holding Statement Notifying key constituencies After-action report / review
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