Rumors, like conspiracy theories, are insidious, in part because they can prove difficult to disprove. When gone unchallenged, they can wreak havoc with a company’s image. So often though rumors are rooted in fact. And so companies must tread carefully.

In June of 1999, CocaCola Company sought to play down initial reports about Belgian school children becoming ill after drinking Coke. As reported by the New York Times,when situation became an international news story, CEO Doug Ivester traveled to Europe and made a public apology. He was even photographed drinking a Coke. Still some European countries pulled Coke products off the shelf. They were eventually returned but Coca Cola lost sales and tarnished its image. If Belgian officials of the company had responded promptly, a bad situation could have been ameliorated. The challenge for executives is to how to respond to rumor and when. Here are some tips.

Address the problem. When the situation becomes known, address it. Whether the rumor affects employees or consumers, executives need to address the issue. If it is an employee issue, they need to communicate promptly. Same goes for consumers. A statement that management is aware of the situation and is addressing it is sufficient.

Find the root cause. Probe for what went wrong and why. Trace the rumor to its core. Most rumors have some element of truth; that is what gives the rumor legs. Separate fact from fiction. Publish the results and invite stakeholders to participate in an open forum. In our age of distributed media, transparency rules.

Present solutions. Determine ways to prevent a similar situation from developing. Problems will always occur. Many companies assemble strike force teams, comprised of people from different disciplines, including communications, to determine the cause, find solutions and let the stakeholders know what is happening. Again, be transparent.

When it comes to rumors, especially those that affect the integrity of the individuals, the quality of a product or service, or the reputation of the company, acting sooner than later may be the best course of action.



Source:
New York Times
http://query.nytimes.com/search/query?q ... srchst=nyt