Legal
While a business must comply with legal obligations, it should not be excessively hostile towards the authorities, nor should it pander to them and give more information than is necessary. Legal advisers can also guide managers and directors through these procedures and spot appropriate opportunities to gain credibility by being proactive.
Internal investigation Launching an immediate internal investigation led by professional advisors helps to ensure that the business won’t be taken by surprise. A robust internal investigation encourages witnesses to co- operate and therefore gives the business a chance to be more fully appraised of potential liabilities. The findings are not necessarily something to be shown to the authorities as they may be self-critical or set higher standards for compliance. Handled correctly however, this process is covered by legal professional privilege, meaning that information remains confidential.
Controlling information In the aftermath of an incident, it is essential to contain the spread of information, especially that which is sensitive, untested or not yet known to the investigating agencies. Any information released to third
parties could end up in court. One senior individual, to whom all others report, should be appointed to speak with outsiders, brief the workforce and control the release of information. This includes ensuring that no inappropriate, off-the-record comments are made. Any major accident is likely to hit the
headlines. It is particularly important to be mindful of what (and when) information is passed to the media. Effective media handling can preserve the organisation’s reputation. Media enquiries should be dealt with promptly and sincerely.
Best practice The 2007 Virgin train crash killed one person and injured many more and pushed both Virgin Trains and Network Rail into the spotlight. The incident was managed brilliantly – communication with the media was swift, efficient and accurate. Virgin chairman Richard Branson, and Network Rail CEO John Armitt, were both quickly briefed and available for interview, which was an important step and provided an opportunity to reassure the public and encourage them to form positive opinions of both businesses. In interviews, Branson was visibly
emotional, yet dignified and positive, praising the heroism of the train driver, the design of the train and even commending
Network Rail for being ‘dignified’ in accepting responsibility for the accident. Armitt was the central spokesperson for Network Rail and gave full disclosure at every point. Both businesses fully cooperated with the authorities. This could have been a potentially reputation-damaging incident but the way in which it was handled meant that both businesses kept their reputations intact, complied with investigations and saw their companies through to the next stage. As Branson said after the 2007 crash,
railways are still the safest mode of transport, a comment that has been backed up by statistics – figures from the Railway Safety and Standards Board show the total number of incidents were 551 in 2011/12, down from 1,598 in 2001/2. Despite this, accidents can still happen and there is still potential for extreme liabilities and reputational damage, so it is important that any business which finds itself in such a situation applies a full crisis management approach instead of simply ‘responding’. Businesses must act quickly but without being impulsive. Engaging the appropriate professionals can help navigate managers and directors through the difficult aftermath of a serious accident and regain some power during the investigations. Rupert Nevin is senior partner in the regulatory team at business law firm DWF.
www.dwf.co.uk
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