In today’s hyper-connected world, no business is immune from crises. With the rapid spread of information through social media and the rise of misinformation, businesses face increasing challenges to protect their reputations and sustain operations.
Lili Du Toit, Director at Third Act, a reputation management and communication consultancy, offers a fresh perspective on how organisations can effectively navigate this landscape by focusing on societal needs, stakeholder engagement, and clear, authentic communication.
A Shifting Crisis Landscape
In the past, crises were typically localised incidents that affected news cycles briefly. Today, they have evolved into global events with long-lasting repercussions. “With the proliferation of fake news and AI, no business is safe,” Lili explains. The ability of false information to spread quickly can lead to significant damage to a company’s reputation, with direct impacts on its bottom line and employee livelihoods.
At the core of effective crisis management is understanding the quality of relationships with stakeholders. Many crises arise from companies failing to appreciate the nuances of the markets they operate in. For example, international companies entering new regions, such as African markets, often stumble by not fully grasping the societal expectations and needs of the local communities. This is where an effective approach stands out—through a combination of empathy, thorough research, and proactive engagement, businesses can avoid many of these pitfalls.
The Importance of Agility and Responsiveness
In a crisis, every second counts. Many of the crises the Third Act team have managed, have spread across news platforms and social media channels, if not internationally, within an hour, so being able to react quickly is critical. A specialised team is designed to get close to the heart of the issue quickly, offering tailored, agile crisis management strategies.
Managing a crisis is not just about addressing the immediate problem but taking a integrated approach that considers all aspects of a business’s operations. “You have to think about it holistically—you can’t focus only on employees, social media followers, or regulators in isolation. You need to align your crisis response with the business’s entire ecosystem and its objectives,” Lili explains.
Third Act’s approach involves leaving no stone unturned, ensuring that risk mitigation efforts are aligned with both internal business functions and external societal expectations. This broader view helps companies build sustainable relationships with their stakeholders, ensuring they are not only prepared for crises but also equipped to emerge stronger from them.
The Role of Transparency and Integrity
For businesses looking to engage with stakeholders during times of crisis, Third Act advises focusing on three core elements: competence, transparency, and guardianship. Demonstrating that the business is competent in its field, being honest and open about challenges, and showing that the company takes its role in society seriously are all critical for building trust and maintaining reputation.
Third Act believes that clear, transparent communication can change the course of a crisis. “Clear is kind,” she says. “Businesses need to be transparent about what they’ve done, what they’re doing, and what they plan to do moving forward. This builds trust and ensures a meaningful dialogue with stakeholders.”