How to navigate the fires: Brand safety during (and after) a natural disaster
Volume 2: Issue 1
Over the past month, headlines and public discourse alike have been dominated by the ongoing wildfire crisis in and around Los Angeles. The scope of the devastation will have long-term, national impacts for policy and socioeconomic conditions within the city. However, the emergency phase of relief efforts has not relented for the people and businesses still in the path of the flames.
The LA wildfires are yet another example of how business leaders are tested on quick action and ability to show up to support the communities they serve. Do you have plans to communicate in these moments of crisis, to take sometimes extraordinary action for your teams and to demonstrate empathy for those who are struggling with immense loss? We serve as core collaborators to help clients effectively communicate their recovery efforts while balancing ongoing business priorities.
Our Crisis & Corporate Issues Team, seasoned by scores of disasters, has provided recommendations to get you through both the heat of the crisis and the complicated aftermath. This situation is likely to rank among the costliest natural disasters in recent U.S. history. Let us be your Compass for the Chaos.
Best,
Peter Duda, President, Weber Shandwick, Global Corporate Crisis and Issues
We’re indebted to Social Impact & Sustainability team leaders Lee Ann Townes, Executive Vice President and John McCourt, Vice President, for their expert commentary. Corporate Issues team members Tori Sousa, Caroline Welch, Sara Miller, Emily Ahmad, and Alexa Oshin also contributed to this month’s newsletter.
P.S. Compass for the Chaos posts monthly on Substack. Read past issues here.
This is the ninth issue of Compass for the Chaos – Weber Shandwick’s monthly newsletter highlighting recent trends and topics impacting global organizations.
Subscribe for future issues and ongoing insights from our team of crisis and risk experts to help you navigate the world of risk and opportunities.
Was this newsletter forwarded to you? Subscribe to our Substack to receive these moving forward.
Situation Overview
Since the first flames erupted in Los Angeles County January 5th, several major wildfires have ravaged LA communities, prompting the evacuation of over one hundred thousand residents and destroying thousands of structures in the area. Governor Gavin Newsom declared a State of Emergency; the Biden administration issued a Major Disaster declaration, releasing federal funds and resources to aid impacted communities. And those not imperiled by fire continue to grapple with other threats, from water and power shortages to windblown dust and ash; from looting and online scammers to mis- and dis-information.
Communications Recommendations
For local businesses and global companies with a local footprint, the LA fires represent an acute and ongoing crisis for employees, the business, and the brand. But they also present a brand-burnishing opportunity. That’s because, in times of crisis, we’re all looking for empathetic leadership. Demonstrate empathy, generosity, and initiative and you’ll endear the brand to employees, customers, and communities.
Below are the Crisis & Social Impact Team-approved best practices on how to respond to a natural disaster so that your business and your people emerge stronger than ever.
The safety and wellbeing of your employees is your number one priority. Pull all the stops: set up a help line, connect them to care, source and fund temporary accommodation for those displaced from their homes, offer prolonged leave, and keep everybody up to date on office closures and openings, newly available resources, and operational changes.
Don’t join the public discourse until and unless you’re able to demonstrate meaningful action. In a crisis, we often see statements like, “our thoughts and prayers are with you.” While this may be true, it is more meaningful to ensure that all communications reflect relevant actions being taken to help affected employees and the broader community. Disney, for example, pledged $15 million to aid firefighting and rebuilding efforts in LA. Sinclair Inc, a national broadcasting entity that owns Tennis Channel, launched a fundraising initiative in partnership with the Salvation Army to help Los Angelenos and Guitar Center, a California chain, offered financial assistance to musicians who’d lost instruments.
Avoid anything overly promotional or transactional. This should go without saying, but moments of crisis are not the time for promotional discounts disguised as goodwill. Whether it’s discounted goods and services for first responders or accommodations for affected community members, there’s a fine line between offering assistance to those in need versus taking advantage of the moment to promote your products.
Extend care to the communities where you do business. Consider partnering with well-vetted relief organizations such as the American Red Cross, local food banks, United Way, and Baby2Baby, as they have networks in place to determine where aid is most urgently needed. These partnerships highlight your organizations’ commitment to the local community in times of crisis.
Make the most of scheduled communications opportunities. An unfolding crisis isn’t the time to pitch external media on potential interviews or stories. Concentrate instead on how you’ll handle scheduled stakeholder briefings, such as earnings calls. Be prepared to address questions on the disaster’s operational impact (as HCA Healthcare’s CEO did) and allay analysts’ concerns on the disaster’s longer-term impact on earnings (here’s how Delta’s president handled the conversation).
Think long-term for sustained impact: Thanks to an analysis of earned and social conversations, we learned most online conversation happened in the first two days after the fires began, with 43% occurring between January 8-9. This is also when many companies and business leaders began to issue statements of support. While it’s understandable that companies and citizens are eager to donate products and goods in the immediate aftermath, that can also overwhelm the systems, so it’s important to consider longer-term commitments that can be made to support communities after press attention fades.
Ask the Social Impact Experts
We spoke to experts from our Social Impact & Sustainability Team – Lee Ann Townes, EVP and John McCourt, VP – to learn how they have been counseling clients through this crisis. Townes and McCourt shared their key takeaways and how they felt this situation has differed from crises they have worked on in the past.
Q: How did your team approach guiding clients on how to support those affected by the LA fires?
A: [Townes] We began to recognize the devastating scale of the Los Angeles wildfires and the issues that were being raised beyond the physical destruction in social and news feeds – everything from the climate crisis and the lack of resources available to the exploitation of prison labor and the range of inequities (i.e., housing, education, income) – not to mention the politicization and the fingers that were being pointed. We knew that just like other disasters, many of our clients would be eager to support the relief efforts, however, it was critically important to be aware of the surrounding conversations.
Our team worked quickly to get smart on the situation and dig into how the fires were being covered in the media as well as what community leaders, local organizations, and businesses shared about the specific needs in their communities. We started to track what companies were saying, but more importantly, what actions they were taking, as well as vetting non-profits to determine credibility, focus and ability to support on-the-ground.
We worked in lockstep with a cross-functional team of specialists and experts including our partners in Analytics and Crisis & Issues, to not only share the risks and mitigation tactics to avoid reputational harm but to also provide thoughtful paths forward for impact, each tailored for each client’s distinct business, stakeholders, and areas of operation.
Q: What do you think the biggest lessons learned were (client counsel-wise) in this crisis?
A: [Townes] Now is the time for business leaders to think long-term and plan ahead when it comes to disaster relief. The Los Angeles wildfires represent the stark reality that extreme weather events and natural disasters are becoming more frequent due to climate change. Whether or not disaster relief is currently an area of focus for our clients, the events we just witnessed are an alarming reminder to consider how those efforts should come to life and what frameworks can be built to deploy them as needs emerge. This way, whether it’s the next fire, flood or hurricane, the business will have a response mechanism in place that can be adapted to the specific needs of the moment.
Additionally, it is critical that companies understand their impact on the environment and take innovative, science-backed approaches to manage, protect and improve ecosystem resilience to mitigate future disasters and the need for relief efforts at all.
Q: How do you think this situation differs from other natural disasters you have provided counsel on?
A: [McCourt] There’s very little positive news to come from any natural disaster; however, for the Los Angeles wildfires, the online sentiment and coverage appeared to be distinctly more negative and critical. Similar to the misinformation we observed surrounding last year’s hurricanes, notable online figures and commentators were quick to jump in with blame or polarizing accusations surrounding what led to the fires and response efforts.
Notable false claims include: state policies caused water pressure issues within certain fire hydrants, FEMA did not have any budget to address the crisis, Delta smelt fish protections were preventing water exports to Southern California and that the Los Angeles Fire Department’s DEI efforts were prioritized over their emergency response.
There was also notable backlash to online influencers and celebrities for responses to the fires that were deemed tone deaf or out of touch with less privileged disaster victims.
All this to say, with increasing scrutiny and polarization around such natural disasters, companies must think critically on what form of disaster relief they’re well positioned to supply and how that should be communicated.
A Path Forward
Recovering from these wildfires will be a long-term endeavor for businesses as well as residents. With economic losses estimated at upwards of $150 billion, the LA fires will undoubtedly be a focus in boardrooms, courtrooms, and public offices long after they’re extinguished. Insurance companies have certainly been impacted, as share prices plummet and claims mount. Elected officials are also receiving scrutiny for decisions involving resource management, the use of incarcerated labor to fight fires, and recovery resource allocation. Businesses will inevitably be implicated as the public discourse examines factors contributing to the disaster, such as resource stewardship, the climate emergency, and overreliance on AI. Here, too, is an invaluable opportunity to demonstrate leadership by joining these conversations, the better to publicly and proactively shape the policies that will ensure LA rebuilds into a sustainable, competitive economy.
Beyond providing support for immediate needs, companies should consider how they can also support mid- and long-term recovery efforts. There are a variety of credible organizations that will be partnering with local communities to help them stabilize, recover, and rebuild.
Immediate Relief:
Emergency support: During the ongoing emergency phase of the response, provide direct support to trusted and vetted, nonprofit and community organizations mobilizing on the ground. It is best to provide unrestricted cash funding, not in-kind or physical goods, to allow on-the-ground agencies to direct resources to the greatest areas of need and ensure donation management does not detract from disaster relief needs.
Hyper-Local support: For companies that seek to support local organizations without 501(c)3 status or people directly impacted, it is advised to work through a trusted intermediary, as they can provide funding, capacity building and additional support alongside the cash grants.
Potential Partner Organizations:
Human service organizations with operations in CA providing shelter, clothing, and home goods:
See also, UW Ventura County chapter
Additional organizations for general recovery and community services:
Availability of PPE:
Los Angeles County Library: N95 masks provided by the Department of Public Health are available at several Los Angeles County Libraries while supplies last.
Los Angeles Public Library: All City of Los Angeles libraries are distributing N95 masks while supplies last. A list of libraries is available here.
Longer-term recovery:
The private sector is best positioned to engage in long-term support for recovery and rebuilding, especially for the areas where they have operations and staff impacted, after this initial emergency phase. Working with and through nonprofits and public-private partnerships, the business community will be able to invest in long-term solutions to support livelihoods and economic empowerment, access to critical services and system strengthening.
There will also be long-term policy and practical conversations stemming from this crisis related to business priorities. These will likely include topics related to the climate emergency, environmental management, economic inequality, immigration, and other trending issues. The private sector will be a critical ally, champion, and solutions provider to ensure the local LA community and nation remains sustainably competitive and economically strong into the future.
Potential Partner Organizations:
Center for Disaster Philanthropy: Will assess needs and create a portfolio of organizations to support with funds
GlobalGiving: Can provide corporate partnerships and a bespoke campaign with employees
What we’re listening to…
Climate Forward (Newsletter)
The New York Times’ Climate Forward is a twice-weekly newsletter that highlights environmental news and insights. Recent topics include the climate implications of the L.A. wildfires, government regulation of forever chemicals, and analyses of President Trump’s recent executive orders.
Risky Business (Podcast)
Risky Business is a weekly podcast about making better decisions. Hosted by two journalists who moonlight as high-stakes poker players, the podcast discusses political, social, and personal decisions through an analytical risk-framework. Recently, the podcast released an episode titled “Wildfires, Insurance, and Planning for Disaster,” discussing how market trends and personal factors can contribute to rational decision-making during natural disasters.
Bloomberg Businessweek (Podcast)
Bloomberg reporters compile the latest business news and analyze the intersection between global technology, politics, and economics in the Bloomberg Businessweek podcast. This month, the podcast has discussed topics such as the impact of extreme weather on the insurance industry, executive community outreach during natural disasters, and tackling AI-driven misinformation.