When activists attack

In the week that the UK government introduced a law to prevent animal liberation activists from causing commercial damage to companies, we explore the business continuity measures that can be taken to mitigate against activist threats.

On Monday of this week the UK government tabled new measures as part of the Serious Organised Crime and Police Bill to make it a criminal offence to cause ‘economic damage’ through organised campaigns of intimidation. This is aimed at curbing the activities of animal rights activists who have targeted not only companies conducting animal experimentation work but other firms in their supply chains.

The above is just one specific example of activism but it serves to show how the issue can be a real business continuity threat to companies, and a threat that can extend to businesses who may not even realise that they may be an activist’s target.

Activists use various techniques to achieve the aim of persuading businesses to desist from the activity that the activists oppose. Peaceful tactics are mainly used, which use argument and discussion as the main weapons, but a small minority of activists are prepared to turn to more violent methods. These can include:

* Reputation attacks – dragging a company’s name and brands through the mud. Spoof websites; viral e-mail campaigns; and standard direct marketing campaigns are just a few of the methods which have been successfully used to do this.

* Financial attacks – causing direct and indirect financial losses. Direct losses can be engendered through such things as product contamination and damage to equipment and plant. Indirect losses can be caused through reduced share price through lack of willing investors; difficulties in attracting corporate finance and insurance; and supply chain problems as suppliers back-off in favour of less risky customers.

* Physical attacks – on personnel, buildings, homes of staff and executives etc.

* Internet-based attacks - website hacking, and denial of service attacks have been used by activists as a means of getting their message across and causing inconvenience and financial losses.

Business continuity measures
Various business continuity measures can be taken to help counter the threat of activism.

All business continuity plans consist of two main elements: preventative measures and reactive responses. The former are the steps that can be taken to mitigate risks, the latter are post-crisis contingencies.

PROACTIVE MEASURES
Before any business continuity measures can be put in place it is vital that the company understands the scope and extent of the risks that it faces. For this reason business continuity planning activities normally commence with a risk assessment and business impact analysis. Basically, these techniques help identify all operational risks and then make an assessment of the likelihood of the risk event happening and the subsequent damage that would be caused to the business. High risk, high likelihood risks should be top priority for mitigation. The risk assessment and business impact analysis should consider the threat of activism and determine if there are any areas where the company is at risk from this.

If activism is perceived as a potential risk to the company there are various things that can be done to reduce the likelihood of an attack on the company:

Policy statements
Firstly the company should have a defined ethical policy in place that includes statements on areas of concern to activists. The company must be seen to promote its ideals and to live up to them. Areas which might be covered in such a policy include:

* Ethical purchasing – the policy should state the types of companies and countries that supplies will be sourced from. In addition it should include statements on what is expected from suppliers in terms of the way staff are treated; work-life balance; care for the environment and business behaviour.

* Environmental policy - this clearly outlines the company’s policy towards the environment. It should show how the business focuses on minimising the use of scarce and environmentally sensitive raw materials and how any waste materials are handled and disposed of. The company’s approach to new developments should be outlined, especially the policy with regard to the use and development of green-field sites.

* Ethical investment – companies can be targeted by activists not because of their everyday business activities but because of the investments made on their behalf. To avoid issues with activists companies can use ethically managed pension and investment funds and can avoid direct investments in companies involved in any ethically ‘grey’ area.

Local awareness
Multi-national companies sometimes run the risk of behaving like a steam-roller when it comes to local issues. Many activist attacks come about because of poorly handled local issues which could have been avoided through consulting with local people, and listening to their views and opinions.

Security
Many companies spend large amounts on security measures for commercial premises; however security issues do not always stop there. Products as well as people and equipment need to protected. Retailers, for example, are vulnerable to product contamination. Business continuity managers must try and ‘think like an activist’ – where in the supply chain are your products vulnerable to tampering and damage? Does your warehouse need stronger security? Your transportation containers? Your retail outlets?

REACTIVE MEASURES
How should companies react if they do become the target of an activist campaign? One area which is highly important is effective crisis communications; ensuring that communications with the media, the general public and other stakeholders are handled professionally and positively. Good crisis communications is the most effective way of preventing the reputation damage which may ensue from an activist campaign.

The golden rules of crisis communications are:

* Be professional – don’t use inexperienced people to handle your communications. Whatever group you are communicating with it is vital that your information is presented in the most professional manner possible. This inspires confidence in the message being given and ensures that the release of information is as controlled and positive as possible. Staff who will be involved in crisis communications should be identified during the business continuity planning stage and must be given full training. There are many specialist crisis communications companies available to help and advise at any stage in the process.

* Be proactive. Attack is often the best form of defence as far as crisis communications is involved. If an incident has taken place, for example a product contamination, brief appropriate media with details of the incident and the company’s response before the activists’ do. Give clear, concise and specific information. Show that the situation is under control and that the company is handling the crisis efficiently and professionally.

* Be honest. In a crisis communications scenario, honesty is definitely the best policy. Don’t try to avoid difficult questions, address them head-on. In this way you will build up trust in stake-holder groups and will ensure that there is no ‘hidden agenda’ that the media can use against you.

* Be responsive. React quickly and accurately to any information requests.

Product recall
If your company produces or retails products it is important to have a product recall plan. This general measure will prove essential should activists manage to carry out a product contamination attack. The plan details the steps to be taken in the event of a recall. It will have a defined coordinator whose role is to manage the recall and keep all appropriate agencies informed about progress. The recall coordinator will normally be supported by a team and must have the authority to make executive decisions.

The recall plan should include detailed information on the following areas:

* Identification of recall personnel – including 24 hour contact details;

* Procedures – details of the specific procedures that the recall team will work within. Governmental recall advice will include specific measures to take depending on the type and severity of the recall and the company’s business continuity plans should include the latest version of such information;

* Liaison information – details and contact information for the law enforcement and governmental agencies that will need to be informed plus decision trees to enable the recall team to know when to make contact with such outside agencies.

•Date: 4th February 2005 •Region: World •Type: Article •Topic: BC general
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