The Role of the Board of Directors in Public Relations and Managing a PR Crisis

In today’s fast-paced media landscape, public relations (PR) can make or break an organization’s reputation. In 2024, Brewdog was in the negative spotlight. As a result, the company held back on its IPO. Bumble, one of the largest online dating sites, issued an apology on Instagram after a badly worded advertisement. Boeing was in the news for its reaction to further safety concerns and was scolded by Wall Street because the company didn’t respond in a meaningful way.

Despite the major PR disasters that we hear about in the news, there are many more that are mitigated on a daily basis through great decision-making by company leaders and strategic direction from outstanding PR agencies.

Handling a significant PR crisis extends beyond being solely a corporate management concern; it’s also a strategic concern that requires board-level attention. The board works on behalf of the shareholders and stakeholders and plays a critical role in ensuring that the organization emerges from such crises with reputation intact.

In order to better understand the role of the board during a PR crisis, I interviewed Amy Littleton – president and founder of Stretch PR to get an inside perspective on the topic.

“When a company is undergoing a crisis, company leaders and boards of directors should have confidence that a robust crisis communications and response plan is already in place, current and quickly operationalized. Truth, transparency and speed are critical - all enabled through careful advanced planning,” she said.

Oversight and Governance

The board’s primary role in PR is one of oversight. Directors must ensure that the company has a robust crisis management plan in place before any issues arise, approving the overall communication policy and setting strategic direction. This board-approved plan should outline clear communication protocols, designate spokespeople, and establish a chain of command for decision-making if a crisis were to occur.

Boards should also regularly review the organization’s crisis preparedness plan, ensuring alignment with best practices and shifting business priorities. By doing so, the board can help mitigate risk and position the company to respond swiftly and effectively.

Strategic Guidance During a Crisis

When a PR crisis occurs, the board’s role should be to provide strategic guidance and advice to the CEO. An emergency board meeting should be called, and directors should work closely with the executive team to:

1.????? Assess the Situation: Understand the scope and potential impact of the crisis on the company’s reputation, finances and operations.

2.????? Shape the Narrative: Provide input on key messaging to ensure transparency, accountability and alignment with the company’s values.

3.????? Engage Stakeholders: Advise on strategies for communicating with key audiences, including employees, investors, customers and regulators.

4.????? Monitor Progress: Regularly evaluate the effectiveness of the company’s response and adjust strategies as needed.

In some cases, these are daily calls and interactions between the board and the leadership team, especially when the stakes are high.

“When any issue arises, having smart people in the room to think about things from differing perspectives in invaluable. Optimal success comes when CEOs, senior leaders and boards view core values as the north star, lead with transparency and communicate quickly and honestly,” said Amy.

Protecting Long-Term Value

While management handles day-to-day crisis response, the board must focus on protecting the organization’s long-term value. This includes:

·?????? Ensuring Ethical Conduct: Boards must hold management accountable for honest and ethical communication during a crisis. However, they should also step in if they see the standards are not being upheld.

·?????? Supporting Leadership: Directors should act as a sounding board for the CEO and senior leaders, offering counsel and encouragement. At times, board members have been known to call on PR specialists that they know for additional advice.

·?????? Reviewing Lessons Learned: After the crisis subsides, the board should oversee a post-mortem analysis to identify lessons and improve future preparedness.

“The board of directors plays an indispensable role in guiding organizations through the complexities of corporate reputation management,” added Amy. “They must have confidence in the crisis response team, including external PR agency support, and maintain a high level of communication and partnership throughout,” – Amy Littleton, CEO/Founder of Stretch PR.

By providing oversight, strategic input and a focus on long-term value, boards help ensure that companies weather storms with resilience and emerge stronger on the other side. In a world where trust is paramount, the board’s commitment to overseeing sound governance and transparent communication can make all the difference.

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Naomi Kent

The Boardroom Company

[Thank you to Amy Littleton for her contribution to this article]