For some industries, 2012 saw improved crisis management, but not all coped equally well. Peter Roberts looks back

“What did we learn from crisis in 2012?”

In crisis terms, 2012 was – dare I say it – a case of business as usual. This was largely to be expected in light of what had gone before; the tectonic plates underpinning the worlds of corporate finance and the media had for instance been dislodged a lot earlier. The Arab Spring continued to be played out in bloody terms across Syria and Egypt, while corporate restructure – read job losses – was, unsurprisingly, the order of the day for many international businesses. However, it would be wrong of me to suggest that events weren’t illuminating with regards to the challenge of how best to defend corporate reputation. What did strike me though was the sense that the more meaningful lessons were not always associated with the biggest crises.

So what did we learn? Despite the fractures within the Coalition, I do believe Parliamentarians have had a good year. Above all, the select committee appears to have found a new-born vim. A number of big businesses were badly bruised at the hands of committee members. The reasons varied from an apparent lack of contrition to an absence of a clear strategy. However, the lesson was generally consistent – the need for participants to recognise that an appearance was part of the corporate recovery and not the response; that is, taking the significant step from the bunker mentality that characterises the former to the vision and conviction of the latter.

Elsewhere, it should have come as no surprise that shareholder activism was to increase in momentum over the year. Yet, lessons here appear to have gone unheeded. Such activists will, invariably, raise the volume when it comes to either executive remuneration, or major acquisitions. There continued to be examples of both throughout the year, with management pay challenged at WPP, Trinity Mirror and Astra Zeneca. Significant mergers to have failed due (in part) to shareholder unhappiness included the massive BAE and EADS tie-up, while proceedings have been initiated to stop the T Mobile and Metro PCS merger in the US. The leading argument raised by investors opposed to the BAE deal, was the company’s failure to communicate effectively the thinking behind the transaction, which I believe is the ultimate lesson for any future deals. A point, incidentally, reinforced by a recent Harvard Law report, which saw half of surveyed investors believe that dialogue between shareholders and management to be the most effective strategy against activism.

Meanwhile, those within the finance sector who felt the industry’s reputation could only improve in 2012 were in for a particularly painful reality check, with the ‘prize’ of annus horribilis probably going to Barclays in light of the Libor fixing scandal and the loss of Bob Diamond. Elsewhere, others were caught up in a computer; human error blamed for 700,000 card users being double charged, and record fines of $1.9billion for money laundering. The lesson, no doubt, will be to recognise that the sector’s sustained scrutiny means a greater interest and understanding of the business is now shared among consumers as well as the media.Whereas punters may have once been of lesser importance, future communication strategies must reflect their new-found priority status. Smarter businesses will recognise and ensure that public interest is turned into a positive for their organisations.

But hold on – no reference to social media, I hear you cry. Well, yes and in the spirit of complete candour, I hasten to add that it was a case that Bell Pottinger worked on. Lord McAlpine’s public response to a false child abuse claim was unprecedented in its scope of pursuing all of those who had tweeted, or retweeted the allegations against him. What many have called a ‘rubicon moment’ has lessons for us all; fundamentally, that we all have a clear understanding that comment on such platforms may now come at a price.

Peter Roberts is head of issues and crisis management at Bell Pottinger