Tag Archives: Reputation Risk

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7 Tips to Mitigate the Risks of Summer Staff Parties

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With millions of employees continuing to work remotely part- or full-time, 2022 summer office outings may represent one of the first “all hands” get-togethers for many employers since the COVID-19 pandemic began. Indeed, 37% of respondents to spot surveys conducted by Seyfarth at Work reported that there had not been a need, opportunity and/or COVID-safe venue for everyone to be in the same space at the same time since 2019.

Two years is a long wait, and based on anecdotal reporting in the wake of June and early July events, some employees are perhaps a bit overexcited at the prospect of finally hanging out together.

Some summer outing horror stories that resulted in complaints and charges include:

• An East Coast video game development company’s festivities included ice-breaker activities of beer pong and “spin the vodka bottle,” with managers nudging uncomfortable staff to join in.
Result: two employees contacted a local enforcement agency looking to file a harassment charge.

• A West Coast tech startup’s party featured an impromptu game of “pin the tail on the interns,” involving strips of paper “tails” and tape.
Result: two interns left the organizations and several employees threatened suit.

• A Midwest pack-and-ship firm had insult rap battles that devolved into comments about aging and weight gain.
Result: a spate of internal complaints from employees, and even from a caterer who was setting up food on-site and overheard the derisive and potentially discriminatory lyrics.

Actionable Risk Management Take-Aways for Bosses:

A number of pre-event precautions can help reduce the risk of your summer outing going sideways:

• Scare your managers—just a little. Schedule pre-event “Respect Huddles” where you can remind those in supervisory roles that they all have potential professional and/or legal responsibility if things go wrong. Deputize them, so to speak, to watch out for risky conduct as the festivities unfold. Share simple scripts and responses your managers can use to “nudge” attendees back to a zone of respect.

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• Set limits for everyone on things like alcohol, how long/late the event runs, and an agenda of (appropriately) fun activities. Historically, drinking can be a gateway activity to all sorts of sordid interactions. To manage the risk, some organizations have found it very helpful to “ticket the tequilas,” meaning they provide the event food, but limit the alcohol, such as by using a drink ticket system.
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A strict event agenda helps prevent attendees from straying into murky territory with creative comments and conduct. Any planned games should focus on friendly collaboration, not physical contact.

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Assign a trusted internal party planner to carefully manage your party or outing agenda.

• Strongly encourage staff to bring significant others and kids, if interested. Having lots of little tykes in attendance tends to reduce all sorts of adult excesses and judgement errors. However, also be open to employee opt-outs. Stress the fact that no one is expected to attend—it is just as important as making sure everyone feels welcome.

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• Send a pre-event conduct memo to every employee at least once, and maybe even twice. Revisit your office respect rules, as they extend to and apply in the great outdoors as well, at least when your organization is sponsoring.

Tips for Everyone

For employees at any level, we recommend not thinking of the outing as party time, but rather as a professional event that just happens to be moving outside. These tips can help any attendee enjoy the gathering while avoiding risky situations:

• Set lower expectations for yourself on how “off-the-hook” the whole outing will be, which can help ensure that you’re not disappointed and are better able to maintain decorum.

• Stay away from casual banter that is ribald, risqué or involves sharing too much information.

• Social distance, for both COVID and conduct reasons.

New York City’s New Biometric Information Law Governs Collection and Use of Consumer Health Data

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For risk professionals, the COVID-19 pandemic has increased the importance of ensuring customer and employee safety measures are incorporated into operations, processes and future strategies. As many businesses reopen from pandemic shutdowns or return from remote work arrangements, some enterprises are now exploring both the effectiveness and the risks associated with conducting health screenings that collect biometric information and other personal health data.

This month, New York City released the Biometric Information Law, a new measure that goes into effect on July 9 and imposes disclosure requirements on businesses that collect consumer biometric information.

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It also sets parameters on what they can do with that information, most importantly, prohibiting the exchange of biometric information for anything of value.

As detailed in recent client notice from the law firm Reed Smith, highlights from the law include:

  • The measure requires a business that “collects, retains, converts, stores or shares biometric identifier information of customers” to place a “clear and conspicuous sign” near all consumer entrances that, in plain language, discloses the collection, retention or sharing of biometric information.
  • It stipulates that it is unlawful to “sell, lease, trade, share in exchange for anything of value or otherwise profit from the transaction of biometric identifier information.”
  • It establishes “an ‘aggrieved’ consumer’s private right of action,” meaning that “[a]ny person who is aggrieved by a violation by this chapter is entitled to commence an action to enforce its protections.”

There are key exclusions, however, as “governmental agencies, employers, or agents” are expressly excluded from compliance with any provision.

New York is not the only state to enact a law attempting to govern how organizations can use biometric information. Arkansas, California, Illinois, Texas and Washington have also set guidelines for businesses.

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Indeed, the recent Risk Management Magazine article “Preparing for Biometric Litigation from COVID-19” addresses the imminent and critical questions businesses must answer when collecting and handling such data.

Sensitivities surrounding the confidentiality of biometric and other health information are not new in certain industries, such as healthcare. Further, even before COVID-19, risk professionals were already grappling with the risks associated with new biometric technologies and the data collected, especially with regard to facial recognition, wearables and even the rise in popularity of telehealth.

Now, with every organization on high alert about infectious diseases and how quickly they can interrupt business, health and safety have become top priorities for every risk professional in every sector.

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As risk professionals look to new technology for help with these concerns, monitoring the emerging regulation and security risks around health and biometric technology will become increasingly critical in balancing benefit and risk to their organizations.
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Data security will continue to remain a significant threat, but New York’s Biometric Information Law should serve as a reminder that what the organization does with that data can also have a lasting impact on the enterprise’s reputation and consumer trust.

For more information to help risk professionals manage new health technology and data, check out these articles from Risk Management Magazine:

A New Approach to Managing a ‘Classic’ Reputation

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coca cola sweetener challenge

A new Coca-Cola-sponsored contest seems to publicly acknowledge its reputational risk, but at a minimal cost that could manage or even reduce it.

In early August, the beverage giant announced its Sweetener Challenge, seeking non-employees (preferably scientists or agriculture or nutrition professionals) who can bring the company a “natural, safe, reduced, low- or no-calorie compound that generates the taste sensation of sugar when used in beverages and foods.” The winner will be announced in Fall 2018 and will receive million.

Taxes on soda, the decline of its consumption, and mounting data that sours on sugar has unquestionably affected the bottom line for the company and put pressure on the broader beverage industry. By initiating the contest, Coke seems willing to try a fresh approach to manage or favorably alter its reputation as a brand founded on sugary cola, while simultaneously attracting and retaining consumers and generating sales.

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That seems far less risky than not trying new techniques.

“[Reputation risk] is created when expectations are poorly managed and exceed capabilities, or when a company simply fails to execute,” wrote Nir Kossovsky in the 2014 Risk Management article “How To Manage Reputation Risk.” “Managing expectations is all about governance, operations and risk management—the blocking and tackling of running a business. Clearly, there can be perverse brilliance in a business strategy of setting expectations very low.

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”

Last year, Coca Cola suffered a net revenue decline from $11.5 to $9.7 billion, making the $1 million prize a cost-efficient gamble that, as Kossovsky suggested, can “conceptualize an ideal state and implement a roadmap to reduce reputation risk.”

Other companies have turned to their audiences for new ideas to increase awareness and improve their reputations. Folgers was jonesing for a new jingle this year and paid a songwriting duo $25,000 for a flavorful new take on “the best part of waking up.”

Even the commercial aviation industry sought out-of-this-world innovations from average stargazers. When the X Prize Foundation wanted to inspire the private sector to pursue commercial space flight, it did so with a $10 million prize. The pursuit of the Ansari X Prize generated $100 million in new technologies and was ultimately won by the Tier One project’s ShapeShipOne, which was financed by Microsoft co-founder Paul Allen.

According to Kossovsky, “reputational events are tried in the court of public opinion,” and Coke’s will both there and in stores. The company’s new sugar substitute will be announced in October 2018 and will eventually make its way into supermarkets. With just a few sips, consumers can ultimately decide if the company’s investment and reputation risk management technique was a sweet move.