fivehundred magazine > The big issue > Remediating, mitigating, and managing a crisis

Remediating, mitigating, and managing a crisis

US editor Seth Singh Jennings talks to Kirkland & Ellis partners about advising corporate clients about reputational risk in the era of #MeToo.

An issue for businesses that has skyrocketed in importance in recent years is sexual abuse in the workplace, which of course is largely due to the success of the #MeToo movement.

The origins of ‘Me Too’ in the context of sexual harassment and assault stretches back to 2006, but the movement, as we now understand it, was sparked to life on social media following the October 2017 viral tweet by actress and activist Alyssa Milano.

The point of the tweet was to bring attention to the scale of the problem by demonstrating just how many women have their own stories of sexual harassment or assault. As we now know, this fairly modest call to action via Twitter could hardly have been more effective. Brought to life by the many vivid and personal accounts – including those of numerous high-profile actors and media personalities – the campaign has dragged the issue firmly into the public discourse.

One of the overriding themes of these personal stories has been how, in many cases, these incidents of misconduct have been enabled by workplace culture and a lack of proper safeguarding. This, rightly, has put businesses in the spotlight too.

Given the reputational damage such allegations can bring, there is now a
huge amount at stake for owners, managers, and directors if they fail to
take the issue seriously and put measures in place to protect their staff.

It’s in this context we spoke with Lauren Casazza and Kim Nemirow. Casazza, a litigation partner in Kirkland’s New York office, heads up the crisis response practice group at Kirkland & Ellis, counselling clients on internal and external communications in high-profile litigation, investigations and crisis situations.

Nemirow, a partner in the government and internal investigations team in Chicago, has a broad range of experience advising clients on government investigations, internal investigations, and compliance matters, and has particular expertise handling highly sensitive workplace misconduct and compliance matters.

How did this team come together?

At Kirkland, we are always trying to find ways to leverage our diverse expertise in ways to support our clients’ needs. Our collaboration was driven by the growing demand from our clients for assistance in all aspects of the #MeToo movement, whether it is installing a best practices workplace compliance programme, investigating thorny allegations against senior executives, or helping manage and communicate about emerging crises in this space.

How big an impact has the movement had on the business world?

It’s been significant. Frankly, this is front and centre for every company. The companies that have battled media attention on these issues are clearly focused on remediating, mitigating, and managing what typically has been a huge reputational hit.

But, more systemically, every company in the world is trying or should be trying to find ways to make sure they can avoid having issues in the first place and/or mismanaging allegations as they emerge.

Even investors should be considering how potential reputational and legal risks around #MeToo – which are very difficult to quantify – impact potential deals and investment value.

In what specifics ways have corporations been impacted?

What we’re seeing is that companies are being more proactive from a compliance and investigations perspective than they were even two years ago.

Companies are hyper-aware that mere allegations lodged publicly, particularly against senior executives or a company’s overall culture, can
create a corporate crisis within minutes, and we are helping our clients with key steps to prevent, deter, and detect these issues so that they can be in the best position legally and reputationally when, and
if, an unpredicted crisis occurs.

What are the key points you convey to your clients?

We convey that risks surrounding the #MeToo movement must be taken seriously, and that thoughtful, proactive compliance and crisis strategies not only help a company manage through a crisis, but can really serve to mitigate these unfortunate behaviours from occurring in the first place.

A key component of any strategy
should be focusing on whether the company maintains the right ‘tone at the top’, which is an essential foundation for a strong corporate culture.

What other advice would you give to lawyers who are talking to their clients about this topic?

We would tell them to advise their clients not to underestimate how quickly a #MeToo issue can become catastrophic for a company. Time and investment in proactive efforts to mitigate and manage these issues is well worth it, and in the long run companies and their hardworking employees will be better off for it.