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I'm looking for a blog post or online resource on when not to comment to the press--for example, when it would violate SEC regulations or employee privacy. Can anyone point me to a resource?
The National Investor Relations Insitute is a great resouce. Not sure of the nature of your situation, but it may be worth joining to get access to their resource materials. Link: http://www.niri.org.
The short answer to your question is that if you know what constitutes insider or "material" information in your organization, don't disclose it publicly until after Legal has signed off and the communication is approved at the executive level.
If an event has not yet occurred (end of quarter, sales numbers released, merger, or downsizing) don't even hint about it, and certainly don't speculate. I've had to deal with this kind of thing quite a bit. Feel free to get in touch if you need anything further. Thanks.
Jim_Cameron - Point #2 responding to the question of when NOT to comment to the press seems to imply that it's ok to provide confidential, proprietary or personal info, as long as it's relevant to the topic.
I'm not a mind reader, but I'm guessing that wasn't your intent.
You have to weigh upside or downside, not just whether it's legal.
At a previous employer, we were getting a black eye because the press got something wrong that we weren’t in a position to talk about yet. We could have in a round about way set the record straight though other channels, but then we would have cause the mayor and city manager to look bad. And we still needed to work with these guys. There was no upside to speaking even though we were on the right side of this deal.
Even on mundane issues, you have to consider what downside exists before you decide to speak or stay silent.
Two kinds of quiet periods during IPOs have been regulated historically: between the filing of a Form S-1 and its approval by the SEC, when companies, analysts and other insiders are restricted in their discussion and promotion of the IPO, and during the first 40 days of public trading. During the latter, companies and underwriters are restricted from issuing earnings forecasts and research reports. In 2005, the SEC loosened its iron clamp on public disclosures significantly with revisions intended to address online disclosure/promotions. (See SEC Quiet Period) Also, according to Wikipedia, “the NASD and NYSE have approved a rule mandating a 10-day quiet period after a secondary offering and a 15-day quiet period both before and after expiration of a ‘lock-up agreement’ for a securities offering.”
With regard to privacy, employees have little protection in employment law. Most don’t realize that every Web site they visit—as well as any texts, e-mail, or phone calls they make—using corporate property enjoy no expectation of privacy. IOW, employers are free to monitor, intercept and review all employee communications, and may use them as the basis for disciplinary action.
But if you’re referring to disclosures of employee information, then three obvious considerations should apply: 1) The company may have an internal corporate privacy policy which should be followed, or expanded; 2) Each person quoted or likely to be discussed should be notified and, perhaps, approve the material or the discussion points in advance (especially if they might receive follow-up contacts); and, 3) Why are you even revealing *any* private employee information at all? The second point can be partially addressed by having public bios of all company staff who may ever be in the public eye (either online—and not just at a corporate Web site—or off), and simply not sharing anything publicly beyond the bio content each individual approved.
As far as when not to comment to the press, company spokespeople should try to avoid being caught without prepared material and/or positions. (I always carry small cards with me containing each client’s talking points.) Refuse to participate in ambush journalism. Practitioners know that a “No comment” is usually a horrible response (at least for a client), but a simple “Give me your card/phone number, and I’ll get back to you on that” sometimes can be effective. When the ambush involves seeking your response to sudden, surprising news, you may get by with “I’m not prepared to discuss that without consulting my client.”
Finally, every company spokesperson should undergo media-interview training to learn how to avoid improper disclosures/revelations, and should know all the answers to the comprehensive Q and A you’ve constructed to address any possible question.
-------------------------------- Steven Spenser
Principal
Praxis Communication/Seattle
www.linkedin.com/in/stevenspenser
There are lots of good reasons to stay silent, but one simple test I use is to ask whether anyone will miss us if we don't provide a comment. Plenty of reporters will call for comment on issues or events that are tangential to our business. If the story is not about us, I stay out of it unless I have a clear message that I know will make it into the story, and I'm comfortable that the story won't turn into something I don't want to be part of .
