Do We Need A Corporate Alert System?
For most of us, hyperawareness of alert systems came in response to the September 11th attacks. The first Homeland Security Advisory System release came in March of 2002 with a lovely shade of yellow for “Elevated”, part of a five Crayon palate that was highly criticized as confusing and largely misunderstood by the general public.
But since that time, other alert systems have become more commonplace. For example, we have a general sense of the difference between a Category 4 and a Category 5 hurricane as a result of Katrina. In the most serious child abduction cases, we know that an Amber Alert may be issued and what steps we should take. And who can forget the high-pitched squelch that accompanies the newly named “Emergency Alert System” (formerly the Emergency Broadcast System) on radio and television stations.
In the past few weeks alone, many have become intimately aware of the World Health Organization (WHO) and their six phased model for influenza pandemics. As I’m writing this post, many anticipate that swine flu will be elevated to Level 6 (”Global pandemic”) later today.
So I pose this simple question - do we need a corporate alert system? Should both public and private companies have a fiduciary and/or moral obligation to their employees, shareholders, investors, partners and suppliers to make them aware of an “alert” status that may impact sustainability? If you’re a public company, many believe that this alert system is already in place, but could one argue that most disclosures occur post-tragedy/failure?
In a recent Harvard Business blog post, Nick Morgan assesses whether corporate transparency is always a good thing. His conclusion?
“The lessons seem to be clear: transparency is a good thing. Those who follow the rule get a chance to survive, even possibly thrive. Those who do not, suffer, and perhaps die.”
We due respect to Jack Nicholson, perhaps many corporations fear that “you can’t handle the truth.” To whit, WHO Chief Margaret Chan stated in her recent interview with Spanish paper El Pais:
“Level 6 does not mean, in any way, that we are facing the end of the world. It is important to make this clear because (otherwise) when we announce level 6 it will cause an unnecessary panic.”
Tell me what you think. Do alert systems work? Would you like to see one for corporations? Share your thoughts - don’t panic! - and let’s keep the conversation going.
May 4th, 2009 at 7:25 pm
I agree, I think an alert system would be a wonderful tool for businesses. It is important for businesses to frequently self assess to ensure that things do not begin heading down hill past the point of no return. If one begins feeling ill, one does not wait until one is sweating bullets to take ones temperature. This may be too late. Instead, one would typically take one’s temperature at the first sign of symptoms to begin taking necessary steps to prevent perminant, or serious, damage from occuring.
Great Blog!
-Fallon
May 5th, 2009 at 12:01 pm
I would emphasize National Institute of Health research. What better way to reduce the cost of health care than to, than to have–prevent illness? I would support advanced directives, where we find so much of medical care is paid for the in the last few hours or few days or a person’s life. Not to tell people what to do on their care at that time, but have them, have them think about it. I support programs which improves technology, as the stimulus package has $19 billion. I’ve been in this field for a long time and have a lot of ideas, participated in the president’s task force, and I’m ready to put my shoulder to the wheel to get legislation adopted. But I’m going to take a look at it piece by piece. I’m not committed.
May 5th, 2009 at 2:18 pm
If a corporation raises their “alert level” due to a possible upcoming issue then stocks will plummet causing a guaranteed issue. I’d rather have the board of directors working hard to ensure an issue does not arise rather than sitting around arguing if they should change the color of their alert to orange or orangish-red.
If shareholders or employees feel the need for an alert system then they shouldn’t be investing or working for that company. If you cannot trust them, then don’t give them your money or time!