BulletProofBlog the blog on crisis communications

The new Chairman of the Securities and Exchange Commission (SEC), Mary L. Shapiro, isn't wasting any time revamping the agency's embattled image. As reported earlier this week by the Washington Post, she is looking to do away with an existing rule (changed during the Bush administration) that requires enforcement division lawyers to seek Commissioners' approval before negotiating to impose penalties on companies accused of wrongdoing - a step that is seen as resulting in an 85 percent drop in fines levied against corporations in the last three years since it was implemented.

This is only the beginning. In the wake of complaints that the SEC has been asleep at the wheel for the last several years - as well as the high-profile criticism coming from Capitol Hill last week over the Madoff affair - bold action will be on the way to help restore investors' confidence and help to jumpstart the economy.

And to that end, the Commission will be on the lookout for message cases that will make an example of bad actors - and thus help to deter others. Good headlines are remarkably effective at building morale inside and deterring those who harm others.

For individuals and companies that are likely to be caught in the crosshairs, the best advice is also the most straightforward: cooperate, cooperate, cooperate. Recognize that the entire nation has changed and the anger is palpable - and make sure that your legal and crisis communications teams, your board, and your C-Suite recognize that as well.

One would like to argue that there are sophisticated communications tactics that will prove particularly effective with the newly empowered SEC. And no doubt, there are many things you can and should do (more on specific tactics coming later this week) - but for starters, the most critical thinking is emotional. Make sure everyone on your crisis team - executives, corporate communications, human resources, legal, finance, government affairs, etc. - understand that the world has changed and that if they insist on business as usual, they guarantee that they will make you a very public target of the new SEC.

In this perilous environment, companies can assume one of two roles - poster child of reform, or poster child for reform. And cooperation that goes above and beyond mere compliance is the best way to ensure that your company isn' t cast as the latter.