Draft your executive contingency plan.

We live in a culture where easy access to social media networks means a single indiscretion can become common knowledge in a few hours or even minutes. For employers, this can mean being forced to react to bad publicity almost immediately. That's one reason every employer should have a contingency plan for not just responding but also for instant, pre-authorized action. The key is a plan that kicks in automatically.

Consider this recent social media-triggered crisis. A popular internet media group that produced how-to videos featured the owners demonstrating new skills. One presenter was known for his familyfriendly videos that included his wife. Then a fan saw him in real life in a compromising act of public affection with someone who wasn't his wife, but a company employee. The fan circulated the video online. The backlash was swift, but the company didn't respond until almost four weeks later with the news that the presenter had been replaced. By then, the company's reputation was in shambles. Here's how the company could have done better. Instead of deliberating internally about what to do with an executive caught in a compromising...