Workplace crises aren't what they used to be.

Societal, technological and economic changes on a global scale have created some new work-place crises for corporations that can be as damaging as the more traditional crises they coped with in the past. That's not to say that the more traditional public relations crises stemming from oil spills, environmental disasters, labor disputes, product recalls or product liability suits have disappeared. They, and others, are unfortunately still with us and must be coped with. But, in addition to those old standbys, a relatively new group of crises is emerging. Because they reflect problems in the work place, they present serious challenges to corporate managers. The new crises, because they are so damaging to corporate reputations when they occur regardless of how well they are handled and the ultimate outcome require vigorous proactive policies and safeguards to minimize their occurrence and limit the extent of damage if the proactive efforts fail.

The challenges presented by these new crises require a much stronger leadership and creative strategic thinking role by public relations and communication counselors. Beleaguered CEOs are increasingly snowed under by the demands of globalization, multiculturalism and cultural and organizational changes both in their own companies and in society in general. They need counsel on developing a longer term vision of what the future holds to meet these new challenges.

It's not simply a matter of writing press releases or putting out internal communication. It's a matter of developing a long-term strategic plan for meeting the new and often rapidly changing demands of the global marketplace. These newer crises demand that the public relations or communication counselor be an integral part of the management and planning process, not merely an outside observer called upon to put out messages that corporate leaders wish to communicate.

In large measure the driving forces behind these newer crises are:

* The societal and legal effort to 'create a diverse and multicultural work force free from discrimination in hiring and promotion.

* Intense global competition, which has precipitated draconian cost-cutting measures such as downsizing, outsourcing, plant closings and greater reliance on lower-paid, part-time employees.

* The virtually universal use of advanced computer-driven communication and information technology.

Sexual Harassment, Discrimination and Other Work-Place Issues

Corporations around the globe largely subscribe to, and endorse, the effort to create a diverse and multicultural work force, and to end discrimination in hiring and promotion. However, the fact is that many corporations have failed to take the necessary steps to implement this laudable goal.

As a result, the loose hiring and promotion policies and unacceptable work-place practices that were frequently tolerated in the past are still in place today. This is despite the changes in corporate policy and the societal and legal demands that harassment and discrimination in the work place be eliminated.

The results of this failure of implementation can be seen in your daily newspaper in the form of employee suits charging a wide variety of abuses in the work place. Although the first wave of suits began in the United States, this type of litigation has spread rapidly to other industrialized nations and is likely to spread in time to developing nations as well.

For example, within the past year dozens of major U.S. corporations have been damaged by work-place complaints including allegations of sexual harassment, racial discrimination, violations of privacy and age discrimination, among others.

And because such work-place matters have become hot-button public issues, the allegations have been widely and prominently disseminated by the print and electronic news media. Complaints and lawsuits charging sexual harassment or discrimination of any kind are extremely damaging to any business, regardless of how they are ultimately resolved.

The mere complaint often triggers adverse public reaction and media coverage based on the allegations in the complaint, thus putting the company in the position of appearing guilty until proven innocent.

Harassment and discrimination complaints also often spur immediate third-party involvement in the form of boycotts or other actions when taken on behalf of the plaintiff by women's or minority groups interested in those issues.

The truth is that once such a complaint is made publicly, the corporation or individual can do little except pursue limited damage control measures while the matter is adjudicated in the courts or administrative hearing.

More aggressive efforts such as attempting to rebut or discredit the plaintiff's allegations during the pre-trial phase often are viewed as attacks on the victim, as was seen in the attempt by some White House staff members to discredit Paula Jones, who accuses U.S. President Clinton of sexual harassment.

Too often this means that the prudent course is to attempt to negotiate an out-of-court settlement that will bring the matter to an end and permit closure, sometimes regardless of the facts.

But it doesn't have to be this way. It is not enough for corporations to adopt strong non-discrimination and diversity policies. They must be committed to them and insist that they be carried out from top management on down to the rank and file. Top management should communicate its commitment to these policies forcefully and repeatedly.

Further, top management and all employees should undergo sensitivity training and educational sessions on these issues. The policies should be backed up by strict monitoring and enforcement mechanisms. All complaints should be immediately investigated and swiftly resolved.

A corporation that is truly committed to equal opportunity and nondiscrimination, and follows the steps listed above, would not be caught up in the embarrassing and damaging situation of having to settle meritless sexual harassment or discrimination suits.

Let me be clear on this: It is no longer defensible, nor should it be, to attempt to excuse sexual harassment, gender or racial discrimination or any similar abuses in the work place today on the grounds that such conduct was commonplace and tolerated in the past.

Businesses today are on notice to clean up their acts and adopt firm and enforceable policies to ensure that all workers at all levels are treated fairly and with respect and judged solely on the merits of their performance.

Nothing more or less is required of business today. Although the changes may be wrenching to some, they are good for the employees, for their companies and for the diverse and multicultural society in which we do business.

Work-Place Unrest, Violence, Corporate Sabotage and Theft by Disloyal Employees

Another indication of trouble in the work place has been the rising incidence of labor unrest, violence committed by disgruntled employees or former employees, and cases of theft of proprietary trade secrets and other types of employee fraud.

Nothing is new about corporate sabotage or the theft of trade secrets or even attacks on corporate officials or line supervisors. But the fact that these crimes are now increasingly being carried out by disgruntled employees or cashiered former employees points up a very serious new problem: Employee alienation and disloyalty that is in part a product of the intense competition in today's global marketplace.

Driven by this competition, many large corporations have closed unproductive or redundant plants and offices, and have moved facilities to cheaper labor markets, often offshore. In the process they have fired thousands of once loyal and productive workers, many of whom have spent years with their companies.

Many such corporate downsizing and outsourcing operations have in the past been abruptly announced publicly, without prior notice to the employees and communities involved. Such insensitivity can rupture the bonds of trust, respect and loyalty with the affected employees and the communities affected by the action.

In many instances, even among those employees and communities who remained unaffected by downsizing or outsourcing decisions, trust and loyalty has been replaced by anxiety and mistrust.

News accounts about the adverse effect of downsizing and outsourcing on workers and their communities and critical editorials and commentary make it clear that the issue will be with us for some time.

Other corporate cost-cutting efforts, such as greatly increasing the use of part-time workers hired at lower wages and reduced benefits, also have been damaging to the image of multinational corporations. Public opinion polls during the recent United Parcel Service strike (where that was a primary issue) indicated that a majority of Americans supported the Teamsters' Union position on the part-time worker issue.

This adverse switch in public opinion should not be taken lightly by the business community. Inevitably, public opinion affects public policy.

The elections of socialist governments in Great Britain and France and the rise of the Greens in Germany are evidence of worker unrest over issues related to unemployment and job security. If left untreated, this can be quickly translated into dramatic political change that can be adverse to business interests.

Corporate leaders need to understand that competitive pressures from global competition do not justify ruthless cost-cutting measures. This could rupture ties with their workers and the communities in which they operate and create alienation, distrust and disloyalty among the work force.

This is not a problem that can be solved by government regulation or legislation. It mast be confronted and dealt with honestly by corporations and the business community. Acts of vengeance by disgruntled employees or bitter ex-employees cannot simply be wished away.

What is needed to rebuild worker trust and loyalty is a new social compact between employees and the companies they work for; a compact that recognizes employees at every level. Loyal, productive workers have a stake in the company and are a company's most valuable resource.

In today's fiercely competitive global marketplace, perhaps no company is secure enough to guarantee employees lifetime job security. But companies can and should provide a safe work place, training to upgrade job skills, a livable wage and decent benefits; also, a stake in the company's future and the assurance that downsizing and outsourcing that may cost jobs must be the last resort in cost reduction programs, not the first choice.

Perhaps more important, corporate leaders need to develop a long-term vision and plan for their.companies and communicate that vision and plan to all employees. Employees should not be blind-sided by sudden, unannounced decisions to close plants and offices or to shift their jobs to cheaper labor markets offshore.

If deep cost-cutting measures become necessary for a company's survival, employees should be kept abreast of the problem and permitted to express their ideas on how the cost-cutting targets could best be met.

Short-term solutions such as plant closings, outsourcing or switching full-time jobs to lower-cost, part-time employment seldom work successfully in the long term. They fail to take into account hidden costs such as reduced productivity, labor unrest, disruptions in the production process or slow-downs, not to mention sabotage and the theft of proprietary trade secrets.

But if in the end, employees must be severed, such actions should be handled sensitively, with adequate notice with generous severance, a continuation of benefits and active job placement efforts on behalf of the displaced workers.

Theft, Insider Trading, Misappropriation of Funds and Other Frauds by Disloyal Employees

The global nature of virtually all business today, and the complex communication technology required to service them, has created a situation where one strategically placed employee can misdirect, embezzle or make self-dealing trades involving millions or even billions of dollars before being detected.

Most cases that have made national or international headlines involve trades in financial institutions; any multinational corporation or business can be similarly affected by a rogue employee positioned within the financial end of the business.

Regulators at the U.S. Securities and Exchange Commission, the Federal Trade Commission, the Internal Revenue Service or the New York Stock Exchange will tell you the same thing: Wire fraud, insider trading, self-dealing, misappropriation of corporate, supplier or customer funds, and similar frauds are on the rise. They are now the subject of intense monitoring by the regulatory agencies.

The globalization of business, the massive increase in volume, value and complexity of national and international transactions, and the universal use of modern computer-driven communication technology make such frauds more tempting and more difficult to detect.

Despite that, it is the fiduciary responsibility of top management, not government regulators, to safeguard corporate, investor, supplier and customer funds. Yet many corporations have not moved aggressively to safeguard such transactional communication or to monitor closely enough the work of those entrusted with those tasks.

Prudent public relations counsel should focus at least as much attention and effort on developing proactive measures for prevention as they do in constructing a crisis contingency plan for dealing with the aftermath of such frauds.

The new crises present the opportunity for professionals to move from the back benches of corporate decision making to a starring role, a position we have always needed for effective projection and management of corporate reputation.

Robert L. Dilenschneider is president and CEO of The Dilenschneider Group, Inc., New York City.