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.