You are on page 1of 31

INTRODUCTION

The operation of a business may get disturbed by a crisis occurred due to accident, pollution, take-over, strike, lock-out, stock-market crash, explosions, fires, closure or similar situation. A crisis may also occur due to act of nature like earthquake, flood, drought, epidemic, etc. Majority of the Corporate Crisis arises due to internal problems which are caused by low productivity and operational inefficiency that tend to threaten the basic objectives of the organisation. Crisis lead to an opportunity and nurtures the unit back to health, provided all the aspects concerned with crisis are handled with due understanding, and efficiency. There are instances when the handling of tragedies or serious crisis by PR staff turned out to the advantages of the organisation. By way of sympathetic communication with those involved in the community of what had happened, goodwill and understanding is created even when disaster strikes. A crisis brings risk into focus, and the organisation immediately falls under media and government scrutiny, it drags the company into prolonged legal battles.

MEANING OF CRISIS
Websters Dictionary defines crisis as, a turning point for better or worse. This means that the situation could turn out to be both good and bad. For an example, when an industry or a business fall sick, it will create a situation of overall crisis for the management, employees, shareholders, distributors, suppliers, financiers and many more publics with whom the industry has to interact. The other side of this situation is that some persons will consider it as an opportunity to turn the organisation into a viable unit. Crisis comes in many forms, but public relation people for more part seals with public crisis. These can be described, categorised and usually predicated. Crises are like plays. Two factors are always present. Crisis involves people and they interrupt the normal Chain of command.

What Is Public Relations Damage Control?


Careers in marketing include advertising, research, merchandising, consumer psychology, sales and management, product management and public relations. Public relations is about building, improving and maintaining the public image and perception of an individual, company or organization. Damage control is one duty of a public relations department and it involves minimizing the negative effect caused by an event or series of events. Public Relations The duties of the public relations officer involves controlling the information released about her employer, and presenting that information in the best possible light. To perform her job, she writes press releases, monitors internal and external factors that might influence public perception, lobbies for her employer and works closely with those in other marketing departments of the company. Purpose The purpose of the public relations officer is not to inform the public about his employer, but to feed the public the information that will positively influence the public in the employer's favor. He manipulates and spins the information to present a positive image.When the public relations officer presents a half glass to the public, his job is to convince the public the glass is half-full, not half-empty. It is easier for an

individual or company to get what they want when the general public likes, respects and trusts them. Damage Control While many duties of a public relations department involve building the reputation of the employer, with damage control it is primarily about minimizing the negative perception caused by a crisis-situation. A crisis is sometimes the result of an unexpected event. It might also be about something that the public relations department hoped to conceal from the public or hoped would not happen. Those involved in damage control are typically on call 24 hours a day, ready to minimize negative public perception. Example of Damage Control An example of damage control could be the public relation department's response to an oil rig sinking off the coast of California. The oil company's public relations department controls the flow of information released about the catastrophe, and works to convince the public that the oil company is working in the best interest of the public and environment, as opposed to being a self-serving company only concerned with company profits. This might include a series of commercials showing company employees and officers actively cleaning up the oil spill and saving local wildliCrisis: Any situation that is threatening or could threaten to harm people or property, seriously interrupt business, damage reputation or negatively impact share value.

WHAT IS A CRISIS?
It is easy to think that there are a class of events that can easily be defined as crisis. Thus, such events as earthquakes, fires, murders, rapes, and disasters are easy candidates for the category of crisis. While this is certainly true and we should expect people to react intensely to these life-events, we really need a more sophisticated means for understanding the "nature of crisis" and the ways in which people react to them. We need to understand that people give meaning to the events that happen in their lives. Each of us witnessing or participating in the same event will experience it differently. To a large extent, the difference is attributable to our unique life histories. We understand the new and the novel or the highly emotionally charged in terms of what we have already experienced. We find ways of fitting new experiences into what we already know and that allow a sense of both familiarity and comfort. It allows us to apply tried-and-true coping styles which permits a sense of mastery. In this way "new life experiences" are whittled down to size; their uniqueness is made manageable and not disruptive. Any life event can take on crisis proportions if it is experienced as sudden, intense, unexpected, or emotionally super-charged. We experience crisis as overwhelming leaving us without means to cope or to adjust. Somehow, we cannot make sense of what is happening or why it is happening. Without answers to those important questions, we are left helpless. We simply do not know what to do to control or master the situation. We

do not know how to make it stop. Wave after wave of emotion sweeps over us and we are unable to predict when or if this awful situation is going to end. Thus any event can be a crisis if it wipes out our ability to make sense out of what is happening. We become bereft of means for exercising some form of control on our lives. We feel helpless; the victim of events beyond reason and certainly beyond our control. It is only after we regain some sense of understanding and some sense of control that the crisis is reduced to something manageable.

Types of crisis
During the crisis management process, it is important to identify types of crises in that different crises necessitate the use of different crisis management strategies. Potential crises are enormous, but crises can be clustered. Lerbinge categorized seven types of crises 1. 2. 3. 4. 5. 6. 7. 8. Natural disaster Technological crises Confrontation Malevolence Organizational Misdeeds Workplace Violence Rumours Terrorist attacks/man-made disasters Natural crises Natural crises, typically natural disasters considered as 'acts of God,' are such environmental phenomena as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tsunamis, storms, and droughts that threaten life, property, and the environment itself. Example: 2004 Indian Ocean earthquake (Tsunami) Technological crises Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they

do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage, the crisis is categorized as megadamage. Samples include software failures, industrial accidents, and oil spills. Examples: Chernobyl disaster, Exxon Valdez oil spill Confrontation crises Confrontation crises occur when discontented individuals and/or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crises is boycotts, and other types are picketing, sitins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying police. Example: Rainbow/PUSHs (People United to Serve Humanity) boycott of Nike Crises of malevolence An organization faces a crisis of malevolence when opponents or miscreant individuals use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. Sample crises include product tampering, kidnapping, malicious rumors, terrorism, and espionage. Example: 1982 Chicago Tylenol murders Crises of organizational misdeeds Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions.Lerbingerspecified three different types of crises of organizational misdeeds: crises of skewed management values, crises of deception, and crises of management misconduct.

Crises of skewed management values Crises of skewed management values are caused when managers favor short-term economic gain and neglect broader social values and stakeholders other than investors. This state of lopsided values is rooted in the classical business creed that focuses on the interests of stockholders and tends to disregard the interests of its other stakeholders such as customers, employees, and the community. Example: Sears sacrifices customer trust Crises of deception Crises of deception occur when management conceals or misrepresents information about itself and its products in its dealing with consumers and others. Example: Dow Cornings silicone-gel breast implant Crises of management misconduct Some crises are caused not only by skewed values and deception but deliberate amorality and illegality. Workplace violence Crises occur when an employee or former employee commits violence against other employees on organizational grounds. Example: DuPonts Lycra Rumors False information about an organization or its products creates crises hurting the organizations reputation. Sample is linking the organization to radical groups or stories that their products are contaminated.

How to Plan for Public Relation Damage Control


You may have advance notice that damaging information is about to be announced regarding your organization. Take advantage of the early warning to plan for damage control, and create a response that will help spin PR in a way that causes the least possible harm. Read on to learn more. 1. Effective crisis planning begins with leadership at the top. Every governor,_mayor, legislator, superintendent, and princi-pal should work together to make school cri-sis planning a priority. Top leadership helps_set the policy agenda, secures funds, and_brings the necessary people together across_agencies. Other leadership also needs to be_identifiedthe teacher who is well loved in_her school, the countys favorite school_resource officer, or the caring school nurse._Leaders at the grassroots level will help your_school community accept and inform the_planning process._ 2. Crisis plans should not be developed in a vacuum. They are a natural extension of_ongoing school and community efforts to create safe learning environments. Good_planning can enhance all school functions._Needs assessments and other data should_feed into a crisis plan. Crisis plans should_address incidents that could occur inside_school buildings, on school grounds, and in the community. Coordination will avoid_duplication and mixed messages, as well as_reduce burden on planners._ 3. School and districts should open the channels of communication well before a crisis. Relationships need to be built in_advance so that emergency responders are_familiar with your school. Cultivate a rela-tionship with

city emergency managers, pub-lic works officials, and health and mental_health professionals now, and do not over-look local media. It is important that they_understand how the district and schools will_respond in a crisis. 4. Crisis plans should be developed in partnership with other community groups, including law enforcement, fire safety officials, emergency medical services, as well as health and mental health professionals. Do not reinvent the wheel. These_groups know what to do in an emergency_and can be helpful in the development of_your plan. Get their help to develop a coordi-nated plan of response._ 5. A common vocabulary is necessary. It is critical that school staff and emergency_responders know each others terminology._Work with emergency responders to develop_a common vocabulary. The words used to_give directions for evacuation, lockdown, and_other actions should be clear and not hazard_specific. The Federal Emergency Management_Agency recommends using plain language to_announce the need for action, for example evacuate rather than code blue. Many_districts note that with plain language every-one in the school building including new_staff, substitute teachers, and visitors will_know what type of response is called for._ However, some_districts have found it useful_to usebut streamline codes. Rather than a code for each type of incident they use only_one code for each type of response. With_either approach, it is critical that terms and/or_codes are used consistently across the district._ 6. Schools should tailor district crisis plans to meet individual school needs.

In fact, a_plan should not be one document. It should_be a series of documents targeted to various_audiences. For example, a school could use_detailed response guides for planners,_flipcharts for teachers, a crisis response tool-box for administrators, and wallet cards con-taining evacuation routes for bus drivers._Plans should be age appropriate. Elementary_school children will behave much differently_in a crisis than high school students._ 7. Plan for the diverse needs of children and staff. Our review of crisis plans found_that few schools addressed children or staff_with physical, sensory, motor, developmen-tal, or mental challenges. Special attention is_also needed for children with limited English proficiency. Outreach documents for families_may be needed in several languages. 8. Include all types of schools where appropriate. Be sure to include alternative, char-ter, and private schools in the planning_process, as well as others who are involved_with children before and after school. 9. Provide teachers and staff with ready access to the plan so they can understand its components and act on them. People_who have experienced a crisis often report_that they go on autopilot during an incident._They need to know what to do in advance not_only to get them through an incident but also_to help alleviate panic and anxiety._ Training and practice are essential for the successful implementation of crisis plans. Most students and staff know what to do in case of a fire because the law_requires them to participate in routine fire_drills, but

would they know what to do in a_different crisis? Many districts now require_evacuation and lockdown drills in addition to_state-mandated fire drills. Drills also allow_your school to evaluate what works and what_needs to be improved. Public Relations Strategy: Why Your Organization Needs One Every organization should have an interest in public relations. The ability to maintain a positive public image is critical to achieving corporate objectives.

Five Steps in Creating an Effective PR Strategy


1. Discovery Discovery is a process an organization goes through have a good understanding of what their business is, who the business serves and who in the community interacts with the business. This process is done through very specific strategy and research. For example: a homeless shelter may have a vision to provide shelter to those who have temporarily lost the ability to provide for themselves. This statement helps an organization understand who they are, what their mission is and who they serve. The organization will then try to identify who in the community they interact with. In the case of a homeless shelter, it may be residents or businesses within the neighborhood they serve. The organization should have a goal to create a positive relationship with everyone they interact with. This is important because, in the case of a homeless shelter, a positive relationship can possibly increase funding, identify volunteer labor or foster collaboration for joint community projects. 2. PR Plan Developing the PR plan is very similar to establishing business goals and should be done as part of a strategic planning process. PR goals and objectives should be focused on communicating what was learned in the discovery phase. It is important to have a well thought out communication plan for employees, the general public and those who interact with the organization. Another part of the plan is developing strategy for how the organization can be both proactive and reactive. The plan is proactive by marketing an organizations products or services, increasing market share and name recognition as well as maintaining a positive public

perception. The plan is reactive in how the organization plans to respond to unplanned or unforeseen events. Having a written strategy is the key to facilitating a positive outcome. An important part of the plan is the identification of the person who speaks on behalf of the organization, the message that will be communicated as well as the tone of the message. It takes specialized training for someone to be able to field questions from the media so having a person with the right skill set and gifting is critical. 3. PR Policy PR policy should be written on the process to communicate or respond to any number of situations. This includes communicating with employees, the news media or communication as part of an advertising campaign. For example, using a press release for new products or services. What and how information is communicated should be a critical part of the policy creation. 4. Plan Implementation Implementing the plan according to policy requires budgeting, scheduling and a specific program to roll out the plan. Budgeting and timing of implementation is critical to the end result. 5. Evaluation It is important to evaluate the performance of how well the plan is working. Having SMART goals can provide measures to track success over time. Using the PDCA model of quality improvement can also help facilitate a consistent process. A good PR strategy can help build relationships with customers, investors, donors, employees and the general public. Having a

reputation for positive things such as being environmentally responsible, a great place to work, green or supportive of other social needs can do more to acquire new business than any paid advertisement

Public Relations: Response to crisis.


Bad things happen to people and organizations, but how you respond during a crisis can save and enhance your reputation. You'll find that the response often has more impact on your reputation than the event that precipitated the crisis. Preparation is key to ensuring that the way you react to and handle a crisis leads to a positive outcome. It is very important to have a written plan in place and staff trained before a crisis happens, because you'll lack the time to do so once one happens. Having a crisis communications plan serves as an adjustable blueprint for any crisis situation. This blueprint should have: A crisis response team identified and trained. That includes a spokesperson. A list of key stakeholders to communicate with directly. A list of anticipated scenarios using the so-called SWOT analysis that looks at strengths, weaknesses, opportunities and threats. Holding statements, which can be used immediately after a crisis breaks. Notification systems such as phone trees or email and text messaging groups. You should have more than one channel to reach people. In general, you need to take steps to immediately respond during a crisis. You need to take charge of the situation, understand the circumstances, define the problem, rank options, and then communicate, communicate, communicate.

The challenge is to complete these steps as quickly as possible within the first two hours of a crisis whenever feasible. In this age of instant information provided by social media, the window of crisis reaction has shortened. Think of how quickly social media can escalate crises in recent cases such as Weiner's or the McDonald's Twitter photo hoax that showed a racially offensive sign posted on a door of a location. Here are some tips for handling a crisis: Do: Tell the truth Release only confirmed facts Show concern Defuse negatives Remain calm Provide newsworthy updates Don't: Speculate Overstate or understate Talk "off the record" Be thrown by hostile questions Give an exclusive to one journalist Place blame on someone else

Crisis communication
The 10 Steps of Crisis Communications 1. Identify Your Crisis Communications Team A small team of senior executives should be identified to serve as your organization's Crisis Communications Team. Ideally, the team will be led by the organization's CEO, with the firm's top public relations executive and legal counsel as his or her chief advisers. If your in-house PR executive does not have sufficient crisis communications expertise, he or she may choose to retain an agency or independent consultant with that specialty. Other team members should be the heads of major organization divisions, to include finance, personnel and operations. Let me say a word about legal counsel. Sometimes, during a crisis, a natural conflict arises between the recommendations of the organization's legal counsel on the one hand, and those of the public relations counsel on the other. While it may be legally prudent not to say anything, this kind of reaction can land the organization in public relations "hot water" that is potentially, as damaging, or even more damaging, than any financial or legal ramification. Fortunately, more and more legal advisors are becoming aware of this fact and are working in close cooperation with public relations counsel. The importance of this understanding cannot be underestimated. Arthur Anderson lost its case and went out of business due to the judgment rendered by the court of public opinion, not the judgment of a court of law.

2. Identify Spokespersons Within each team, there should be individuals who are the only ones authorized to speak for the organization in times of crisis. The CEO should be one of those spokespersons, but not necessarily the primary spokesperson. The fact is that some chief executives are brilliant business people but not very effective in-person communicators. The decision about who should speak is made after a crisis breaks but the pool of potential spokespersons should be identified and trained in advance. Not only are spokespersons needed for media communications, but for all types and forms of communications, internal and external, including on-camera, at a public meeting, at employee meetings, etc. You really don't want to be making decisions about so many different types of spokespersons while "under fire." 3. Spokesperson Training Two typical quotes from well-intentioned organization executives summarize the reason why your spokespersons should receive professional training in how to speak to the media: "I talked to that nice reporter for over an hour and he didn't use the most important news about my organization." "I've done a lot of public speaking. I won't have any trouble at that public hearing."

Regarding the first example, there are a good number of people interviewed by CBS' "60 Minutes" or ABC's "20/20" who thought they knew how to talk to the press. In the second case, most executives who have attended a hostile public hearing have gone home wishing they had been wearing a pair of Depends. All stakeholders internal and external are just as capable of misunderstanding or misinterpreting information about your organization as the media, and it's your responsibility to minimize the chance of that happening. Spokesperson training teaches you to be prepared, to be ready to respond in a way that optimizes the response of all stakeholders. 4. Establish Notification Systems Remember when the only way to reach someone quickly was by a single phone or fax number, assuming they were there to receive either? Today, we have to have immediately at hand the means to reach our internal and external stakeholders using multiple modalities. Many of us have several phone numbers, more than one email address, and can receive SMS (text) messages or faxes. Instant Messenger programs, either public or proprietary, are also very popular for business and personal use. We can even send audio and video messages via email. Depending on how "techie" we choose to be, all of this type of communication and more may be received on or sent by a single

device! It is absolutely essential, pre-crisis, to establish notification systems that will allow you to rapidly reach your stakeholders using multiple modalities. The Virginia Tech catastrophe, where email was the sole means of alerting students initially, proves that using any single modality can make a crisis worse. Some of us may be on email constantly, others not so. Some of us receive our cellphone calls or messages quickly, some not. If you use more than one modality to reach your stakeholders, the chances are much greater that the message will go through. For a long time, those of us in crisis management relied on the oldfashioned "phone tree" and teams of callers to track people down. But today there is technology offered by multiple vendors and also available for purchase that can be set up to automatically start contacting all stakeholders in your pre-established database and keep trying to reach them until they confirm (e.g., by pressing a certain number on a phone keypad) that the message has been received. Technology that you can trigger with a single call or email. 5. Identify and Know Your Stakeholders Who are the internal and external stakeholders that matter to your organization? I consider employees to be your most important audience, because every employee is a PR representative and crisis manager for your organization whether you want them to be or not! But, ultimately, all stakeholders will be talking about you to others

not on your contact list, so it's up to you to ensure that they receive the messages you would like them to repeat elsewhere. 6. Anticipate Crises If you're being proactive and preparing for crises, gather your Crisis Communications Team for long brainstorming sessions on all the potential crises which can occur at your organization. There are at least two immediate benefits to this exercise: You may realize that some of the situations are preventable by simply modifying existing methods of operation. You can begin to think about possible responses, about best case/worst case scenarios, etc. Better now than when under the pressure of an actual crisis.

In some cases, of course, you know that a crisis will occur because you're planning to create it e.g., to lay off employees, or to make a major acquisition. Then, you can proceed with steps 8-10 below, even before the crisis occurs. There is a more formal method of gathering this information that I call a "vulnerability audit," about which information is available here. 7. Develop Holding Statements While full message development must await the outbreak of an actual crisis, "holding statements" messages designed for use immediately

after a crisis breaks can be developed in advance to be used for a wide variety of scenarios to which the organization is perceived to be vulnerable, based on the assessment you conducted in Step 6 of this process. An example of holding statements by a hotel chain with properties hit by a natural disaster before the organization headquarters has any hard factual information might be: "We have implemented our crisis response plan, which places the highest priority on the health and safety of our guests and staff." "Our hearts and minds are with those who are in harm's way, and we hope that they are well." "We will be supplying additional information when it is available and posting it on our website." The organization's Crisis Communications Team should regularly review holding statements to determine if they require revision and/or whether statements for other scenarios should be developed. 8. Assess the Crisis Situation Reacting without adequate information is a classic "shoot first and ask questions afterwards" situation in which you could be the primary victim. But if you've done all of the above first, it's a "simple" matter of having the Crisis Communications Team on the receiving end of information coming in from your communications "tree," ensuring that the right type of information is being provided so that you can proceed with determining the appropriate response.

Assessing the crisis situation is, therefore, the first crisis communications step you can't take in advance. But if you haven't prepared in advance, your reaction will be delayed by the time it takes your in-house staff or quickly-hired consultants to run through steps 1 to 7. Furthermore, a hastily created crisis communications strategy and team are never as efficient as those planned and rehearsed in advance. 9. Identify Key Messages With holding statements available as a starting point, the Crisis Communications Team must continue developing the crisis-specific messages required for any given situation. The team already knows, categorically, what type of information its stakeholders are looking for. What should those stakeholders know about this crisis? Keep it simple have no more than three main messages for all stakeholders and, as necessary, some audience-specific messages for individual groups of stakeholders. 10. Riding Out the Storm No matter what the nature of a crisis...no matter whether it's good news or bad...no matter how carefully you've prepared and responded...some of your stakeholders are not going to react the way you want them to. This can be immensely frustrating. What do you do? Take a deep breath. Take an objective look at the reaction(s) in question. Is it your fault, or their unique interpretation?

Decide if another communication to those stakeholders is likely to change their impression for the better. Decide if another communication to those stakeholders could make the situation worse. If, after considering these factors, you think it's still worth more communication, then take your best shot!

HANDLING PR IN EMERGENCY

1} the need for establishing the news headquarters will be determined by the PR person. News headquarters will keep all the visitors to the site under control. 2} the person handling public relation will maintain contact with reporters and make sure that they stay in approved location and provide them all the information in the best interest of the company. 3} the person handling public relation will check with a designated representative of the management on the text of the announcements. 4} the person handling public relations will be responsible for guiding reporters to the disaster areas if the management permits such a visit. 5} the facts to be given to the press and the ultimate public must remain with the top management. It is the responsibility of person handling public relations to operate with the approval of the top management. 6} maintain close contact with members of the media. 7} keep a list of all facts given out, with times they were released. This will avoid duplication and conflicting reports in case new developments should change the facts. 8} do not release the names of victims until you know the fact. Tell them the names of the victims will be made available as soon as the next kin has been told of the mishap. 9} when it is necessary to admit a fact already known to the press, be sure that the confirmation is limited only to definite information that will not change.

Case study
Examples of successful crisis management Tylenol (Johnson and Johnson) In the fall of 1982, a murderer added 65 milligrams of cyanide to some Tylenol capsules on store shelves, killing seven people, including three in one family. Johnson & Johnson recalled and destroyed 31 million capsules at a cost of $100 million. The affable CEO, James Burke, appeared in television ads and at news conferences informing consumers of the company's actions. Tamper-resistant packaging was rapidly introduced, and Tylenol sales swiftly bounced back to near precrisis levels. When another bottle of tainted Tylenol was discovered in a store, it took only a matter of minutes for the manufacturer to issue a nationwide warning that people should not use the medication in its capsule form. Odwalla Foods When Odwalla's apple juice was thought to be the cause of an outbreak of E. coli infection, the company lost a third of its market value. In October 1996, an outbreak of E. coli bacteria in Washington state, California, Colorado and British Columbia was traced to unpasteurized apple juice manufactured by natural juice maker Odwalla Inc. Forty-nine cases were reported, including the death of a small child. Within 24 hours, Odwalla conferred with the FDA and Washington state health officials; established a schedule of daily press briefings; sent out press releases which announced the recall; expressed remorse, concern and apology, and took responsibility for anyone harmed by their products; detailed symptoms of E. coli poisoning; and explained what consumers should do with any affected products. Odwalla then developed - through the help of consultants effective thermal processes that would not harm the products' flavors

when production resumed. All of these steps were communicated through close relations with the media and through full-page newspaper ads. Mattel Mattel Inc., the toy maker, has been plagued with more than 28 product recalls and in Summer of 2007, amongst problems with exports from China, faced two product recall in two weeks. The company "did everything it could to get its message out, earning high marks from consumers and retailers. Though upset by the situation, they were appreciative of the company's response. At Mattel, just after the 7 a.m. recall announcement by federal officials, a public relations staff of 16 was set to call reporters at the 40 biggest media outlets. They told each to check their e-mail for a news release outlining the recalls, invited them to a teleconference call with executives and scheduled TV appearances or phone conversations with Mattel's chief executive. The Mattel CEO Robert Eckert did 14 TV interviews on a Tuesday in August and about 20 calls with individual reporters. By the week's end, Mattel had responded to more than 300 media inquiries in the U.S. alone." Pepsi The Pepsi Corporation faced a crisis in 1993 which started with claims of syringes being found in cans of diet Pepsi. Pepsi urged stores not to remove the product from shelves while it had the cans and the situation investigated. This led to an arrest, which Pepsi made public and then followed with their first video news release, showing the production process to demonstrate that such tampering was impossible within their factories. A second video news release displayed the man arrested. A third video news release showed surveillance from a convenience store where a woman was caught replicating the tampering incident. The company simultaneously publicly worked with the FDA during the crisis. The corporation was completely open with the public throughout, and every employee of

Pepsi was kept aware of the details.[citation needed] This made public communications effective throughout the crisis. After the crisis had been resolved, the corporation ran a series of special campaigns designed to thank the public for standing by the corporation, along with coupons for further compensation. This case served as a design for how to handle other crisis situations.[19][citation needed] Examples of unsuccessful crisis management Bhopal The Bhopal disaster in which poor communication before, during, and after the crisis cost thousands of lives, illustrates the importance of incorporating cross-cultural communication in crisis management plans. According to American Universitys Trade Environmental Database Case Studies (1997), local residents were not sure how to react to warnings of potential threats from the Union Carbide plant. Operating manuals printed only in English is an extreme example of mismanagement but indicative of systemic barriers to information diffusion. According to Union Carbides own chronology of the incident (2006), a day after the crisis Union Carbides upper management arrived in India but was unable to assist in the relief efforts because they were placed under house arrest by the Indian government. Symbolic intervention can be counter productive; a crisis management strategy can help upper management make more calculated decisions in how they should respond to disaster scenarios. The Bhopal incident illustrates the difficulty in consistently applying management standards to multi-national operations and the blame shifting that often results from the lack of a clear management plan.[20] Ford and Firestone Tire and Rubber Company The Ford-Firestone Tire and Rubber Company dispute transpired in August 2000. In response to claims that their 15-inch Wilderness AT, radial ATX and ATX II tire treads were separating from the tire core leading to grisly, spectacular crashesBridgestone/Firestone recalled

6.5 million tires. These tires were mostly used on the Ford Explorer, the world's top-selling sport utility vehicle (SUV).[21] The two companies committed three major blunders early on, say crisis experts. First, they blamed consumers for not inflating their tires properly. Then they blamed each other for faulty tires and faulty vehicle design. Then they said very little about what they were doing to solve a problem that had caused more than 100 deathsuntil they got called to Washington to testify before Congress.[22] Exxon On March 24, 1989, a tanker belonging to the Exxon Corporation ran aground in the Prince William Sound in Alaska. The Exxon Valdezspilled millions of gallons of crude oil into the waters off Valdez, killing thousands of fish, fowl, and sea otters. Hundreds of miles of coastline were polluted and salmon spawning runs disrupted; numerous fishermen, especially Native Americans, lost their livelihoods. Exxon, by contrast, did not react quickly in terms of dealing with the media and the public; the CEO, Lawrence Rawl, did not become an active part of the public relations effort and actually shunned public involvement; the company had neither a communication plan nor a communication team in place to handle the eventin fact, the company did not appoint a public relations manager to its management team until 1993, 4 years after the incident; Exxon established its media center in Valdez, a location too small and too remote to handle the onslaught of media attention; and the company acted defensively in its response to its publics, even laying blame, at times, on other groups such as the Coast Guard. These responses also happened within days of the incident.

You might also like