1、Crisis ManagementCrisis Management Basicsl“No comment”fuels hostilitylAlways try to be helpfullBe aware of deadlineslBefriend journalists before the crisis hitsCrisis Management TipslAppoint a spokesperson who is personable and crediblelSet up a central place where media and the public can get infol
2、Keep the information cominglBe accessible and return all callslBe honestExamples of Crisis ManagementlOdwallalExxonCase StudylOdwalla juice e-coli outbreak in 1996lHealth officials in Washington state informed the company that they had discovered a link between several cases of E.coli 0157:H7 and Od
3、walla fresh apple juice.Case StudylOne child died and more than 60 people in the Western United States and Canada became sick after drinking the juice.lSales plummeted by 90%,Odwallas stock price fell 34%.lCustomers filed more than 20 personal-injury lawsuits and the company looked as though it coul
4、d well be destroyed.What did the company do?lOdwalla acted immediately.lAlthough at the point where they were first notified the link was uncertain,Odwallas CEO Stephen Williamson ordered a complete recall of all products containing apple or carrot juice.lThis recall covered around 4,600 retail outl
5、ets in 7 states.lInternal task teams were formed and mobilized,and the recall-costing around$6.5m was completed within 48 hours.Taking ResponsibilitylOn all media interviews,the CEO expressed sympathy and regret for all those affected and immediately promised that the company would pay all medical c
6、osts.lThis,allied to the prompt and comprehensive recall,went a long way towards satisfying customers that the company was doing all it could.Internal communicationslThe CEO conducted regular company-wide conference calls on a daily basis,giving employees the chance to ask questions and get the late
7、st information.lThis approach proved so popular that the practice of quarterly calls survived the crisis.External communicationslWithin 24 hours,the company had an explanatory Web site(its first)that received 20,000 hits in 48 hours.lThe company spoke to the press,appeared on TV and carried out dire
8、ct advertising with the Web site address.lAll possible attempts were made to provide up to the minute,accurate information.Fixing the ProblemlThe next step was to tackle the problem of contamination.lThe company switched from unpasteurised juice to a process called flash pasteurization which would g
9、uarantee that E-coli had been destroyed without compromising flavor.Fixing the ProblemlWithin months of the outbreak,the company had in place what some experts described as the most comprehensive quality control and safety system in the fresh juice industry.lOn December 5,the company brought back it
10、s apple juice.lThe new process was communicated in all advertising and public outreach campaignsCost and benefitlOdwalla made a rapid recovery.lMuch of the good will and trust it had built up over the years remained.lSales picked up again quite quickly.Cost and benefitlThe company did pay a large co
11、st.Odwalla pleaded guilty to criminal charges of selling tainted apple juice and was fined$1.5m-the largest ever assessed in a food industry case by the US Food and Drug Administration.Case StudylIn 1989,the Exxon Valdez oil tanker,entered the Prince William Sound,on its way towards California.lThe
12、ship ran aground and began spilling oil.Within a very short period of time,significant quantities of its 1,260,000 barrels had entered the environment.Case StudylAt the moment of the collision the third mate,who was not certified to take the tanker into those waters,was at the helm.lThe probable cau
13、se was established that the Captain and many of the crew had been drinking alcohol in considerable quantities.What did the company do?lThe action to contain the spill was slow to get going.lThe company refused to communicate openly and effectively to the public about the incident.lThe Exxon Chairman
14、,Lawrence Rawl,was immensely suspicious of the media,and reacted accordingly.Poor Crisis ManagementlMedia coverage escalated while Exxon dodged the media lThe Chairman refused to be interviewed on TV and said that he had no time for“that kind of thing.”lA company spokesman misrepresented the extent
15、of the spill and clean-up efforts lThis was in contrast to the footage of the ecological disaster shown on TVFailure to Fix the ProblemlWhile Exxon stalled and attempted to cover up the problem,the clean-up operation was slow to beginlAround 240,000 barrels had been spilled,with another million stil
16、l on the ship.lDuring the first two days,when calm weather would have allowed it,little was done to contain the spillage.lThis spillage spread out into a 12 square mile slick.The Problem CompoundslThen the bad weather struck,making further containment almost impossible.lAfter more than a week,the co
17、mpany was still giving no ground on the request for better communication.lThe media clamor became so hostile that eventually Frank Larossi,the Director of Exxon Shipping,flew to Valdez to hold a press conference.lIt was not a success.Small pieces of good news claimed by the company were immediately
18、contradicted by the eyewitness accounts of the present journalists and fishermen.Outrage BuildslJohn Devens,the Mayor of Valdez,commented that the community felt betrayed by Exxons inadequate response to the crisis,in contrast to the promises they had been quick to give of how they would react in ex
19、actly this eventuality.Poor CommunicationlEventually,Chairman Rawl was interviewed livelHe was asked about the latest plans for the clean-up.lIt turned out he had neglected to read these,and cited the fact that it was not the job of the chairman to read such reports.lHe placed the blame for the cris
20、is at the feet of the worlds media.The AftermathlThe spill cost around$7 billion,including the clean up costs.l$5 billion of this was made up of the largest punitive fines ever handed out to a company for corporate irresponsibility.The AftermathlExxon lost market share and slipped from being the lar
21、gest oil company in the world to the third largest.lThe Exxon Valdez entered the language as a shortcut for corporate arrogance and damage.What went wrong?lThe company failed to show that they had effective systems in place to deal with the crisis-and in particular their ability to move quickly once
22、 the problem had occurred was not in evidence lThey showed little leadership after the event in showing their commitment to ensuring such problems would never happen again lThey quite simply gave no evidence that they cared about what had happened.They appeared indifferent to the environmental destr
23、uction.In-class AnalysislWe will break into teams to examine some recent PR crisis scenarioslSee the class blogFinal ReviewlCovers:lCh.8 Pitch Letters,Advisories,Media Kits&Op-EdlCh.9 Radio,Television&WebcastinglCh.10 Distribution:Snail-mail to InternetlCh.12 Newsletters,E-zines&BrochureslCh.13 World Wide WeblCh.14 E-mail,Memos,Letters,Proposals&ReportslCh.15 Direct Mail and AdvertisinglCh.18 Program PlanninglCh.19 Measurements&EvaluationFinal ReviewlThe test will consist of written response/Writing exampleslOpen-book/notes/Internet accesslWorth 60 points我们正年轻，让努力变成常态，用逆袭创造传奇。变革 创新 共赢
