Crises Communication

Crises Communication: Can businesses make a comeback?

According to the book, the definition of a crises for an organization is "...a major catastrophe that may occur either naturally or as a result of human error, intervention, or even malicious intent. It can include tangible devastation ,such as the loss of an organization's credibility or other reputational damange. The latter outcomes may be the result of mangament's response to tangible devastation or the results of human error. A crises usually affects multiple constituents in more than one market."

Crises Characteristics

The elemnent of surprise- Businesses can be hit hard with a crisis whether it is natural disaster or a business mistake, it is the companys number one priority to repair the issue. ie. Philip Morris found carcinogens in its filters.

Insufficient information- the company doesn't exactly know all the facts in the situation but has to recover fast and explain the issue to the public.

Quick pace of events- it is important to keep up with the issues surrounding the company.

Intense scrutiny- executives are often unprepared for the media's scrutiny. The media can play a big part of how much loss the business will take.

History of Business Crises

Johnson & Johnson's Tylenol Recall- Tylenol vs. Toyota

http://www.youtube.com/watch?v=XFMLrCNX4HY

Perrier Benzene Scare

Perrier faced a contamination crises when a techinician in the Mecklenberg County Envrionmental Protection Department, discovered a minute amount of benzene in the water. The recall included over 70 million bottles from North America.

http://www.youtube.com/watch?v=T2rPXvtT9rc

Pepsi- Cola Syringe Crises

Pepsi faced a highly publiczed contamination crises when a man in washington State reported that his can of diet Pepsi has a syringe in the can.

How to bounce back? http://findarticles.com/p/articles/mi_m3289/is_n3_v163/ai_15312359/

Plan for Crises- Experience

Right now we are all experiencing the Toyota Crisis. What can Toyota do to help them deal with the crisis of their vehicles?

-The person in charge of corporate communication should call for a brainstorm session that inclused the most senior mangers in the organization. During this session, the participants should work together to develop ideas about potential crises. They should be encouraged to be creative with new ideas. Once ideas are put into order the faciliatator should help the group to determine which of the ideas developed have the most potential to actually occur.

Hacking

On Thurday April 15th, we discussed in class the importance of keeping your computer and files updated and protected. There are many hackers out there that want to steal your information. Below is a link to a video on how to protect your computer from Malware.

http://www.youtube.com/watch?v=YcAHSgw7jNQ

Government Relations

Government regulations began with railroad companies. Industry grew from people traveling and from shipping goods over distances. Blls were passed that affected business in many ways. Businesses resist new regulations and most times it causes problems. It may also be impacting american business and our association with foreign markets. It is mprotant that government does have some level of regulation with business in America.

There are reasons for governments to regulate economies. Medicine is a great example of the importance of regulations. Also food regulations are necessary in order for consumers to be safe.

Government sometimes fails. Sometimes the people in government may act in response to their own interest or work with their associates instead of focusing on the interests of the country as a whole. Follow this link for a blog about government regulations gone bad:

http://sybilstar.blogspot.com/2008/02/example-of-government-regulation-gone.html

There are so many things that have had an impact on how companies handle government affairs. For example, companies rely on the Internet and because of the Internet, a crisis can reach many people before the company has a chance to prepare for it. It is very important for a company to manage their relationships with lawmakers and the government. Everything needs to be linked in order to be successful as a company.

Investor Relations

Investor relations are very important for any and every company. To ensure that constituents are secure with their investment, a company has to maintain a strong and healthy relationship with them. Before someone invests in any firm, they want to know what their return will be on the investment. A firm has to communicate its strategies for reaching its goals with all its investors. Providing the proper information to them is just one aspect. Performance and company image are very important also, being a socially responsible corporation would attract more investors. When a company performs at top level,investors recognize it and are intrigued by it. They want to know that investing in your firm would be the best option for them if they want to make money. Making the price of your stocks reasonable also attracts investors. This allows them to purchase more shares, and again attracts more people.

There are numerous companies who make it top priority to build strong,lasting relationships with their investors. I visited the Apple webpage, where they had a page specifically for their investors. They have all of their stock prices along with recent news from within the company that investors would find interesting. This is Apple's way of acquiring investors and keeping them. They are making a conscious effort toward keeping strong relationships with investors. It's a strategic way to their company and seems to be working out well for them.
here is a link to the Apple website I am referring to.

http://phx.corporate-ir.net/phoenix.zhtml?c=107357&p=irol-index