19.3 Managing Public Relations During Crises

Crisis management is a crucial skill for businesses. When disaster strikes, companies must act swiftly to control the narrative, protect their reputation, and rebuild trust. Effective strategies include disseminating information, crafting a crisis narrative, and engaging stakeholders.

Monitoring media, managing reputation, and learning from crises are key to long-term success. Companies that handle crises well can emerge stronger, while those that fumble may face lasting damage. Smart crisis management is essential for navigating today's fast-paced, hyper-connected business world.

Crisis Communication Strategies

Disseminating Information to the Public

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• Press releases provide official statements from the organization to the media and public during a crisis, allowing the company to control the initial narrative and provide important updates
• Press conferences give the organization an opportunity to address the crisis directly, answer questions from journalists, and demonstrate transparency and accountability (BP Deepwater Horizon oil spill)
• Social media management involves monitoring and responding to conversations, rumors, and misinformation on platforms like Twitter and Facebook, as well as using these channels to share official updates and engage with stakeholders (United Airlines passenger removal incident)

Crafting and Communicating the Crisis Narrative

• The crisis narrative is the overarching story the organization tells about the crisis, which should be consistent, truthful, and designed to minimize reputational damage
• This narrative should acknowledge the problem, express empathy for those affected, outline steps being taken to resolve the issue, and commit to preventing future occurrences (Johnson & Johnson Tylenol tampering)
• Recovery communication focuses on rebuilding trust and reputation after the acute phase of the crisis has passed, often emphasizing positive changes, lessons learned, and ongoing commitment to stakeholders (Volkswagen emissions scandal)

Reputation and Stakeholder Management

Monitoring and Managing Reputation

• Media monitoring involves tracking news coverage, social media mentions, and online conversations to gauge public sentiment and identify potential reputational threats
• Reputation management aims to shape public perception of the organization through proactive communication, relationship-building, and addressing negative feedback or misinformation (United Airlines passenger removal incident)
• Stakeholder engagement involves ongoing communication and collaboration with key groups (employees, customers, investors, regulators) to understand their concerns, involve them in decision-making, and maintain their trust and support during and after the crisis (Mattel lead paint recall)

Assessing and Learning from the Crisis

• Damage control refers to efforts to mitigate the negative impact of the crisis on the organization's reputation, operations, and financial performance, such as offering compensation, implementing policy changes, or restructuring leadership (BP Deepwater Horizon oil spill)
• Conducting a thorough post-crisis analysis to identify lessons learned, such as gaps in crisis preparedness, communication breakdowns, or operational weaknesses that contributed to the crisis
• Implementing changes based on these lessons to improve crisis management capabilities, prevent future incidents, and demonstrate a commitment to continuous improvement and stakeholder well-being (Samsung Galaxy Note 7 battery recall)