Exploring Public Relations
Exploring Public Relations
Exploring Public Relations
edition
RalphTench
Professor
LeedsMetropolitan
University
LizYeomans
Subject
GroupLeader,publicRelations
a n dCo m m u n ica tions
LeedsMetropolitan
University
PrenticeHall
FINANCIAL TIMES
PearsonEducationLimlted
Gate
Edinburgh
Harlow
EssexCM202JE
England
Companies
andAssociated the world
throughout
Firstpublished2006
Secondedltlonpublished2009
@ PearsonEducation
Limited2006,2009
ISBN:978-0-27
3-77594-8
British LibraryCataloguing-in-Publlcatlon
Data
A cataloguerecordfor this bookis availablefromthe BritishLibrary
10987654321
77 10 09
Typeset
in 9.5172pt
Minion
by35
Printed
andboundbyGraficas
Estella,
Navarro,
Spain
Thepublisher'spolicyis to usepopermanufoctured
fromsustainable
forests.
ER 19 MartinLangford
outcomes
#ning
....:: ., t,
shouldbeableto:
andofthischapteryou
e anddescribecrisispublicrelations rt .-,1
t
isehowcrisesoccur
thekeyprinciptes ptanning
of crisispublicretations andmanagement
risunderstanding personally
to simple, scenarios
meaningful .1!
risispublicretations principles
andmanagement
planning scenarios'
to real-life
t".t.t',tt..'.'
'.j,ii.
cture
thecontext
management
;.frisispubticretations
' {rlsispublicrelations effectiveness
vs operational
management
do crises
Where comefrom?
ng during a crisis
eommunicati
crisismanagement
andpublicretations
the Internet
Howto preparefora crisis
in crisismanagement
Keyprinciples
386 Part3 RELATIONS
PUBLIC SPECIALISMS
| . I r'
lnlroouclron
Crisispublicrelations(PR)management e.g. LehmanB rothers,H al i faxB ank Thekeyto Pli ( rlql?
is one of the mostcriticalaspectsof of Scotland(HBOS), AIG and others). preparedness. lt l',vtlsll{
moderncommunications. Effectivecrisis Thetistof companies whoseshareprice management thol ,r r ri*!t
management protects companies, their and marketcapitalisation have nose- beforeit happen,'nr*.|,
reputations and,at times,can salvage divedbecause of badtymanaged crises thatit doesnotgctortlr{
theirveryexistence.A crisisis an event woutdfillthisentirebook,tetalonethis ' i nformati on
andronrtr
that disruptsnormaloperations of a chapter. Ina crisis,
thereis alwaysmore whena crisisdor',,lrrlFlrff!.
companyor organisation and,if badty thanthe immediate issueat stake. to understand tht' trrlrr
managed, canruinhard-won reputations Thischapter willtookat examples of ptaysand particulirrlV lltr
in just daysand even,in somecases, effectively managed crisissituations
as Internet.Inthisclrirplpt rryf
destroy companies (notethedisastrous well as someof thosebadlyhandted the key principles frir
effectsin 2008 of the 'creditcrunch' crises.Wewill explore, in somedetail, crisissituationusinH.r
on established banksand businesses thecharacteristics of a crisis. studiesof bothgoorlarid
I
Chapter19 Crisispublicrelationsmanagement ,t7
i*
confrontatiott(Shell Oil whosepetrol stationssuffered
a consumerboycottafterthe companywantedto sink
an oil platform in the North Sea- the Brent Spar,see
pythons alsoChapters6 and l8)
malevolence(product tampering by a private citizen,
tlmethinkingabout(andresearching) like the Tylenol casedetailedlater,or direct action by
,have affectedorganisationsand list animal rights campaigners,such as placing bombs
headingsof cobrasandpythonsas
under the carsof executiveswhosestoressell cosmet-
icstestedon animals)
skewedmanagementvalues(BaringsBank went out of
Lcrbinger'seighttypesof crisis(below) businessafter managerswere accusedof turning a
lpur list underoneof them. blind eyeto'rogue'trader Nick Leesonwho hid details
of his massivefinanciallossesin the currencymarkets.
An act repeatedin 2008by )€r6meKerviewhen work-
ing for the Frenchbank, SociCtd G6n6rale.Seelater in
the chapter)
lilthnps owing to the nature of the organisation
deception(examples include deceiving employees
, e.g. manufacturing or processingand
prr spillage.The'unknown unknowns' areevents about the amount of money in pensionfunds after it
hasbeenusedby executivesto supportthe business,a
be predictedand that can come about from
UK casebeingthat of RobertMaxwelland the Mirror
bchaviour,unconnectedevents or circum-
Groupof nationalnewspapers)
nrc unpredictable.Beforereadingfurther, see
management misconduct(Enron is one of thc mosl
eightgypesofcrisisthat he
( I 997)categorised shockingexamplesof this with both illegaland uneth-
l{t lwo causes:managementfailuresor environ- ical practicesrife in the senior managementof the
The eight categoriesare: practice- seealsoAndersen,Mini casestudy l9.l )
4lca/(Mercedes
'A' Classcar had a designfault Fearn-Banks(2006)defines6ve stagesof a crisis,out-
{f$llrclover') linedin Table19.1.
' flve
fi crlsis
Detection Theorganisation
is watching
forwarningsignsorwhat
idapted Barton(1993)callsprodromes(warningsigns)
Banks
Preparation/preventionTheorganisation takesnoteofthe warningsignsand prepares
plansproactively to avoidthe crisis,or reactiveonesto cope
withthe crisisif it comes
publicrelations
Crisis act and act quickly.For the first'timein the
product,it issueda comprehensive produtl
management vs operational ally pulled off the shelvesa// the capsuh
the USA - not just in the Chicagoareawlrrf€
ness
effective occurred.The potential6nancialconsequcllcFl
leadingproduct,and the subsequent damngel.S
Howeverwell a crisisis managedfrom an operationalper- could not be exaggerated. But, at the shntf
spective,it is how an organisationcommunicatesabout municated exactlywhat it was doing, in n I
the crisis that makesthe real difference.There is evidence to a// stakeholders- shareholders, employcei,
that good communicationin a crisissituation can support the police, pressand consumers.How worrld ll
or increase a company's reputation (British Midland, How would it re-establish confidencein the
Tylenol,discussed later). Poor managementor a lack of the brand?How wasanyoneto trust a fohttrnn
communication skills can have a powerful negativeeffect product again?Could anyonewith a grievnllr*
on a company'sbusiness. or anotherrandom'madman'claim to lrnvr
Let us examinethe caseof the Exxon Valdezotl spill in product and effectivelyblackmailthenr?
March 1989.The spill took placein Alaska,one of the few Johnson& Johnson's nextresponse wnslrrrlh
true wildernessesin the world, and receiveda consider- decisive.It introducedtamper-evident prt(
able amount of global media coverage.Even though the in many ways, a very simple operationnlt
accident site was appropriately cleaned up (operational termsof production- a metalfoil to visilrly'rgeff
effectiveness),Exxon took far too long to addressits stake- duct plus two more physicalbarriersto cntry, hl
holders(seeChapterll for a definition of stakeholders) ity was its key. Now, without any douht, lll r
and, particularly, the media. As a result of this failure of could actually see that the product was srrlr,
communication, its reputation was substantiallytar- Johnson acted swiftly and effectivelyboth l*
nished. Insult was added to injury when the CEO finally operationand communication.Eventoduy"l
did talk to the media as he blamed them for exaggerating as one of the best-managed crisesand the btn$*J
'the public relationsdisaster'that was createdaround the priately)is still a success around the workl, 'l'lrlr
spill. Exxon's stock market capitalisationdropped $3 bil- so well handled that Iohnson & Iohnsurr'sr
lion in the two weeksafter the Exxon Valdezoll spill in actuallybenefited in the long term - Johnson*
Alaska.(Seymourand Moore 2000:-157) words and actionswere seento be in accofd,
Seymourand Moore (2000)describethe 'association' ity r9.2.)
or'parenthesis'factorthat lingerson aftera crisis.In dis-
cussing the mass poisoning of Minimata Bay in fapan,
causedby ChissoCorporation,when mercurywasdumped
into the seaover severaldecades,poisoning thousandsof
consumerswho ate polluted fish, Seymour and Moore
(2000:157)write:
-.
management
Chapter19 Crisispublicrelations tt9
bv tbc
BHOPAh,9O
)MiG
lrl tlrc
Ak,,!
VII
(sourcet
O Reuters/Corbis)
againstUnionCarbidefollowingthe Bhopalchemicalplantdisaster
I flrotests
comefrom?
elocrises It's notwhatYouknow,butwho
knowsit
u[ of sugar This is the information and communicationsage when
confidentialinformation somehowalwaysescapes
i.liririrounsellorsarguethat over 50% of crises highly
the boundsof its host organisation'Strictlyconfidential'
ih frrrductsthat areeitheringestedor swallowed
llod, drink and oral pharmaceuticals' We all paper-based hospitalrecordshavebeenfound on rubbish
andthe harddrivesof second-user computershave
lll - ir is easyto understandhow a damagedor d,r*pr,
or evgngovern-
$roil*tuffor pharmaceutical canbe a major cause beenfound to containsensitivecompany
On 18October, 2007 HM Revenueand
tl, ltul the sourceof a crisismight not alwaysbe mentinformation.
of Customs(HMRC) sent via unregistered mail two unen-
A r risis can hit any organisationregardless to
the entirechild benefitdatabase
whlttt it represents.Whatever manufacturing cryptedCDscontaining
theNationalAudit Office,but theydid not arrive'The data
i* rntployedor whateverinformation is dissemin-
The food dye scandals on the disks included name, address,date of birth'
ittgi rirtl and will go wrong.
numberand bank detailsof 25 million
r*tlK in early2005showedthe extentof impend- NationalInsurance
a conse-
xhen potentiallycancer-causing additivesresulted people.HMRC chairmanPaul Gray resignedas
of the crisis.Policebelievedthe CDs were thrown
tll of nearly500 products(seeFood Standards qu.n..
for out asrubbish,but over 7 million UK families were asked
t*ww.food.gov.uk/news/newsarchive/2005/
to remainalertto fraudulentuseof their details'
l fri rrn ra ti o n ).
390 Part3 PUBLIC
RELATIONS
SPECIALISMS
$!*htrrurricateeffectively at the onset of a crisis (see also is often seen as an unnecessary luxury. Even when an
1i..,&$ llrrrkrn bombingscrisis,Casestudy 19.1).Yet many organisationis urgedto communicateabout its situation
r$fltlt,ttrics argue against it. Preparing for a crisis costs by experiencedcrisis managementcounscllors,there is
'.,. itr, trr,tncyand energy- and crisis preparednesstraining oftena list of reasonswhy it cannotcommunicatc,suchas:
Part3 RELATIONS
PUBLIC SPECIALISMS
ffi
Chapter19 Crisispublicrelations
managernent 393
i'','i
19.1(continued)
casestudy19,1(continued)
studies,and staff are engagedin researchactivities proximately2 hourswith the headof commtlrll
rangingfromhealthinequalities, employmentandskilts who gavean officialstatement andhandedovtrrtsi '"rt
4
audits,and deliveryof courseswithinthe communities of one suspectand his best friend,whitetlte ,,fil
to improveemployabitity and aspirations. systemwas checkedfor approximately 8 namt*4;
furtherrequeststhroughoutthe day - the adtn
;B
H
iveteamin FairfaxHallwerethe mainsourcl,il
-.4;.e:
Furtherinformation
searches,with the supportof theirSeniornt.til.r1i.'t*ru=et,.:
Timeline
Wednesdoyl3luly 2OO5 The uni versi tyrecei vedmenti onsi n .rt l, , u=i f f l
Followinga mediareportlate on Tuesday12 Jutythat regional,nationaland internationalnewspalrtr* rj$
-ffi!, r-.1#i
one of the bomberswas a LeedsMet studenta full websites,includingArab Newsand the Ner.rf**h#S '.4
searchof Banner(the university'sstudentdatabase) Herald,plus regularradioandtelevisionmettllrrtq . '
took place on Wednesday13 luly at 8am revealing
that att three suspectedbombers'names matched received
Theuniversity | ,'trqq!,,.,
around15 mediacalls.rrrr
recordson LeedsMet's database(somenameswere a Frenchcameramen from CivicQuarter,who ri:luig$j;
spettdifferently) with the headof humanresourcesspeaking to rfiete':{ ::;
j-J
t,t
All but the main accessto the halls at Headingley Theuse of the officialstatementwith no furlltet
i
campuswerelockedwith securitybasedat eachof the mentavailable seemedto reduce theamountof rrrvgr66
mainentrances to preventjournalistsintruding LeedsMet receivedin the nationalmedia
,#:, -,.
Is.1(continued)
ffi' b.T* ',,,,r0
'$i,,
#,,b**r,,ifyof LeedsandThomasDanbyissuedstate. Saturdoy16luly 2005
g, tlrrrtrr/ere
shared thepressoffices
among LeedsMet staff member quoted in the lndependent
fi*+ot' saying: you
.9.8.- *r"i,, 'l can tell categorically
that at Leeds
5, ' ; ' ,$** , l r;rrc e l l ocro n s u l te o
d n a n u mb erof occasi ons Metropolitan University
and LeedsUniversitythereare
;F; ff,. no radicalgroupsthere.lf therewasa problem,I would
rfli 6.. !:#davl5 luly2oo5 reportit. I'veneverhadto.'
$, i1...;fi* stlt'ntionfirmlyshiftedto the University
of Leeds
,Fi City
1r'r,tls but
Council the university
was aware Overten mentionsin the media,includingmostof the
.{:,++t
,T , lr.#-* tt ,,trr:uldbe readyfor otherdevelopments should broadsheets.
i,l .ikevitrvolve
Leeds Met.
'l:
:it "l1 Reportedin the Sunthat ShezhadTanweerwas report"
,;;i : #!ltll, press:briefmentionsof LeedsMet in the Daily edtyinvolvedin a race-hatestreetmurderbut no evid-
tl *gil ;,r,rlDailyMirror; the Mirror mentionedthat the enceto take him to court.
rl -
,fj. l. tsryorrurtmat the Universityof Leedswas underscrutiny
q, ;:. Sundoy 77 luly 2005
3.. ; -Hfrli.rrronalpress: brief mentionsin the Brisbane
The lndependenton Sundoy claimed Mohammed
jj -:' t:rttul* Mail andNewsday,Longlsland,NewYork SadiqueKhanandHasinaPatelmetat LeedsMet(Satur-
;- day'slndependenfclaimedthey had met at Dewsbury
f'ress:a varietyof mentions
r...1gr+l positive College)
including
-l:. : .r
,.
r.-:
fromgraauation
,arA.iJi,l"t
-^l
:
andourcommunity
support
,i
:+:
:''
.
t:,1***, The Sunday l"elegraphopinion (Niall Ferguson)said
rr,r.luests
forthe lateststatementinctudingGMW aboutTanweer: 'Hewasnot uneducated, assumingyou
: ' ili4ri\tu,rntecl
to film the universityprovidingsupportto regarda degreein sporlsseiencr-.
from LeedsMctro-
' svd'r.rlt:d residents politanUniversity
r:I . as education.'
,:rit i;r* :,', ;
' *** ',l.rtement sent out proactively
1.
l; 1 t lc
-:_ l, to local contacts The SundayTelegraphran a separatearticlewith the
-11
.a, i: .lultllh,' university had not cooperated fullywith in the headline'lslamicextremism goesunderground at Brit'
".
r,,1.,:!+-d ish universitles.'
;?,i:r, i.i:ii .
r,1. , r, - r 4
iiiu*,.lligher Educationa! Supplementrequestedinter- Monday 18
;:: ;; luly 2005
r rt*,vu errltr Professor Simon Lee(vice-chancetlor) Two mentionsin the YorkshirePost,includingsome
. td!tt4f:-
:'':: " r:
,:..:
1:
goodpressaboutVerityJenning's thesison 'Chavs'.
rf irf H *: .:. 'i; ; llr M;rx Farrarspoke to the lndependenton Sunday
r 1 th ei s s u ei n L e e d sg e n e ra tl(a
*l. , , rrr y skednotto speak
'i f11rilllij S ome j ournal i stsw ere sti l l requesti ngmor e on
i, rrrrr+ C r 6lr lr rr!te e d sMe ts p e c i fi c a tl y ) Shezhad Tanweer and LeedsMet'sviewon Muslimfun.
, r1; 11 ' . : i ! : : , ,i:,' :.:.i,'
damentalism the BBCR4Todayprogramme
- inctuding
,',r,,rtt".,1,r..,r. :r lhr ' r rr.,i sm a n a g e m e ten t a mc o n ti n ued to meeti n the
..:-. 7 ?iilirrlrrg havingmettwiceeachdayof the previoustwo
,1,'y.,with securitystitlon full alertto evictjournalists
Lookingforward
'l
'
:i '::
t,l ll+,&+ I Continueto keep an eye on devetopments in the
( : li, ir r t r . - : ;,.,,:i1*rlrit* staffbeingadvisednot to speakto the press, press
'i..1gprrrr" c.ame throughof a memberofstaffinthe Schoot I Downgrade
:1,)..
but keepvigilantmessage to security
,: ...,,: ; , ' , t { llr rri s m a n d H o s p i ta l i tyMa n a gementspeaki ng
! i *r1gg . .',,!4t ltrtl'presswith two 'hats'on - one as a memberof I Promotepositivemessages- summerschools,
r..,J!trMuslimcommunityin Leedsand as a LeedsMet Larkia,regionalcollegenetwork,Harrog4t'e festival
t t,fux*&. sponsorship, communitywork,graduationstories
p i t*+ rt& .r,: *i?llt{ivce. The head of communications spoke to him
?:'4iltiintnot doingfurtherstatements, which he agreedto. for the regionaland localpress,broadercomment
:'-
f. . : ',. : :, '. :i.i:: '
on the issuesof integration and diversity
i i.i'..1.,$*nr'' lggressive journalists still soughtstatements-
p' ;;,,;i2,.,,. I Somecontactsin the regionalpresskeento gener"
ot,*t+,.. .',rjrfi,,rom theSundayTelegraph persistentand rude. ate positivestories.
i
r,hancellor
it:,':?it.e consultedon a numberof occasions Source:Laville(2008)
396 Part3 PUBLIC SPECIALISMS
RELATIONS
ilifih',iffi
19.1 whathappens
'Nocomment'-
wiltnotrespond
companies
when
rrrliorrs of the 5Cs model in F'igure can be While theseinitial questionsare generallyprcdictablc'
lr lirllows. how the mediawill act and how they will report a crisis
should neverbe assumed.Everyoneasksquestionsfronr
'their own perspective' and everyone, especially the news-
br confusedwith legal liability, concernis a simple hungry media, will have their 'own take' on the crisis
€filotion. The organisation's spokesperson needs situation. As well as general reporters,there may also be
lrue concern about the problem, concern about very well-informed specialistcorrespondents to consider.
hrr hnppenedand concern for the people affected (SeeActivity 19.4.)
Itfl in the future - including potential customers/
llrfr$,
a tn dp u blic
T heIn te r n e
re l at ions
c r is ism ana g e m e n t
Sincethe daysofthe Tylenol crisisreferredto earlierin this
chapter,the mediaenvironmenthaschangeddramatically.
The once limited media market has becomeglobal and
highly sophisticated.The impactthe Internethason crisis '': :._'- . : : r:. l-:,
managementtoday is enormous. The speedwith which -Thetpeed dfupread,:of
lnbrmatioir:
communications can be delivered is phenomenal and newcommunication era is well
availableto so many people- from home computers,via PaddingtonAadbrokeGroveaccldent
Internet caf€s,through to corporatecommunicationsin- 5 October
1999.
frastructure.If somethinghappens,someonesomewhere
At 08.06, Michaelflodder,the
will be giving their own, often live, version of events.
pulledoutof the platformat
From individuals,through online communities,adversarial
organisationsand NGOs, the Internet is very effective At 08.11, havinggone throughthree
in putting a message out. It is impossibleto censorthe stop'signals,:the
ThamesTralnploughi{,
Internet - which is both its strengthand its weakness - frontof inboundGNERexpress
traln. .
but it is a highly effectivevehiclefor the dissemination
of information and opinion that may masqueradeas It tookuntil08.32fortheOberatidflal
information. ing to'estabushfrsm the.contfolllng
Sefmour and Edelman(2004)describethe new chal- at Sloughthata serious accident had
lengesposedby the lnternet: involvingoneof theirtrains,thata 6er!qt8
brokenout (mostunusualin train
But when consideringhow to turn around a crisistoday, andthattherewereprobably many
managementteamsmust acceptthat the mediarepresent fatalities.
only part of an array of communicationchannels- albeit
onc of the mostnoisyand demanding.[n a world dom- Butifanyonehad beenon the lnterneta
inated by low trust and the corrosivefficts of cynicism, wouldhavebeenableto read'breaking
corporatevoicescan quickly be ignored, distorted or of a railaccidentat LadbrokeGrove
each seriousinjuriesand a severefire.
drownedout by theincessant noisethat characterizes
and everycrisissituation. . . Overthe last tenyears,cisis
tnanagementand communicationshave beenforced to
developin response to a seriesoftechnologyand IT-driven
changes. . . . At the same time single-issuegroups and
puter. As technologies advance, so these vinrrr ,tiid
NGOs were recognizingthe potential of the internet.
impact they have on our day-to-daylives bcr,rnr; 1ffi.
Now it is possiblefor a small group to drive campaigns
apparent - they are, at best, an annoyance.
acrossthe internet,while at the sametime empowering
At a corporatelevel,thereare a host of bollt I
individuals to expresstheir opinions at the click of a
and securityissuesthat affectthe operationand
tnousc.
nessof an organisation,Considerwebsitelurrr
( S eeB o x 1 9 .3 .) whereindividualscan gain access to a company'r
The totally unregulatednature of the Internet thus - a maliciousindividual or organisationcan rtrlft
givesorganisations huge causefor concern.The Internet views,enforcesome new policiesor give spurluur
has becomethe new rumour mill where peoplecan say ments,interferewith emailand raiseall mannerof
anythingtheywant or createwebsitesthat criticisespecific This costsa considerable amount of time and nlrlt$f
organisations, companiesand specificindustries(see,for can becomeunmanageable. In September20()4,U|{
example,www.untied.com,which is dedicatedto prob- phone company NTL had its systemssaboltgnt
lems with United Airlines, or www.mercedes-benz-usa.a hackerchangedthe outgoingmessage on ilr lurlr
com/, a sitewhoseagendais obviousl).On a basiclevel,we servicephonenumberto tell callersthat NTL clid trd
seevirusescrippling so many of our computer systems, about their problem and they shouldjust get n lll+l
from worms to Trojans,and the averageusergetsincreas- need only think back to the resourcesdeploycd lru
ingly concernedabout losing control of their own com- parationsfor the 2000newyear(Y2K,the new
Chapter19 Crisispublicrelations
management r9t
,#
lhcr was a fear that all computer systemswould
Irr r*' how many companieschoseto spendlarge
*f tlt{incy'on IT, rather than take any chances.The
{iloup estimatesthat global spendingon Y2K
Doinga crisisaudit
ilrdxlhillion.
lrrcc-to-facecommunicationgenerally,and par- lf youwereconducting a crisisauditforyourplaceof
y rlurirrg a time of crisis, is thereforea positive studyor:work, whatwouldyouneedto know?Make
whetherthat be two individualsfaceto facein a list of the keyareaswheresomething mightgo
icw or the CEO of a 'megacorp' (major multi- wrong.Howcouldyoufindoutwhetheryourorgan.
utg,unisation) addressingtheir staff directly at a isationhasa crisisplan?Whatwouldyouexpectit
to contain?
Feedback
Theauditoftehshowscompanies a needforchange.
to prepare
for a crisis It mightbe an operational
change,a change
a productis labelledor howthe company
in how
is mar-
keted,or a changein whatresearch is openlydis-
drr(ome asa surpriseand at unexpected times,but cussedwiththeregulator.
irirtion- commercialor public sector- canpre-
tixll lirr the inevitableand everycompanyshould. Aneducationalorganisation,
forexample,wouldhave
le *rch as researchin the form of crisis audits, potential
to consider problemsoriginating
fromstaff
il1ia crisismanual and conductingcrisis simula- or students,suchas scandals,courtcases,exam
*t training will ensure that organisationsare better protests.
results, Somecolleges have
anduniversities
I to handle any crisis. (SeeBox 19.4.) also had crisesdue to outbreaksof meningitis,
forexample, guidance
whichhaveledto clearer to
newstudents aboutsymptoms andproperactions
to take.
audit
Ftrt rtcp in preparationis to conductan audit that
lhe current vulnerabilitiesand strengthsof the
!' ol organisation.The audit will researchkey
lrr lr ls operations, marketing, employee relations,
? r,*F1'115, environmental experts, government, legal
The audit resultscan then be usedto identilythc kcy
r**lrnunicationspeople.It will asktoughquestionsto
rr lhe most likely scenario that could happen,
trouble spots, identify which stakeholders woulcl bc
Itnw well prepared the company is to deal with it
affectedand help managementbuild sccnariosto train
a key crisis team with the techniquesof effectivecrisis
*lrr,llrcrit hasall the necessary
resources.
management. ln additionto beingableto train a crisis
team, the assessment can help build a comprehensive
systemfor managingcrisiscommunications. (SccActivity
l e.s.)
Crisismanual
Another meansof preparationis a crisismanual.A good
crisismanualcontainsa simplesystemof rapiclcommun-
ications,basicmessages and audienceidentificationand
shouldnot be more than 10 pageslong.Anythinglonger
will not be usedin a crisis.A well-preparedcrisismanual
a crlsibaridit.
: can serveas a guide for many of the basictasks,such as
airlsismanual.l' :;,.
activatingthe crisisteam and facilities,and allowsmore
regular crisissimulation
training. time for the crisisteamto focuson the more criticalissues
(seeFigure19.2).
400 Part3 PUBLIC
RELATIONS
SPECIALISMS
Initialanalysis
Stage 1
Completetemplate1: Initialcrisis assessment
Highrisk
Completetemplate2:
Externalcommunications
strate$/
Template3:
Internalcommunications
strates/
j ConveneCCT
Stage 2 i
[g':::l
I
Crisis Initialcrisis
I
management I management
at local level I at locallevel
Keep ECT
informed
Stage 3
, ' 3 lsolate
a crislsteamftomdailybusinessconcerns.
is no doubt that physicaland IT aspectsofplans
i: , 4 Assume a worst-case planningposltlon.
itrgcncyplans, businesscontinuiry security and
interruption- havecome under closerscrutiny lr I ::5. Donotfullydepend ononeindividual.
thr 9/ll tragedy.However,the main focushas been ;6 Alwaysresistthecombative instinct.
ftllfrationalfactorsand often the key aspectsof com- a,,i'i Understand
whythemediaarethere.
nlion readinessand planning have been neglected.
I Remember (stakeholders).
all constituents
Itrr of I he hallmarksof a well-managedcrisisis know-
, A r'ompanyis better prepared when it knowswhat theproblem.
9 Contain
,$$kr,itoldersthink about the product, the brand and x0 Recognise
thevalueof short-term
sacrifice.
$nrp{lriltion. Both MattessonsWalls (seethe Peperamr
{iir:;cstudy 19.2) and Johnson & Johnson (in the
rl crisis coveredearlier in the chapter) commis-
rcscarchthroughout their situation to find out
iuly' what their key audienceswerethinking.Thereis
the situationright now - and thc long-tcrnrproblctrtIn
it tlrtdcncl'to judge what the audience thinks on the
gl'nredia headlines, which can lead to overreaction ensurethe brand/corporationrecoversin ternrsof both
marketshareand reputation.
olisnlilnagementof a crisis.
Centralise
or at leastcontrol
information
flow
principles tn crisis This appliesto itemsof informationboth comingin and
goingout. If thereis a multi-countryissue,haveone 'cen-
ilnagement tral place'as the focus.This, in very practicalterms,will
makecommunicationwithin the organisationeasier.If it
dtrrw this chapter togetherand support students tn is not feasibleto haveone centre,then all spokespeople
lrrding how to manage crisis PR situations,the mustbe rigorouslytrainedso asto communicatethe satne
rg t0 key principles have been identified.These message. Be awareof languagesensitivities and terrnsof
Iru*'d on the experience of leading crisisconsultants referencethat may not translate
readilyfrom onelanguage
s) over three decades and influenced by the to another.
rir ol'crises in a range of international settings,with
,:,pthrrrrcommercialand non-commercial situations.These lsolate a cr isisteamfr omdaily
,i'$;tt,irlesare summarised in Box 19.5 and described in business concer ns
;r$lhtt elctailbelow, Crises,as we have seen, are by their very nature all
enveloping. While managinga crisis,the dayjob hasto be
put on hold. In the caseofTylenol, lim Burke,Johnson&
fglsmanagement principles fohnson CEO, insistedhe becamethe brand managerfor
Tylenol.He wasableto delegate his many leadership tasks
nethe realproblem and this enabledhim to focuson doing the right thing for
ir lhc most critical aspect of effective PR crisis man- Iohnson& Johnsonwhile relievinghim of his day-to-day
,f$*tlnrt. l)efine both the short-termproblem - address responsibilities.
,.**-*--,-rfl
402 Part 3 SPECIAL IS MS
PUBL ICREL AT IONS
schoolchildrenbeinghospitatisedafterdrinklng
Colasurfaced.Morecasesfrom otherpartsof E
were found and Coca-Cola productswere ba
severaI Whitethe publicspeculated
countries. as
cause,rangingfrom rat poisonto extortion,th€
panydelayedfutl apologiesandtriedto denythe
Coca-cola representatives in 1999 acknowledged that lemand its responsibility.
the crisisdescribedbelowwas biggerthan any worst-
case scenariothey could have imagined.They atso Coca-Cola sourcesspeculated that the problem
pubticlyadmittedthat perhapstheyhad lostcontrol. be due to contami natedC O" and creosot€- l
palletsand werequotedas saying:'lt may mElE
PhilippeL'Enfant,a seniorexecutivewith Coca-Cola feel sick,but it is not harmfut.'Meanwhile, Cocd
Enterprises in 7999,in an interviewon Belgiantelevi' was losingan estimated mittionin revenue
$3.4
sionsaid:'Perhaps[we]lost controlof the situationto day and 79o/oof consumershad 'reservations'
a certainextent.' drinkingCoke.
T he p o p u ta ti o no f Be l g i u mw a s s ti l l reel i ngfrom
fears about mad cow diseaseand the presenceof Coca-Cola most definitetyhad a crisis mansgti
the carcinogen dioxin in animal feed when reports of strategybut it stitlfounditselflosingcontrol.
i m p o r t a n t t o b r a i n s t o r n r a n d g c t a s n l t t c l t r r r l r '1 i ' -
:a:
o t h e r sa sp o s s i b l e(. S e eM i n i c a s e s t u c l y1 9 . 2a r r t lli r i ; r " :
'S1
,3.
:{s
Factsdo notatwaysrule- emotions,speculations/
Donotfullydependon oneindividui r l 5S.
"g
holders(publics) Consumer
reaction
to a crisis
youknowwellor areinter-
sn organisation thesequestions
Consider relatedto the Peperami
..ln and note down all the stakeholders case(Case
study19.2).
SeealsoChapter11 for furtherinforma-
stakeholders.
Youcouldthinkaboutthe Whydidconsumers reactsopositively
to Mattessons
or collegeyou considered
in Activity19,5. Walls'handling
of thiscrisis?
Actions
A mediacontrolcentrewas set up, mannedbY
encedmediarelationspeople24 hoursa day,I
w eek.A consumertel ephonecentrew as alg$
lishedwith telephoneoperatorsgivendaily
ln 7987the UKDepartment of HeatthlinkedPeperami Trackingresearch
briefings. was initiatedto d
to an outbreakof salmoneltapoisoning,a notifiable exacttyhow consumersthoughtthe crisis$r.r!
illnessin the UK. The decisionwas taken to recall handl edandanal ysethei rpercepti ons
of the
affectedproducts,but due to the packagingused for brand,givingthe management teamcruciali
the product,the affectedbatchcouldnot be precisely on theimpactit washavingbeyondthe medln
identifiedby consumers fromthe bar code.The recatt
wastherefore extended the wholeof the UK.
to Employee wereprepared
statements for atl Matt
Wallsemployees
and regularupdateswersSfvf{t
meat snacks
P e p e ra mdi o mi n a te dth e s a l a mi - styl e Unilever, Walls'parentcompany,
Mattesons to hgfr*,
market,with 80o/oof marketshare and widespread up to datewith developments.
productdistributionacross40,000 outlets.Peperami
couldbe foundin a hugerangeof retailoutlets,includ- Duringthe recal[and the time the productwrtt t]ff
ing supermarkets, cornerstores,clubsand pubs. market.eachmediarelationsexecutive workert
individualheattheditorfromeachnationalngw
Strategy and a memberof the teamwasappointedto lidt&f
the D epartment of H eal th.
P e p e ra mi si i u s to n eo f m a n yme a tp roductsproduced
by Mattessons Wallsanda keyearlyprioritywasto limit Result
t he i m p a c to f th e s a l mo n e l lparo b l e mto the P eperami
brand.Mattessons Wallswaspositioned as an importer Mattessons W atl srecei ved publ i ccommen4 '3; 1l1',f f f t i.
Health for the way it had h{ilffi
the Department of
g
t*
and not a manufacturer, distancingPeperami fromthe
parentcompanyto stopa productproblembecominga the situation,and research showedthat morefhuti.ffffi
maiorcorporate problem. Meanwhile, it was crucial to of consumers were impressed with the way the w#5, ,#
s h a reth e fa c tsi n th e c a s ea n dc o m m uni cate ful tyto al l draw aIw as handted. W i thi nthreemonths 6f 1, : 1, 1'; ; 1; . S: : ':
stakeholders. Peperami'sshareof the satamisnackfoorl:,rrr'l,llt
stoodat 94o/o,a 14olo increase, despitethe intrridur l4$. ;
of a competitiveproductfroma national5uperrrre*ffi *;
(Sainsbury) own label.(SeeActivity19.7.) t'tffi 'e;l
-F,
'}i r,;l'
.-!
-!
:i*
,lilo ,.1,&
workersand cuttinggassuppliesto factori€s,
bl,'tir*'****{' '$
'ta.:
and privatehomesacrossthe state.
Effects
Thestateof Victoria washighlydependent on ehe,rirS*#'i
Finatty,let us take a look at a crisis that puts alt and its populationof morethan 3 mitlionw*rcalffrd.li
these key principtesinto perspective: the Melbourne totallydependent onthisoneplant.Ninety-elghl trett*a*'=
of Victoria'sgas customers would haveno gat titiiffi','-
Gas crisis that threw the entire state of Victoria,
intochaosfor a fortnight,but is remembered for the foreseeablefuture,Manufacturing inrlirtlrt**i
Austratia,
stooddown150,000emptoyees andthe estimdterf+r*ts-:
for beingone of the bestmanagedcrisesin Australian
history. to industrywas $At00 mitliona day.VENCorp, lltr df*-*"
tributorof gas for Victoria,invokedemergen(ypl,ttffi:+:
Event to restrictgasuse,andmediareporting hightlghtrdrh*-;-;
miltionsof peoptefacedthe prospectof cold shi'wct*1 -i;
A major explosionat the Exxonrefineryat Longford, .:€
Melbourne,on Friday25 September7998 destroyed
partof the plant,killingtwo and injuringeightrefinery
C hapter 19 C ri si spubl i c rel ati onsnti l t.rti ('nti ' rrt 405
Assessment
Whenthe gas supplywas restoredtherewere only 9
rel i ghtacci dentsand 12,000appl i ancerepa ir s.Alan
Stockdale, Treasurerof Victoria,said at a government
pressbriefingon Friday9 October1998:
{ r } , 1 l i r} n \i a
ven dp re -e mp ti vi ses u e sm anagement pro-
ffi,
fij::
i
.L gi;lirrilr'wasdeveloped and as a keyelementof a safe
So we called in communicationsexperts,who sent
on excellentteam of experienceand enthusiasm
F:. ,, r s lii i l rit,ro g ra mme 2 .3
, mi l ti o nb ro c hures w eresentto
,', a:.
$'r' to help with aur crisiscommunication
strategyond
,. !, *ll lr rl ,.t' h o l dasn ds ma l b l u s i n e s s eal a maj or
s ongsi de
t.E )|,
ii: ,
.rrr(l
';:,t r r r , tr te l e v i s i oand c a m p a i g n .
implementation.
I contellyou this.Havingback-upcommunication
s,,, :l
;:r'
,::::
:
i r r r rrrrrrn i c a tiwng
i th th e e th n i c c o mmuni ti esw as public relations consultontsexperienced,
or
in crisis
S". ..' r' !rlt:rrtif ir.dearlyas a challenge in Victoria;the brochure managementis absolutelycruciolto the successof
* ,: l:i
tslrelr,tnilatedinto 20 languages and distributed,and hondling large scale emergencies, . . this is what
f, ,.., ; i{!i lrllr.rfrnation
; line was set up offeringinterpreter helped make the differencebetween successand
f, '.: it
ifivir *:.'in 100 languages.
& failure for us at the end of the day.
F
**
ffi$
F+
9'
406 Part3 RELATI0NS
PUBLIC SPECIALISMS
Thewaterswerefurthermuddiedby the co
informationbehindthe trial.TGN141? sfi*
monoclonal antibody,oneof a relatively'tr*H
treatments,and the effectson the volunfg€f$
to be dueto cytokine
releasesyndrome *
Ctinicaltrial of TGNl412 (intendedfor treatmentof
systemgoinginto overdrive- but the fgit*
multiptesclerois,leukaemia and rheumatoidarthritis).
clearand neitherwasit easyto establl*h
Trialwas conductedby researchcompanyParexelon
due to the condition
of the volunteer3.
six volunteersin premisesleasedfrom NorthwickPark questionssoughtinformationon the dcv6
Hospitat.The clinicaltrial beganon 13 March 2005
TGN1412,muchof whichwashighlycompler
(excluding
and atl trialvolunteers two who weregiven
someof whichwas confidential. ,,:.
placebo)experienced inflammatoryreactionswithin
90 minutesof receiving the antibody.Within12 to 16
hoursthe participantswerecriticallyill.
Speculation
andapplication
of 'common
sense'
TheTGN1412 crisisis a clearexamplethat majorcrises Ledbya selection
of bio-technology
expert$
cancomeout of nowhereand affectthe smallestof com' developedquicklyas to whatcouldhnv*'r
panies.At thetimeof the crisisTeGenero employediust sideeffects,
andhowtheymighthavebeen
15 people.The companyhad a portfolioof products or evenprevented (several
investigations
havet-
in developmentbut TGN1472was by far the most that, without the benefitof hindsightafl:l
advanced.In the development of TGN1412the com' standardprocedures,it is reasonablethal
pany had compliedwith the extensiveregulatory effectswerenot predicted).
requirements in orderto proceedto a phase1 ctinical
triat.Thisincludedresponding to detailedquestionsto Atongside weremanyanalyra*
expertcommentary
establishthe appropriateness of the speciesof animal i ng on that mostuncommonof thi ngs,,o' nlr r r r i
I
used in safetytests.The side effectswere completely (you shoutdsuretygivedosesoneat a time|,j
unexpected, therehavingbeenno evidenceof risk in the commonpractice;'shouldn'tit have b*gl!r.
pre-clinicattests. to patientsratherthanheatthy volunteerf?r
s1
not commonpractice for a treatment
whh fg{rh
Theeventswereimmediately a leadmediastorymixing clinicalprofite).In this casethe common*eii**
elementsof tragedy,humaninterestand horror.The mixedwith the benefitof hindsight.
exposurewas heightenedfoltowinga powerfulearly
interviewwith a girlfriendof one of the participants Initialstatements
abouthowthis wasthe f{f?},
(whohappened to be a BBCemployee). sucheventshad happenedin a clinicalfflal frlr
longtime quicklydevetoped into notionsthfrtt!1$.
Stakeholders tem was clearlydeficient.Theimplication wirr,lhn!
All crises,by theirverynature,involvea rangeof stake- 99.9o/oof trials which were safe were safe bv *:
holders. The clinicaltrial crisis includedthe added whilethis one was
trial thereal marker of ths I
comptexity of six separatepartieslinkedto the condi- oftheapproval system.
tion of the volunteers:the hospitaldoctorstreating
them; Parexel who conductedthe triah TeGenero who Range of issuesandconflictingvl*l**
developedthe antibody; Medicines and Healthcare on them
productsRegulatory Agency(MHM) who approvedthe
A wide rangeof issueswereinvolvedin the erisig:
trial; the local ethicscommitteewho also approved
the trial; and a Germancompanywho manufactured I Animaltesting - the eventsin thetriatwsl8
the antibody.Thereis alwaysconfusionin the early bothasanexample ofwhyanimaltestingl*
stagesof a crisis;this complexity addedto that. andasanexample ofwhyanimaltesting ises
I Ethicsof humantrials- should volufi!€ef*
ln additionto thesepartiesa greatnumberof further paidfor theirtime?Howwouldtheybe r€(
stakeholdersbecameinvolvedincludingthe famity otherwise?
membersof the volunteers,]awyersrepresenting the
volunteers,the management of the hospital,the phar-
maceuticaland biotechnology industryassociations
Chapter19 CrisispublicrelationsmanaSement 407
19.4(continued)
volunteers .continueto come forward? conference aloneon the afternoon of the flrst day of
kding a very personal interview with Margaret media:attention.,Many peoplehavebeensurprised to
MPabouthowimportant suchtrialsare) learnofthescientific officeds inexperience at handling
government suchas the MHRA'up the mediahavingseenthe pressconfefence.
institutions Further-
facingpowerful privatecompanies? mor€r. at the time lt was alsorunknown whether the
Job'when
adapted the well-known phraseto eventshad beencausedby incorrect conduct of the
fournalist
'thosethat cando, thosethat can'tregulate'. trial,:by an errorin the production of the drugbeing
this question was asked it was overlooked tested,or by TGN1412 itself.
TeGenero couldnotbe seenas an example of
pharma') Rebutting rumourwasa majoractivityalongsidepro-
viding information as it becameavailable. On the
baslchumaninterestin why thesepeoplehad
firstday it was widely reported that a dog had diedin
involvedin trials(studentdebt etc.)and
testing.TGNl412 had never been tested on dogs and
theywouldrecover.
in fuctno animalshaddiedas a resultof beinggiven
:oulcklyapparentthat the implicationsof the TGNl/+12. Although thesource oftherumourwas never
wouldbringimplications for similartreatments confirmed, sometime laterit was suggested that it
(whichwould receivecloserand tracedbackto a ioke madeby one of the volunteers
$crutiny) butalsoforctinicaltrialsgenerally. to hisgirlfriend whendiscussing hisparticipation in the
trial,Shehadasked'is it safe',to whichhejokedthat
onlya doghaddied.
mediatepriorityfor the chief scientificofficerof
Arguably
8f0was to workwith the doctorstreatingthe triai a particularly interesting
elementof thiscrisis
eet5.However,he was also the main sourceof is the difference betweenthe approaches of the two
stlonto respondto mediaand otherstakeholdercompanies primarlly involved.WhlleTeGenero commun-
$. Such a small staff was imrnediatelyim-icatedquicklyand openty(withlnlimltedresources),
by the magnitudeofthe eventsand
stretched Parexel choseto offeronlylimitedcomment bywritten
{$verage. statements. In the shorttermthis difference led to
themainassociation beingwithTeGenero ratherthan
(entrewasestablishedto receiveand process Parexel. However, overtimeandparticularly following
hrye volume of calls. TeGenero's insolvency, Parexel's
refusal
to commun-
icateopenlyhasleftthemin an exposed positlon wlth
independently,
dy decisionwas to communicate no historyof engagement.
than remain part of the Parexelresponse.lt
forTeGenero
tmBortant to present
a faceasquickly Somehaveargued research
thatclinical organlsations
bleto answerquestions butalsoto showhow donotneedto paycloseattention to theirpublicprofite
thecompanywas, andhowstunned by butastheindustry develops thismaychange, particu-
*ysnts.Despitehavingreceivedno previousmedia larlyas the ethicsrelating
to recruitment comeunder
the chief scientificofficerconducteda press futurescrutinv.
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