PR
CRISIS MANAGEMENT
A
crisis is any situation that threatens the integrity or reputation of a
company. Public relations is the discipline which looks after reputation, with
the aim of earning understanding, support and influencing opinion and behavior.
There have been several examples of public relations crises that were handled.
At the same time, there are even more instances where companies have failed to
properly manage crisis situations. What can, and must be managed is the
response. Each crisis situation is unique and, therefore, requires a tailored
response.
Public
relations is the systematized function that evaluates public attitudes and
behaviors; harmonizes the goals, policies, and procedures of an individual or
organization with the public interest; and executes a program of action to earn
public understanding, acceptance, and supportive behavior.
In
today’s competitive market, reputation can be a company’s biggest asset, the
thing that makes you stand out from the crowd and gives you a competitive edge.
Effective PR can help manage reputation by communicating and build good
relationships with all organization stakeholders. Public relations is about
reputation the result of what you do,
what you say and what others say about you. Public relations is the discipline which looks after
reputation, with the aim of earning understanding and support and influencing
opinion and behavior. It is the planned and sustained effort to establish and
maintain goodwill and mutual understanding between an organization and its
publics. Public relations take many forms in different organizations and come
under many titles, including public information, marketing or customer
relations.
A
great example of a American company acting quickly is Breeze, who’s juices were
contaminated. Despite where contamination took place (though it was found
that some of their oranges contained the E. coli making consumers ill), they
knew they needed to recall their juices. They also changed their methods of
making the juice to avoid and lower the possibility of contamination. Breeze is
a juice company that built its reputation
and its business on providing
natural juice drinks to health-conscious
people. After drinking Breeze drinks containing apple juice contaminated by the
E. coli bacteria, 65 people, including many children, became severely ill.
Then, when it looked like the worst was over, one of those infected by E. coli,
a 16-month-old girl, died.
The
company is still feeling the effects of the crisis, but its financial picture
is improving. Its products are still on the shelves, customers are coming back,
and stock prices are up, so the company’s future looks positive. The picture
today might be very different if Breeze
had looked at the E. coli contamination problem from a purely risk management
standpoint. Since risk managers seek to minimize the company’s risk it might
have taken the very different strategy of denying liability for the
contamination or of waiting to act until the link to its products
was proven. Instead, Breeze considered its philosophy and its customers in
formulating its approach. In doing so, it protected its most valuable asset -
good name. And that’s what effective public relations is all about. Any company
runs the risk that a problem with its products or actions could affect its
reputation. Having an action plan ready before crisis strikes will help you act
quickly and correctly. Like your buildings or inventory, your company’s
reputation is a valuable asset that deserves protection. Public relations, used
properly, can help you protect this asset.
Every
organization is vulnerable to crises. Used effectively, public relations can
prevent a critical situation from resulting in irreparable damage to the
business’s reputation and goodwill. Any action is better than nothing and it is
surely better than the denial that some managers tend to do with the public and
the press. A better action is to choose a well-trained spokesperson that can
give the bad news in a ″sweet″ way in order to gain the respect of the people
and at the same time not expose every detail that is harmful. During a crisis,
effective spokespersons must, through their non-verbal cues, leave their
audiences with the impression that they are: compassionate, competent and
confident.
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