Crisis Communication in Public Relations

The Chartered Institute of Public Relation, London defines the public relations as “the Planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its public.”

A public relations is the attempt by information, persuasion and adjustment to engineer public support for an activity, cause, movement or institution. Edward L. Bernays (1891-1995)

Crisis communication is  a branch of  Public Relations that is designed to protect and defend an individual, company or organization, usually from a reactive response, facing  a swelling public challenge to its reputation, brand, and community.

Usually most organizations fail during the time of Crisis situation. This research paper deals in detail about how to handle, manage and communicate effectively during crisis situation.

Need for PR in Crisis Management

Crisis such as Bombay High Oil Rig Blowout (1982), Bhopal Union Carbide Gas Leak (1984), Tsunami Disaster (2004) or even critical employees strike threats in any organization clearly pose special problems in terms of public relations communication for companies and governments. Japan was attacked by one virus but no vaccine for that. New York was struck with power break down for twenty four hours. Accidents in coal mines, Aviation industry, Fire accidents in the petroleum organizations. No matter however the organization is technically perfect. Crisis can occur at any time, in any form.

No one likes to think about calamities, but Public Relations professionals must be trained to consider and plan for worst case possibilities. Crisis management, therefore, has become an essential aspect of public relations which is termed as crisis public relations.

What is a crisis?

A Crisis can be defined as “an unpredictable major threat that can have a negative effect on the organization, industry or stakeholder” it has three board features: (1) a crisis cannot be predicted, but it can be expected (one cannot say when it will occur); (ii) a major threat has the potential to disrupt organizational operations in some way (closure of production); (iii) the crisis can threaten the organization, the industry or the stakeholders.

It is a major event that has potentially negative results. The event and its aftermath may significantly damage an organization and its employees, products, services, financial condition and reputation. Some authors have also defined crisis as “a time of intense difficulty or danger, a moment of dissonance”. Crisis means victims and explosive visibility.

A crisis can be a dramatic change usually for the worse. It may be disaster – an event which involves loss of life or extensive damage to property, or it may be a situation where an organization finds itself under unwelcome security because of its behavior or that of its employees. Crises may also occur as a result of an accident and because of the negligence or criminal behavior of an individual or organization. It may happen to a company as a result of product tampering or other sabotage. Researchers have written that a crisis is a disruption that physically affects a system as a whole and threatens its basis assumptions, its subjective sense of self, and its existential care.

This crisis communication plan will outline a generic, basic crisis communication plan. To apply it to your situation you may need to adjust some things and add your own information. It is not intended to answer all questions or fill all needs it is just a basic outline of options you might consider if and when you are in the midst of a crisis and need help.

A crisis is any situation that threatens the integrity or reputation of your company, usually brought on by adverse or negative media attention. These situations can be any kind of legal dispute, theft, accident, fire, flood or manmade disaster that could be attributed to your company. It can also be a situation where in the eyes of the media or general public your company did not react to one of the above situations in the appropriate manner.

This definition is not all encompassing but rather is designed to give you an idea for the types of situations where you may need to follow this plan. If handled correctly the damage can be minimized.

One thing to remember that is crucial in a crisis is tell it all, tell it fast and tell the truth. If you do this you have done all you can to minimize the situation. When a situation arises that may be a crisis the first thing you should do is contact your CEO and the Chief of your public relations department. The sooner you get those two organizations involved the sooner you can implement this plan.

Types of crisis

In organizations, as in life, crises come in many varieties. One of the dimensions useful in classifying crisis is whether it is unexpected or unanticipated by the organization. One has to identify the process through which the organization becomes aware of the crisis problem and then the processes through which it responds and adapts to the need of the change. As such there can be crises that are totally unanticipated from those crises which are predictable and proactively managed.

Broad categories of corporate crises include the following.

1.   Technological crisis: When modern technology is the key to success of any organization, any failure in the technological process will have catastrophic consequences. Example of this type of crisis is Bhopal industrial accident when gas leakage from a Union Carbide Plant caused the death of thousands of people.

2.   Management Failure Crisis: They are caused when management groups within the organization fail to carry out their responsibilities. If the computer system is not checked properly certain areas of bank services may not function to serve the customer.

3.   Malevolence Crisis: Such crises are caused by the malevolent actions of individuals or groups such as militants, terrorists and extremists by placing bombs and causing maximum disruption to business.

4.   Natural calamities: Crises caused by natural calamities such as cyclones, tidal waves, tsunami, earthquakes and droughts are known as natural calamitous crises.

5.   Man -made disasters: They include plane crashes, derailments mining accidents, chemical explosions.

6.   Government crises: New legislation, investigations, regulatory actions can cause crisis situations.

7.   Product – related crises: Defects in products. For example, the content of pesticides in Coca – Cola and Pepsi soft drinks which led to the recall of defective products.

8.   Takeover and merger crises: When unexpected takeover or merger bids take place, crises are caused. Merger of two banks results in a crisis.

Crisis management: Meaning and various stages

One of the findings of research is that when facing a crisis situation management tends to react in very restrictive ways. Unfortunately, such behavior may not prove to be in the best interest of the organization. The critical balance, which is so difficult to achieve, is to ensure a full appreciation of the realities of the crisis situation and its potential seriousness, and to respond in the calm and rational way, and not to panic. Therefore, crisis has to be managed very carefully in the interest of both the organization and the stakeholders.

Meaning

Crisis management by definition is the “planning, application and communication of strategies and tactics that can prevent or lessen the impact of the crisis on the company but also maintain its reputation”. It is a way of thinking, designing and acting, when a crisis hits the organization.

It is also a set of factors designed to combat crises and lessen the actual damage inflicted by a crisis.

Stages of crisis management

How do you manage a crisis? The three key stages of crisis management are: before the crisis, during the crisis and after the crisis. In all these stages, the crisis team should always keep in mind the stakeholders and organization’s goals.

1.   Before the crisis: Every organization must think the unthinkable or expect the unexpected” and prepare an emergency plan for implantation as and when a crisis occurs. One should not wait for the public to bring problems to the attention of the management or media to highlight organizational problems. Organizations must be proactive and identify issues and problems so that they could not become crisis situations at a later stage.

One should invite comments at all times, welcome enquiries and pay attention to what people say. Such comments might reveal the first hint of problem taking shape. Create a reservoir of goodwill with stakeholders that can be tapped if or when times get tough or crisis.

2.   During the crisis: When the crisis occurs, implement, the crisis plan by telling the people what happened, how it happened what is the damage, what is the relief, what are rehabilitation measures. Relief measures and communication get priority in this stage.

3.   After the crisis: When the worst of the crisis has passed, take a stock of all the steps implemented and prepare guidelines for the future. By maintaining a profile, being visible accessible involved in industry and community matters and not being known only for having experienced a crisis, the company has the best chance of regaining any ground lost during the crisis and winning respect from the industry and community. This could be a good case study for future.

Crisis management problems and strategies include: decision-making dilemmas and moral challenges managers face managing crisis victims, reducing litigations, recovering reputation, healing corporate wounds, dealing with organized opposition, selectively engaging the media and influencing employee community. Public attitude solutions to these problems lie in effective relief and public relations communication strategies.

Planning for crisis

   The basic principle of crisis management is ‘ Expect the Unexpected’

   The following is a road map:

   Catalogue the areas of crisis and evolve a policy to manage the crisis.

   Appoint a crisis committee which will act to both prevent and manage crisis.

   Put the plan in writing or bring out a crisis manual for the organization.

   Define the role of communication

   Test the plan, test and test again.

1.   Develop a series of scenarios that reflect the kinds of crises your organization may face.

2.   Identify a crisis management team. Assign specific roles to team members. Appoint one person to speak to external publics during crisis. Rehearse the crisis management team regularly.

3.   Review the entire plan at least annually. A half yearly review is better. Make sure that the members have a copy of the plan.

4.   Implement policies and strategies designed to minimize the impact of crisis during accidents.

The Crisis Communication Team

This team is essential to identify what actions should be taken. The team should be comprised of individuals who are key to the situation.

They should include as a minimum the CEO, the Chief of Public Relations, the Vice President, the Senior manager from the division in charge of the area that was involved in the situation that has brought about the crisis, the safety and/or security officer, the organization Lawyer, and anyone else who might be able to shed some light on the situation such as eye witnesses. The job of this team is to come up with a plan of action and decide who the spokesperson should be.

A copy of the management recall roster should be attached and should include cellular phone numbers and beeper numbers if each team member has one (either one or the other should be issued to the primary team members at least). As you will find out a crisis is not always at the most convenient time and place. A complete management list is recommended as you never can tell who may be needed.

Once the crisis communication team is selected a list should be made of the people on the team and what each team member is responsible for. In addition to the crisis communication team the Public Relations or Communications department should be supplemented with competent people who can answer phones and if required escort media.

Having calls from the media answered promptly is essential. As soon as possible a prepared statement should be given to this staff. This statement should be something such as “Facts are still being gathered but there will be a press conference before 4:00, give me your name and number and I will call you back to let you know when.”

One of the first responsibilities of the crisis communication team should be to determine the appropriate positioning or message to address the emergency. Things to think about:

This is where “Tell it all, tell it fast and tell the truth” begins.

The first and foremost goal is protecting the integrity and reputation of the Company. Never try to lie, deny or hide your involvement. If you ignore the situation it will only get worse. The cause of almost all crises fall into two broad categories: Overt acts and acts of omission. Issues of competence or lack thereof in matters of public perception.

Crisis Event

1.   When crisis occurs, activate the crisis management team immediately

2.   Strive to give accurate information to both external and internal publics.

3.   The organization should function normally as possible leaving it to crisis management. There should not be any confusion in the organization. Regular work should goes on normally.

4.   Make adjustment to policies and strategies as needed to arrest the crisis. Seek public support as needed.

Three Rs.

The first response in managing the flow of information must be based on the ‘3 rs’. They are regret, resolution and reform.

Regret is a ticklish issue. Experts on the subject of crisis management may disagree on regretting. But there is view that expressing regret is a difficult matter from making an apology. In the first act of communication, the management must say ‘we are sorry’ and convey regret on what happened. This is how the management must react with first ‘R’, responding to the crisis.

By resolution one communicates what action will be taken to resolve the crisis. Resolution of the organization on the crisis creates confidence among the stakeholders. Public relations must communicate such resolution effectively.

Reform conveys the message that things will be reformed and such crises will not happen again.

Crisis Communication Planning: Organizing and completing A Plan That Works.

Why You Need a Crisis Communications Plan

Whether big or small, no organization should be without a crisis communications plan. Crises happen all of the time: it could be a fire, it could be a robbery,  it could be a high-profile sexual harassment case, or it could be a major safety issue with one of your products.  Whatever it is, it’s highly likely that some kind of crisis is going to hit your company sometime in the next couple of years.

There are many aspects to being prepared for a crisis, many of which, frankly, are not worth preparing for in advance, either because of their low probability of occurrence (alien abduction of your entire management team), or the fact that many crises require more real-time attention that a crisis plan simply can’t prepare for in advance.

But almost all crises have a consistent element, which you can, and we believe, must plan for in advance – how your company will communicate with the media during and after the crisis. Why?  Because how well your company manages the media during a crisis could determine your whether your company gets hurt, or even sometimes, grows as a result.  Many companies who do not handle these issues suffer the ultimate fate – the death or reorganization of the company.

Think about the rash of recent corporate scandals – Worldcom, Enron, Martha Stewart… and how those company’s bottom lines have been affected. And while you’re at it, think of the ultimate example of excellent crisis management – the original poisoned Tylenol case, where J&J came out more strongly positioned with the public than they were before the crisis happened.

Another great example of how excellent crisis management can build, rather than destroy is the success that former New York Mayor Rudi Giulaini has enjoyed since his excellent handling of the press (and many other factors) during the 9/11 attacks on the World Trade Center. Much of this success came as a result of their relationships with the press during the disaster.

The Two Elements of a Crisis Plan

There are two key elements of any crisis plan:

1.The crisis plan itself (how your company will deal with the issue at hand, to minimize loss and downtime.) 2. The crisis communications plan (how you will communicate with the press and the public about the crisis that is occurring.)

Many companies prepare one without the other. Unfortunately, both are vitally important. Keep in mind that most company crises never get reported in the press.  Sometimes that happens because the story was not newsworthy, but many times is happens because the company handled the situation skillfully enough that it never became visible to the press.

Other times, a crisis may be significant enough that it is both newsworthy and gets attention in the press.  But that attention either lasts for a very short period of time, or it is so well handled that the company grows as people see how well they handled the crisis. A key element in making sure that this happens is the development of a crisis communication plan in your organization.

Even if you don’t elect to create a crisis plan (not recommended, but most companies don’t have one), it is vitally important that you put together a plan to effectively communicate with the press and the public when the inevitable crisis occurs.

In other words an effective crisis communications plan may be most important part of your crisis planning process.

Establish a Crisis Information Centre

Establishment of crisis information centre with well information staff is a prerequisite for the successful implementation of the crisis public relations communication plan. Such a centre must be equipped with information technology such as computers, telephone, faxes, conference hall for media briefings, etc. The center must act as nucleus for all the information on the crisis including pictorial presentations.

Effective Media Relations Management

Napoleon Bonaparte, the French Emperor, had said “Four hostile newspapers are more feared that a thousand bayonets”. As such the media cannot ever be ignored in crisis situations and one spokesperson should always be designated for the media.

Make sure a spokesperson is always available. It is desirable that the top management should become the spokesperson during the crisis. Regular media briefings should be held every evening during the crisis period or as and when the need arises. Press releases need to be issued regularly giving full facts and figures. Media should be taken into confidence and be taken to the site of crisis as quickly as possible for on the spot assessment. Reporters’ questions should be responded immediately. They expect a return call or an onsite interview. Never go ‘off the record’. In a crisis there is already much confusion. Do not add to it. Tell reporters only what you want to tell.

Monitoring of media reports is an important task of public relations besides issuing rejoinders and clarifications on the reports published not based on the facts. Keep a log of all press release and key stories as the crisis develops and use it uphold new reporters of the media as they enter the story.

This will improve the accuracy of the coverage. Public relations officials must keep the management informed about the reactions of media on the crisis. Have media kits already prepared and keep in the crisis information center ready for distribution.

Official version

As soon as the crisis occurs, the first job of a public relations manager is to release an official version of the incident giving all details based on the factual first information report. Such a report must have the facet approval of the chief executive.

The official version of the press release, if it is an accident, must cover names of persons dead, injured, conditions sympathies expressed, safety record, relief and rehabilitation measures being taken, etc. Such an official version will avoid speculation by the media.

In the absence of an official version, the media develops stories from different angles from their own perception. Providing good media service in crises will earn goodwill and permanent friends in the media.

Crisis No Longer Local, Always Global

We are now in the era of globalization of economy and information media. With instant global access to information, news of crisis spans the world in seconds. Thus, quick responses from international humanitarian organizations and nations are received as happened in the case of Tsunami 2004.

Its effect could be felt from Indonesia to India. But the spotlight also falls on the management of these crises. Sometimes nations are criticized for their bungling of the crisis itself as well as attempts of others to render aid. Therefore, no longer is any crisis local, they are always global. Crisis public relations must acquire global capabilities to handle crisis.

Accuracy

The public relations officials should provide accurate information to create credibility of the organization. Be truthful and highlight both the bad and the good aspects of the crisis. Never concoct stories. Any inaccurate and false information will damage in the long run the reputation of the company.

If a company at the centre of a crisis is seen to be unresponsive, uncaring, inconsistent, confused, inspect reluctant or unable to provide reliable information, the damage inflicted on its reputation will be ever lasting and measurable against the financial bottom line.

Recovering from crisis:

1. Make changes in policy for speedy recovery from the effects of the crisis.

2.   Make changes to the structure of the organization if necessary.

3.   Reestablish the operation of the organization to the level it has before or even better.

Learn from case study

Each crisis is a good experience and also a case study to learn for future. By keeping a log of what happened in the crisis during and after, and by proper interactions with the crisis team and affected people conclusions can be drawn and lessons learnt which will be of great value in the future. Such reports must be prepared in a case study method. When the crisis is revisited, those case studies will be invaluable in managing crisis situations.

By maintaining a public profile, being visible, accessible, involved in industry and community maters, and not being known only for having experienced a crisis, the company or organization has the best chance of regaining any ground lost during the crisis and winning respect from its industry and community.

Evaluation:

   Learn from the crisis experience.

   Evaluate it causes.

   Modify policies and strategies in the light of this experience.

   Update the crisis management team and communication plan in the light of this most recent experience.

   One or two spokes persons should be designated.

   Crisis team should take over the crisis situation and permit all others in the organization to go on about their daily work. This will improve continued confidence in the organization’s ability to cope with the problem.

What can go wrong during a crisis?

Notwithstanding careful planning, certain things can go wrong during crisis management. Public relations manager must be aware of such situations and known how the handle them. A number of issues that can arise on the spot include.

   Mass panic, making nonsense of the best – laid crisis plans.

   Multiple voices going out from different spokespersons on the crisis

   Wanting to avoid media enquires

   Getting angry with the intrusiveness of the media

   Suppressing the truth

   Not being prepared to ask for help

   Allowing the lawyers to dictate how to deal with the crisis.

   Not taking public relations into confidence.

   CEO meeting media without the public relations manager.

   Blaming the public relations for adverse reporting.

If the public relations departments of any organization carefully plan and execute these points they can handle any situation during crisis. It is the need of the hour because the business organizations are expanding very fast technically and as well as in human resources. If the organization does not work for one day due to crisis situation crores of rupees loss for the organization. So care must be taken by the public relations departments to arrest the crisis at the earliest possible extent.

Â

References:

   Caywood, Clarke L, The Handbook of Strategic Public Relations& Integrated Communications, McGraw- Hill, New York, 1997.

   Coombs, W. Timothy, Crisis Communications, Encyclopedia of Public Relations,  Vol.1, Sage, CA, 2005.

   Reddy C.V.N., Effective Public Relations and Media Strategy. PHI Learning Private Limited, New Delhi, 2009.

   Wilcox, Dennis, G. Len, and T. Cameron, Public Relations-Strategies and Tactics, 8th  ed., New York, 2005.

Â

By : Dr.M.Rabindranath,  Assistant Professor in Communication and Journalism, Yogi Vemana University, Kadapa, in PR Communication Age, in January, 2011