1

Crisis Communication• Come alive with the Pepsi Generation, Sony:

white woman holding a black woman by the jaw; GM, Nova

• Communication during difficulties.• Crisis unexpected (Bhopal 1984, 9/11, 26/11)• Accidents – plant accidents – Gas leakage (Union

Carbide, Bhopal, 1984), Chernobyl (1986). Regular basis – in manufacturing, coal mines. Fire in oil and petrochemical companies, machine related mishaps.

Crisis definition:

• Crisis is an event of a nature or magnitude that has the potential to:

• Threaten the reputation of company/country.

• Disrupt normal business operations.

• Damage company’s performance or inhibit its business goals.

3

When crisis strikes

• National/international attention.• Queries from top officials, news media. Media

quickly descends in large numbers, expects answers for everything.

• Handicaps – poor communication (earthquakes). Satellite telephones, radio work.

• Language barriers – take help of translators (Gujarat Quake).

• Crisis strikes any time – holidays (Gujarat and Latur Quakes, midnight - gas leakages).

When Crisis Strikes

• Bhopal Gas Tragedy 1984

When Crisis Strikes

• Bhopal 1984

When Crisis Strikes

• Bhopal Aftermath: Mass Cremations

7

When Crisis Strikes

• Rumors: Guaranteed in the absence of communication flow.

• Crisis is news. People have right to know. Right to information bill.

• Communicate to media immediately• Consistency and coordination in communication

flow. • Quick and honest response – stops rumors, spread

of wrong information.

8

When Crisis Strikes

• Usually crisis communication capability nonexistent – Bhopal tragedy. Good response from Western Railway (Floods 2005), Mumbai attacks (2008),Hurricane Kartina (2005)

• Emergency plans – Dow Chemicals, SABIC • Politics to deal with (Tsunami, center versus state,

union territories). Lot of posturing and blame-game.

Tsunami: 2004, 2011

• Tamil Nadu Coast: 2004

10

Preparing for Crisis

• Mock disaster drill (Gas leakage, fire). Make short films and play it up on sites/community centers.

• Participation by fire (ITI 2009), security, civil defense, medical personnel.

• Invite local media, community leaders. Their feedback or criticism helps.

• Send important messages to employees (how to respond, where to assemble: SABIC drills).

• Company involved in crisis never wins. (Exception Pepsi syringe case).

11

Handling Crisis

• Press sensationalizes. Wrong reporting. Takes things out of context. Twists the story to its liking. Looks for entertainment in news.

• Press - `You never tell the truth’. Suspects organizations hide, avoid, mislead.

• Media – plays to the gallery, emotions.• Be honest with bad news, you will be trusted

during good times as well.

12

Handling Crisis

• Media expectations: Backgrounders, pictures, footages.

• Briefing from competent senior people.

• Access to top people after, during crisis.

• Set of Q & A prepared in advance.

13

Handling Crisis

• Importance of rejoinders. Correct the factual errors. Correction columns.

• No rejoinder if negative news is true.• Explain your position. • Don’t anger reporters, journalists like to

have a final word.• Serious cases – option to go to court. Seek

apology on desired page.

14

Challenges

• Crisis – Consequences are enormous. • Fire or product malfunctioning could be

addressed.• Crisis – life and death for products,

companies. (Coca Cola/Pepsi pesticide case).

• Challenge: To regain creditability with all audiences at short notice.

15

Challenges

• Dubious actions of CEO, racial insinuations, industrial disasters could spell short term doom.

• Crisis impacts people first and then the organization (Satyam 2009). Company closers – share price or certificates manipulations. Plant closers due to employee unrest.

16

Crisis Communication

• Before 1960s – crisis was dealt by lawyers (lawsuits). Strategy: conceal than reveal.

• Today: Open and improved communication has changed the dynamics. Stakeholders are better informed.

• Companies aware of hidden damage done to reputation and brand.

• Crisis – potential marketing issue with lasting effects.

Communication Team Function of the communication team

Communication Team is to support the Communicator by:

• Implementing the communication plan• Providing feed-back on the effectiveness of communications.• Handling media and enquiries.• Handling local and outside enquiries.

Communication team

Key messages:

Up to four or five short and positive paragraphs that summarise what has to be said. Focus on the concerns, emotions and perceptions of the audiences. KISS.

The basis for all internal and external communications.

Communication team

Golden Rules

• Be positive – avoid “not”, “cannot” etc.• Tell the truth – don’t try to be clever.• Stick to the facts – don’t speculate.• Admit to not having the answer – and explain why we don’t have it.• Show concern – a human face – express regret if it is appropriate.• Show a commitment to sorting the problem out.• Ensure consistency – use the same messages with all audiences.• Ensure coherence – make sure the ‘story’ hangs together.• Ensure clarity – speak their language, not ours.

20

Crisis Communication

• Trends impacting the companies: Trial by media. Competition among companies.

• Sue the media –Food Lion (selling old meat and produce).

• Give something back to stake-holders once the crisis blows away (food coupons, travel, gift vouchers).

21

Crisis Communication

• A few crisis scenarios can be anticipated (sans scale, timing and magnitude).

• Oil spillage, explosions, terrorist strikes, sexual or racial law suits.

• Attitude: “Impossible to plan for everything so plan for nothing”.

• Analysis: What can happen to your company? What could go wrong? Talk to employees.

• Top management is least informed (bad news).

Oil Spill (Louisiana US), Apr 2010

Gulf Oil Spill (US)

Gulf Oil Spill (US)

Gulf Oil Spill (US)

26

Crisis Categories

• High risk (environmental or medical products) and medium risk companies (publishing industry).

• Product related: Baby food (China 2008).• Pepsi-syringe.• Terrorism: Bali, London (7/7), (9/11),

Indian Parliament Attack (2001), Russian school (2004), Mumbai 2009.

Terrorist Attack: US (2001)

• Twin Towers: WTC New York

Mumbai Attacks 2008

Mumbai Attacks 2008

• CST. Mumbai

30

Seven Deadly Sins

• Erroneous ethics – Stock market manipulations (insider trading, Satyam 2009).

• It cannot happen to me, everything is fine.

• Mixed values – You have come a long way baby (1960s tobacco campaign).

31

Seven Deadly Sins

• Stonewalling stakeholders – not admitting mistakes. Peter Syndrome –Accept and regret. (Food quality complaints).

• Walking high wire without net – communication should follow with action. (Hurricane Katrina, Rita).

• Addiction to repetition – Repeated crisis (plane crashes).

Bad Performances Repeated

• Iranian Plan Crash

Bad Performances Repeated

• AI Mangalore Plane Crash 2010

34

Crisis Lessons

• Larger the crisis – longer the public memory. (Union Carbide, Nuclear Plan Accidents)

• The company’s behavior – putting profits before public good, shirking responsibility.

• Eye-witnesses and third parties are believed rather than company spokesperson. Companies hide truth.

• During crisis – companies are under microscope. • Globalization- Each country has local laws,

customs, public perceptions (Kentucky, B’lore).

Chernobyl, 1986: Pripyat City

Fukushima: Japan 2011

• Damaged Reactor Building, Satellite Image, March 2011

37

Crisis Lessons• Child labor, employee abuses – no longer go

unpunished by the public. Boycott and public criticism. (Garments made in India, 2008)

• Crisis plan: approach –approval of top management on delegation of authority how to go about. Plan on paper.

• Crisis team – some one has to be in charge. Selection of team – c.c., legal, HR, medical, research, safety, operations (CCG IPCL), safety, security, transportation, government affairs.

38

Crisis Lessons

• Establish a crisis center. Computers, Internet, modem to access data, faxes, video conferences, radio or wire services.

• Center should have – up-to-date list of key persons in the organization, media, government, customers/distributors, stationery, camera etc.

• Advance Q & A ready. What to do when information is not available. Common scenarios: product fails, plane crashes, tank leaks, broker cheats, union strikes.

• Do no speculate but explain with diagram (accidents).

39

Crisis Lessons

• Information vacuum – fill with backgrounders to contain speculation.

• No hesitation in saying good things (safety record, quality etc).

• Four Rs: Regret – sorry does not mean you are responsible.

• Resolution – What you will do to resolve the issue (safety cap on medicine)

• Reform: What additional measures you will take to prevent the crisis

• Restitution: Compensation to stakeholders.

40

Crisis Lessons

• People love to read about problems of others.

• Crisis planning – in order to sleep well in the night.

• Crisis is costly event. Preparation and training separates winners form the losers.

41

Crisis Communication

• Exercises, case studies.