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Managing Crisis
KEY POINTS
» Corporations have learned that they don’t actually have to address crises that happen, but rather they
need to manage the public perception about the crisis.
» The
Tylenol poisoning case is often used to illustrate how a crisis was handled properly. Johnson & Johnson,the parent company, upon hearing that some of their capsules were found laced with cyanide, began
a full-scale campaign to reassure Americans that the problem would be resolved.
» The
Exxon-Valdez oil spill is an example of a company handling crisis poorly. Because the companydid very little to reassure the American public about its efforts to rectify the problems caused by the
spill, it still has to contend with poor public relations.
» Public relations firms are now helping companies not only with immediate damage control, but also
are strategizing how they can help their clients avert future crises.
» When
Alar, a pesticide used on apples, came under attack by consumer groups, the American Councilon Science and Health, an industry-funded non-profit organization,wrote language for a food disparagement
law, which would make it illegal to publicly criticize food products.
» In 1996, Oprah Winfrey hosted a show on Mad Cow Disease. When she stated she would never eat
beef again, some Texas ranchers took her to court citing the Texas food disparagement law. She ultimately
won the case, but the law remains on the book and the cost of the trial serves as a deterrent to journalists
throughout the United States.
DISCUSSION QUESTIONS
1.
How has crisis management changed since the days of the Tylenol scare and the Exxon Valdez spill?2. How is the food disparagement law an example of crisis management?
3. Besides writing governmental laws to protect corporations, how else might public relations help companies
avoid future crises?
EXERCISES
1. You are the public relations director for a Fortune 500 corporation. An accident occurs at one of your company’s
plants. You know that within days negative headlines and TV news stories will appear throughout the country.
a. What do you do first?
b. What publics are you most concerned with?
c. How will you respond to the media?
d. Why is it important that you respond?
2. Select a wealthy individual, corporation or politician who/which is currently in the news for some scandal,
improper behavior, etc. and investigate how they handled the crisis. Can you figure out who their PR agent
is – try
O’Dwyer’s or study news reports. Especially with individuals, news organizations will often report onPR activities.