Wednesday 1 April 2009

Crisis Management.....Come out, Come out, wherever you Are!!



In the event of a crisis many company’s first instinct is to run away and hide. Others may choose to lie while others may just say they are ‘sorry’ and seek to make amends. What is the best way though for such situations to unfold? How an organization handles a crisis will determine the longevity of the company. If it is handled well…then BRAVO…more clients. On the contrary, if the crisis is allowed to get out of control you are looking at law suits dead people and angry family members. It is therefore extremely important to acknowledge a crisis as soon as it occurs. Timing is essential. For example, Odwella, a fruit juice company, immediately conducted a press conference to recall its product when it was revealed that it had implicated several cases of the E. coli virus. Corrective action was taken immediately thus garnering public support and trust.
While Odwella was quick in addressing the crisis, many companies take a different approach. Some companies choose to remain hidden and pray the crisis will just go away. Though there is no one way of dealing with a crisis…I am pretty sure that hiding is a bad idea.
When it was found that the Peanut Corporation of America had peanut butter that contained salmonella, the president of the company Stewart Parnell went into hiding. He refused to do interviews and the PR company did very little to manage the crisis. He is currently going through a court hearing.
In the event of a crisis at least let the public know what is happening. Denial might work, as it did in the case of Pepsi, but it is not really advisable. Be honest, even when it hurts. It will pay off in the long run.



References:


Gentry, Bryant. Peanut Company and its President keeping a Low Profile Feb. 7, 2009 http://www.newsadvance.com/lna/news/local/article/peanut_company_and_its_president_keeping_a_low_profile/13247/ [Accessed March 31, 2009]

Wilcox, Dennis, Philip Ault et al Public Relations Strategies and Tactics 6th ed. Addison-Wesley Educational Publishers Inc. 2000

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