CSM Module 6: Crisis communications
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CSM Module 6: Crisis communications
- 1. Module 6: Media Relations and Crisis Communications
- 2. Day 2: Agenda 7. Strategy, Metrics, R.O.I. 2pm – 3.15pm Tea break 3.15pm – 3.30pm Lunch 1pm – 2pm Final project 3.30pm – 5pm Role play 11.30am – 1pm Crisis case studies Coffee break 6: Media relaions and crisis communications 10.30am – 11.30pm 10.15am – 10.30am 9am – 10.15 am
- 3. Emails you don’t want to receive Dear Maybank Customer, Serious security treat in your account. Follow below reference to reactivate now. http://www.maybank2u.com.my/active.asp.html Yahoo! Mail gives members random cash prizes. Today, your account is randomly selected as one of 5 top winners I AM PRINCE DESMOND OKOTIEBOR ETETE. THE NEXT HEIR TO THE THRONE OF THE OIL RICH KINGDOM OF THE OGONI COMMUNITY. I HAVE A HUGE AMOUNT OF MONEY PRESENTLY IN THE PALACE.THE FUNDS WERE REALISED FROM OIL ROYALTIES THAT WAS PAID TO MY LATE FATHER. I NEED YOUR URGENT ASSISTANCE IN TRANSFERRING THE SUM OF US$330 MILLION IMMEDIATELY TO YOUR ACCOUNT.
- 7. Tommy Hilfiger – a racist?
- 9. Samsung phone easily broken?
- 10. YouTube video taken down
- 13. Politifact.com and Truth-o-meter
- 16. Coca-Cola fights myths online http://www.thecoca-colacompany.com/contactus/myths_rumors/
- 18. “ N ow everyone can fly , except the disabled” NST, July 16, 2007
- 20. AirAsia buys two ambulifts – August 4, 2007 “ Despite assurances by AirAsia CEO Datuk Tony Fernandes on July 20 and again on August 4 this year that disabled passengers will be treated with dignity, the airlines is still subjecting disabled passengers to discriminatory policies,” writes Peter Tan from The Digital Awakening, after he was required to sign an indemnity releasing AirAsia from all liabilities – Wikipedia entry and on http://www.petertan.com/blog
- 24. Good news, get it out fast Bad news, get it out faster !
- 27. ThinkPad explodes in LAX airport , posting on Gizmodo.com, Sept 16 “ So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire….”
- 28. Charred remains of IBM notebook on terminal floor
- 29. Crisis Escalates, Spreads Like Viral Fever
- 31. 1. Determines cause – battery supplier, executes costly remedial action with safety in mind. 2. Liaises with authority: Works with U.S. Consumer Product Safety Commission to announce global recall of 4.1 million laptop batteries. 3. Used website: Sets up recall website for customers to check affected units. 4. Assures safety: Guarantees replacement batteries are safe. Dell’s Response Post-mortem
- 37. Slippery slope of customer adulation
- 39. Sony execs’ bow not deep enough? “ We want to put this behind us. I take this problem seriously and I want to finish the replacement program as quickly as possible for the sake of our users and corporate customers ,” Corporate Executive Officer Yutaka Nakagawa, Oct 24, 2006
- 42. Real-time support on Twitter
Notes de l'éditeur
- Email hoax: “Snake swallows man: BIG NEWS in Taman Negara” “ Be careful when you are at Taman Negara.Tragedy at Pahang's Nature Reserve A Form Four student on a camping trip, organized by his school,was found dead, after having been swallowed by a 10 meter-long python. Both the newspapers media and the state government of Pahang kept this news from the public to avoid bad publicity and scaring away potential tourist-campers.... “ Turns out same rumour in Borneo, Singapore, South America, elsewhere. Third pic obvious fake. See: http://www.snopes.com/horrors/animals/anaconda.asp
- Before sending email check with Google: Run the subject title in email plus the word +hoax and see what pops up. Otherwise search snopes.com, hoax-slayer.com or David Emery’s http://urbanlegends.about.com/
- April 13, 2000, CNET, By Julian Matthews KUALA LUMPUR-- An email promising a free handphone from Swedish telco giant Ericsson and circulating among Asian Internet users is a hoax, confirmed a company spokesperson today. "Ericsson is not giving away free phones. The chain mail is a fraud and there is no person with the name of Anna Swelund working at Ericsson. At Ericsson, we are constantly looking at new, innovative ways to market ourselves, chain emails is not one of them," said Peter Bodor, public relations manager of Ericsson Mobile Communications in an email response. Bodor said the company first detected the fake email at the end of March and has received about 1,000 emails since, mainly from Europe, and also from the US and Asia. He added, however, the volume did not crash its mail server. The contents of the email suggested that those who forwarded the email to eight friends would receive a free Ericsson T18 handphone within two weeks. If forwarded to 20 friends, senders were promised "a brand new Ericsson R320 WAP (Wireless Access Protocol) phone." It also reminded the recipient to send a copy of the email to the fictitious Anna.Swelund@ericsson.com address, supposedly belonging to an executive promotion manager for Ericsson Marketing. Bodor said the company would attempt to trace the originator of the email. "Currently, we do not know if it originated from within or outside the company," he said. He added that this was not the first time Ericsson was hit by such chain letters, and that other companies like Nokia, Microsoft and Disney were similarly affected. Ericsson posted a notice on its Web site Monday advising people to discontinue forwarding the email and apologized for the inconvenience…. Link: http://www.trinetizen.com/archive/?p=113
- "It" was the shocking story that had circulated for years on the Internet and through word of mouth: Hilfiger, known for his colorful, preppy styles, had supposedly appeared on The Oprah Winfrey Show to air a disturbing grievance. "If I had known that African-Americans, Hispanics, and Asians would buy my clothes, I would not have made them so nice," Hilfiger complained. "I wish those people would not buy my clothes—they were made for upper-class whites." According to the tale, an outraged Winfrey immediately asked Hilfiger to leave her show—and when she came back from a commercial, he was gone. Never mind that intentionally alienating your core market isn't exactly a shrewd business strategy. Never mind that Hilfiger had founded a philanthropic fund to benefit inner city youth long before the rumor even appeared, or that he donated over $5 million toward building a memorial to Dr. Martin Luther King Jr., in Washington. Of course, Hilfiger had never said anything of the sort. At the time the rumor surfaced and spread, Hilfiger had never been on The Oprah Winfrey Show. In fact, the two had never met until 2007, when Winfrey did invite him onto the show to try to squelch the rumor once and for all: Psychology Today.
- In Sept 2006, a 21-second video circulating on the Internet entitled "Samsung handset, easy to break at one try!" shows a smiling woman snapping the slim Samsung Ultra Edition mobile phone in half. The 6.9mm thick the Samsung SGH-X820 is marketed as the thinnest mobile phone on the market. So when a video appears on the internet of a woman quite easily snapping the phone in half, you have to wonder have Samsung gone too far in the handset diet wars? However, all is not as it seems. Although the video was first seen less than a week ago it has now been removed Samsung launched an investigation, and claimed the handset may have been damaged to make it appear easy to break. It says the Ultra is made of new materials such as magnesium and fiberglass-infused plastic. YouTube later issued take down notice stating: “The video has been removed at the request of the copyright owner Motorola, Inc, because its content was used without permission.” Samsung is furious about the video, claiming it was designed to damage its reputation and threatens action. Motorola have been firmly denying any involvement saying "...It is unthinkable that a global company like Motorola is involved in such unethical conduct..." Was Motorola scared that their RAZR line of phones is becoming tired and might be surpassed by Samsung's Ultra Edition, so they employ mudslinging amongst the online geek community? Samsung is furious that their reputation for build quality is in question and have told the press and public that the event in the video can't be recreated in normal circumstances due to the fibreglass infused plastic used, implying that the phone must have been tampered with. Samsung said it was considering taking legal action on who made and distributed the video.
- The New Yorker ran a controversial parody of all the rumours circulating around the Obamas.
- Summary of the eRumor: A rumour about Michelle Obama's very expensive room service lunch at the Waldorf-Astoria in New York consisting of lobsters, imported caviar from Iran and champagne racking up to a total cost of $447.39. The Truth: This story was based on an article published in the New York Post on October 17, 2008. Four days later, however, the Post removed the article from its website and all links about it were directed to a retraction of the story.The retraction said, "THE source who told us last week about Michelle Obama getting lobster and caviar delivered to her room at the Waldorf-Astoria must have been under the influence of a mind-altering drug. She was not even staying at the Waldorf. We regret the mistake, and our former source is going to regret it, too. Bread and water would be too good for such disinformation."
- According to a poll, 11 percent of Americans believe the rumor that Barack Obama is secretly a radical Muslim who refuses to say the Pledge of Allegiance and was sworn into the Senate on the Quran
- In any crisis it is best to respond quickly. With the speed of the Internet, and mobile media and self-publishing tools like blogging and podcasting, speed and accuracy from a credible source is utmost of importance. Assess the damage quickly, determine the cause, bring in the experts, liaise with the authorities and tell the truth. If you hide any facts that you are already aware of, the media is likely to go dig up or worse still concoct its own story based on unreliable sources, sending your reputation and management of the crisis into a tailspin. Get the real story out before others -- within and outside the company -- make matters worse by revealing inaccuracies and escalating the crisis.
- Sony on other hand downplays its role in the recall, letting Dell and later Apple make announcements of their own, In the end up to ten other manufacturers were involved and each made painful announcements of their own – even those who didn’t have any “exploding laptop” incidents. Sony seemed to believe its silence would make the problem go away. But the weak response suggested to consumers that it just didn’t care, even has more incidents were being reported around the world, and the crisis was amplified over the Internet, worsening the depth of the problem.
- When Gizmodo, a very popular gadget blog in US broke the story with these amazing pictures, things were looking worse for Sony. ThinkPad explodes in LAX airport, posting on Gizmodo.com, Sept 16 “ So we're waiting for a flight in the United lounge at LAX, the flight next to ours was heading to London and in the middle of final boarding, when suddenly this guy comes running the wrong way up the jetway, pushing other boarding passengers out of the way, he quickly drops his laptop on the floor and the thing immediately flares up like a giant firework for about 15 seconds, then catches fire. About a hundred other people in the lounge jumped up and began a mix of gawking and general panic, I clearly heard a few fleeing individuals saying something about terrorists. The fire burned for a minute while everybody just stared at it, then another flare up, this one much larger than the first, drove a larger group of gawkers away. Eventually, the high intensity flaring calmed down and a larger fire kicked in, all the while letting off a thick cloud of white smoke that was slowly filling the terminal. Finally, an employee came over with a fire extinguisher and put it out of its misery…..”
- The immediacy and power of mobile media and the current self-publishing nature of the Internet through blogs, podcasting, photo/video sharing sites, make addressing a crisis for corporations even more a priority. The face you represent to both the public and in online media must be consistent and show your credibility. In any crisis, dispersion of information on the crisis on the Internet is an imperative. False videos and faked photos must be counteracted upon quickly. The accurate picture must be framed in customers’ minds. In this incident despite the worldwide recall announcement, even users in Yahoo had no adhered to the recall and returned the battery. Dell responded by urging customers to replace the defective batteries. Sony had yet to issue a recall.
- AP, Oct 26, 2006: Sony's profit plunged 94 percent for the July-September quarter as a global battery recall and red ink in its video-game business hurt the Japanese electronics and entertainment company. Sony Corp.'s group net profit for the fiscal second quarter totaled 1.7 billion yen (US$14 million; euro11 million), dwindling from 28.5 billion yen the same period the previous year, the Tokyo-based manufacturer said Thursday.
- Dell took charge of situation by assessing cause and liaising with authority to announce a global recall. Dell to recall 4 million laptop batteries CNET News.com,August 15, 2006 Dell and regulatory agencies worldwide plan to recall 4.1 million notebook batteries, a company representative in the United States has confirmed. The recall affects certain Inspiron, Latitude and Precision mobile workstation units shipped between April 2004 and July 18, 2006. Sony manufactured the batteries that are being recalled, the representative said. The recall announcement -- made a few hours ago in the United States -- followed chairman and founder Michael Dell's statement yesterday morning in Australia the computer maker was still investigating incidents where batteries in its laptops have reportedly exploded….
- INTRODUCTION: In Malaysia currently we are undergoing a national crisis. A crisis that is a natural disaster in terms of widespread flooding. In life we have personal crises, family crises, and domestic crises. The companies we work for are vulnerable to crises. Every organisation can undergo a crisis eg. a fraud; an explosion , a leak of sensitive information; a hostile takeover bid; robbery; a dangerous product or design fault; sabotages; boycotts; natural disasters such as flood or accidents or a fatal building fire. Crises can strike at any time, BUT THE MANAGEMENT OF CRISIS can be planned for. You can examine your vulnerabilities and take pre-emptive actions. You can set up a crisis management unit and identify all the things that could go wrong within your organisation and gauge your response. In the event of a major crisis, in which lives are involved, the concept of responding using the P.E.A.R method is useful. People, Environment, Assets and Reputation handled in that order puts perspective on your crisis communications response.
- In P.E.A.R, one puts the highest and most important valuation on the people involved. For example, in a recent helicopter crash, involving staff of an oil and gas company, in which 21 people were rescued but a pilot lost at sea, the response was swift. The oil and gas company took ownership of the crisis and the People involved, even though only a few of its staff -- the others were contracted workers -- were involved and the helicopter was not their own. Repeatedly in media, it indicated its emphasis on the state of victims affected, the relatives that were informed, the continued search for the missing pilot and expressed its care and concern for the people. Secondly, it emphasized the environment was safe by suspending all flights to its oil rigs on those particular helicopters to ensure safety of future flights. An investigation was launched to determine cause. Only then did it indicate that business was usual and assured stakeholders, as a public-listed company, that operations would not be unduly affected by the suspensions of helicopters. By handling the P.E.A. first, and showing it cared, the company kept its reputation and image intact.
- Customers don’t care whose problem it is, they only want it fixed. Dell took ownership despite a reluctance by its supplier to admit fault. It initiated a recall, placing the lives of people who might be affected over the loss of reputation. As this article by Steve Hamm in Networld magazine on Aug 30 explains: DELL'S DAMAGE CONTROL. By then, Dell was working closely with the government to figure out the scope of the problem. It turned out the glitch was the same as it had been late last year: metal particles inside the battery were causing the problems. Apple's problems with overheating batteries had been cropping up in the online media during the spring and summer as well. The CPSC's Stern says Sony connected the dots and figured out which of its batteries and which of its customers were affected. After The Inquirer's scoop and a stepped-up investigation, Dell and Sony proposed a second recall to the CPSC. Once again, the Inquirer scooped everyone. On Aug. 13, writer Theo Valich reported that another recall was on the way. Magee says the leak came from a Dell insider, whom he refuses to identify. "I attribute being on top of the story to old-fashioned print journalism standards—cultivating, and, if you'll excuse the pun, not burning such contacts," he says. The formal recall was announced a day later, on Aug. 14. Once Dell announced the recall, it, too, harnessed the Web to reach out to the disgruntled computing masses. On Aug. 14, the company set up a Web site ( http:// www.dellbatteryprogram.com / ) telling customers how to get a replacement battery. On its customer-service blog, ( http://www.direct2dell.com/ ), Dell also published the first of nine postings (so far) from executives and staffers about the recall. These included blow-by-blow descriptions of Dell's response from Alex Gruzen, senior vice-president of the company's Mobility Product Group, and a detailed explanation of how lithium-ion batteries work from Forrest Norrod, vice-president of engineering. EMBRACING THE BLOGOSPHERE. The company also elicited dozens of comments from customers, some of whom were plenty irked. On Aug. 15, George Johnson demanded to know why Chairman Michael Dell hadn't responded to questions about the battery problems at a press conference the previous day in Sydney, Australia. "When he was asked about the recent problems and if there were any developments, he did not volunteer the information that a new battery recall was in the works. If he was so concerned about customer safety, why was the announcement held over until after the press conference was over?" asked Johnson. But most people who commented praised Dell for its response. "I commend Dell for looking out for the consumer on this issue," wrote Jim Jones. "I have been fearful of leaving my system on while unattended. It's nice that I can leave my system on overnight and not have to worry about my house catching fire." Dell credits the blogosphere for helping it get through the crisis. "Information travels around quickly," says spokeswoman Gretchen Miller. "Also, it's another channel to get the message to our customers so they can be safe."
- You should have total autonomy on your own blog. That’s a heavy responsibility sans protection from legal eyes and scrutiny from higher-ups. When disclosing information during a crisis, try to get it right the first time. When you get it wrong, apologize immediately. We all have to re-learn how to have conversations online.
- Ideastorm solicits ideas from the community and Dell posts status on popular ideas. Starbucks has followed suit using an application from Salesforce.com
- The principles of P.E.A.R emphasizes caring for people and environment as a priority. Once you show you care for the damage done and the means by which you will safeguard the people, the crisis takes on a more positive spin. When a crisis happens, you are already in a no-win situation. Better to acknowledge fault, not play the blame game, and take charge of mitigating the crisis. Denial, and waffling will worsen the situation.