Managing PR Issues and Crises - PDF

Managing PR Issues and Crises Derived from Kelleher text  We’ve talked about ways to mitigate crises through planning, strategy, and especially ethical conduct. The most obvious example is probably the Tylenol poi...

Managing PR Issues and Crises Derived from Kelleher text  We’ve talked about ways to mitigate crises through planning, strategy, and especially ethical conduct. The most obvious example is probably the Tylenol poisoning. We try to We can also think of local and state avoid government responses to hurricanes or wildfires. crises, but Government response to tragedies like terrorism. alas… Covid-19 Data breaches Organizations responding to changes in government regulation (i.e. UW’s response to the House Settlement) Facing crises with confidence Through research and analysis, public relations scholars have developed ways organizations can function when two- way conversations become contentious. If we’ve learned anything from the 2024 presidential campaign, it’s clear there are a lot of unique approaches to PR that can work in garnering public favor. But, for most people and organizations, these are proper guardrails. Contingency theory Developed by University of Missouri Professor Glen Cameron and colleagues. Contingency theory proposes that the best course of action in any situation depends on the specifics of the situation. In other words, the best response strategy in a crisis depends on the situation's specifics, rather than a one-size-fits-all approach.  Imagine a large tech company called Here’s a "WonderTech" that manufactures smartphones. hypothetical: One day, WonderTech discovers that a batch of its new phones has a defective battery that can overheat and, in rare cases, catch fire. This defect WonderTech only affects a small portion of phones, but it’s a potential safety hazard. and it’s Using contingency theory, WonderTech would consider different situational factors before exploding deciding on a response: Initial Situation: A small recall and direct batteries. customer communication might suffice if a defective phone battery issue is discovered early, maybe by the company, and contained. Escalated Situation: Widespread concern on social media and news media may necessitate a broader recall and a public statement to reassure safety. Major Crisis: Reports of injuries would require a total recall, suspension of sales, CEO statements, increased communication across platforms, reevaluation of all products and services, and likely compensation for injuries (part of a “rebuild” strategy, which we’ll talk about later). Real-World Application: Al Gore and Homestead Air Force Base It’s a lot to explain, but basically a hurricane had caused a great deal of damage in a south Florida community and it was felt by locals, especially in the Cuban-American community, that developing a defunct Air Force Base into a commercial airport would support their post-storm rebuilding efforts. However, the development was opposed by environmentalists. Al Gore, the Democratic candidate for president in 2000, was a well- known supporter of environmental initiatives. He also needed the Cuban-American support his predecessor Clinton had seen to keep an edge in the electoral college. This Photo by Unknown Author is licensed under CC BY-SA-NC The dilemma Because the administration, in which Gore was vice president, Gore’s campaign Gore, as such, as was locked in messaged the torn between litigation over the issue through needing to win a base’s surrogates while public’s support development, Gore attempted to while also being Gore could have speak to both loyal to his core risked legal publics in supporters. jeopardy if he took supportive ways. a position for or against the base’s development. Outcomes Despite these strategies, Gore showed an inability to respond effectively in a highly contentious state. Many voters interpreted his silence as a lack of commitment or ambiguity, which may have hurt his standing with both environmental and Cuban American communities. In this scenario, contingency theory is evident in the campaign’s attempt to adapt to a complex, legally restricted environment. Gore’s team made strategic adjustments, but the limitations imposed by ongoing litigation exemplify how uncontrollable factors can constrain even the most adaptable strategies. Contingency theory is situational Social media Contingency theory certainly gives a also describes perceived leverage resonance options to the public, or at ranging from pure least what are advocacy (firmly perceived as organic More pleading the expressions of public accommodation is organization’s case sentiment. not always better: without compromise) (Sometimes You may receive a on one side to pure organizations, like short-term payoff but accommodation activists, can take pay in the long-term. (completely their own PR conceding to a initiatives to create a public’s demands) on response perceived the other side. as an organic public effect.) Issues Management Definition: A proactive PR area focused on identifying and resolving potential crises before they escalate. To manage issues, you must identify them, and earlier is better. Issue life cycle stages: Early/Potential: Initial awareness of internal issues. Emerging: Growing awareness and public concern. Current/Crisis: High public pressure and visibility. Dormant: Organization must accept long-term consequences.  Proactive Issues Management: 7 steps (Register and Larkin) Monitoring: Track public Prioritization: Allocate sentiment via social and Identification: Define resources to relevant Analysis: Assess legacy media; includes and analyze potential issues (e.g., Chipotle’s potential consequences responsible supply impacts. resource allocation and tradeoffs. chain management during health crisis). (e.g., fair trade). Strategic Planning: Align Implementation: Evaluation: Measure management actions Execute the plan to success based on goals with messaging. prevent further harm. and public sentiment. Crisis Types in Situational Crisis Communication Theory (SCCT) Concept: Developed by Tim Coombs and Sherry Holladay, SCCT suggests response strategies should align with the degree of public blame. This is a contingency theory because it suggests that how organizations should respond to crises depends on the circumstances. Coombs defined an organizational crisis as a major threat to an organization's operations or reputation. In other words, it’s existential. While issue management focuses on how to prevent organizational crises, SCCT deals with how to repair damage and rebuild reputation. Who is to blame? That’s the question at the heart of the initial crisis assessment.  1. Victim Crises: Organization seen as victim (e.g., Tylenol poisoning, natural disasters). Rumors are another example. Think of Dayton, Ohio this summer following Trump’s comments about immigrants eating pets (a rumor that gained traction on social media) — the city had to respond. 3 main 2. Accident Crises: Preventable but unintended (e.g., data breaches, interstate vehicle pile up, storm). groups of 3. Preventable Crises: Caused by mismanagement or foreseeable errors (e.g., Fyre Festival). crisis This can be a gray area, including when evaluating accident vs. preventable. If a bridge collapses, that’s horrible, but could types the government have maintained the bridge to prevent that tragedy? If a wildfire is underway, some people tend to blame climate change, which is said to be preventable. PR practitioners have to perform thoughtful analyses to evaluate these situations to determine organization culpability, or at least perceptions of it.  Otto Lerbigner’s Analogy: Treat crises as an illness, diagnosing severity and treatment. Response Types: Deny: Refute blame (e.g., George Santos Crisis denying false claims). Diminish: Admit issues but minimize Response responsibility (e.g., Meta’s response to research on social media’s impact on Strategies youth). Rebuild: Accept responsibility, apologize, and offer compensation to repair trust. Reinforce: Use past achievements to bolster reputation, and engage in positive reinforcement (e.g., thanking stakeholders). Social Media Crisis Communication Model (SMCC) The social media crisis communication model highlights the interaction among social media, traditional media, and word-of- mouth communication in crises. SMCC identifies three types of social media users for public relations practitioners to pay attention to during a crisis: 1. Social media creators are influential users who are among the first to identify and post about crises online. 2. Social media followers receive crisis information from creators. 3. Social media interactives are people who receive crisis information indirectly form social media via traditional media and offline word of This Photo by Unknown Author is licensed under CC BY mouth. Social Media Crisis Communication Model (SMCC) By understanding the relationships between these sources, PR practitioners can think strategically about how to communicate during a crisis. As is always the case, it’s a good idea to centralize the flow of information as much as possible, making sure the messaging is coordinated and there aren’t rogue messengers complicating your message. Case Study: Bud Light and Dylan Mulvaney (April 2023) Event: Bud Light partnered with transgender influencer Dylan Mulvaney to celebrate her "365 Days of Girlhood" series, sending a personalized can that Mulvaney shared on social media. Public Reaction: This partnership led to backlash from conservative groups and public figures, including calls for boycotts and viral content, such as Kid Rock’s video shooting Bud Light cases. Outcome: Intense social media engagement resulted in an 11%-26% drop in sales, and by May 2023, Bud Light lost its top-selling U.S. beer status to Modelo Especial. Response: Anheuser-Busch placed two marketing executives on leave and issued statements distancing the brand from the controversy, which was criticized as failing to support Mulvaney. Mulvaney later expressed feeling abandoned by the brand. Takeaway: This incident illustrates how quickly social media can escalate crises, impacting consumer behavior and brand reputation and underscoring the need for consistent, thoughtful communication. How would you respond? Think about the theoretical approaches to crisis communication and the continuum of response. What would pure advocacy look like? What would pure accommodation look like? Would you recommend an approach of one or the other, or find a place in the middle? Remember, while the middle can be tempting, it didn’t work for Al Gore in 2000.