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“Organizations

that bring in new MANAGEMENT


10.1177/0893318903256227
NOVEMBER
Perry et al. / INTERNET-BASED
2003COMMUNICATION
COMMUNICATION
QUARTERLY /

media tactics and INTERNET-BASED


engage publics in COMMUNICATION IN
proactive CRISIS MANAGEMENT
discussions
DANIELLE C. PERRY
before, during, AT&T Wireless
and after a crisis MAUREEN TAYLOR
MARYA L. DOERFEL
exemplify an Rutgers University
important
movement from
one-way
communication to
two-way
interaction
between the AUTHORS’NOTE: An earlier version of this article was pre-
sented to the 2001 National Communication Association
conference in Atlanta, GA. The authors thank Ronald E. Rice
public and an and the anonymous reviewers for their helpful comments and
suggestions on earlier versions of this article. Please
organization.” address all correspondence to Maureen Taylor, Department
of Communication, Rutgers University, 4 Huntington Street,
New Brunswick, NJ 08901; phone: 732-932-7500, extension
8125; e-mail: maureent@scils.rutgers.edu.

Management Communication Quarterly, Vol. 17, No. 2, November 2003 206-232


DOI: 10.1177/0893318903256227
© 2003 Sage Publications
206
Perry et al. / INTERNET-BASED COMMUNICATION 207

This article examines how organizations integrate the Internet into crisis commu-
nication. Results suggest four findings about Internet usage in crisis. First, a
majority of the organizations studied are turning to the Internet to communicate
with the public and the news media during a crisis. Second, organizational type
does not appear to be a factor in the integration of the Internet in crisis response
with financial organizations, new technology organizations, and consumer prod-
uct organizations as the most frequent adopters. Third, crisis type does not
appear to be a factor in an organization’s decision to use the Internet in its imme-
diate crisis response. Fourth, although most organizations are incorporating
both traditional and new media communication tactics into their responses to cri-
sis, there is a continued preference for traditional tactics. These findings illus-
trate how mediated communication may create new possibilities for crisis
response and are translated into suggestions for how managers can integrate new
media into their mix of communication tactics in crisis management.

Keywords: crisis management; Internet; Web site; new communication


technologies

Organizational crisis is a time of ambiguity and risk. However,


one thing is certain about crisis management: Organizations that
deal with crisis in a timely and honest manner can minimize dam-
age to their reputation and regain public trust (Coombs, 1999;
Janis, 1989; Murry & Shohen, 1992; Seeger, 1986; Seeger,
Sellnow, & Ulmer, 2001; Tyler, 1997). One recent innovation in
crisis management is the incorporation of the Internet into crisis
response. The Internet is useful for crisis management in two ways.
First, it can help organizations conduct environmental scanning to
prepare for crisis. Through the Internet and the World Wide Web
(WWW), organizations can search through enormous amounts of
information and create effective issues management strategies to
detect problems before they become crises (Ramsey, 1993; Thom-
sen, 1995). Second, computer-mediated communication can help
organizations communicate decisions quickly during a crisis to
stakeholders and generate feedback from the public. The Internet,
then, offers organizations one more resource through which they
can influence their environments.
Research suggests that organizations are often unprepared for
the information gathering and dissemination tasks required for the
effective handling of a crisis (Coombs, 1999). Writing before the
growth of the Internet, Rice (1990) found that a variety of com-
puter-mediated communication (CMC) and information systems
such as electronic mail and voice mail may help organizations over-
come “temporal, geographical, retrieval, [and] distribution” con-
208 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

straints during crisis (p. 108). Since 1990, the Internet and CMC
have emerged as even more valuable tools. CMC, then, and the use
of the Internet, in particular, may augment organizational crisis
management communication.
Communication managers can also gain valuable insight by
learning how other organizations have integrated CMC into crisis
management. Unfortunately, little evidence exists about the use of
CMC in preparing for and managing crises. Thus, the interest of
this article is in the different ways that crisis may be prepared for
and managed by CMC. Two environmental variables and one out-
put variable were examined through a study of mediated response
to crisis. The environmental variables, industry type and crisis
type, were examined to determine their relationship to an organiza-
tion’s decision to integrate a mediated response to a crisis. A third
variable, the communication tactics used in actual mediated
responses, was also examined to uncover if new tactics are emerg-
ing that provide organizations with innovative ways to manage cri-
sis communication. When examined together, industry type, crisis
type, and communication tactics illustrate different mediated
responses to crisis. To provide a rationale for this article, the first
section examines how organizations can use the Internet to prepare
for and manage crisis. The second section of the article reports the
results of a study that examined the incorporation of the Internet
into organizational crisis response. The final section of the article
provides specific considerations for communication managers on
the ways in which mediated communication may create new possi-
bilities for crisis response.

COMPUTER-MEDIATED COMMUNICATION
AND CRISIS

CMC offers both opportunities and challenges for communica-


tion managers. At the most basic level, CMC is an “information
exchange that takes place on the global, cooperative collection of
networks. . . . The resulting information exchange can involve a
wide range of symbols people use for communication” (December,
1996, p. 24). The Internet is an exemplar of CMC. There are various
Perry et al. / INTERNET-BASED COMMUNICATION 209

levels and relationships in computer-mediated communication that


allow for synchronous or asynchronous communication. For
instance, Floyd and Parks (1996) studied relationship building
through the Internet and found that mediated communication poses
new challenges for understanding different types of interpersonal
and organization-public relationships. But, CMC is also valuable
because it offers organizations “information to glean, expertise on
which to draw, coordination never before possible with such little
expense, and new challenges to the way that we manage our inter-
personal and professional relationships” (Walther, 1997, p. 342).
CMC helps organizations to address threat and crisis through
environmental scanning and crisis management. The Internet is
often used as an environmental scanning source to avert crisis. In
examining new technologies from an issues-management perspec-
tive, Thomsen (1995) noted that organizations should use online
databases to shift from reactive communication messages to
proactive messages. Heath (1997) further suggested that organiza-
tions should examine online discussion groups, activist Web pages,
and other online news sources. According to Heath (1997), “World
Wide Web pages are being used to supply information as well as
elicit commentary and problem solution advice from stakeholders
and stakeseekers. Such pages are established by all the traditional
organizations engaging in issues management” (pp. 285-286).
Coombs (1999) suggested that organizations scan a variety of
Internet sources, looking for “changes, trends, events, and emerg-
ing social, political or health issues” (pp. 22-26). There are various
external sources that organizations should examine to understand
their environment better, including activist organizations’ Web
sites, chat rooms, news groups, online bulletin boards, and other
resources. In fact, the Internet is a “source that organizations should
not overlook. . . . Although the Internet user population is still
rather small, it does represent an important environmental informa-
tion resource” (p. 26). One illustration of the value of the Internet as
a research tool is Hearit’s (1999) study of news group discussions.
Hearit examined the transcripts of news groups that debate com-
puter technology problems. Hearit suggested that Intel Corpora-
tion should have studied these online news groups during its 1994
Pentium chip crisis to better anticipate the public outrage about its
decision not to replace faulty chips.
210 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

The Internet provides any organization, large or small, a direct


link to relevant publics and it can also serve as a link to other valu-
able Web sites. In other words, the information gathered from the
Internet can help organizations adjust policies and actions before a
crisis occurs. However, even the most vigilant environmental scan-
ning cannot always avert a crisis (Fearn-Banks, 1996; Fink, 1986;
Pauchant & Mitroff, 1992). When a crisis occurs, organizations are
forced to react. It is here that a second role for CMC emerges in cri-
sis management.
The Internet can also serve as a strategic and tactical communi-
cation tool that organizations can use during a crisis. Many com-
munication managers may be reluctant to create additional risk by
communicating via the Internet during a crisis. However, Edelman
(1998) asserted that technology has created a “new generation of
crisis response” where the immediacy of the news allows for “no
grace period designated as ‘response time’ in a crisis situation”
(p. 1). Risk is not so much inherent in opening up communication
about a crisis via the Internet; rather, risk is inherent in the way that
the organization responds. In times of crisis, organizations are
expected to communicate and the crisis management research
shows that organizations use a variety of strategies and tactics to
address a crisis. Whereas strategies range from attack the accuser,
denial, excuse, and justification, most actions fall on a continuum
from accommodation to defense (Coombs, 1999, pp. 121-129).
These strategies, however, may lead to negative outcomes (Tyler,
1997).
Tactical responses such as news releases, news conferences, fact
sheets, memos and letters to stakeholders, legal advice, third-party
endorsements, and monetary compensation can also be used for
crisis management. Many of these traditional crisis tactics can be
adapted easily and quickly to CMC. For instance, news releases
already written for the media can be coded into HTML and placed
on an organization’s Web page. New media tactics are also emerg-
ing. Interactive chat, threaded dialogue, real-time video, and audio
effects are some of the new tactics available for organizations to use
in crisis communication (Witmer, 2000).
Mediated tactical responses are one more tool that organizations
can use to frame their position, explain corrective action, and gain
support for policy changes. Yet, organizations have generally been
Perry et al. / INTERNET-BASED COMMUNICATION 211

slow to integrate their Web sites into crisis management plans.


Only a few cases exist of successful use of the Internet during crisis.
Shell Oil’s Web site is held up often as an example of two-way com-
munication with publics. Shell used its Web site during the Brent
Spar and Ken Saro-Wiwa crises to explain its positions and, more
important, it allowed individuals and groups who disagreed with
Shell’s position to post their opinions and criticisms on the Shell
home page (Heath, 1998; Lutchford, 1998). Similarly, The
Odwalla juice company’s use of its Web site during the 1996 E. coli
bacteria scare is also viewed as an example of how the Internet can
help an organization to inform publics quickly of possible risks
associated with a consumer product (Martinelli & Briggs, 1998).
Odwalla created a Web site during the crisis as a way to update con-
sumers about tainted batches and product recalls. And, Swissair’s
use of the Internet is also considered as an exemplar of mediated
crisis response (Witmer, 2000). During the crash of Swissair Flight
111, the organization’s Web site posted a red-type notice reminding
repeat visitors that they should refresh their screens to receive the
most up-to-date information. Swissair posted this message so that
those concerned would not re-read cached files and miss important
updates (Witmer, 2000). Beyond such anecdotal evidence, how-
ever, the extent to which and the ways in which CMC and the
Internet have been integrated into crisis management is unknown.
Through environmental scanning, the Internet and the WWW
provide another level of openness that allows the organizational
leadership additional exchange information. CMC may also help
organizations communicate quickly and effectively with stake-
holders once a crisis has been identified. Finally, CMC can help
organizations create new, innovative responses to crises. When
considered together, the literatures of CMC and crisis management
generate several research questions and hypotheses about organi-
zational responses to crises.

RESEARCH QUESTIONS AND HYPOTHESES

The following research questions and hypotheses concern if and


how organizations are integrating the Internet into crisis response.
The ability to integrate an organization’s Web site into crisis man-
212 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

agement provides some insight into its use as a tool that can aug-
ment current organizational response practices. If organizations are
using their Web sites, then certain tactics may emerge as useful
communication tools. Organizational types with Internet or new
technology expertise may be more likely to incorporate CMC into
their crisis management, whereas organizations that are not
involved in the technology business may not be able to incorporate
quickly a mediated response to a crisis. Different adoption patterns
may emerge across industry types. In addition, the type of crisis
facing an organization may also be related to the decision to use a
mediated response in crisis management. Together, the research
questions and hypotheses attempt to uncover how CMC is incorpo-
rated into crisis response.

Research Question 1: Are organizations experiencing a crisis that war-


rants national media attention using the Internet to communicate
with publics?
Hypothesis 1: A majority of organizations are using the Internet during
times of crisis to communicate with publics.
Research Question 2: Which communication tactics are used in crisis
response?
Research Question 3: Do certain industry types use the Internet during
a crisis?
Research Question 4: Is there a relationship between crisis type (chronic
or acute) and Internet use during a crisis?

METHOD

This study is based on 12 weeks of data spanning an 18-month


time period detailing organizational use of the Internet during cri-
sis. In October 1998, a 4-week pilot study was initiated to gauge
whether or not organizations were using the Internet to communi-
cate during a crisis and, if so, how. The results showed that organi-
zations were integrating the Internet into their crisis response. To
detect patterns in Internet usage, a second 4-week study was con-
ducted in October 1999. To control for any effects unique to the
month of October, data were collected 6 months later in another 4-
week period (April 2000) to complete the study.
Perry et al. / INTERNET-BASED COMMUNICATION 213

SAMPLE IDENTIFICATION

Three parameters defined a crisis (Coombs, 1999; Fearn-Banks,


1996; Fink, 1986; Gonzalez-Herrero & Pratt, 1995). First, a crisis
had to be a significant disruption to an organization or its public’s
environment. The crisis did not have to be internal to an organiza-
tion; rather, a situation that affects an organization’s publics
(weather-related, health-related) was also classified as a crisis
because if the organization fails to safeguard and inform its publics,
then it fails in its organizational mission. Second, a crisis had to be
an occurrence that attracts extensive national news media coverage.
Finally, the crisis also needed to be a situation where public con-
cern—either for financial, political, health, or safety reasons—
necessitated a “need to know” circumstance for the public to make
informed decisions. A crisis must have met all three parameters to
be included in this study.
Crisis type and industry type were also examined. Fink (1986)
identified four different types of crisis stages—prodromal, acute,
chronic, and resolution (p. 20). Because the interest of this study is
on actual organizational responses, the authors categorized the cri-
ses into two of these categories. A crisis may be acute (occurring
without warning) or chronic (when a serious problem is apparent,
but an organization is either unwilling or unable to manage it before
it is identified as a crisis). According to Fink (1986), the damage of
an acute crisis depends on how the organization responds and
chronic crises can linger indefinitely.
The industry types defined for this study spanned all sectors, pri-
vate and public, but inclusion was limited to organizations with a
national presence. Six organizational types were created deduc-
tively at the conclusion of the study and then confirmed through the
Standard and Poor’s Global Industry Classification Standard
(GICS). Organizations in the sample were categorized as consumer
product organizations, government-related organizations, new
technology firms, transportation organizations, financial organiza-
tions, nonprofit organizations, and “other.” These broad categories
were created upon completion of the three time periods to best
reflect the nature of the sample. It is important to clarify that crisis-
driven organizations like the National Hurricane Center were
included for two reasons. First, according to the three parameters
214 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

that defined inclusion of the sample, these organizations are an


important part of the population to be represented. Second, the
interest of this study is not on the crises, per se, but on the organiza-
tions’ communication responses to the crises and their use of the
Internet during this time period.

PROCEDURES

Throughout each day of the study, CNN.com and MSNBC.com


news summary pages were reviewed for organizational crises that
fit within the predefined parameters. Middleberg and Ross (1999)
surveyed print and broadcast journalists and found that CNN.com
and MSNBC.com were the two most widely used U.S. news Web
sites. Both Web sites allow users to view news summary pages
highlighting the top news stories of the day. Once a crisis was iden-
tified from news summary pages, the full story was reviewed. The
home pages of the organization in crisis and/or other relevant Web
sites were then accessed to see the type of response to the crisis.
For each time period, observations were recorded for a 1-month
period as to whether organizations in crisis chose to communicate
via the Internet about the crisis. Response was counted if an organi-
zation used its Web site to address the crisis within 24 hours of
Internet news coverage. The 24-hour criterion was set because
organizational response within the first day of a crisis is important
for agenda setting. In fact, it is during the first day that the defini-
tions and attributions that will guide public understanding of the
event are often established (Coombs, 1999).

TACTICS OPERATIONALIZATION

The researchers examined those organizations that had posted


information about the crisis on their respective home pages or on
related Web sites. During the pilot study, Web sites were examined
to determine which communication tactics were being used, in
general, and which tactics were used concerning a crisis. Tradi-
tional tactics included the following: transcripts of news confer-
Perry et al. / INTERNET-BASED COMMUNICATION 215

ences, news releases, fact sheets, a question-and-answer format,


and memos/ letters to relevant publics. Four new media tactics were
also identified from the literature (Coombs, 1999; Witmer, 2000).
These new media tactics refer to the use of unique features of online
communication that are made possible by the Internet. To ensure
methodological rigor and ensure that the new media tactics were
mutually exclusive and clear, intercoder reliability was calculated
using Scott’s pi. The reliability score for the new tactics fell within
the acceptable parameters with Scott’s pi = .92.

Two-way, interactive communication. An organization may


encourage the public to respond to an issue via the Internet. Feed-
back encourages dialogue and interaction between the organization
and its stakeholders. It allows the organization to manage conflict
more effectively, improve understanding, and address stakeholder
concerns.

Use of links. By establishing links on its Web site, an organiza-


tion may directly connect visitors to other relevant sites, additional
information, or resources to improve understanding and demon-
strate a good-faith effort to inform the stakeholders fully.

Real-time monitoring. Timely monitoring may be necessary or


helpful for the media or public to follow a crisis hour-by-hour or
minute-by-minute. This tactic created the ability to reduce delays
in reporting and response time.

Video/audio effects. The Internet affords organizations the


unique ability to use satellite images, taped or live video, high-
resolution photography, and audio effects in their online communi-
cations. The use of traditional or new media communication tactics
is not mutually exclusive; organizations may apply one or both
types of tactics. Communication tactics that were counted in this
study, however, refer only to those specifically dedicated to com-
municating about the crisis in the news. General use of other tactics
on the Web site for reasons other than crisis communication (such
as real-time monitoring of the stock market) was purposefully
excluded.
216 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

RESULTS

Research Question 1 inquired if organizations are generally


using the Internet during a crisis and Hypothesis 1 tested if a major-
ity of organizations had incorporated Internet tactics into crisis
communication. Fifty organizations met the parameters of the
study. During the 18-month time period, 50 organizations experi-
enced a crisis of sufficient magnitude to be reported. Table 1 identi-
fies the organizations and their respective crises, which make up the
sample for this study. Table 2 shows that organizations are using the
Internet to communicate with journalists and stakeholders during a
crisis. Of the 50 organizations that met the three criteria for inclu-
sion in this study, 32 (64%) communicated about the crisis through
the Internet within 24 hours of the initial media coverage. The
aggregate of all three time periods (64%) suggests a tendency for
organizations to respond via the Internet during a crisis. Hypothe-
sis 1 is supported.
Research Question 2 inquired about the specific tactics used by
organizations. Table 3 shows that traditional media tactics included
transcripts of news conferences, news releases, fact sheets, a ques-
tion-and-answer format, and memo/letters to relevant publics. New
media tactics present on the Internet sites included opportunities
for two-way interactive communication, links for more informa-
tion, audio and video clips, and real-time monitoring. A total of 14
organizations out of the 32 Internet users (44%) relied solely on the
traditional media tactics. The data suggest that whereas almost
every responding organization (97%) integrated some traditional
communication tactics, 56% of the total sample integrated some
new media tactics with the traditional tactics.
According to the U.S. Census Bureau (2002), “almost all indus-
try groups are engaged in e-commerce to some degree, but a signifi-
cant portion of the total e-commerce dollar value is concentrated in
a handful of industry groups” (p. 2). Thus, Research Question 3
sought evidence of a relationship between industry type and
Internet use during crisis. The 50 organizations were grouped into
six industry groups: consumer product organizations, government-
related organizations, new technology firms, transportation organi-
zations, financial organizations, nonprofit organizations, and
“other.” Table 4 shows the frequency of each organizational type’s
Perry et al. / INTERNET-BASED COMMUNICATION 217

TABLE 1: Organizational Crises

Time Organizational Name Crisis Type

1 IBP product recall


LIFFE large layoff
General Motors product recall
Hormel product recall
Fisher Price product recall
Centers for Disease Control hepatitis C from transfusions
Omega Sprinklers product recall
Merrill Lynch large layoff
U.S. Labor Department early job report
Republican National Committee resignation of top official
ABC/Disney union strike
Air Tran aircraft skids
Planned Parenthood anthrax scare
Acoustic Magnetic Systems security disruption
Amazon infringing on trade secrets
United Airlines carry-on crackdown
Rutgers University alcohol death on campus
National Hurricane Center Hurricane Mitch
White House Monica Lewinsky scandal
Microsoft Department of Justice lawsuit
2 Centers for Disease Control West Nile outbreak/deaths
NASA Mars Orbiter lost
Storage Tek large layoff
National Hurricane Center hurricane
Britannica.com Web site crash
National Transportation Safety Board jet crash
Union Pacific teamster strike
General Electric product recall
Shine International Trade product recall
First Great Western train crash
State Farm Insurance auto parts fraud
National Highway Safety Commission dangerous side airbag
AOL spam scam
Egypt Air airline crash
Bath and Body Works product recall
Microsoft hacker defaces site
3 Graco product recall
Bristol-Myers Squibb problematic medicine
Shell fined by U.S. government
Baxter International lawsuit/faulty product
(breast implants)
U.S. Army murder of gay soldier lawsuit
U.S. Marine Corps crash
Microsoft Department of Justice lawsuit
MP3 copyright lawsuit
Intel computer chip problems
SEIU Labor Union janitors’ strike
218 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

TABLE 1: (continued)

Time Organizational Name Crisis Type

WGBH-TV Antiques Roadshow scandal


Lockheed Martin passing data to China
White House e-mail probe
U.S. State Department secret-laden computer missing

TABLE 2: Use of the Internet During Crisis

Time (Date)
1 2 3 Row
(October 1998) (October 1999) (April 2000) Totals

Crises observed 20 16 14 50
Internet use
Did not use 8 2 8 18
Used 12 14 6 32
% of Internet use 60 88 43 M = 64

TABLE 3: Internet Tactics

Time 1— Time 2— Time 3—


October 1998 October 1999 April 2000 Total
Description (n = 20) (n = 16) (n = 14) (N = 50)

Used Internet (total) 12 14 6 32


Used traditional vehicles 12 15 5 31
% of total 100 100 83 97
Used only traditional 7 6 1 14 (44%)
News conference 1 0 1 2
Press release 7 12 4 23
Fact sheet 5 5 2 12
Q&A 2 2 1 5
Memo/letter 4 3 2 9
Used new media vehicles 5 8 5 18
% of total 42 57 83 56
Used only new media 0 0 1 1 (3%)
Two-way 3 3 5 11
Links 5 3 4 12
Audio/visual 2 6 4 12
Real-time 2 3 1 6

use of the Internet during crisis. It appears that financial organiza-


tions are the most frequent adopters of the Internet into their crisis
Perry et al. / INTERNET-BASED COMMUNICATION 219

TABLE 4: Organizational Type and Internet Use During Crisis

Industry Type Number % of Industry Type Using Internet

Consumer 14 71% responded


Government 14 57% responded
High-tech 9 78% responded
Transportation 4 25% responded
Financial 3 100% responded
Nonprofit 3 33% responded
Other 3 66% responded

TABLE 5: Use of the Internet During Chronic and Acute Crises

Crisis Type Number Internet Usage

Acute crisis 36 58% responded


Chronic crisis 14 79% responded

response. High-tech organizations and consumer product organi-


zations also appear to use the Internet. Conversely, transportation
organizations and nonprofits appear to integrate the Internet into
crisis response less frequently.
Research Question 4 sought evidence of a relationship between
crisis type and Internet use during a crisis. Crises were categorized
as either chronic or acute; it was expected that organizations facing
a chronic crisis such as a lawsuit or ongoing financial problems
would be more likely to integrate the Internet into their responses.
Table 5 shows that there were more acute crises (evidence that envi-
ronmental scanning may have failed) than chronic crises in this study
and, as expected, organizations facing a chronic crisis appear to use
the Internet more often than organizations facing an acute crisis.

DISCUSSION

The majority of organizations (64%) responded to the crisis by


using their organization’s Web site. Thus, we can surmise that cri-
ses warranting national exposure will prompt organizations to take
advantage of the Internet when the need to communicate with
publics (including the news media) is urgent. Although there were
220 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

almost twice as many acute crises as chronic crises in this study,


there is no evidence that organizations experiencing a chronic crisis
are more likely to bring CMC into crisis response.

TRADITIONAL VERSUS NEW MEDIA TACTICS

Almost 97% of the organizations (31/32) adapted at least one


traditional communication tactic such as transcripts of news con-
ferences, news releases, fact sheets, a question-and-answer format,
and memos/letters to stakeholders. Moreover, 44% of the Internet-
using organizations studied relied solely on the traditional media
tactics in crisis management. Traditional logics of action appear to
be practiced and accepted widely as useful tools to create a medi-
ated crisis response.
The news release appeared as the most frequently used tactic to
address a crisis. Approximately 72% of the organizations that
experienced a national crisis were able to upload a news release
within 24 hours of initial media coverage. The second most popular
response was the fact sheet. More than 37% of the organizations
integrated a fact sheet to provide background about the crisis. The
tactic of writing memos and letters to affected stakeholders was
used less frequently with about 10% of the organizations selecting
this traditional tactic. Question-and-answer formats and transcripts
of news conferences appear rarely used in the first 24 hours of
crisis.
The Internet also offers organizations unique features for com-
municating with journalists and publics. Fifty-six percent of the
Internet-using organizations integrated at least one of the new
media tactics into their crisis response. Connecting links and multi-
media effects appear to be equally popular new media tactics with
38% of the organizations using these CMC features. Connecting
links allow the organization to send visitors to different sites for
additional perspectives or for more information. Linking visitors
directly to another Web site can be useful for showing third-party
endorsements and highlighting favorable media coverage of the
organization’s actions. Multimedia effects, which include video or
audio capabilities, offer an additional dimension to visitors. Orga-
nizations can make informative materials such as speeches, inter-
Perry et al. / INTERNET-BASED COMMUNICATION 221

views, and new product specifications available to both the media


and interested publics.
The two-way interactive feature appeared in 34% of crisis
responses. Interactivity offers information exchange and ensures
openness. For instance, two-way interactive communication with
publics allows the organization to gauge public support for its deci-
sion. Eleven of the organizations that responded to the crisis on the
Internet created the option for the public to ask additional questions
and raise concerns about the crisis. This is key because CMC
allows for such feedback.
Real-time monitoring was used in 19% of the Internet responses
to crisis. Crises such as tropical storms, fires, and other natural
disasters require up-to-the-minute information. Real-time moni-
toring can be very useful for tracking crises that evolve. But this
specific tactic appears to be more situation-specific than the other
new media tactics, and thus it may not be used as frequently as the
others. Indeed, not every crisis lends itself to evolving coverage.
Connecting links, audio and visual effects, and interactivity were
present in about 30% of the CMC crisis responses. To provide con-
text for comparison, connecting links, audio and visual effects, and
interactivity have about the same adoption rates as the fact sheet
and the memos/letters to stakeholders. There was, however, a trend
that shows organizations incorporating one or more of the new
media communication tactics into their crisis communication
response. With each time period, more and more organizations
were found to incorporate new media tactics into their online crisis
communication (as Table 3 shows, 42%, 57%, and 83% of the sam-
ple at each time, respectively).

ORGANIZATIONAL TYPE AND CRISIS RESPONSE

Organizational type offers more specific use of the Internet in


crisis response. Table 4 shows that CMC use in crisis management,
by organizational type, ranged from 25% to 100%. When response
rates and communication tactics are examined together, communi-
cation managers can gain valuable insight into some of the innova-
tive ways that different industry types are integrating the Internet
into crisis management.
222 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

Financial organizations. It appears that all of the financial orga-


nizations experiencing a crisis used the Internet to communicate
with stakeholders. Financial organizations are subject to external
regulations and policies including Securities and Exchange Com-
mission (SEC) mandated disclosure and rules by the stock
exchange on which the company’s stock is listed. Each public com-
pany’s by-laws regulate the type, method, and timing of disclosures
of material information. Integrating CMC into these mandated cri-
sis responses appears to be the norm for this industry type. Finan-
cial organizations, by the very nature of their business, are required
to communicate information during a time of crisis. However, the
way that these financial organizations communicate this informa-
tion is not regulated.
Indeed, a closer look at the actual communication tactics used by
these three financial organizations—State Farm, LIFFE, and
Merrill Lynch—shows that there was an overall preference for one
specific traditional media tactic—the news release—to communi-
cate with stakeholders. State Farm Insurance’s chronic crisis cul-
minated in a jury decision costing more than $1 billion in fines and
refunds to policyholders due to auto parts fraud. In response, State
Farm posted a news release and a memo from the CEO during this
crisis. The news release identified the organization’s position. It
was written in the usual format with the usual content: corrective
action to policyholders. The CEO’s letter, however, was much
more revealing of senior management’s perception of the situation.
The text was full of “astonishment” and defined the decision as “an
unhappy day for consumers.” State Farm used each tactic to
achieve a different goal. The news release met regulatory obliga-
tions and the CEO’s letter personalized the organization’s disap-
pointment and regret.
LIFFE, a global investment firm, was faced with an acute crisis
when large financial losses resulted in a 60% reduction in its
workforce. This financial organization also relied on a combination
of traditional tactics—a news release and a memo. In addition, it
included the e-mail address of the CEO and links to related Web
sites for additional information. During October 1998, Merrill
Lynch announced a massive financial loss and the subsequent elim-
ination of more than 5% of its workforce. Merrill Lynch posted a
news release explaining the loss to shareholders and offered con-
Perry et al. / INTERNET-BASED COMMUNICATION 223

necting links for more information. There was no letter of regret or


any other tactic to personalize the situation.
Thus, when looked at together, all three financial organizations
in this study adapted the news release to fulfill their mandated dis-
closure obligation. The two organizations experiencing acute cri-
ses offered links to visitors for more information. Only LIFFE, the
global investment firm, attempted to solicit feedback from stake-
holders. Financial organizations face special constraints when
experiencing a crisis. Immediate communication with stakeholders
is necessary to maintain confidence, and it appears that a mix of tra-
ditional and new media tactics are being used to meet regulatory
and stakeholder obligations.

New technology organizations. According to a U.S. Census


Bureau report (2002), high-tech companies account for 37% all of
retail e-commerce. Today, many organizations offer Internet prod-
ucts and services. These organizations were created for and exist
because of the Internet and they may be more likely to incorporate a
logic of action that recognizes the unique features of the Internet.
The data show that 79% of the technology companies that experi-
enced a crisis during the study integrated some aspect of CMC into
their response. Resource dependency theory may help explain this
high adoption rate (Pfeffer & Salancik, 1978). Resource depend-
ency suggests that due to the competitive nature of high-tech com-
panies, and their continued reliance on additional investment capi-
tal, these types of organizations need to address any crisis quickly.
Immediate communication is intended to reassure investors that the
organization is managing the situation. CMC offers one more way
for this type of industry to respond to crises.
High-tech companies such as Microsoft, Intel, and MP3 all
experienced crises during the study and all used at least three of the
four new media tactics. MP3.com, an Internet-based music com-
pany, was found guilty of infringing on the copyrights of thousands
of artists. In response to this ongoing crisis, MP3.com set up
“MP3.com Lawsuit Central.” This site contained links to key docu-
ments, feedback letters, and articles written by third-party journal-
ists. It used only new media tactics in its response. The company’s
crisis response resembled a newsgroup rather than a corporate
response. This type of mediated response may have been more
224 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

readily accepted by MP3.com’s key publics and customers.


Newsgroup interface was not defined as one of the four new media
tactics examined in this study because it did not emerge until time
three. However, after observing how MP3 used newsgroup inter-
face to facilitate two-way communication, this tactic should be
considered as a fifth new media tactic in future studies.
Microsoft Corporation’s legal troubles can also provide commu-
nication managers with examples of thoughtful integration of
CMC into crisis response. Microsoft experienced a crisis in each of
the three time periods. In two of the three crises, Microsoft
employed all five of the traditional one-way tactics and all four new
media tactics. Microsoft’s Web site presented its positions, reac-
tions, and rebuttals to the antitrust legal case through press releases,
fact sheets, and legal documents. An archive of trial updates, a vir-
tual library (called “Exhibits”) of various documents presented
during the trial, and a chronology of events were all available on the
organization’s Web site. Microsoft also attempted to solicit feed-
back from its visitors. The Web site featured an icon labeled
“What’s your opinion?” Microsoft employees responded to these
concerns and posted responses on the Web site. In addition, visitors
were offered links to letters and articles supportive of Microsoft’s
position. Finally, as a way to generate political support, the Web
site linked visitors to their respective members of Congress. Visi-
tors were encouraged to send an e-mail or letter to their Congres-
sional representative through the “How can I help?” link.
High-technology organizations are using CMC in their crisis
responses. They rely on a mix of the traditional media tactics with
the new media tactics. It appears that when new technology organi-
zations make the decision to integrate the Internet into their
response, they use a variety of tactics to accomplish their communi-
cation goal. Traditional tactics such as news releases and fact sheets
are being enhanced by two-way communication and connecting
links.

Consumer-product organizations. Internet responses to crises


can be further understood by examining consumer-product organi-
zations. Like new technology firms, these organizations also oper-
ate in a competitive business environment and need multiple ways
to solicit feedback to improve products and services. In total, 71%
Perry et al. / INTERNET-BASED COMMUNICATION 225

of consumer-product organizations in crisis were able to integrate


the Internet into their immediate crisis response. During the study,
most of these organizations were forced to recall one of their prod-
ucts due to manufacturing defects or potential health risks. General
Electric (dishwashers), Graco Baby Products (baby swings), Fisher
Price (Power Wheels vehicles for children), General Motors (emis-
sions problems), Bath and Body Works (candles), Winn-Dixie
(tainted meat), Omega Sprinklers (fire systems), Shine Interna-
tional (cigarette lighters), Union Pacific (delivery problems), and
Hormel Foods (contamination) needed to inform customers about
risk, offer product substitutions, or create a process for refunds.
These organizations incorporated many of the new media tac-
tics. General Electric and Graco Baby Products advertised the
recalls in print outlets and informed consumers about the corpora-
tion’s Web site as a resource for further information. Each organi-
zation’s Web site was updated so that the announcement was
clearly seen and accessible from the homepage. In addition to post-
ing press releases, these organizations set up links to items such as
“frequently asked questions” and “safety tips.” Online forms for
merchandise refunds or returns were made available. And more
important, these organizations placed photos of the products being
recalled on the Web site to minimize confusion.
These organizations demonstrated a proactive approach to
recalling their products and exemplify movement from one-way
communication—where a corporation tells the public what it
chooses—to two-way interaction between the public and an orga-
nization. Consumer-product organizations that used CMC were
able to reach stakeholders quickly and show that management was
responding to the crisis.

Government-related organizations. Political and security con-


siderations may be another factor related to an organization’s deci-
sion whether or not to implement a mediated response to crisis.
Government agencies and political organizations made up 28% of
the sample. These types of organizations were included in the sam-
ple because it is their mission to serve specific publics and if they
fail to serve the public during a time of crisis, it is a serious and pos-
sibly dangerous situation. When looked at as an organizational
type, it appears that slightly more than half of them (57%) used
226 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

aspects of CMC to respond to crisis. However, when the govern-


mental organizations that integrated an Internet response into their
crisis communication are compared to those organizations that did
not respond, a pattern emerges. There is a difference between the
organizations that see reacting to crisis as their mission (National
Transportation Safety Board, Centers for Disease Control) and
those government-related organizations that view a crisis as a polit-
ical embarrassment. The Republican National Committee, the
White House (Office of the President), the State Department, U.S.
Marine Corps, and the U.S. Labor Department did not respond to
their respective crises using their official Web sites. The crises fac-
ing these organizations included misconduct, sexual scandal, mis-
management, and security breaches. These organizations no doubt
felt that communication during this time may contribute to the
scope of the crisis rather than helping to resolve it.
The organizations that did incorporate a mediated response
reflect the government infrastructure that safeguards public inter-
ests. For instance, the National Hurricane Center tracked two
storms, the Centers for Disease Control (CDC) informed the public
about two health crises, the National Transportation Safety Board
(NTSB) and the National Highway Safety Board (NHSB) brought
two serious national transportation problems to the public’s atten-
tion, and NASA told the world about the loss of the Mars orbiter.
These examples show clearly that when the public interest is in
jeopardy, some government-sector organizations recognize the
value of the Internet as a tool to reach stakeholder publics and the
news media.
Public-service organizations incorporated both traditional and
new media tactics to inform the public about urgent matters. Spe-
cifically, the responses by the National Hurricane Center and the
CDC can be viewed as public-sector exemplars of mediated crisis
communication. The National Hurricane Center used two-way
communication, an 800-number, connecting links to other sites,
streaming video, and audio effects to inform people about two dif-
ferent tropical storms. The CDC integrated two-way communica-
tion, connecting links for pictures and more information, an easy-
to-understand fact sheet, and a question-and-answer format to edu-
cate people about the West Nile virus and a Hepatitis C outbreak
associated with blood donations. These government-related orga-
Perry et al. / INTERNET-BASED COMMUNICATION 227

nizations appeared well prepared when crises of public concern


struck.
Politically motivated organizations did not fare as well.
Research by Brouillette and Quarantelli (1971) about bureaucratic
organizations in crisis may help explain this pattern. Centralization
may delay a response to a perceived threat or crisis. Organizations
that are driven by political considerations may be more constrained
when communicating quickly with key publics. These types of
organizations may need more time to create, get approval for, and
communicate a response to a crisis. Such delay can be a manifesta-
tion of what Janis (1989) referred to as possible ego, affiliative
(political concerns), and/or cognitive constraints (time, heightened
uncertainty, ambiguity). National security concerns may also
inhibit online communication during crises. For instance, an imme-
diate response to the disappearance of a State Department laptop
computer laden with secret files may have hindered the investiga-
tion as to its location.
Whatever the reason or combination of reasons, some of the
government organizations that we expect to serve the public inter-
est are not using the Internet to communicate with stakeholders
during crises. The analysis by industry type shows that some indus-
tries, especially those that are highly regulated, competitive, or
public service-centered appear to be more willing to adopt CMC as
a crisis-management tool. Conversely, organizations with political
concerns appear to use the Internet less frequently to communicate
with stakeholders. In summary, the findings about CMC response
rates, crisis type, and preferred communication tactics provide
communication managers with valuable insights into ways that
some organizations have managed crises using the Internet.

CMC CRISIS CONSIDERATIONS FOR MANAGERS

The communication manager’s role in an organization has


changed dramatically since the growth of CMC and the Internet.
Using corporate Web sites to communicate with customers, inves-
tors, media, analysts, and many other publics is now the standard
operating procedure. Appropriate use of the Web during a crisis can
enhance understanding, change perceptions, and even save time
228 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

and money. For example, when the consumer-product organiza-


tions were faced with large product-recall situations, they were
able to communicate relevant information to affected consumers.
They also could save time and money by creating a recall form that
could be downloaded and then electronically submitted for fast,
easy resolution. It is this kind of thoughtfulness, helpfulness, and
two-way interaction that can help some organizations come out of a
crisis relatively unscathed.
CMC should be part of any routine environmental scanning con-
ducted by communication managers. According to Coombs
(1999), potential crises can range from product defects to worker
sabotage, and from economic problems to management problems.
Once these crises have been identified, organizations should con-
sider the role the Internet might play in any response. Crisis CMC
should be viewed as providing information, serving the core busi-
ness, and saving time or money. The literatures on crisis manage-
ment and CMC provide four matters that communication managers
should consider in their crisis-management planning.

Organizational needs. First, and foremost, the use of CMC


should be a strategic decision. Communication managers need to
identify the advantages and consequences of immediate crisis com-
munication with key stakeholders through CMC. If there are
advantages that save time, money, or organizational resources, then
CMC should be included in a crisis-management plan. Decisions to
integrate CMC into a crisis-management plan may help the organi-
zation prepare for and manage crises. Organizations that operate in
highly competitive, heavily regulated, or public-service sectors
need to seriously consider adding CMC to any crisis response. The
data presented in this study show that a majority of organizations
are using CMC in crisis response, and organizations that operate in
competitive industries need to know what their competition is
doing in their crisis responses.

Stakeholder needs. Second, managers need to be able to identify


the type and scope of anticipated crises. An important question that
should be asked before any organizational resources are devoted to
CMC is “Will stakeholders turn to the Internet for organizational
decisions and guidance?” Although it is almost certain that the
Perry et al. / INTERNET-BASED COMMUNICATION 229

media may turn to an organization’s Web pages for information,


not all stakeholder publics are online. Therefore, stakeholder and
media needs will determine the decision to use the Internet and the
scope of that response. As the product-recall crises showed, a few
simple additions to the organization’s Web page can help affected
publics better deal with the uncertainty associated with crisis.

Resources. Third, managers need to identify what financial,


technical, human, and legal resources are available to make the
ideal crisis-communication strategy come to life. For instance,
agreements may need to be reached with the organizational depart-
ment that operates and updates the Web site. Likewise, agreements
with the legal department and senior management should be
reached well in advance of any crisis so that communication man-
agers understand how much freedom they have to communicate
about the crisis. Finally, if two-way communication in the form of
e-mail contacts or toll-free numbers are a part of the CMC
response, then the communication manager needs to ascertain sup-
port for this outreach. It is imperative that any use of two-way com-
munication has 100% follow-through. Having no organizational
member available to answer e-mail inquiries or phone questions is
worse than not offering the option at all.

Tactics. Fourth, communication managers need to identify the


value of each traditional and new media tactic. Each of the nine tac-
tics studied in this article provides a different communication fea-
ture. Some can bring in relevant information to the organization,
some may be able to assist in decision making, and other tactics are
best used to communicate organizational actions to stakeholders.
News releases, backgrounders, and fact sheets are already central
to traditional crisis management. However, new media tactics (chat
rooms, bulletin boards, video and audio effects, position papers,
PDF forms, e-mail addresses, and toll-free numbers) can be created
well in advance of a crisis and uploaded to a site when needed.
Some organizations may want to create “dark sites” that can be
uploaded in the event of a chronic crisis. A dark site is a Web site
that is created to address a potential crisis. It is not loaded on the
organization’s server until there is a crisis. A dark site contains
information related to a potential problem and it can be quickly
230 MANAGEMENT COMMUNICATION QUARTERLY / NOVEMBER 2003

uploaded to the organization’s Web site during a crisis. Organiza-


tions may not need to use all of the tactics in every crisis, but astute
communication managers must be familiar with the benefits that
each tactic brings to crisis response.
Each of these areas needs to be considered well in advance of
any crisis. With the expected increase in Internet use, and its preva-
lence projected over the next few years, new crisis responses that
integrate the use of two-way communication, links, audio-visual
effects, and real-time monitoring will provide organizations with
new tactical options. Thus, organizational leaders should become
more familiar with the options available to communicate online
and be willing to incorporate the strategic use of new communica-
tion tactics into crisis-management plans. Although other tools
may accomplish this end, the Internet is particularly well suited to
timely, forthcoming, and two-way crisis management.

CONCLUSION

The findings of this study show evidence of emerging trends in


the use of CMC as a crisis communication tool. Organizations are
using the Internet to communicate with publics during a crisis, and
this study explained how some organizations are integrating CMC
into comprehensive crisis strategies. The decision to use the
Internet, as well as how it is used, helps us see how organizations
are integrating a new and potentially useful communication tool
into crisis communication. The data suggest that whereas organiza-
tions are using the Internet for crisis response, many rely on well-
tested tactics such as the news release to communicate with the
media and publics.
Organizational decisions and crisis responses that fail to con-
sider publics may be maladaptive and threaten the survival of the
organization. Organizations that bring in new media tactics and
engage publics in proactive discussions before, during, and after a
crisis exemplify an important movement from one-way communi-
cation to two-way interaction between the public and an organiza-
tion. In fact, Heath (1998) and Kent and Taylor (1998) point out
that the potential for dialogue between an organization and its pub-
Perry et al. / INTERNET-BASED COMMUNICATION 231

lic is one major benefit of the Internet. An organization’s attempt to


maintain relationships with its various publics via the Internet
while under intense scrutiny may minimize the potential damage of
a crisis with its stakeholders and maximize recovery.

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Danielle C. Perry is the manager of public relations for AT&T Wireless’s


national media team. She has 10 years of hands-on PR experience and
holds a master’s degree from Rutgers University’s School of Communica-
tion, Information, and Library Studies, where she conducted research
about the emerging use of Internet-based crisis communications.

Maureen Taylor (Ph.D., Purdue) is an associate professor of communica-


tion at Rutgers University. Her research on public relations, new communi-
cation technologies, and international communication has appeared in
journals including Public Relations Review, Gazette, and Human Commu-
nication Research.

Marya L. Doerfel (Ph.D., SUNY Buffalo) is an assistant professor of com-


munication at Rutgers University. Her research on organizational commu-
nication, network analysis, and semantic network analysis has appeared in
journals including Human Communication Research, Connections, and
the Journal of Applied Communication Research.

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