Crisis Management Report

Varun Mehta

Shahab

Gopika Menon

Nitin

Odette School of Business, University of Windsor

Business Communication II

Instructor: Prof. Trevor McFadyen

Due Date: March 31, 2023

 1. Company Background

Enbridge Inc. is a Calgary-based multinational pipeline and energy corporation that operates the world's
largest crude oil and liquids pipeline system. The company owns and operates pipelines that transport
crude oil, natural gas, and natural gas liquids across Canada and the United States, with a network
spanning 28,661 kilometers for petroleum oil and 38,300 kilometers for natural gas. Enbridge has grown
through the acquisition of other existing pipeline businesses and has moved over 32 billion gallons of
crude oil between 2012 and 2021, making it Canada's largest crude oil carrier. Enbridge shipped more
than 3.77 billion barrels of petroleum oil in 2020, and more than 29.5 billion barrels in the previous
decade, from 2011 to 2020.
2. Situational Background

In 2010, Enbridge's Line 6B pipeline ruptured and leaked oil into Talmadge Creek, causing one
of the biggest inland oil spills in US history. The pipeline, which transports heavy petroleum oil from
Canada to the US, had a 6-foot breach that took five years to clean up. The Kalamazoo waterway was
closed for 35 miles for cleanup and the EPA directed Enbridge to dredge the river in 2013 to remove
buried oil and contaminated sediment.

On July 25, 2010, a section of the Enbridge Energy Line 6B pipeline burst about 0.6 miles
downstream of the Marshall, Michigan pump station, causing mixed bitumen from Canada to spill into
Talmadge Creek, which flows into the Kalamazoo River. The US EPA estimated the leak to be over 1
million gallons (about 3785410 L). The Calhoun County Health Department asked 30-50 households to
evacuate and twice as many to avoid consuming the water.

3. Operational Analysis

Individuals or groups with a vested interest in the success or failure of a business or initiative and
who can influence or are influenced by its operations, finances, and image are referred to as stakeholders.
Shareholders, workers, and customers are examples of important players in the setting of Enbridge. The
purpose of this study is to assess the crisis's influence on these stakeholders as well as the company's
ability to develop a communication strategy that successfully addresses their concerns. The consequences
of an oil spill by Enbridge, a Canadian energy transportation business, can be devastating to its
stockholders. Here are some possible outcomes:

1. Financial loss: As the consequence of an oil spill, Enbridge stockholders may suffer financial
losses. Legal and governmental penalties, as well as clean-up expenses, could decrease the
company's profitability and stock worth.
 2. Enbridge's stockholders are primarily concerned with financial success. They are interested in
long-term development and profitability, as well as powerful leadership, efficient corporate
control, and operational transparency. Investors want to know about Enbridge's ingenuity and
technology, as well as its name and brand image. Overall, they want to see that the business is
well-managed, morally responsible, and retains a competitive edge to accomplish its goals.
3. Reputational injury: An oil spill can hurt Enbridge's image and erode investor, consumer, and
other stakeholders' confidence. This can make attracting money, obtaining permits, and
maintaining the company's social licence to function more challenging.
4. Uncertainty: An oil leak can raise concerns about Enbridge's future chances, leading to greater
volatility in the company's stock price. Shareholders may become warier and trade their shares,
causing the company price to fall even further.
5. Operational hurdles: As it works to clear up the leak and avoid further harm, Enbridge may
encounter operational challenges. This has the potential to disrupt the company's activities,
affecting its financial success and stock price.

Finally, an oil spill can result in financial losses, image harm, uncertainty, and practical
difficulties for Enbridge's stockholders. It is critical for shareholders to carefully watch the situation and
evaluate the possible risks and impacts on their business.

4. Communication Objectives

Give precise and timely information: During a crisis, it is critical to provide the public and
stakeholders with accurate and up-to-date information to avoid misinformation, rumours, and potential
panic. For all audiences, communication should be clear, brief, and simple. The intent is to portray that
we have control over the situation and management is keeping an eye on sequential events.

Show compassion and care: Social cohesion, solidarity and a strong relationship requires
demonstrating empathy and care towards persons and communities harmed and affected directly or
indirectly by the oil spill. This can be accomplished by acknowledging and apologizing for the accident,
displaying genuine empathy, and demonstrating a firm commitment to solving the accident.

Acknowledge safety considerations: During a crisis, it is critical to address safety concerns to

reassure the public and stakeholders that the situation is under control. The communication should include
information on the specific steps being taken to safeguard the public and the environmental safety, such
as the protective measures and deployment of defensive resources to control the spill and protect wildlife.
 Continuous relay of relevant guidance and instructions: During a crisis, it is imperative to
provide clear guidance and instructions should include information on how to report new oil sightings,
avoiding affected areas, and what to do if exposed to oil and actions that follow potential life-threatening
situation pertaining to oil spill. This can be shared using a variety of methods, including social media,
bulk messaging, email, and public disclaimers and governmental announcements.

Transparency and accountability: Showing the company's commitment to transparency and

accountability can help establish a climate of trust and regain lost credibility while taking full
responsibility for its operations and unintentional mishaps. The statement should emphasise the efforts
being taken to resolve the issue, such as conducting a preliminary and eventually a thorough
investigation, creating new policies to prevent similar instances, and aiding and appropriate compensation
to those affected.

Promoting clear avenues for communication: Accessible and clear communication channels
between the company, public and relevant stakeholders to be promoted. To create trust and maintain open
communication channels, the organisation should respond to complaints and questions in a fast and
effective manner instead of demeaning the. This can also aid in the identification of any additional needs
or problems that might come up all through the crisis.

5. Stakeholder Analysis:

During a standing ongoing disaster, there are multiple stakeholders who are impacted directly or
indirectly in a scenario of this multitude. These stakeholders are impacted and are affected massively by
the situation at hand and their risks and vulnerability increases with every minute the disaster keeps on
expanding. The status quo in the situation will worsen the impact on the stakeholders and it is the
responsibility of the organisation to keep all stakeholders, their interest and the impact on them in check.
There are three types of stakeholders that we are emphasising on: Internal Stakeholders, External
Stakeholders and Community Stakeholders.

A. Internal Stakeholders:

1. Employees:

There are multiple impacts of a disaster on an employee specially in a man-made disaster like we
have at hand due to oil spill. There are health impacts due to exposure to this disaster and there comes an
ongoing need of a medical attention. Subsequently, there is an economic and employment impact due to a
disaster while could also result into latitudinal impacts on health, mental peace and result into stress,
anxiety and depression.
 To contain this scenario, the impact on employees is to be handled with accurate information
disbursement and support services for impacted employees. By providing clear, transparent and effective
communication; it is easier for the organisation to render a solution to the concerns of employees and
navigate challenges they face due to the disaster.

2. Board of Directors/Executives:

The impact on Board of Directors is going to be multi-fold. The board of directors including the
promotors will face a damage on their repute, financial capital that has been invested as well as the face
value and good will that comes along with the investment. Subsequently, executives and the standing
board is also liable in absence of regulatory compliances which arises legal liabilities which are going to
be costly and damaging to the organisation’s financial standing and inter-stakeholder relationship.

Transparent, proactive, and honest crisis management communication with the Board of Directors
and Promotors is essential. It should include regular updates on the situation and the organization's crisis
response, as well as information on any potential legal or regulatory liabilities.

B. External Stakeholders:

1. Customers

Customers may face a variety of negative consequences during this crisis, including service
disruptions, reputational harm, product unavailability, and doubt about the institution's ability to meet
their needs. To ensure consumer satisfaction and loyalty, clear and timely information about the crisis will
be supplied, as will realistic expectations for service or product delivery and alternative options or
compensation for any inconveniences or losses. Organizations may demonstrate their commitment to
addressing the issue and averting such crises in the future by being upfront and attentive to customer
concerns. This can be accomplished using traditional media such as television, radio, and public media
such as newsletters and public speaking, as well as social media.

2. Homeowners and Local Businesses

The whole disaster will have a variety of consequences for the surrounding population and
property owners. Physical danger to persons in affected areas, such as skin irritation, respiratory issues, or
eye discomfort, could occur immediately due to the spill and its indirect impacts. Long-term
consequences could include environmental damage and the loss of wildlife habitat, which could have an
influence on the local ecosystem and the community's quality of life.
 We would recommend implementing actions to rehabilitate the impacted ecosystem is another
technique to lessen the impact of an oil spill. Businesses could work with local authorities and
stakeholders to build a long-term plan to mitigate the spill's environmental impact. This could entail
things like restoring wildlife habitat, cleaning up the contaminated region, and putting in place measures
to prevent future spills. Initiating a house-to-house campaign to communicate with homeowners can help
to establish trust and confidence, reduce uncertainty and anxiety, and foster a feeling of communal
resilience and recovery. It is also critical to include homeowners and local business owners in the crisis
communication preparation process, requesting feedback and input to ensure that their needs and
concerns are handled effectively.

3. Supplier & Partners

During a crisis, suppliers may face negative consequences such as payment delays, disruptions to
their own operations, and uncertainty about the organization's capacity to meet its obligations. Supply
chain interruption will have an impact on business partners' capacity to fulfil orders or satisfy production
objectives. This interruption can also have an impact on business partners who rely on the company for
supplies or materials, reputation damage can harm a company's reputation, which can affect the
reputations of its business partners. Business partners may be hesitant to continue their relationships with
a company that has been through a crisis, especially if the crisis reflects poorly on the company's values
or business practises, due to oil spill, the disaster will cause financial implications for a company, which
can impact its business partners.

Organizations can demonstrate their commitment to ethical and responsible business practises
and retain long-term supplier relationships by being proactive in speaking with suppliers and addressing
their issues.

C. Community Stakeholders:

1. Local Government & Agencies:

The disaster due to oil spill and its environs might have serious consequences for local
governance. It will question the government from journalists and local populace. Government will have to
work extensively to make things better for the people living in the vicinity. I would request the local
government to work in tandem with the organisation and work on a short term and long-term disaster
containment plan.

The immediate impact could include the requirement for emergency response services, such as
firefighters and paramedics, to deal with any injuries or health issues caused by the spill. Long-term
consequences could include damage to local infrastructure and a decline in property tax revenue as
property values fall. Therefore, these short- and long-term plans need to be materialised in lieu of the
organizational disaster management approach. To lessen the impact of an oil spill on local government,
officials might set up a public information hotline to offer locals with updates and information on the
situation. They could also utilise social media and other means of communication to deliver real-time
updates and notifications about the spill and any potential safety issues.

Furthermore, the local government might collaborate closely with the corporation that caused the
spill to prepare a detailed strategy for cleaning up the damaged region and limiting any environmental
harm. Working with environmental specialists to determine the degree of the damage and design a long-
term plan for repairing the affected ecosystem could be part of this. Working collaboratively with state
and federal agencies to ensure that all required resources are available to solve the problem is another
strategy to lessen the impact of an oil spill on local government.

2. Environmental Advocacy Groups

Environmental advocacy groups can help mitigate the effects of an oil leak in the Kalamazoo
River and its environs. They can help raise awareness of the spill's environmental and public health
hazards, push for greater environmental regulations and protections, and support clean-up operations to
reduce the spill's impact. Companies can take numerous efforts to reduce the impact of the spill on
environmental advocacy groups through crisis communication. First, they can communicate with these
groups early and frequently, providing regular information on the spill's condition and any clean-up
activities. This can assist to promote trust and collaboration between businesses and environmental
advocacy groups, which can be important in the aftermath of a crisis.

Enbridge can collaborate with environmental advocacy groups to identify and solve the specific
environmental problems and dangers related with the spill. This can include partnering on clean-up
efforts, conducting environmental evaluations and impact studies, and implementing best practises and
technologies to prevent repeat spills.

Enbridge can demonstrate a commitment to sustainability and good business practises by putting
in place robust environmental policies and SOPs to prevent further possibilities of a potential spill and
reduce the risk of environmental damage. This can help our organisation in establishing credibility and
confidence with environmental advocacy groups and other stakeholders, as well as portray them as
responsible and trustworthy community partners.

3. Media Outlets and Print Media

 The oil spill in the Kalamazoo River and its environs has had a tremendous influence on the
media and print media. The leakage is likely to generate headline news and garner considerable media
attention, resulting in extensive press coverage. This coverage may have a negative impact on the image
and reputation of the companies engaged in the spill, as well as those in charge of cleaning it up.

By communicating correct information to the public, media outlets and print media can play a
critical role in reducing the impact of the oil disaster. They can provide information on the methods taken
to control and clean up the spill, the impact on the environment and local communities, and attempts to
prevent future spills. Media outlets can help to lessen public fear and anxiety and retain faith in the firms
engaged in the spill by giving clear and truthful information.

In addition to reporting on the spill, news sources and print publications can help to raise
awareness about the importance of environmental protection and the necessity for sustainable practises.
They can support projects that try to minimise the use of fossil fuels and encourage campaigns to reduce
oil consumption. They can support a transition towards more sustainable behaviours and help to prevent
future oil spills by doing so.

6. Key Messages presented in a Message Map Format

Enbridge recognizes that our stakeholders are critical to our success and that we have a
responsibility to meet their requirements. We acknowledge the potential influence of our operations on
the environment and the community, and we are committed to honouring our corporate social
responsibility. We are committed to addressing our stakeholders' problems and challenges, and we feel
that open and transparent communication is critical.
Enbridge's message map ensures that all stakeholders are communicated with effectively, and
their concerns are addressed in a clear and concise manner. The following will be the message map
approach that would be taken in this scenario:

Enbridge Cares! Enbridge shall work tirelessly till we attain the status quo.
We apologize for the spill's
impact on the community and
are committed to taking
corrective action promptly. We
are also investing in more
secure technologies to prevent
similar incidents in the future.
We deeply regret the negative
impact of the Kalamazoo oil
spill on the community and are
committed to taking necessary
actions to address the situation.
Our team is committed to
controlling the spill and
minimizing its impact on the
Kalamazoo River and
surrounding areas. We
prioritize the safety and well-
being of workers, residents,
and the environment during the
clean-up process.
Modern technology is being
used by our skilled staff to
track and control the spread of
the spill in the Kalamazoo
River.
We are taking every precaution
imaginable to protect the
health and safety of our
workers, the residents of the
neighborhood, and the
environment while the clean-
up operation is underway.
Safety of our workers is our
top priority and we provide
them with regular training and
supervision to ensure their
well-being.
We understand the devastating
impact of the oil spill on your
community and environment.
We take full responsibility and
pledge to invest in making it
right
To remove polluted soil and
debris and stop any additional
damage, specialized teams
have been deployed at the
impacted areas.
Our employees are following
strict safety procedures and
using cutting-edge protective
equipment to reduce the
likelihood of coming into
contact with hazardous
materials.

We understand that the oil spill
has caused emotional distress
in addition to physical damage,
and we want to reassure you
that we are committed to
providing support during this
difficult time.
We want to assure you that we
are taking all necessary steps to
meet or surpass environmental
and safety standards during the
clean-up process, and our team
is working closely with
regulatory agencies to ensure
this.
We are collaborating with the
community and regulatory
authorities to ensure that the
cleaning process does not
further damage the
environment, and we are taking
all necessary steps to prevent
any additional harm to the
environment.

7. Tools, Tactics, Techniques, and Timeline for Crisis Management Plan

Tools Tactics Techniques Timelin

Social Media To provide regular · Posting progress updates with Post

Handles updates, with pictures on social media incident
accuracy and no handles. – on a
flaring up of data in · We will update public and local war
public domain with populace on time-bound footing
all the steps that are movement of progress level.
being taken now. happening in real time.

News Release To show recognition · We shall update print media Post

through Print of the event and about the progress with pictures incident
Media express regret for the and timeline on a regular basis. – on a
adverse effects it had · We will endorse and publish the war
on both the oil spill measures that are being footing
community and the taken. level.
environment.
 In Person To provide · Our messaging will demonstrate Post
Communication reassurance, empathy empathy, understanding, and a incident
and acknowledging commitment to aiding through – on a
the grief of local the field communication team. war
populace. · They will answer all the queries footing
and concern the public has and level.
update them on the real time
solutions that Enbridge is
undertaking.
Public The objective is to · This also encompasses Post
Conferences and guarantee that the organizing daily sessions to incident
Information Relay public and media are update stakeholders and weekly – on a
Mechanisms. informed accurately conversations with experts to war
and in a timely provide accurate and timely footing
manner regarding the information about the crisis and level
emergency and the the company's response.
measures taken by
the company.

Emergency Facilitation of any · Opening hotline and information Within

Partners queries and the relay broadcasting toll-free numbers. second
Communications of information. day
Communication To establish the · Top brass meetings with the Immedi
with Regulators organization's authorities and the management. ately
credibility and after the
redemption of old incident
legacy.

8. Measurement
Crisis communication effectiveness can be measured by several key factors, including:
Message Reach:
1. In a crisis, clear and effective communication is crucial to inform and guide people through the
situation.
2. Measuring the number of people who received the crisis communication message is important to
evaluate the effectiveness of the communication strategy.
3. This metric can be tracked through social media analytics, email marketing tools, or web
analytics.
4. It's essential to ensure that the crisis communication messages are clear and concise, so people
understand the situation and what they need to do to stay safe.
5. Reach and frequency are critical for protecting the public with the first messages. This means that
the messages need to be disseminated through multiple channels to reach as many people as
possible.
6. Repeating the messaging is essential for aiding remembering, particularly in times of emergency
when people's attention spans are shorter owing to stress and racing thoughts.
7. The Centers for Disease Control and Prevention (CDC) recommends that messages should be
repeated frequently to ensure that people receive the information they need to stay safe during a
crisis (CDC, 2018).
Overall, clear and effective communication is essential in a crisis, and measuring the reach and frequency
of the crisis communication messages can help organizations evaluate the effectiveness of their
communication strategy. It's important to ensure that messages are clear and concise and repeated
frequently to help people remember the information they need to stay safe.
Message engagement
Clear and succinct message based on correct and up-to-date information, with practical steps for people to
do, is required for effective crisis communication. Messages should be targeted to the audience and
situation, with no extraneous jargon or information. Monitoring audience engagement data, such as social
media engagement rates or email open rates, is essential for assessing the effectiveness of the
communication plan. Consistency in communicating is also vital to minimize confusion or the spread of
rumors, and it is critical to make the initial messages basic so that individuals can absorb and recall the
pertinent information.
Mapping Response Time:
Reaction time is an important component in determining the efficacy of a crisis communication plan. It
refers to the time it takes for a communication to reach its intended audience. Reaction time can be
measured using a variety of methods, including email delivery time, social media response time, and
website loading time. The more quickly the message reaches the intended audience, the more effective the
communication strategy. Communications should be sent as fast as possible to ensure that people have
access to the information they require. Aside from being timely, effective crisis communication should
also demonstrate empathy and compassion for individuals touched by the disaster.
Website Traffic Analysis
A website traffic study can be an important part of a crisis management plan. Organizations can acquire
insight into the extent of public interest and engagement with a crisis by tracking website traffic during
the crisis. This information can be used to inform decision-making and communication strategies, such as
assessing which messages are resonating with the public and which channels are most effective for
information dissemination.
During the COVID-19 pandemic, for example, website traffic to the Centers for Disease Control and
Prevention (CDC) website grew significantly. The site got 1.6 billion page views in March 2020, up from
900 million in January. This surge of traffic indicated widespread public interest and worry about the
pandemic, which influenced the CDC's communication approach and messaging.
Surveys & Feedback:
A crisis management strategy must include stakeholder reactions. Employees, consumers, shareholders,
suppliers, and the community are all examples of stakeholders who are affected or have an interest in the
problem. In a crisis, stakeholders may have concerns or inquiries that must be answered quickly to ensure
the organization's smooth functioning and reputation.
It is critical to identify key stakeholders and comprehend their possible reactions to the crisis. This can be
accomplished by completing a stakeholder analysis, which entails determining their level of interest and
power and devising a communication strategy to keep them informed. The communication strategy
should contain clear, consistent, and timely message that answers and supports their issues.
Post Crisis Review
Any crisis management plan should include a post-crisis review. It entails doing a detailed assessment of
the crisis response to determine its efficacy and to identify areas for improvement. The crisis management
team should evaluate the performance of the plan's many components, such as the communication
strategy, emergency response protocols, and decision-making processes, during the review. The team
should review the timeline of events and assess the efficacy of each step done throughout the crisis. The
assessment should also evaluate individual team members' performance, highlight any deficiencies or
areas where extra training is needed, and make recommendations for future improvements.
Conclusion
Lastly, Enbridge shall always realize the significance of approaching crisis communication with utmost
prudence and promoting ethical norms of duty and accountability. Our priority is open communication
and empathy for individuals affected by the crisis. We are committed to adopting ethical principles and
remain prepared for any eventuality, acting quickly with an over all goal of establishing Enbridge's strong
reputation.