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SATYAM

CRISIS
MANAGEMENT
-SAGAR DANG
(PGP/20/345)
K Employees
E
Y

S Directors & Senior management


T
A
K
E Media
H
O
L
D Finance sector stakeholders
E
R
S
Investors
Gaining shareholders confidence
Post- Crisis confidence can be boosted in three ways:
Clear communication channels
Transparency
Necessary Actions
Building
Confidenc
e
Clear Taking
communication
Transparenc Necessary
channels y Actions

ALWAYS TRY REACHING OUT TO THE STAKEHOLDERS FIRST BEFORE THEY GET THE
INFORMATION ABOUT THE CRISIS FROM SOME OTHER SOURCES
Creating Clear Lines of Transparen
Communication Action
cy
WHY CLEAR LINES OF COMMUNICATION?

In many crisis employee issues emerge as the most important


factor
Public relation department need to quickly resolve and clarify
any queries, questions and clarifications
Planning should also include ways to continually update the
information
Sources of information should be well defined- from managers,
telephone lines, meeting rooms, notice boards etc.
For every message to media there should be a prior message to
employees
POST CRISIS FIRST STEP SHOULD BE ESTABLISHING CLEAR LINES OF COMMUNICATION TO
REACH EMPLOYEES AT ALL LEVELS IN ALL LOCATIONS
Creating Communication Transparen
Channels Action
cy
WHY TRANSPARENCY?

Stakeholders most concerned about how crisis is going to affect them


Directors and senior management want to know the big picture
information about the incident and the impact on the viability of
organization to come out with an action plan
Finance sector shareholders such as bankers, creditors want to know
the impact the revenue and profitability and any likely future
financial implications
Therefore, stakeholders should be provide a clear picture so that they
can be include in the decision making relevant to them

EVERY STAKEHOLDER IS ENTITLED TO HAVE A CLEAR PICTURE OF ACTIVITIES THE


ORGANIZATIONS, IN WHICH THEY HAVE INVESTED, ARE INVOLVED IN.
Creating Communication Transparen
Channels Action
cy
ACTION PLAN TO MITIGATE THE DAMAGE

Well-defined and unbiased action plan should be framed for


damage control
In Satyams case a qualified and independent audit committee
should be setup for future financial activities
People responsible for the crisis should be appropriately
punished according to the gravity of the wrongdoings
Appropriate Holding statements should be circulated post the
crisis
Always reach out to the stakeholders first before they hear
about
THE the
ACTIONS crisis
TAKEN POSTfrom some
A CRISIS other
DEFINES sources
THE INTEGRITY, ETHICAL VALUES AND
SERIOUSNESS TOWARDS THE IMPLEMENTATION OF THEIR CODE OF CONDUCT.
THANK YOU