Crisis Communication

• Come alive with the Pepsi Generation, Sony:

white woman holding a black woman by the jaw;
GM, Nova
• Communication during difficulties.
• Crisis unexpected (Bhopal 1984, 9/11, 26/11)
• Accidents – plant accidents – Gas leakage (Union
Carbide, Bhopal, 1984), Chernobyl (1986).
Regular basis – in manufacturing, coal mines. Fire
in oil and petrochemical companies, machine
related mishaps.

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 Crisis definition:

• Crisis is an event of a nature or magnitude that has the

potential to:
• Threaten the reputation of company/country.
• Disrupt normal business operations.
• Damage company’s performance or inhibit its business
goals.
 When crisis strikes
• National/international attention.
• Queries from top officials, news media. Media
quickly descends in large numbers, expects answers
for everything.
• Handicaps – poor communication (earthquakes).
Satellite telephones, radio work.
• Language barriers – take help of translators (Gujarat
Quake).
• Crisis strikes any time – holidays (Gujarat and Latur
Quakes, midnight - gas leakages).
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 When Crisis Strikes
• Bhopal Gas Tragedy 1984
 When Crisis Strikes
• Bhopal 1984
 When Crisis Strikes
• Bhopal Aftermath: Mass Cremations
 When Crisis Strikes
• Rumors: Guaranteed in the absence of
communication flow.
• Crisis is news. People have right to know. Right to
information bill.
• Communicate to media immediately
• Consistency and coordination in communication
flow.
• Quick and honest response – stops rumors, spread
of wrong information.

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 When Crisis Strikes
• Usually crisis communication capability
nonexistent – Bhopal tragedy. Good response
from Western Railway (Floods 2005), Mumbai
attacks (2008),Hurricane Kartina (2005)
• Emergency plans – Dow Chemicals, SABIC
• Politics to deal with (Tsunami, center versus state,
union territories). Lot of posturing and blame-
game.

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 Tsunami: 2004, 2011
• Tamil Nadu Coast: 2004
 Preparing for Crisis
• Mock disaster drill (Gas leakage, fire). Make short
films and play it up on sites/community centers.
• Participation by fire (ITI 2009), security, civil
defense, medical personnel.
• Invite local media, community leaders. Their
feedback or criticism helps.
• Send important messages to employees (how to
respond, where to assemble: SABIC drills).
• Company involved in crisis never wins. (Exception
Pepsi syringe case).

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 Handling Crisis
• Press sensationalizes. Wrong reporting. Takes
things out of context. Twists the story to its liking.
Looks for entertainment in news.
• Press - `You never tell the truth’. Suspects
organizations hide, avoid, mislead.
• Media – plays to the gallery, emotions.
• Be honest with bad news, you will be trusted
during good times as well.

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 Handling Crisis
• Media expectations: Backgrounders,
pictures, footages.
• Briefing from competent senior people.
• Access to top people after, during crisis.
• Set of Q & A prepared in advance.

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 Handling Crisis
• Importance of rejoinders. Correct the
factual errors. Correction columns.
• No rejoinder if negative news is true.
• Explain your position.
• Don’t anger reporters, journalists like to
have a final word.
• Serious cases – option to go to court. Seek
apology on desired page.

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 Challenges
• Crisis – Consequences are enormous.
• Fire or product malfunctioning could be
addressed.
• Crisis – life and death for products,
companies. (Coca Cola/Pepsi pesticide
case).
• Challenge: To regain creditability with all
audiences at short notice.
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 Challenges
• Dubious actions of CEO, racial
insinuations, industrial disasters could spell
short term doom.
• Crisis impacts people first and then the
organization (Satyam 2009). Company
closers – share price or certificates
manipulations. Plant closers due to
employee unrest.
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 Crisis Communication
• Before 1960s – crisis was dealt by lawyers
(lawsuits). Strategy: conceal than reveal.
• Today: Open and improved communication has
changed the dynamics. Stakeholders are better
informed.
• Companies aware of hidden damage done to
reputation and brand.
• Crisis – potential marketing issue with lasting
effects.

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 Communication Team
Function of the communication team

Communication Team is to support the Communicator by:

• Implementing the communication plan

• Providing feed-back on the effectiveness of
communications.
• Handling media and enquiries.
• Handling local and outside enquiries.
 Communication team

Key messages:

Up to four or five short and positive paragraphs that

summarise what has to be said. Focus on the concerns,
emotions and perceptions of the audiences. KISS.

The basis for all internal and external communications.

 Communication team

Golden Rules
• Be positive – avoid “not”, “cannot” etc.
• Tell the truth – don’t try to be clever.
• Stick to the facts – don’t speculate.
• Admit to not having the answer – and explain why we don’t have it.
• Show concern – a human face – express regret if it is appropriate.
• Show a commitment to sorting the problem out.
• Ensure consistency – use the same messages with all audiences.
• Ensure coherence – make sure the ‘story’ hangs together.
• Ensure clarity – speak their language, not ours.
 Crisis Communication
• Trends impacting the companies: Trial by media.
Competition among companies.
• Sue the media –Food Lion (selling old meat and
produce).
• Give something back to stake-holders once the
crisis blows away (food coupons, travel, gift
vouchers).

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 Crisis Communication
• A few crisis scenarios can be anticipated (sans
scale, timing and magnitude).
• Oil spillage, explosions, terrorist strikes, sexual or
racial law suits.
• Attitude: “Impossible to plan for everything so
plan for nothing”.
• Analysis: What can happen to your company?
What could go wrong? Talk to employees.
• Top management is least informed (bad news).

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Oil Spill (Louisiana US), Apr 2010
Gulf Oil Spill (US)
Gulf Oil Spill (US)
Gulf Oil Spill (US)
 Crisis Categories
• High risk (environmental or medical
products) and medium risk companies
(publishing industry).
• Product related: Baby food (China 2008).
• Pepsi-syringe.
• Terrorism: Bali, London (7/7), (9/11),
Indian Parliament Attack (2001), Russian
school (2004), Mumbai 2009.
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 Terrorist Attack: US (2001)
• Twin Towers: WTC New York
Mumbai Attacks 2008
 Mumbai Attacks 2008
• CST. Mumbai
 Seven Deadly Sins
• Erroneous ethics – Stock market
manipulations (insider trading, Satyam
2009).
• It cannot happen to me, everything is fine.
• Mixed values – You have come a long way
baby (1960s tobacco campaign).

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 Seven Deadly Sins
• Stonewalling stakeholders – not admitting
mistakes. Peter Syndrome –Accept and
regret. (Food quality complaints).
• Walking high wire without net –
communication should follow with action.
(Hurricane Katrina, Rita).
• Addiction to repetition – Repeated crisis
(plane crashes).

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 Bad Performances Repeated
• Iranian Plan Crash
 Bad Performances Repeated
• AI Mangalore Plane Crash 2010
 Crisis Lessons
• Larger the crisis – longer the public memory.
(Union Carbide, Nuclear Plan Accidents)
• The company’s behavior – putting profits before
public good, shirking responsibility.
• Eye-witnesses and third parties are believed rather
than company spokesperson. Companies hide
truth.
• During crisis – companies are under microscope.
• Globalization- Each country has local laws,
customs, public perceptions (Kentucky, B’lore).

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Chernobyl, 1986: Pripyat City
 Fukushima: Japan 2011
• Damaged Reactor Building, Satellite Image,
March 2011
 Crisis Lessons
• Child labor, employee abuses – no longer go
unpunished by the public. Boycott and public
criticism. (Garments made in India, 2008)
• Crisis plan: approach –approval of top
management on delegation of authority how to go
about. Plan on paper.
• Crisis team – some one has to be in charge.
Selection of team – c.c., legal, HR, medical,
research, safety, operations (CCG IPCL), safety,
security, transportation, government affairs.

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 Crisis Lessons
• Establish a crisis center. Computers, Internet, modem
to access data, faxes, video conferences, radio or wire
services.
• Center should have – up-to-date list of key persons in
the organization, media, government,
customers/distributors, stationery, camera etc.
• Advance Q & A ready. What to do when information
is not available. Common scenarios: product fails,
plane crashes, tank leaks, broker cheats, union strikes.
• Do no speculate but explain with diagram (accidents).

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 Crisis Lessons
• Information vacuum – fill with backgrounders to
contain speculation.
• No hesitation in saying good things (safety record,
quality etc).
• Four Rs: Regret – sorry does not mean you are
responsible.
• Resolution – What you will do to resolve the issue
(safety cap on medicine)
• Reform: What additional measures you will take
to prevent the crisis
• Restitution: Compensation to stakeholders.
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 Crisis Lessons
• People love to read about problems of
others.
• Crisis planning – in order to sleep well in
the night.
• Crisis is costly event. Preparation and
training separates winners form the losers.

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 Crisis Communication
• Exercises, case studies.

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