For my research regarding my topic, I am referencing "The Theory and Practice of Corporate Communication" by Alan T. Belasen. This book references a lot of case studies and covers important topics related to corporate communication.
Case studies offer a clear example of theories. Sometimes when reading topics in a textbook, it may be hard to imagine them being applied in real life but comparing theories to real life is an excellent way to imagine yourself handling the situation and putting the idea to use.
There are many case studies out there regarding how crises were handled, the good and bad. Belasen talks about Southwest Airlines and how they handled crises on their hands:
Date: December 8, 2005
What: Flight 1248 veered off the runway killing a 6-year old boy and injuring 11 other people.
How it was handled: Within hours of the crash, Southwest had released a statement that they were working with the National Transport Safety Board and the Federal Aviation Administration.
Southwest employees called the family of the individuals injured to inform them of the incident before releasing names to the press.
Shortly after their first press release, Southwest issued another release with additional information regarding the incident, including contact information if additional information was needed.
Result: Southwest Airlines had complete control of the situation. By not releasing names until families were called, it avoided the state of panic families of the victims would have endured and releasing two press releases within hours of each other gave Southwest Airlines control as to how its imaged was shaped by the media.
Handling a crisis for a corporation is a process that involves honesty and timeliness. Most corporations, if not all, want to be viewed in the best possible light and not have a negative stigma attached but when a tragedy strikes, the best way to handle it is to come clean to all parties involved. Whether it is an internal issue regarding employees or something that effects the outside world, such as the Southwest case, being upfront and honest will make a company look much better than one that attempts to cover something up or not talk about the issue.
Timeliness is another factor that aids a company in crisis communication. When a statement is put out promptly, it shows that the company is willing to address the issue and also quickly answers people's uncertainty of the situation. Being timely with statements also allows for the company to have more control with its image because the company is the one putting out the message, no other medium. Having that control can be the image saver of a company in a crisis.
For further reading on Southwest Airlines and how, as a company, they are considered to be one of the top innovators in corporate communication and creating a culture within their company, read Nuts! Southwest Airlines' Crazy Recipe for Business and Personal Success by Kevin and Jackie Freidberg.
Bank of America's Crisis
I look at my place of employment and see how the corporation handled some past crises. I think back to about 2 years ago when the bailouts where big news and many bank's were under scrutiny for accepting millions of dollars yet CEO's were still receiving millions of dollars in bonuses. This created a lot of speculation and anger amongst Americans. It also created a silent but hostile work environment.
Everyone knew what was going on but no one could talk about it because there was nothing that could be done from our end. The issue was never formally addressed and eventually the hype died down. However, the reputation has not. Even to this day, people I meet will hear where I work and they immediately bash how bad of a company it is because of their past behavior.
Had I been in a position of corporate communication, I think I would have handled the situation a little differently. By using the facts I already know, I would acted in the following way:
1. Prepare a crisis management plan which would include template steps for any major corporate crisis.
2. Immediately address the individuals that are directly impacted from the crisis. I would also ensure all the facts are known before announcing anything to the press (if the press is necessary)
3. Ensure that my company is the main source of how the press is obtaining their information for coverage
4. Have open communication available with anyone who wants to discuss or question the crisis. Welcoming questions seems risky but if you answer truthfully your company ends up looking better in the eyes of the public.
5. Apologize. If your company is the wrong, it is best to come forward and sincerely offer apologizes. The more personal, the better. Sending out a press release of an apology is not sincere. The parties that have been effected need to know that their feelings have been acknowledged and apologizes along with whatever the company can offer is a start at rectifying the situation.
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