Page 23 - Crisis Communication Practical PR Strategies

4 4 Crisis Communication

In Chapter 5, the new dynamics of financial crises are analysed.
Additionally, we come to the realization that all types of crises dis-
cussed in this book have something in common: they have a major
impact on a company’s financial situation and, in turn, lead to a finan-
cial crisis. This chapter studies the financial consequences of a crisis
and shows how these can be best tackled.
Fraud occurs in various guises. An organization may, justly – or
unjustly – be accused of fraud. Chapter 6 shows how such accusations
strike at the very heart of a company. Once fraud is discovered it can
lead rapidly to legal problems. It is essential to demonstrate that the
charge is unfounded, or that the matter is being investigated in a
transparent fashion.
The first step involves investigating the facts. In the event that the
accusations are true, it is important to distinguish between intentional
and unintentional fraudulent practice. Clear public statements are
very important in this respect. Once again, studies of real cases show
that the way in which such accusations are dealt with often has more
impact than the accusation itself. When someone is falsely accused of
fraud, the facts must first be ascertained and then communicated
quickly to the public. Subsequently, short- and long-term strategies
must be developed to demonstrate that this person was actually the
victim, not the perpetrator.
In the seventh chapter, we deal with communication about
company reorganization and restructuring. These events always
contain the seeds of a potential crisis and shareholders, where they
exist, and staff must take precedence. Good communication plays the
lead role. In this chapter, the authors evaluate how the chances of a
reorganization/restructuring failing or succeeding are influenced by
the communication activity surrounding it. This can be further com-
plicated when, as outlined here, it involves cross-border sites.
Food quality and safety controls have vastly improved in recent
times. We are becoming ever more aware of what we eat and it is no
wonder that a food crisis has a major impact. Chapter 8 studies
several food crises that have affected us over the past few years and
the impact these had on our eating habits. We also look at how obesity
is becoming more prevalent worldwide and how the food industry is
playing a major role in combating it.
The author states that all businesses in this sector are in dire need of
a crisis plan – more so than in any other. A proactive crisis plan cov-
ering all scenarios is essential for every food company. Stakeholders
demand reassurance where it concerns food. Clear and credible infor-
mation from such companies is crucial. Once again, the media plays a
vital role. The case study of the Prestige ship disaster demonstrates the
way in which a food safety crisis can arise.