COM 105 Module 2 Exam

6.Commitment

- Publicly promise that to the best of the organization's ability similar situations will never occur or reoccur. -Incorrect approach: "We can't promise no future mistakes." -Correct approach: Establish a permanent, broadly representative advisory group to assure the public of the company's intentions on an ongoing basis. *Has to do with future situations *Let public know how they handled it and how they will handle other situations in the future

Severely distorted recollection

-"No one understands what I'm going through" -"They could have done more, faster" -"Growing sense of helplessness" -A permanent sense of anger with endless analysis -Victims Need: Life rebuilding assistance. Ongoing counsel. Outcome-focused action. Understanding. Contact with accident/death site.

Coca-cola in India: India's Changing Marketplace

-1960's - 1970's -Obstacles to foreign investment - bureaucratic and cultural -Example: 1977 Coca-Cola withdraws from India when gov. demands its secret formula -1990's - 2000's -Economic and governmental reform -Example: From 2003-2006 foreign investment doubled to $6 billion *Indian gov. was against outsiders coming in and running their businesses but mange to get in *Capitalism- celebrity endorsement

Charges against coke

-2002 -Villagers in Kerala allege: -Water levels had sunk -That drinking water was contaminated by the Coke bottling plant -Health Minister of Kerala bans sale of all Coca-Cola and PepsiCo products, claiming the products contained unsafe levels of pesticide *Was Coke responsible? *Still have to deal w/ the situation *What was its response? Denial *Blend of Indian culture with American *Increasing problem of fresh water and coke uses a lot of it *Slowing developing crisis- slow to create a market and then slowing alligations and slowing started to respond *People who lived close to bottling had problems with water

the operations dimension

-7 steps -Needed in order to regain -community support -Cannot miss a step -Cannot change the order *Different dimensions in first dimensions *Company needs to follow steps in the specific guideline

Miscommunication: A definition

-A process by which information is exchanged in a faulty, incomplete, or incorrect way, resulting in a failure to understand on the part of the communication recipient. -Social Amplification of Risk Perception:Miscommunication may lead to heightening or attenuation of risk -Guidelines: Communicating science should not just focus on communication practices themselves but also on strategies to avoid public misunderstanding of the supposed truths being communicated. *Mutual understanding isn't established -Maybe only part of message is understood *A change in one thing changes another thing Uncertainty- how employees communicate with a new person *When conduct research we do it with theoretical mind (prediction, back up research) *Public isn't interested in how experiment just the results - causes lack of communication of variables; people make incorrect assumption about variables *EX: autism and vaccine -In some situations there is a third variable involved

3.Declaration

-A public commitment and discussion of specific, positive steps to be taken -Address the issues and resolve the situation -Incorrect approach: Stonewalling with a scripted, insensitive, overly technical, and irrelevant operational response. -Correct approach: Talk from the victims' point of view, Be explicit about doing what ever it takes for the victims. *Need to be upfront on steps that company they are taking *Creates appropriate response to decision *Depends on what type of crisis it is - need to communicate in an apathetic way to be understanding

Anti-sweatshop article

-An overwhelming majority of fast fashion is produced in sweatshops all around the world -Workers in Swaziland were exposed to toxic chemicals; preventable factory fires and collapses killed thousands in Bangladesh -When confronted with this kind of information, the knee-jerk reaction is to boycott -introduce these horror-story realities to concerned students and consumers, the first solution they typically propose is to stop buying from these brands - boycotts are rarely effective, and they can be dangerous for garment workers who are organizing and fighting for their own rights -Even if you harbor a heavy fast-fashion shopping habit, you are ultimately not responsible for unethical labor practices. Stores aren't even responsible, and neither are brands' sales teams. It's the top decision-makers at the corporations who are, and that's where change needs to happen -Boycotts are designed to drum up negative publicity for brands, which can put a dangerous amount of scrutiny on those who are actually trying to organize on the ground -Labor leaders who fight against inhumane treatment are often maligned by their governments as threats to a country's profits -brands place immense pressure on governments in the global south to maintain lax regulations, low trade barriers, and cheap wages, and because countries like Bangladesh rely heavily on these businesses for economic solvency, they are willing to stop at nothing to ensure the corporations are kept happy -Workers don't need pity or charity; they need solidarity and allies who are willing to strategize with them about how to hold brands accountable -Corporations operate globally, and so the only way to put an end to these senseless human rights abuses is for us to reach across borders and organize globally, because at the end of the day, we're all workers just trying to put food on the table and provide a decent life for ourselves and our loved ones

why is risk hard to talk about

-Anchoring: we make risk estimates according to readily available evidence, even though predicting future events is extremely difficult *difficulty making accurate predictions of what can happen; to avoid risk people look at past events -Confirmation bias: we favor information that supports our positions (typically successes) and suppress information that contradicts them (typically failures) *apply fault else where - people think less about worst outcomes -Groupthink: once a course of action has gathered support within a group, those not yet on board tend suppress their objections—however valid—and fall in line -Normalization of deviance: firms incubate risks when treating early warning signals as false alarms rather than alert to imminent danger *once idea is verbalized in group it is difficult to get rid of it; even if it not the best idea, people will not want to speak up again b/c there is no support *Not easy for everyone to talk about *Risks is all negative things but companies think they wont be the one's that are going to be affected but others will

External risks

-Arise from events outside the company and are beyond its influence or control -natural and political disasters -macroeconomic shifts -Focus on identification and mitigation of their impact -"What-if" planning is still important *Things that are beyond the control of the company *Dealing with the economy or even natural disasters *Political *Unpredictable *Try to anticipate situations- have people think about wort case scenarios to know how to deal with them if it does happen *Hard to know when something will happen

coca cola in India-Article

-Authorities in northern India have ordered the closure of a Coca-Cola bottling plant at the centre of protests that it is extracting too much groundwater -The plant was also asked to produce a permission certificate from a government agency that regulates ground water use -The company has appealed the closure order to India's environment court, the National Green Tribunal -Coca-Cola, the world's largest soft-drinks maker which has consistently denied the allegations -The Indian unit of the company hit a hurdle earlier this year when local authorities said they would demolish the plant, claiming it was built on village council land and was "illegal" -The authorities also imposed a 126,000 rupee ($2,000) fine on Hindustan Coca-Cola Company Private Limited, over the land issue -India is one of Coke's fastest-growing markets thanks to an expanding middle class -The bottling plant, one of 58 that Atlanta-based Coca-Cola has in India, has been at the centre of protests for years. Demonstrators accuse the company of creating major water shortages through excessive extraction of water and of polluting groundwater and soil -Coke last year announced the completion of work to expand the Varanasi bottling facility which can produce 600 polyethylene terephthalate bottles a minute

History (continued)

-Barriers to science communication: -Disconnect between scientific and common person's language -Complex scientific rules -Scientific uncertainty -Science and pseudo science -Underdeveloped protocols -Lack of incentives for scientists for public interaction *How we gather info and present it, people don't understand as well so they need to put finding in context *There hasn't been clear protocols on how scientist communicate their findings to the public -If cant communicate public its not helpful to public *Social science also counts as "science"

Images perceived by constituencies

-Before interaction, perception are from -What they read -What people tell them about the company -Visual symbols they recognize -After interaction -Quality of customer service -Encounter w/brand -consistency -Maintain image with constituencies, investors, employees, and community

India's response to the allegations continued..

-CSE tests of sugar used in soft-drink manufacture revealed samples to be pesticide free -In state court, Coke's request for relief granted: sales ban lifted -2010 -State government panel finds Coca-Cola responsible for depleting groundwater and dumping toxic waste between 1999 & 2004 -Coca-Cola India asked to pay $47M in compensation *Shipped product to Britain to do pesticide testing *Found that there was pesticides but not enough that would be "harmful"

Ted Talk: people have the instinct to share everything in social media

-Changed crisis management because it changed speed when people need to communicate -In order to position organization in leadership, crisis management needs to be instinct -They need to know when to communicate -Instincts need to be proactive

Lessons Learned

-Coca-Cola did not: -Anticipate local government reactions to test results -Respond quickly enough to customer anxiety -Realize how fast news travels in modern India -Coca-Cola did: -Form committees in India and the US to address the problem -Commission its own lab tests -Respond in detail (eventually) *Pre-crisis planning *Know what you want to accomplish-If wrong, admit, if not, come out strong *Know who you are dealing w/b/c it was less immediate, they should've responded quickly *If they were candor, would have avoided a lot of conflict (deaths, protests) *In India, they have more community aspect, Americans didn't put that into perspective

Coke's path forward (in India)

-Coca-Cola employed The Energy and Resources Institute (TERI) to evaluate its operations in India -Coke partners with local and international partners to address water scarcity -Central Ground Water Authority -State Ground Water Boards -Schools and Colleges -NGO's *Rebuild *Partnered with local organizations that were involved in environment *Worked more closely with farmers to help replace water that they used -Coca-Cola embarks on a campaign to address micro-nutrient malnutrition, or "hidden hunger" -In India, Coke introduces "Vitingo," an orange-flavored beverage fortified with micro-nutrients *Changes subject-Give them armor of goodwill

Morally relevant or irrelevant?

-Consider organization is being cautious to hazards and risk that can affect the public -Tradeoffs of risk against benefit often put things in terms of 'cost.' Moral dimensions are as or maybe and risk against cost are unacceptable, callous way to talk about outrage. -Think about a hazard that to you would be simply unacceptable under any circumstance

Controlled by me or others?

-Control is about who implements the hazard -Share control to help public to feel better about situation -Let public have a say helps people stay on right track

The trust and credibility dimension

-Credibility is conferred by others based on an organization's past behavior -Provide advance information. -Ask for input. -Listen carefully. -Demonstrate that you've heard, i.e., change your plans. -Stay in touch. -Speak in plain language. -Bring victims/involuntary participants into the decision-making process. *Recall discussion about organizations efforts to strategically develop identity and establish positive image *Organization seems to be honest when they are communicating what they are doing to fix incident and share what they will do in the future *How quickly are they accepting blame

Risk= Hazard + Outrage and components of outrage (sandman)

-Dangers to humans -Pose a threat to health

Non-rational methods

-Decision making is based on less logic -Less strategic

5.Consultation

-Directly involve and request the participation of those most directly affected to help develop more permanent solutions, more acceptable behaviors, and to design principles and approaches that will preclude similar problems from occurring. -Incorrect approach: Using a "voluntary" internal investigation as a cover to avoid scrutiny -Correct approach: Announce an unassailable panel of independent experts to study, recommend, and report publicly. *Organization brings in outside experts *Help build confidence among public to show them they have nothing to hide *Helpful to try to fix situation *Communicate any findings to public

Ted talk- Jason Fried

-Don't have work days but work moments -People don't have uninterrupted time in office -Not being able to have time to get work done -Sleep and work are stage based events -people do not get work done at work because of managers and meetings -Suggestions -No talk Thursday's -Switch from active communication to passive communication (e-mail) -Be interrupted in your own time -Cancel meetings

Coke's path forward (globally)

-Emphasis on water conservation *Coke produced PR campaigns *Wanted to show people that they are trying to fix their water use

miscommunicating science: history

-Evolution of transmitting science information -Newspapers helped to disseminate scientific discoveries and popularize them. -But not always equipped with the technical knowledge of science -Recent explosion of communication technology -Potential for communicating science is an order of magnitude greater than before -Potential for miscommunication is equally great *After you notice and classify a stimulus, you assign interpretation. (Construction kicks in gear) meaning through *Talk about how research gets communicated with the public *How we take scientific findings and explain to a bigger group of people *With newspaper you can get more info to a quicker way to the public *Articles are better to understand but it is not thorough like scientific article *Average person doesn't have the same understanding of science like scientist so they need to provide info in a way the audience can understand it *People can get info in the internet but not always accurate *Has risk because we're not sure if it is good info

Familiar or exotic?

-Familiar risks are underestimated -Get difficult to get people to take risk seriously -Difficult to reduce people's fears when hazard is unfamiliar -Ebola vs flu

Restitution

-Find a way to quickly pay the price -Go beyond community and victim expectations and what would be required under normal circumstances to remediate the problem. -Incorrect approach: stalling, only doing the absolute minimum -Correct approach:Close all restaurants the night they learned of the possible problem. Take direct, immediate, quiet action to address and alleviate victims' concerns and fears. *Sometimes organizations are focused on cost - shutdown and make inspections *Showing public what they are doing to keep their publics confidence *After situation, company is a lot more careful

Russell Corporations

-Founded by Benjamin Russell in 1902 -Marketed under many brands: -Largest private employer in Honduras -Owns all 8 factories in Honduras rather than subcontract out *Span of control is stronger than we realize *When having a large corporation that owns a lot of companies it gives them a lot of power *With students association it created good change

Risk Communication Goal

-Goal is to close the gap between objective hazard -analysis and human perceptions of risk Risk= hazard + Outrage -EX: Ebola- people panicked because public made it a bigger deal than it really was -Educate public accurately to not cause commotion -When public not worried inform them

Effective group decisions

-Group should: -understand issues -What is it what they are trying to do -Determine minimal characteristics -Identify relevant and realistic solutions -What do you think we can accomplish -Help people prioritize -Carefully examine all alternatives -Have discussions of pros and cons

Functional approach to decision making

-Groups of people making decisions -Logical and rational approach -Participants have necessary time and resources required to make optimal decision -Identify objectives -Establish time line -When things need to be accomplished -Realistic timeline for everyone -Conduct research and gather background info -Come up with best possible decision and outcome -Thorough discussion of pros and cons -Be open minded with everyone's ideas -Critique each idea -May not like the person w/idea but idea can be the best one

Risk com-alarm

-Has high present but public doesn't pay much to it -Com goal is to show people that they should worry -People don think something is going to happen to them but to somebody else

Risk com - calm

-Hazard is present with low and/or exposure and/or consequences but people are very concerned -Com focused on calming people -Public panics without knowing all the facts -Assess info before sharing with others

crisis communication

-Hazard needs to be present and concerned -Have publics attention and looking to experts -organization's inform public what to do -When things happen in a long period of time, we don't see it as a big threat

Hydrox cookie

-Hydrox cookies, those Oreo-like chocolate sandwich cookies, could reappear -Return of Hydrox is expected to be a hit with Baby Boomers who may fondly remember the brand -hasn't been regularly sold on store shelves in almost a decade -"We'll use social media to reach out to Millennials," says Kassoff. The 46-year-old CEO says that he likes to acquire old brands or trademarks that still have fans. "We recycle brands that get left on the side of the road." -Hydrox was the original creme-filled chocolate sandwich cookie when it debuted in 1908 -- followed four years later by Oreo -Must sell at least $100 million worth of a brand for it to be an even modest success - "Oreo conveys round and is fun to say and hear. Hydrox sounds scientific and medicinal ... not appetizing at all," says Steven Addis, CEO of Addis. "Oreo has become part of the fabric of America. Like Coke. This makes it somewhat unassailable, even from a superior product."

Managing the uncontrollable

-Identify the external risk, assess the impact, prepare to mitigate their effects -Many external risk events are sufficiently imminent to be managed -Some require a different approach due to low probability and difficulty to be envisioned *External risks *Companies are wise to identify risk that are close to them *Identify how bad the impact will be and what will they have to do after *Can predict an event can happen but not when *Economy impacts, political environment, media impact, the situations are harder to predict *Trying to prevent those events, some companies have social media protocols *There can be misinterpretations with media and companies want to reduce that risk

Fair or unfair?

-If benefits outweigh risk, we are averse to situations where benefits and risks are realized by different groups -Risk is not distributed fairly -Find way to share benefits

The Uncertain Road Ahead

-In this Internet era, it is easier than ever before to miscommunicate scientific research -Science itself is also affected by the new speed, new facility of research, calculation, and data analysis, as well as communication

Managing Strategic Risk

-Independent experts: a risk review board, promotes vigorous debates about project risks, and has authority over budgets -Facilitators: a central group that collects information from different operating managers to offer a full picture of the company's risk profile -Embedded experts: members within the org to continuously monitor,influence and work side by side with the line managers *Importance of planning *Company needs to do research *Having different levels of people to identify which steps to take to reduce take *Embedded- people who are equipped *Companies have to be accountability, not just take risks *People who are risk experts and inform company

Satisfying

-Instead of working with something that is optimal, come up with something that is suffice -Solution that will satisfy and suffice -Search for solution that is good enough to deal with situation -Looking for suitable solution -May not be the best but it will do -Adequate profit vs maximum profit

India's response to the allegations

-Large protests that developed -Tried to get cokes acceptance of issue -People didn't have water and they couldn't grow food -Since land isn't anyone's property, it made things more complicated -Weren't thinking about the environment until people started complaining

The scenario

-Meat tainted with e. coli kills three children who attended a birthday party. Four other children and two adults in critical condition and failing. -Case closely parallels Jack in the Box case

Memorable or not memorable?

-Memorability -Increase perception of hazard -Type of message will be memorable to public -Source of memorability -Personal experience -Get prepared for hazard -Media images of patients suffering through infectious disease -Symbol of chemical risks, nuclear risks vs chronic pollution -Anyone is able to recognize symbols -Need to have local community on board if public is needed

Natural or industrial?

-Natural hazard -Perceived less negatively than industrial -Concern over natural risk are generally between voluntary and coerced risk -More acceptable than coerced risk -Government and industry are more easily considered villains

Outcome of Tylenol

-New York times- prior to tampering incident, Tylenol had 37% of market for analgesic drugs -Plunged 7% following poisoning, but climbed back to 30% within one year of incident -Continues to be successful company and Tylenol is popular well selling and highly used drugs -Successfully overcoming the crisis is a direct result of -Company reputation prior to the crisis -How leadership handled crisis by actively communicating with public, accepting responsibility, and proactively regaining public trust *There's going to be information for more sources so company has to know where to give it and when *Back then there weren't many sources where people got their news as there is now

Strategy Risks

-Not undesirable - companies take risks in order to get higher financial returns -Managing those risks is a key driver in capturing the potential gains -Need a clear risk-management system designed to account for possible situations -Worst case scenario? -How will the organization deal with things that go wrong? -Enable companies to take on higher-risk,higher-reward ventures *risks that companies want to take a risk to try and boost their success *Hoping there is more income in future *Require research to identify which investment is better to take *Each individual is different when it comes to identifying how much risk they want to take *Large companies need to spend more time making decisions because there is more people involved

Russell Athletic

-Nov. 2009: tipping point for struggle between student anti-sweatshop movement and corporate worker -United Students Against Sweatshops (USAS) against Russell Athletic (RA) -RA agreed to rehire 1,200 workers in Honduras *Still a crisis *Boycott can hurt employees b/c employees can't work if company is shuts down *College campuses cut off ties with Russell *Honduran workers fight for living wage, Russell shut down a factory

Zappos

-Online shoe retailer-1999 -Believe that the speed at which a customer receives an online purchase plays a very important role in how that customer thinks about shopping online again in the future -July of 2009, Zappos.com, Inc. announced its plans to join the Amazon.com -Expand on other products beyond shoes - great customer service

Dimensions of crisis

-Operations -Victims -Trust/credibility -Behavior -Professional expectations -Ethics -Lessons learned *Crisis is going to be defined when there are victims *Organization needs to respond and be strategic to help victims *Can be bad not only for victims but for organization because they loose the public's trust *VIDEO: different crisis that come up- important for companies to pay attention to those thing- have standards of preparedness so they are ready when a situation comes up- deal with issue that solves problem while upholding a good reputation

1. candor

-Outward recognition through promptly verbalized public acknowledgement that a problem exists -people or groups of people, the environment, or the public trust is affected -something will be done to remediate the situation -Incorrect Approach: releasing self-serving messages, failing to accept responsibility -Correct Approach: "It's our fault," "It shouldn't have happened." *Burger ex: weren't honest about what was going on -Blamed it on others such meat expectors *Public appreciates honesty more than when company displaces blame *Appropriate to accept blame and move forward

Soft drink industry in India

-Part of coca-cola in India -Total investment by Coke & Pepsi in India: $2,000,000,000 -Direct employment by soft-drink industry: 12,500 people -Indirect employment (supplies, shipping, etc.): 200k people

Russell Athletics: opposed by many

-People from a variety of POVs come together around the issue -Builds momentum -Globalized involvement? -United students against sweatshops opposed Russell -Organizations need to have a code of conduct when it comes to outside country products -People need to be less greedy and think about their employees

Hazard vs. Outrage

-Perception problems -Public is not good at calculating hazard -Experts are not good at calculating outrage -Experts tasks in risk controversy -Communicate better to help public -Listen better to hear whether outrage is high and take action to reduce it

Employee participation in decision making

-Positive effects allowing employees participate in decision making -Employees implement ideas -Can be a benefit when they are involved -Can feel trust and motivate them -higher job satisfaction and commitment -Employees have better understanding of company -Alignment between identity and publics perception of organization's image -Organization will be stronger as a whole

2.Explanation (Incident Information)

-Promptly and briefly explain why the problem occurred and the known underlying reasons or behaviors that led to the situation (even if there is only partial early information). -Talk about what was learned from the situation and how it will influence the organization's future behavior. -Incorrect approach: "We don't know what the cause is, but it's here anyway" -Correct approach: Find the truth, release information incrementally, constantly. *When we are uncertain, we will gather information to reduce uncertainty *If company isn't honest people pay attention to rumors *Company is responsible to put out as much info so people get the accurate info

Chronic or catastrophic?

-Public is more concerned about catastrophic than chronic risk -EX: people know smoking is bad but since it doesn't kill tons of people at once people don't see as a hazardous risk

The Victim Management Dimension

-Recognize victim expectations and respond affirmatively. -Otherwise there may be very negative consequences. -victims may resist reasonable solutions -use the media to communicate heart-wrenching stories -begin high-profile litigation -Closure becomes very difficult. -Victims move through recognizable cycles *Even though it is not company's fault but if it lies there company should still take responsibility *Use the media to communicate in an honest and genuine way *If public see if the company communicate with victims they notice they are trying to take charge

Image

-Reflection of an organization's identity -the organization as seen from the viewpoint of its constituencies

Voluntary or coerced?

-Right to say no makes saying maybe smaller risk -Reduce community outrage make risk voluntary -Ex: skiing is voluntary b/c voluntary doesn't generate outrage -Doesn't mean skiers don't know hazard data

The leadership challenge

-Risk management focuses on threats and failures rather than opportunities and successes -Managers are reluctant to allocate resources on an uncertain future *Need to remember risk manage focuses on bad things to be able asses realistic events that can happen to be able to know how to take care of situation *Some companies don't want to spend on resources to avoid risks but it is better because it is like insurance *Some risks are preventable through protocol but has to be communicated *If there's no protocol people have less and less awareness *There has to be effort to establish a cultural company

Russell Athletic: background

-Russell Athletic: major supplier of clothing and sportswear to college campuses -In November 2009, Honduran workers' union concluded an agreement with Russell Athletic -Agreement: workers back to work, recognized the union and agreed to collective bargaining, compensation for lost wages, to allow access for union to Russell apparel plants in Honduras

Charges against coke continued..

-Sunita Narin(director of Center of Science and Environment): "It's wonderful. Pepsi and Coke are doing our work for us. Now the whole nation knows that there is a pesticide problem." -Atul Singh(CEO, Coca-Cola India): "If pesticides are in the groundwater, why isn't anyone else being tested? We are continuously being challenged because of who we are." *Issue driven by environmental group *Why did they pick Coke? *They were hesitant to accept responsibility *Make public more suspicious about what is going on

Sweatshop

-Sweatshop: workplace with low wages under harsh working conditions. EX: (long hours, unhealthy conditions, oppressive environment) -Two views: acceptable if laborers freely contract to work in these conditions even though the conditions are poor -Sweatshops are: oppressive, unethical, and patently unfair to workers -Different organizations have different definitions for sweatshops *Working conditions aren't good, unhealthy or dangerous for employees -employees sometimes die b/c of long work with no breaks *Location of company are poor and poverty places where people need a job, making the company have a hold over people b/c they need a job

Technical vs. Cultural Model of risk

-Technical: experts, risk is "magnitude" x "probability" -Objective hazard analysis -Cultural: publics risk is driven by perception if occurrence exposure and consequence -What we believe to be true or significant -Risk= outrage (concern) -What seems a risk to the public may not be such a big deal -Public doesn't have the high level of understanding making more difficult to communicate with them -Public's perception is gained by the media especially when they cover things up

4.Contrition

-The continued verbalization of regret, empathy, sympathy, even embarrassment. -Take appropriate responsibility for having allowed the situation to occur in the first place, whether by omission, commission, accident, or negligence. Incorrect approach: Taking only conditional responsibility, using a news release to announce sympathy. Correct approach: Let employees speak for the company, involve employees with each victim's family, express unconditional sympathy *Make effort to connect to victims *Having a variety of employees of different levels interacting to show that they all care

The ethical dimension

-There is a moral dimension to crisis management. -Victims make moral ethical assessments essential. -When an issue involves integrity and moral or ethical dilemmas, get to the moral reasoning and questioning quickly. *Placing blame somewhere else instead of accepting it *Public will be more likely to forgive mistake when company is more honest and accept blame instead of denying it *Company don't like accepting blame because it will cost them *But in the long run it is better decision to accept responsibility because they can bounce back *If they don't will hurt them and not make same profit they did before

Tylenol

-Tylenol poisoning in 1982 -Sept 29. 12 year old girl in Illinois dies 24 hours after taking Tylenol for cold symptoms -Within few days 6 more people died in Chicago area -Investigators identify Tylenol as link between victims -Capsules laced with cyanide are identified as the cause (extra strength) -Wide spread panic ensues across the country *Jonson and Jonson did good job of reacting *Accepted blame *Said they would do anything possible to reduce chances of happening again *Immediately initiated massive recall & pulled extra strength Tylenol from the shelves *Began working with FDA on new tamper proof bottling *Developed new type capsule that was more difficult to tamper with and sold it w/ $2.50 off coupons *Also replaced customers old bottles for free *Found out wasn't their fault b/c they were tampered after they left company -accepted blame anyway

Types of talking better

-Understand human perceptions of risk and respond based on probability -Alarm people -smoking ads- its bad -Clam people -Reassure public there is no evidence of threat

bounded rationality

-Use logic but under personal and organizational constraints -People are limited by cognitive and practical resources -Humans can't always be logical -Have constraints on time and available tools -Cant always be 100% in everything we do

Dreaded or not dreaded?

-Vector by which hazard is transmitted matters -Things we view as disgusting probably viewed more negatively than other hazards -Misconceptions about risks

Recognition of Impact

-Victims Need: -Assistance with grief -Expression of regret -Involvement -Information -Recognition -DO NOT: Patronize families, reduced death to a press release *Especially important to communicate when there is deaths *Ongoing process to communicate *Share information as it unfolds *Sometimes there will be lawsuits towards company making things more complicated, that is important to stay in contact with them

Knowable or not?

-We fear less what we can know -Detectability- when risk becomes more detectable then becomes more knowable then becomes less source of outrage -Expert disagreement- leads to uncertainty -Uncertainly -lack of complete understanding about a hazard or consensus about a hazard -are heart and diabetes driven by fatty or high carbohydrate foods?

Ted Talk

-We need to recognize that there isn't equal rights around the world -Many suffer some children for us to receive our favorite brand name goods -Most products come from over seas -Its either about staying in business or go bankrupt -Organizations need to acknowledge problem and find a solution but they don't wan to talk the time -Sweatshop owners treat employees as if they are less than human *Every single person needs to be treated with dignity and be paid with fair wage *Something to be aware of b/c we're now global

Reality of situation

-While optimal decision- making is ideal, real life often doesn't allow members of organizations to fully utilize Functional Approach -Time is limited -Feels like there's never enough time - Resources are limited -Not enough to be ideal -Critical though may be limited -When there's deadline, its too much to go over everything

identity management in action: step 1

-conduct and identity audit -Identity perceptions exist among key constituencies, the gender public etc. -Research -Analysis: interview with any group that can inform them about their image -Be careful to assess what is, not what the company wants to be -With results company will know how to improve

successful identity program

-constituencies forming perceptions that are accurate about how they perceive themselves -organizations should conduct research with constituents to get better sense of their image

preventable risks (internal risks)

-controllable and ought to be eliminated or avoided -companies should seek to eliminate risks since they get no strategic benefit from taking them on -need active prevention: monitoring operational processes and guiding people's behavior toward desired norms -Rules & Protocols -Operating Procedures *Situations relevant to employees- they are at risk *Can vary from what they include *Safety - safe work environment, not high injury risk, some places need procedures to reduce risk in different types of work *Managers need to communicate with employees to reduce risk *Need to inform employees why it is important to be safe and avoid risk *Need to be clear to everyone so they see it as a norm *Trying to establish risk in company culture would make the company a safer place

identity management in action: step 4

-develop prototype -Resistance is common in prototypes stage -Identity and related logos/names become public -Primary research pays off -Perception of people perceives the data and helps create a better image

identity management in action: step 3

-developing designs and names -Name change depends on number of factors -Local to national presence -Needs to reflect and emphasizes reality and attributes -Cant happen with out help consultants -Process of design should depend on designers and find balance between designers and managers

Identity/Image campaigns

-image audit or assessment: qualitative and quantitative research with public to asses range of perceptions about organizations identity -there is always a difference between identity and image. attend to how closely identity cluster together -image crisis: perceptions held by constituencies differs considerably from the identity intended by organization; try to re brand in a way to change public's perception -organizational branding/public relation/marketing campaign; public communication to manage image and shift perceptions of a company and to rebuild its image

identity management in action: step 6

-implement the program -Can take years in large companies and minimum of several months for small firms -Develop identity standard consistency -Monitor program and make judgements about when flexibility is allowed

identity management in action: step 5

-launch and communicate -Provides lots of examples -Clearly explain the rationale behind shift and what it means -Feedback is important -Presenting for the first time is complex and important -Use everything for advertising -Websites, interviews, links, blogs, and social network

organizational mission

-mission statement is what you are and what you do everyday -organization accomplishes vision b/c it's accomplish missions well.

Logos

-non-language symbols or objects -Logos make them more powerful than name because these symbols can be populated with almost endless attributes - EX: Nike Swoosh

categories of risk

-preventable risk -strategy risks -external risks *important to make decisions especially people in high positions *risks can fall under more than one category

identity management in action: step 2

-set identity objectives -Concrete ideas -Setting objectives is not an abstract and loosely defined end point -Objectives are measurable and attainable outcomes from a particular -Change needs to be driven by organization-wide evolution and need -Having change when trying to shift everyone needs to be aware

names and logos

-two areas of identify management -companies choose/change names to: -Reflect change in mission, identity, and brand -Consistent w/reality of organizational mission -Account for changes -Use connections with people

organizational vision

-what organization wants to create, the future and so forth -vision should encompass aspiration, goals, objectives, standards, and philosophies of organization -vision ties all aspects together and aspires all constituencies (internal and external ) toward the end -organizations often use a story to capture and communicate vision -involve people

The behavior dimension

Good crisis plans are structured to work directly against, anticipate, and eliminate negative behavior patterns.

Countering Miscommunication

Guidelines: -Make sure the research results are understood. -Tailor communications to a specific audience and remember the needs of the audience, not the needs of the researchers. -There is no such thing as a "general audience" or "one-size-fits-all" message. -Communication programs should be directed to addressing an audience's need and interests. -Give a context in which the research was conducted, and any condition under which result may/can/should be differently understood. -Give a clear understanding of the usability of the result for the common audience. *Make sure science is understood -Its good info as well and not explaining it incorrectly -Needs to be appropriate

The professional expectation dimension

Increasingly in litigation, juries look to industry standards and practices to help determine a factual basis for damages and compensation.

UN global water challenge

Need to consider corporate perspective of how its going to benefit company but also affect the local community

Student advocacy and sweatshop labor: case of Russell Athletic: Outcome

Outsourcing has positives and negatives -Outsourcing to developing countries is an important business strategy of large U.S. corporations -Positives: creates new jobs -Negatives: some companies violate workers rights, "sweatshop" environments *What struck you about this case? *More finical affordable to produce products in other places and could pay less and make more money *Most common for clothing industry *Could be benefit for workers too if they get good pay and benefits and don't work long hours *Good for company to have good understanding of these practices

Formula for Misunderstanding

The forces that cause miscommunication: -Numbers & statistics -Fix: Make sure science data are put in context -Speed of transmission -Fix: Help the public 'sort through' the constant flow of information and identify truly meaningful and relevant information. *What does it mean when two things are correlated -What is the need to understanding these two things -Affects how we interpret data *Anyone who distributes scientific ideas, they need to know how to distribute the info

Seeking retribution

Victims Need: -Information about actions taken. -Validation of their suffering. -Honesty from the organization. -To hear apologies from the top of the organization. -Prompt response. -Direct communication. -Reasons/rationale. -Compassion. -Closure. *Need to be clear about steps there are taking *With employees makes company stronger and be easier to bounce back -Everyone is on the same page -Seen as confident and be able to regain trust of the public

Identity

actual manifestation of a company's reality as conveyed through the organizations name, logo, motto, products, services, etc. and all other tangible pieces of evidence created by the organization and communicated to a variety if constituencies