As faulty brakes and data breaches plaster the headlines, people are starting to question crisis management, especially the PR practitioners behind it.
A classic example is the Toyota safety recall in 2009 over "runaway" vehicles due to stuck accellerator pedals. The issue launched a public relations nightmare for the iconic brand.
The company's initial approach of denying, minimizing and mitigating the problem only fanned the fires and created an environment where it was vilified by the American press and the government.
Details usually unworthy of public attention, such as internal memos disagreeing over public relations strategy, became smoking guns that convinced the press and the public that Toyota vehicles had electronic problems causing the situation — and that the company was hiding this from the public.
President Akio Toyoda, grandson of the founder, was MIA for weeks after the storm began. The company appeared less than forthcoming about critical safety issues, risking the trust of its customers world-wide, and contributing to a downward spiral of product sales.
Remaining Silent on Security Breaches
They make the news on a regular basis: incidents in which a company or a government agency's security is breached, leading to a loss of information, personal records, or other data.
There are many ways to measure the size or cost of a security breach. Some result in the loss of millions of data records, some affect millions of people, and some wind up costing the affected businesses a lot of money — and worst, their reputation.
The recent hacker attack on the Sony PlayStation network provides a case study in crisis communications; consider the news headlines devoted to the data breach of over 100 million user records. This never-ending saga is a reminder that in today's networked world, there is an increased demand for open, honest, rapid, and ongoing communications. Failure to do so will result in lost brand equity and customers.
Given the fact that Sony is a multi billion dollar corporation, I’d venture a bold guess that it actually had a crisis communication plan stored away, collecting virtual dust on a server somewhere. And I’m certain that remaining silent was not part of it.
Public Pressure for Disclosure Rising
The natural-gas industry, bowing to public concern over contaminated water sources, has agreed to disclose more information about the chemicals it uses in the controversial process of hydraulic fracturing, or "fracking," as it's called.
Texas recently signed into law that will require companies to make public the chemicals they use on every hydraulic fracturing job in the state. Texas' law is significant because oil and gas drilling is a key industry in the state and the industry vocally supported the measure.Until recently, much of the industry opposed providing detailed information about its chemicals, arguing that they are trade secrets. But in recent months, as drilling opponents have accused companies of secrecy, many industry leaders have come to view that position as untenable.
"I think the one thing hopefully that we all learned is you can't just say, 'Take our word for it,'" said Matt Pitzarella, a spokesman for gas producer Range Resources Corp.
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Public relations nightmares can come in varying degrees of severity — from a negative review on Yelp to a national or international scandal. As a business, it pays to be prepared for anything. The most important thing about surviving a public relations crisis is planning ahead.
