“The Chinese use two brush strokes to write the word “crisis.” One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger, but recognize the opportunity.” – President John F. Kennedy. Even though toy-manufacturing giant Hasbro hadn’t been forced to issue a single recall related to 2007’s lead-paint scare, the company heeded this sage advice to make the most of what could have been a disastrous situation. Hasbro knew that when a crisis ... Read More
Crisis
California’s Prop 2 is a Sign of Things to Come
Posted by: Gene Grabowski | Nov 10, 2008
The New York Times Magazine recently published a story about Humane Society President Wayne Pacelle that any corporate communications professional facing pressure from interest groups should read. The piece opens at the abandoned grounds of the Westland/Hallmark Meat Company in Chino California and recounts how a Humane Society undercover investigator surreptitiously taped so-called “downer” cattle wobbling and flopping on their way to the slaughterhouse. The ghoulish video was quickly posted on YouTube and Internet blogs around ... Read More
The Psychology of Rumors and Urban Legends
Posted by: David Bartlett | Oct 31, 2008
In a high-anxiety environment – such as the one created by the current financial crisis – wild rumors all too often carry the weight of fact. When a company’s stakeholders hear troublesome news, they don’t have the luxury of waiting around for confirmation. They’ll opt for the knee-jerk reaction almost every time. Just ask Apple investors whose stock lost ten percent of its value in ten minutes after false reports that CEO Steve Jobs had ... Read More
Turning Chapter 11 into Chapter 1
Posted by: Richard Levick | Oct 30, 2008
“Over-communicate in a crisis” – Jack Welch, former CEO of General Electric. When United Airlines was forced to file for bankruptcy in December 2002, this sage advice served as the centerpiece of the company’s efforts to revive one of the most well-known and respected brands in the world. On the same day that United filed for bankruptcy protection in federal court, CEO Glenn Tilton flew to Chicago’s O’Hare International Airport to explain the company’s decision to customers ... Read More
A China Breakthrough
Posted by: Steve Ellis | Oct 24, 2008
The Chinese government’s decision to allow foreign news correspondents to interview anyone without prior permission is a major milestone for journalists around the world. But just as significant as the free press implications are the new challenges that this development creates for Chinese companies in crisis. Whether the issue has been melamine in baby formula and pet food or lead paint in toys, Chinese companies used to be able to shade themselves from the spotlight under ... Read More
Setting Boundaries in the Blogosphere
Posted by: Melissa Arnoff | Oct 10, 2008
A recent story in the National Law Journal looks at the range of legal problems employee blog posts – whether they’re sanctioned or not – can create. In the article, attorney Zachary Hummel claims that some employers give free rein to employees on corporate blogs as a way to monitor morale in the workplace. While (possibly) well intentioned, this approach does not bode well for a company’s digital presence. Just like it is incumbent on employers ... Read More





















