: Crisis



2008: Year of the Rat? Year of the Recall is More Like It

Following a disastrous 2007, in which dozens of Chinese products ranging from pet food to toothpaste and from toys to tires were recalled in waves by U.S. manufacturers, this year is playing out to be even worse for the Beijing government and its global business partners. In the midst of its publicity woes involving Tibet and the Olympic Games, China is facing severe criticism for contamination of the active ingredient in the blood thinner Heparin, which ... READ MORE

The Online Rumor Mill

In late March, the New York Times Magazine took a look at the growing role of the Internet in spreading rumors. Recalling the persistent rumor about Barack Obama being a Muslim, the story examined how the Web is making it easier for misinformation and urban legend not only to spread, but to stick. Urban legends and outrageous rumors, of course, have always been a vexing problem for crisis managers--just ask the marketing managers at Sara Lee ... READ MORE

Doing the Right Thing–and Still Losing

If a company does all the right things in a crisis, yet still loses, there's only one explanation: It failed to communicate its actions. In the recent Westland/Hallmark Meat Company recall of 143 millions pounds of beef -- the largest food recall in U.S. history -- President Steve Mendell immediately cooperated with the U.S. Department of Agriculture as soon as he learned that two 'downer' cattle had been videotaped on their way to the slaughter line ... READ MORE

From Prosecutor to Prosecuted

It's with a heavy heart that I say that disgraced New York Governor Eliot Spitzer must resign. Recent allegations that he was ‘Client 9' to high-dollar prostitution service Emperors Club VIP irreparably sullen the image that Spitzer had worked his entire career to cultivate: Mr. Clean, the noble knight riding in on the white steed and saving the day. In an instant, he transformed himself from prosecutor to prosecuted. Too often people look for the "silver ... READ MORE

Lessons in Crisis Communications: Cauterize the Wound

Last week, State Street Corporation ousted its investment unit chief and set aside $618 million to cover future legal claims against the company, according to Bloomberg.com. And then something very interesting occurred-- the company's stock went up.  Why? There are few things that Wall Street hates more than the question mark. By defining a beginning, middle, and end to the story, State Street made the story 'old news'--and for this kind of definitive action, they were rewarded. ... READ MORE

MLB Must Look Forward

Given the events of the past 20 years in matters involving drugs and steroids, Major League Baseball needs to view the just-released Mitchell Report--a report the organization itself commissioned--as one of its last best chances to maintain its fan base and stem the cynicism that has been eroding the sport's national appeal. All along, Major League Baseball and the players' union have appeared to deny that there was serious steroid use in its ranks, despite strong ... READ MORE

Ripping Off the Band-Aid: From the people who run to disasters, not away from them.

When I first heard about the Red Cross' dismissal of its president Mark Everson, I thought, 'Here we go again.' Five presidents in six years isn't a good track record for any organization and doesn't inspire confidence, internally or externally. Upon further reflection, however, I've come to more fully appreciate the courage and leadership of the Red Cross--an organization that's been heavily criticized over the past few years (think 9/11 and Hurricane Katrina).Yet despite this litany ... READ MORE

Oops! We Lost Your Data.

With the recent news that the TJX data breach actually affected 94 million credit cards--more than double the 45.6 million cards initially reported--any company that has anything to do with private consumer data must be on alert. And even though there are theories circulating that hackers used an in-store employment kiosk to set the data stealing trap, TJX hasn't had much to say. From a communications point of view, TJX's lack of transparency (and 'everybody's doing ... READ MORE

The Role of Emotions in Crisis Management

I was reading Operational Risk's insightful recent blog post on the role of fear in understanding and managing risk and that got me thinking about the role that emotions--fear, ego, a desire to be right, etc.--play in a time of crisis. Larry Craig, Martha Stewart, Michael Vick and the Utah mining disaster have something in common--in all four situations, an initial crisis strategy was sorely lacking, and emotion overrode logic. These are examples of the dangers ... READ MORE

Advice for the Mining Industry: Assemble Your Crisis Communication Team Now

In reading the recent tragic news about the Crandall Canyon mine collapse in Utah, I was reminded of an editorial written in the West Virginia Gazette right after the Sago mine collapse. 'Mine Safety: Deaths Preventable' asserted that the Sago Mine tragedy '...was not a surprise--both because the mine had a disturbing safety record, and because the Bush administration in Washington has been undercutting mine safety.' The editorial concluded with a warning: 'The demand for coal is ... READ MORE