In
the past seven years as an HR and PR professional, I have always wondered what
makes people or organizations react differently in moments of crises. A product
or brand may have remained unknown after hundreds of thousands of dollars in
ad-spend; just one crisis, one controversy and everybody is talking about the product.
Will
crisis always lead to the downfall of an organization? Can it be ever handled so
as to convey a positive image of the organization? Can the crisis ever be
turned into an opportunity to show the core values of the organization? Here’s
a good example to begin with.
On
June 17, 2012, Clayton Hove of the ad agency KK Bold, tweeted
“Saw
a bird had crapped on a Smart Car. Totaled it”
He
was poking fun of the size of the Smart Car (a new electric, eco-friendly car),
hinting that the car was so small even bird droppings of a single bird could
totally damage the car! The tweet, by huge exaggeration, was meant to make the
small size of the car look silly. It was a bit embarrassing for the company.
The
company, SmartCar USA, could have gone into a defensive mode. They could have
come down harshly upon the tweet and accused Hove of indirectly snubbing
researchers or pursued the legal course, accusing Hove of maligning the image
of the company.
They,
however, decided to take a very different path.
Two
days later, the company tweeted
“Couldn’t
have been one bird.
Sounds
more like 4.5 million. (Seriously, we did the math).”
The
company had actually researched the weight of the droppings of one bird and, in
a good-natured spirit, calculated how many such droppings it would take to
damage the car! Not just that, SmartCar USA also published a funny Infographic
along with the tweet!
From
what could have become a source of embarrassment, the company, in one single
tweet, won the hearts of people all around. The sense of humour was highly
appreciated and it remains a memorable lesson in Public Relations (PR) skills.
Crises and Public
Relations (PR)
Unfortunately,
almost all crisis is fundamentally negative in nature and unless the PR
department acts swiftly and smartly, these occasions can severely damage the
organization’s credibility, hurt sales, tarnish the brand image, and, in
extreme cases, kill brands and force organizations out of business.
PR,
at critical times, has the ability to tremendously reduce damage, quickly take
control and prevent the situation from deteriorating further. One of the most
common misconceptions is that PR skills are useful only to generate publicity;
actually it goes way beyond.
PR
is a leadership and management function, targeted at sending out structured
communication content to third parties. The first and foremost role of PR is to
ensure that organizational goals and expectations the society keeps from the
organization remain consistent, as experts like Latimore Dan and others view
it. That means PR must conceive, design, deliver and execute communications
that expand the influence of the organization. Handling crises is certainly a
top priority for PR.
Let’s
take a look at two extreme cases of PR exercises.
What not to do:
The case of United Airlines
On
April 9, 2017 United Airlines personnel approached four passengers, carrying
valid tickets and seated on a flight about to take off, to give up their seats
for airline crew members. At least one passenger David Dao refused to give up
his seat.
In
the heat of the moment, the airline and security personnel physically dragged
Dao out of the aircraft. Many passengers found this very disturbing and
unethical. Some recorded the video of the entire event. In no time, the video
went viral over social media, and the airline’s reputation dipped in no time.
The
airline issued a statement, apologizing for having overbooked the flight. Its
twitter message was worded too diplomatically and did not directly acknowledge
its poor handling or rude behavior. Subsequently when two more incidents in the
same month surfaced, the poor PR in the first case led to these two incidents
being highlighted on social media, further degrading the airline’s reputation.
What to do:
Tylenol
Johnson
& Johnson (J&J), the multinational pharma giant was faced with a
serious problem in 1982. Its drug Tylenol, then an OTC drug (Over The Counter
drug, meaning one that did not require a medical prescription for purchase)
used to relieve pain and fever, was caught in a bad controversy when seven
people died after consuming the drug. The deaths were due to addition of potassium
cyanide, a malicious act that had happened outside the company’s production
plants and effectively out of its sphere of control.
J&J’s
response is considered a classical example of what should be done and how a
powerful and positive PR can go way beyond damage control. Putting the safety
of customers first, J&J quickly recalled about 31 million bottles of
Tylenol, worth over $300 million. Statements reassuring the common people were
issued. When the drug was reintroduced, it was presented in tamper-proof
packing. It answered tough questions that were raised from various quarters.
The
J&J PR took a stand befitting a leader – instead of going on the defensive,
it accepted responsibility, drew as much learning from the incident as
possible, clearly put the safety of customers ahead of costs, entered into
better engagement with media and customers and patiently responded to over
2,500 calls. All this positive PR helped J&J reach its way back to
dominating the market.
When
a similar incident repeated itself four years later, J&J took a more
far-reaching decision: It announced no Johnson & Johnson drug would be OTC
anymore, since it was not possible to fully assure customer safety. Media
lauded the decision and the brand established itself firmly in the minds of
customers as a safe, customer-first company.
A few more examples
A few more examples
Pepsi and Coke displayed inadequate PR skills in India while handling some reports that showed their products contained harmful levels of pesticides.
Odwalla juices USA were found to have been contaminated by E Coli. Odwalla responded swiftly by altering their production processes that drastically lowered the chances of contamination.
Texaco USA was
charged with racial discrimination by a handful of its African-American
employees. The oil company swung into action by offering apology, suspension of
erring employees and hiring an African-American owned agency for damage
control.
Cadbury’s India
was charged with selling chocolates that contained harmful chemicals. Cadbury’s
handling of the crises was not great, and it took a long time for the brand to
bounce back.
The Tatas could
have better handled the situation when Cyrus Mistry was removed from the Tata’s
board of directors.
Mel’s diner: An
unusual case
Once, when the streets of Los Angeles were flooded due to a burst pipe, a local restaurant Mel’s Diner realized it was not possible to conduct business since customers wouldn’t be able to walk in. It came up with a brilliant idea.
To
all the workers who came in to repair the broken pipeline, Mel’s served free
hamburgers. Workers appreciated the kind gesture. Soon, the word spread and TV
crews got the news. They video-recorded the act and by evening the same day,
thousands of viewers watched news and interpreted this gesture as one of positively
responsible corporate citizenship. By capitalizing upon an unexpected and
unrelated crisis, Mel’s strengthened its corporate image and brand.
Concluding
remarks
Absence
of accurate and timely information leads people to react irrationally and in an
exasperated manner. They even fall prey to rumors. That’s why it’s important
for organizations to respond appropriately and swiftly.
Organizations
must begin by explaining the situation clearly. Next they must answer questions
from media, customers and all other stake-holders, explaining how the situation
is likely to affect each of them and find the best way out. Most importantly,
the organization (actually the PR department and / or the spokespersons) must
appear fully in control, efficient and honest in sharing information in a way
that minimizes the damage, prevent any further panic or erode shareholder
value.
The
key takeaway is what the organization can learn from it and how it can prevent
such crises in future. When handled intelligently, organizations can emerge
stronger, more reliable and more alert. And that’s a mighty achievement for PR.
