Lesson One: The Nature of Crises: Overview & Theories Michael Caudill Western Carolina University

1. Lesson One: The Nature of Crises:Overview & TheoriesMichael CaudillWestern Carolina University

2. 1. Crisis Communications: Overview & Theories 2. Classic Crisis Communications Cases 3. The Crisis Communication Plan (CCP) 4. Communicating with the Media, Lawyers & Stakeholders 5. The Role of the Spokesperson & Creating Key Messages 6. Communicating in Television & Radio Settings 7. Rumors & Cybercrises 8. Mid-term Examination 9. News Conferences & Public Hearings 10. Public Hearing Simulation 11. Natural Disasters 12. Death & Injury (If it Bleeds, it Leads) 13. Crises & Culture 14. Crisis & the Consumer Crisis Communications Lessons M. Caudill - Western Carolina University

3. The Nature of Crises Lesson Objectives • Recall working definitions of crisis & emergency risk communication concepts. • Demonstrate an understanding of crisis communication theory. • Explain how crisis communication fits into crisis management. • Describe how the role of communication evolves from pre-crisis through post-crisis. M. Caudill - Western Carolina University

4. The Nature of Crises Lesson Preview • What is a crisis? • Stages of a crisis: Detection, Prevention/Preparation, Containment, Recovery, Learning • Public opinion • Crisis communication theories M. Caudill - Western Carolina University

5. A Crisis: A major occurrence with a potentially negative outcome affecting the organization, company, or industry, as well as its publics, products, services, or good name The Nature of Crises M. Caudill - Western Carolina University

6. The Nature of Crises What do you think makes an event a crisis? What are the characteristics of a crisis? M. Caudill - Western Carolina University

7. Surprise that is always driven by media exposure. Insufficient information about relevant facts & public perception of the issue. Escalating flow of events hampers ability of management to understand quickly that they "own" the problem & must respond. Loss of control over the way the growing crisis is perceived & impact on the organization. Intense scrutiny from Outsiders/Insiders: media, government, regulators, activists, stakeholders, management. Siege mentality: Leadership attempts to hide rather than confront the central issues. Panic perverts &/or paralyzes decision-making process. Issue judged in public arena in a manner designed to satisfy the interests of outsiders. Characteristics of a Crisis M. Caudill - Western Carolina University

8. The Nature of Crises During a Crisis: • emotions are on edge • brains are not fully functioning • events occur too rapidly to draft a plan- simply following one is a challenge Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p.2 M. Caudill - Western Carolina University

9. Crisis Management: A process of strategic planning for a crisis Planning removes some of the risk & uncertainty & allows an organization greater control Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p.3 The Nature of Crises M. Caudill - Western Carolina University

10. The Nature of Crises Crisis communications is concerned with the transferring of information to significant persons (publics) to either: • help avoid or prevent a crisis (or negative occurrence) • recover from a crisis • maintain or enhance reputation Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (3 ed.), p.2 M. Caudill - Western Carolina University

11. The Nature of Crises Crisis Communications: • Dialog between the organization& its publics: ► prior to,► during,► & after event • Effective crisis communications can not only minimize or eliminate the crisis……but sometimes can bring the organization a more positive reputation than before the crisis M. Caudill - Western Carolina University

12. The Nature of Crises The Role of Crisis & Emergency Risk Communication (CERC): • Communication during a crisis cannot be managed just by mobilizing more people & material – thecommunication itself must change • In a crisis, established frames of reference & ways of understanding may breakdown Reynolds, B., Crisis & Emergency Risk Communication, p. 11 M. Caudill - Western Carolina University

13. The Nature of Crises Poor Communication Practices Poor Public Response: • Mixed messages from multiple experts • Information released too late • Messages that are over-reassuring • Public recommendations without a “reality check” • Leaving myths, rumors, & doomsayers unchallenged • Poorly prepared spokespersons • Public power struggles & confusion Reynolds, B., Crisis & Emergency Risk Communication, p. 11 M. Caudill - Western Carolina University

14. The Nature of Crises Decision making in a Crisis Is Different: • People simplify • Cling to current beliefs • We remember what we see or previously experienced - first messages carry more weight • People limit intake of new information CDC, CERC: By Leaders for Leaders M. Caudill - Western Carolina University

15. The Nature of Crises CERC Basics: • Don’t over-reassure:Don’t placate; display calm concern • Acknowledge uncertainty:Offer only what you know & acknowledge distress • Emphasize that a process is in place:Describe the process in simple terms CDC, CERC: By Leaders for Leaders M. Caudill - Western Carolina University

16. The Nature of Crises CERC Basics: • Give anticipatory guidance:Let people know what to expect • Be regretful, not defensive:Say, “We are sorry” or “We feel terrible ” when acknowledging misdeeds or failures • Express wishes:Say, “I wish we knew more” Reynolds, B., Crisis & Emergency Risk Communication, p. 112 M. Caudill - Western Carolina University

17. The Nature of Crises In a Public Crisis: • Panic is less common than imaginedPanic comes from mixed messages • Acknowledge people’s fearsDon’t tell people they shouldn’t be afraid They areafraid & have a right to their fears • Be willing to address the “what if” questionsIf you don’t, someone else will Sandman, Peter, Ph.D. in Reynolds, B., Crisis & Emergency Risk Communication, p. 112 M. Caudill - Western Carolina University

18. The Nature of Crises In a Public Crisis: • Give people things to doSimple actions give people a sense of control & motivate them to take action when directed • Ask more of peopleAsk people to bear the risk & work toward solutions with you M. Caudill - Western Carolina University

19. The Nature of Crises Research shows: • Companies with ongoing two-way communications often avoid crises or have crises of shorter duration or lesser magnitude • Companies with a crisis management plan come out of a crisis with a more positive image than companies without one Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (2 ed.), p.4 M. Caudill - Western Carolina University

20. The Nature of Crises In a crisis, when everyone else is losing it, YOU must be the calm center (yes, YOU!) • "This is not as bad as it seems“ • "This could be worse. We can’t turn a crisis into a catastrophe” • "This is what we can do..." Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (2 ed.), p.4 M. Caudill - Western Carolina University

21. The Nature of Crises The 5 Stages of a Crisis: 1. Detection 2. Prevention/Preparation 3. Containment 4. Recovery 5. Learning Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p.8 M. Caudill - Western Carolina University

22. The Nature of Crises Detection: • Constantly scan horizon for warning signs (prodromes) Prevention/Preparation: • Ongoing public relations programs with key publics • The CCP is the primary tool of preparedness – a “collective brain” Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11 M. Caudill - Western Carolina University

23. The Nature of Crises Containment: • Limiting the duration of the crisis or to keep it from spreading Recovery: • Returning the company to business as usual Learning: • Examining the crisis & determining what was lost or gained, & how the organization performed • Make the crisis a prodrome that helps prevent future crises Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 9-11 M. Caudill - Western Carolina University

24. The Nature of Crises Public Opinion • In a U.S. court of law a person is innocent until proven guilty • In the U.S. court of public opinion you are guilty until proven innocent • You influence public opinion by establishing & communicating proof that the prevailing "truth" is not the “whole truth” Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 13 M. Caudill - Western Carolina University

25. The Nature of Crises Crisis Communication:Theories, Terms & Definitions • Strategy: How one handles a problem • Stakeholders: People linked to an organization & affected by it’s decisions (employees, stockholders, communities, & government officials) • Strategic publics: Stakeholders crucial to an organization (boards of directors, investors, & unions) Fearn-Banks, K. ,Crisis Communications - A Casebook Approach (2 ed.), p 17-18 M. Caudill - Western Carolina University

26. The Nature of Crises Crisis Communication: Theories, Terms & Definitions • Strategically managed public relations: Communications programs designed to build relationships with strategic publics • Segmentation: The division of groups by mutual interests, concerns, & characteristics • Risk communications: An ongoing program of informing & educating various publics M. Caudill - Western Carolina University

27. The Nature of Crises Crisis Communication:Theories, Terms & Definitions • Organizational ideology: An organization's philosophy, working climate, corporate culture • Communications ideology: The organization's philosophy & attitudes of behavior in communicating with publics Fearn-Banks, K., Crisis Communications - A Casebook Approach (2 ed.), p 17-18 M. Caudill - Western Carolina University

28. The Nature of Crises Crisis Communication Theories: Apologia Theory: Defend reputation & protect image • Not necessarily an apology - effort may deny, explain, or apologize through discourse • “Conciliation”:"We are guilty. We are sorry. Please forgive us." • “Redefinition”: Org. says that it did not "intend" to commit misdeed • “Dissociation”: Informing publics that org. mightseem to have committed misdeed, but actually didn’t Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 51 M. Caudill - Western Carolina University

29. The Nature of Crises Crisis Communication Theories: Image Restoration Theory: • Org. must know which publics have negative impressions & extent of their knowledge • Org. must know where publics stand before being targeted for communication • Org. must also determine if publics know anything that might damage reputation - Sometimes better to remain silent; other times best to tell your own bad news Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 51 M. Caudill - Western Carolina University

30. The Nature of Crises Crisis Communication Theories: Decision Theory: • Decisions made under various conditions - outcome may be certain, vague, ambiguous, or risky • Theory suggests that the decision maker consider the possible benefit of each alternative - “maximizing” • When decision makers sometimes settle for decision that satisfy minimum requirements - “satisficing” Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 51 M. Caudill - Western Carolina University

31. The Nature of Crises Crisis Communication Theories: Diffusion Theory: • Examines how new procedures, practices, & objects adopted/accepted • 5-step process: Awareness (body is exposed to idea) Interest (body develops interest in idea) Evaluation (pros/cons determined & considered) Trial (idea implemented for analysis) Adoption or Failure to adopt (acceptance or rejection) Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 53 M. Caudill - Western Carolina University

32. The Nature of Crises Crisis Communication Theories: Diffusion Theory: adopted depends on - • The Past: What has happened previously? You must know where you are before you decide to go forward • The Decision Makers: Are they open or closed to change? Is the body “all leaders & no followers”? • The Innovation/Change: Does the new idea show more advantages/fewer disadvantages over present practice? Will drastic or gradual change be required? Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 53 M. Caudill - Western Carolina University

33. The Nature of Crises Crisis Communication Theories: Grunig & Hunt (1984):PR Excellence Theory Press Agency/Publicity Model Public Information Model Two-Way Asymmetric Model Two-Way Symmetric Model Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 54-55 M. Caudill - Western Carolina University

34. The Nature of Crises Crisis Communication Theories: Grunig & Hunt (1984):PR Excellence Theory • Press Agency/Publicity Model:Least Desirable "All publicity is good publicity“ - most PR practitioners still follow this strategy Grunig & Grunig (1992) • Public Information Model:Report information “journalistically” - truth is essential Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 54-55 M. Caudill - Western Carolina University

35. The Nature of Crises Crisis Communication Theories: Grunig & Hunt (1984):PR Excellence Theory • Two-Way Asymmetric Model(aka “scientific persuasion”)Use surveys & polls to persuade publics • Two-Way Symmetric Model(aka “mutual understanding”) Most DesirablePR as intermediary between organization & publics Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 54-55 M. Caudill - Western Carolina University

36. The Nature of Crises Crisis Communication Theories: Grunig & Repper (1992): Strategic mgt., publics, & issues have two primary propositions: • PR is most likely to be excellent when an integral part of an organization's strategic management process • PR is managed strategically when it identifies stakeholders & resolves issues through symmetrical communications programs Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 56-57 M. Caudill - Western Carolina University

37. The Nature of Crises Crisis Communication Theories: Marra (1992):Identifies adjustable variables that make an org. succeed or fail in a crisis • Orgs. with strong ties with its key publics prior to a crisis will suffer less damage than those with asymmetrical practices • Orgs. with CCP’s prior to crises will have stronger public relationships & less damage • Orgs. that encourage crisis mgt. preparations & two-way communications practices will suffer less damage Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 57 M. Caudill - Western Carolina University

38. The Nature of Crises Crisis Communication Theories: Fearn-Banks (1996):Adds two characteristics: • Organization that anticipate, through crisis inventory, the precise type of crisis will suffer less financial, emotional, & perceptual damage than the organization that does not • An organization that maintains the reputation of having an overall "open & honest" policy with stakeholders & the news media will have less financial, emotional, & perceptual damage Fearn-Banks, K., Crisis Communications - A Casebook Approach (3 ed.), p 59 M. Caudill - Western Carolina University

39. The Nature of Crises Lesson Review • What is a crisis? • What is a prodrome? • Distinguish between a crisis management plan & a crisis communication plan • What are the five stages of a crisis? What happens in each of them? • Name & briefly describe each of the crisis communication theoriesin this lesson M. Caudill - Western Carolina University