Overview
When a company goes through a crisis it is important to have a process to follow to ensure that employees, stakeholders, and companies understand the actions the company is taking to improve the situation.
Preparation
Read through these fictitious scenarios and choose one to write a crisis communication plan about.
The WidgetCo Product Recall:
In a scenario reminiscent of the Samsung Galaxy Note 7 battery issue, WidgetCo, a leading smartphone manufacturer, faces a crisis when multiple reports surface of their latest model overheating and causing fires. The company is forced to recall millions of devices, resulting in billions of dollars in losses and severe damage to their brand reputation.
The Social Media Hack Attack:
Similar to the 2013 Twitter hack, a major social media platform was hacked by a group of cybercriminals. They gained access to high-profile accounts, including celebrities and political figures, and they posted inflammatory and damaging content. The platform experienced a massive drop in user trust and engagement, leading to a significant stock price decline.
The Fast-Food Contamination Scare:
In a situation reminiscent of Chipotle’s E. coli outbreak in 2015, a popular fast-food chain is linked to multiple cases of foodborne illnesses. The crisis unfolds as the media exposes the extent of the contamination, leading to a widespread public outcry and declining sales. The company must shut down numerous locations for sanitation and rebranding efforts.
The Data Breach Debacle:
Drawing inspiration from the Equifax data breach in 2017, a major credit reporting agency experienced a massive data breach. Sensitive financial information of millions of customers is exposed, leading to identity theft and financial fraud. The company faces legal actions, regulatory fines, and a severe loss of trust from consumers.
The Oil Spill Disaster:
In a situation echoing the Deepwater Horizon oil spill, a global energy corporation experienced a catastrophic oil spill in a sensitive environmental area. The spill resulted in significant environmental damage, wildlife casualties, and public outrage. The company faced massive cleanup costs, regulatory penalties, and a long-term reputation crisis.
The Airline Safety Scandal:
Taking inspiration from the Boeing 737 Max crisis, a major airline manufacturer discovers that a critical safety feature in one of its aircraft models is flawed. Tragically, several crashes occur due to this issue, leading to widespread panic among travelers, a halt in production, and investigations by aviation authorities.
The Retail Giant’s Labor Controversy:
Similar to the labor disputes faced by Amazon in the past, a retail giant experienced a major controversy related to working conditions and employee treatment. Allegations of harsh working conditions, low pay, and inadequate benefits led to widespread worker strikes, social media backlash, and public protests.
The Pharmaceutical Pricing Predicament:
In a scenario reminiscent of the Martin Shkreli controversy, a pharmaceutical company acquires a life-saving drug and drastically increases its price, making it unaffordable for many patients. The media, public, and government officials rallied against the company, leading to investigations, public hearings, and potential legal actions.
Instructions
Write a 1-2 page Crisis Communication Plan for your chosen scenario that addresses the following:
The Crisis
Identify the crisis and explain why it is an issue. Be sure to identify ALL affected groups (e.g. employees, customers, stakeholders).
Discuss how the damage will be assessed and explain how the damage will be fixed. Provide a rationale for your response.
The Plan
Identify the individuals who will be responsible for communication and explain who needs to receive information about what is happening and why they need to receive information. Provide a rationale for your response.
Provide instructions on how to talk about the crisis with all concerned parties (employees, customers, and stakeholders).
The Result
Review the crisis and discuss how the crisis could have been prevented. Provide suggestions for preventing a similar crisis in the future. Provide a rationale for your response.
