Tag Archives: crisis communications plan

Penn State: Analysis of Crisis Communications

On November 5, 2011, Jerry Sandusky, former Pennsylvania State University assistant football coach, was arrested on a number of counts of sexual assault on a minor. The arrest stems from incidents relating to The Second Mile charity, founded by Sandusky, and its association with Pennsylvania State University over the course of 15 years (Garcia, 2011; “Sandusky,” 2011). Two days later, the Pennsylvania State University athletic director, Tim Curley, and senior vice president for finance and business, Gary Schultz, surrendered to police to answer charges for failing to notify authorities for suspicions of sexual abuse of a minor (“Officials,” 2011; “Sandusky,” 2011). In two more days, Joe Paterno, head coach of the Pennsylvania State University football program, resigned over the controversy surrounding the university and its football program (Garcia, 2011; “Sandusky,” 2011). Within days of the arrests (and, before all the facts are known), the university was being severely criticized in the media (Zinser, 2011). This public relations nightmare is an example of how leveraging a crisis communication plan is important in communicating with the public.

Trivitt and Yann (2011) present this case as a reminder that crisis managers cannot fix every problem: “we think it’s important that, as a profession, we don’t overreach and try to uphold our work as the savior for every societal tragedy and crisis. Doing so makes us look opportunistic and foolish considering the gravity of the situation” (para. 13). In the case of Pennsylvania State University, there were a number of glaring failures to report the assaults to the authorities. Still, Sandusky was allowed to have unsupervised interaction with these adolescent boys until an investigation was launched in 2009 after one of the victims notified the authorities (“Sandusky,” 2011). Pennsylvania State University authorities should have reported the accusations to the proper authorities and released a statement to the media as soon as they were made aware, saving the administration from this crisis (Sudhaman & Holmes, 2012). The perception, however, is that there was a cover-up of moral corruption. There were a number of moral requirements that university representatives failed to acknowledge over the past years, and the character and esteem of the school will suffer for it.

Immediately after the revelation of these transgressions, the Pennsylvania State University administration clambered to make the proper attempts towards repairing the school’s suffering reputation, including donating $1.5-million of profits received from the renowned football program to sex crimes advocacy projects, discontinuing the school newspaper’s sex column, and providing a town hall- type venue where concerned students could present their questions and concerns directly to school officials (Sauer, 2011). Ultimately, these steps are proper; however, the only means of reclaiming and recapturing the admirable reputation that Pennsylvania State University once held is time and requires purging those administrators who appear sullied by this controversy. This does not, however, mean that Pennsylvania State University is languishing. According to Reuters (Shade, 2011), applications to attend Pennsylvania State University have increased in the last year, and the current school administration, as well as alumni, are uniting to restore the trust between the school and students.

Further, Singer (2011), a crisis communications and reputation management specialist, outlines the steps necessary for the school to truly enhance its brand. Singer highlights cleaning the slate by terminating any employees explicitly related to or having perpetuated the crisis, creating a team-centric leadership culture by restraining the political power of any one person within the school (especially the lead coach), and living the values that are proffered by the school (e.g. “Success With Honor”). If the crisis is handled appropriately from this point forward, the school’s reputation will be judged not the crisis itself.

Discussion

Coombs (2012), Fearn-Banks, (2011), and Hendrix and Hayes (2010) all agree that crises are unexpected events that are difficult to anticipate; however, the communications focus should not be placed on specific problems that have a low probability of materializing but to have broad and general preparations in place to address unanticipated concerns as they arise.

Hendrix and Hayes (2010) provides an emergency checklist that organizations could adopt to better prepare to respond rapidly to a crisis. Analyzing the Pennsylvania State University response in retrospect by applying the concepts within this checklist will show how poorly prepared the administration was in responding to this crisis. What is glaring in the analysis is that the administration was on the defensive throughout the entire crisis. It seems that they were either unwilling or unable to get in front of the story. Hendrix and Hayes, as well as Coombs (2012) recommends utilizing a central resource as a clearinghouse to disseminate information to and from external publics. This communications center could also serve as an incident knowledge-base for those internal publics requiring more information. Further, preparation, again, is explicitly stated and is a requirement to quickly respond to media inquiries within the hour recommended. Although it is unclear if Pennsylvania State University incorporated a public information center, it was clearly not effective if it was, indeed, instituted.

Another issue that was contentious throughout the crisis and gave the appearance of a cover-up was the lack of full disclosure on the part of the university. It is understandable that the administration might have been caught off guard; however, this is no excuse to appear defensive and largely silent.

The Pennsylvania State University administration later contracted with a public relations firm to restore the reputation of the university. This should have been done much earlier.

References

Coombs, W. T. (2012). Ongoing crisis communication: Planning managing, and responding (3rd ed.). Thousand Oaks, CA: Sage.

Fearn-Banks, K. (2011). Crisis communications: a casebook approach (4th ed). New York, NY: Routledge.

Garcia, T. (2011, November 9). Paterno announces retirement, says Penn State has bigger issues to address. PRNewser. Retrieved from http://www.mediabistro.com/prnewser/paterno-announces-retirement-says-penn-state-has-bigger-issues-to-address_b29902

Hendrix, J. A. & Hayes, D. C. (2010). Public relations cases (8th ed.). Boston, MA: Wadsworth Cengage Learning.

Officials seeking alleged abuse victims. (2011, November 9). ESPN.com. Retrieved from http://espn.go.com/college-football/story/_/id/7203566/penn-state-nittany-lions-sex-abuse-case-officials-arraigned-police-seek-alleged-assault-victim

Sandusky, Penn State case timeline. (2011, November 9). ESPN.com. Retrieved from http://espn.go.com/college-football/story/_/id/7212054/key-dates-penn-state-sex-abuse-case

Sauer, A. (2011, December 1). Penn State bogs down in PR crisis, but a turnaround already showing. brandchannel. Retrieved from http://www.brandchannel.com/home/post/2011/ 12/01/Penn-State-Bogs-Down-In-PR-Crisis-120111.aspx

Shade, M. (2011, December 1). Penn State officials say applications up despite scandal. Reuters. Retrieved from http://www.reuters.com/article/2011/12/01/us-crime-coach-students-idUSTRE7B00GD20111201

Singer, J. (2011, December 7). The Penn State scandal: crisis as opportunity. The Business of College Sports. Retrieved from http://businessofcollegesports.com/2011/12/07/the-penn-state-scandal-crisis-as-opportunity/

Sudhaman, A. & Holmes, P. (2012, January 25). The top 10 crises Of 2011. The Holmes Report. Retrieved from http://www.holmesreport.com/featurestories-info/11377/The-Top-10-Crises-Of-2011.aspx

Trivitt, K. & Yann A. (2011, November 9). Public relations won’t fix Penn State’s crisis. PRSay. Retrieved from http://prsay.prsa.org/index.php/2011/11/09/public-relations-wont-fix-penn-states-crisis/

Zinser, L. (2011, November 9). Memo to Penn State: Ignoring a scandal doesn’t make it go away. The New York Times. Retrieved from http://www.nytimes.com/2011/11/10/sports/penn-state-fails-a-public-relations-test-leading-off.html?_r=1&ref=sports

Crisis Communications: Imperial Sugar Case Study

At approximately 7:15 pm, on February 7, 2008, a large explosion at the Imperial Sugar refinery rocked the area of Port Wentworth, Georgia, killing 14 people and injuring 36, and although, the incident was found to be the fault of Imperial Sugar, this discussion will focus on the crisis communications and public relations surrounding the event (Bauerlein, 2010; U.S. Chemical Safety and Hazard Investigation Board, 2009). According to a report from the Public Relations Society of America (PRSA; 2009), although John Sheptor was appointed Chief Executive Officer merely nine days earlier and did not enjoy the support of a crisis communications team, he was thrust into the spotlight having to deal with this particular crisis.

According to a local television station, the people of Savannah and Port Wentworth responded admirably at the first hint of trouble (“Sugar refinery explosion,” n.d.). This is more of a testament to the community than to Imperial Sugar; however, it promotes a sense of good-will and community trust that Imperial Sugar was able to leverage. Almost immediately, Sheptor, in conjunction with Imperial Sugar partner Edelman, was holding regular news conferences, disseminating press releases, and correcting the record. The only delay is seemingly the time required to work with first responders and investigators (“4 found dead,” 2008; PRSA, 2009; U.S. Chemical Safety and Hazard Investigation Board, 2009). According to the PRSA (2009), Sheptor and Edelman immediately instituted a program to communicate to “employees, stakeholders, investors, elected officials and the media, and to engage the public in helping the company support the Imperial Sugar employee family” (p. 1).

As the crisis wound down to the recovery phase, it is important to note, as Chapman (2008) chronicles, that all displaced employees were still being paid by Imperial Sugar. All employees that were able were used to help in the clean-up efforts and ultimately maintained their employment status with Imperial Sugar. Within a week of the incident, Sheptor reported that the company was looking to rebuild and, in just over two month’s time, the decision to rebuild was official (Securities and Exchange Commission, 2008).

Sheptor leveraged Edelman’s communication philosophies which allowed communications to be prioritized, correct, honest, and abundant. While also providing much needed information to employees and families of missing employees, especially, this mode of communication also allowed Edelman, and Imperial Sugar, to cultivate media relations that will benefit them in the future.

References

4 found dead in Ga. sugar refinery blast. (2008, February 8). Associated Press. Retrieved from http://www.msnbc.msn.com/id/23059948/ns/us_news-life/t/found-dead-ga-sugar-refinery-blast/

Bauerlein, V. (2010, July 8). Imperial Sugar to pay fines in deadly Georgia explosion case. Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052748703636404575352782366026008.html

Chapman, D. (2008, April 13). Sugar refinery near Savannah determined to rebuild. Atlanta Journal-Constitution. Retrieved from http://www.ajc.com/metro/content/business/stories/2008/04/12/sugar_0413.html

Public Relations Society of America. (2009). Crystallizing a response to a crisis (Product # 6BW-0911A05).

Securities and Exchange Commission. (2008, April 17). Current report: Imperial Sugar Company (Form 8-K). Washington, D.C.: Author.

Sugar refinery explosion (Collection of news reports). (n.d.) WTOC. Retrieved from http://www.wtoc.com/category/125278/sugar-refinery-explosion

U.S. Chemical Safety and Hazard Investigation Board. (2009, September). Investigation report: sugar dust explosion and fire (Report No. 2008-05-I-GA). Retrieved from http://www.csb.gov/assets/document/Imperial_Sugar_Report_Final_updated.pdf

Crisis as Opportunity

Through the last few weeks, we have explored various means of saving the reputation of an organization in crisis. From reframing arguments to apologizing and promising to making it right, we have many tools at our disposal to turn the conversation in a way that is, at most, beneficial to the organization’s reputation or, at least, less harmful to it. But, what happens when the crisis is so detrimental to the organization’s reputation due solely to flagrant immoral or illegal conduct? Can a crisis communications plan be of any help?

On November 5, 2011, former Penn State assistant football coach Jerry Sandusky was arrested facing 40 counts of criminal activity, including a number of counts of sexual assault on a minor for incidents relating to Penn State’s association with The Second Mile charity, founded by Sandusky, over the course of 15 years (Garcia, 2011; “Sandusky,” 2011). Two days later, Penn State athletic director Tim Curley and senior vice president for finance and business Gary Schultz surrender to police to answer charges for failing to notify authorities for suspicions of sexual abuse of a minor (“Officials,” 2011; “Sandusky,” 2011). In two more days, football legend, Joe Paterno, head coach of the Penn State football program, resigns amidst the controversy surrounding the university and its football program (Garcia, 2011; “Sandusky,” 2011). Within days of the arrests (and, before all the facts are known), the university is being excoriated in the news (Zinser, 2011). This, I believe, constitutes a public relations nightmare.

Trivitt and Yann (2011), of the Public Relations Society of America, present the case of the Penn State crisis as a reminder that public relations and crisis managers cannot fix every problem: “we think it’s important that, as a profession, we don’t overreach and try to uphold our work as the savior for every societal tragedy and crisis. Doing so makes us look opportunistic and foolish considering the gravity of the situation” (para. 13). In the case of Penn State, there were a number of opportunities for the assaults to be reported to the authorities, yet Sandusky was allowed to remain in close unsupervised contact with young boys until, finally, one of the victims contacted the authorities in 2009 and an official investigation was initiated (“Sandusky,” 2011). The best thing that Penn State could have done was to report the accusations to the proper authorities as soon as they were made aware, saving the administration from allegations of a cover-up or their collective morals being called into question (Sudhaman & Holmes, 2012). The perception, now: cover-up and morally corrupt. There were a number of moral obligations that representatives of the university failed to abide over the preceding years, and the reputation of Penn State will suffer for it.

Immediately following the break of the scandal, the Penn State administration scrambled to make appropriate efforts towards repairing the poor reputation of the university, including donating $1.5-million of football profits to sex crimes advocacy programs, suspending the school newspaper’s sex column, and holding a town hall type meeting where students can pose questions and concerns directly to school administrators (Sauer, 2011). Though these steps are good, ultimately, the only means of recovering the reputation that Penn State once held is time and a changing of the guard; however, this does not mean that Penn State is suffering. According to Reuters (Shade, 2011), applications to attend Penn State are up from last year, and the current school administration, as well as alumni, are coming together to strengthen the trust between the school and students. Further, Singer (2011), a crisis communications and reputation management specialist, describes the steps the university can take in the coming years to truly restrengthen its brand. Singer emphasizes <em>cleaning the slate</em> by firing any other employees directly associated with the scandal, <em>creating a team-centric leadership culture</em> by limiting the political power of any one person within the university (especially the head coach), and <em>living the values</em> put forth by the university (e.g. “Success With Honor”). So long as the crisis is handled appropriately since the mass firing of school officials, the school’s reputation will be judged on the response to the crisis and not the crisis alone.

References

Garcia, T. (2011, November 9). Paterno announces retirement, says Penn State has bigger issues to address. PRNewser. Retrieved from http://www.mediabistro.com/prnewser/paterno-announces-retirement-says-penn-state-has-bigger-issues-to-address_b29902

Officials seeking alleged abuse victims. (2011, November 9). ESPN.com. Retrieved from http://espn.go.com/college-football/story/_/id/7203566/penn-state-nittany-lions-sex-abuse-case-officials-arraigned-police-seek-alleged-assault-victim

Sandusky, Penn State case timeline. (2011, November 9). ESPN.com. Retrieved from http://espn.go.com/college-football/story/_/id/7212054/key-dates-penn-state-sex-abuse-case

Sauer, A. (2011, December 1). Penn State bogs down in PR crisis, but a turnaround already showing. brandchannel. Retrieved from http://www.brandchannel.com/home/post/2011/12/01/Penn-State-Bogs-Down-In-PR-Crisis-120111.aspx

Shade, M. (2011, December 1). Penn State officials say applications up despite scandal. Reuters. Retrieved from http://www.reuters.com/article/2011/12/01/us-crime-coach-students-idUSTRE7B00GD20111201

Singer, J. (2011, December 7). The Penn State scandal: crisis as opportunity. The Business of College Sports. Retrieved from http://businessofcollegesports.com/2011/12/07/the-penn-state-scandal-crisis-as-opportunity/

Sudhaman, A. & Holmes, P. (2012, January 25). The top 10 crises Of 2011. The Holmes Report. Retrieved from http://www.holmesreport.com/featurestories-info/11377/The-Top-10-Crises-Of-2011.aspx

Trivitt, K. & Yann A. (2011, November 9). Public relations won’t fix Penn State’s crisis. PRSay. Retrieved from http://prsay.prsa.org/index.php/2011/11/09/public-relations-wont-fix-penn-states-crisis/

Zinser, L. (2011, November 9). Memo to Penn State: Ignoring a scandal doesn’t make it go away. The New York Times. Retrieved from http://www.nytimes.com/2011/11/10/sports/penn-state-fails-a-public-relations-test-leading-off.html?_r=1&ref=sports

Crisis Counseling: Senior Management

As a crisis management professional, it would be my job to assess the situation, define the crisis, and develop a plan that would address stakeholder concerns allowing the company to move forward with, hopefully, minimal negative and maximal positive impact to the organizational reputation (Coombs, 2012). The Intel Pentium flaw did not impact Intel’s reputation in 1994 as much as preceding inattention to quality that modeled consumers’ perceptions and production and marketing irregularities that computing insiders were quite aware (Mihaiu, 2001). Even as recently as last year, Intel has been plagued with poorly performing processors (Fontevecchia, 2011). I believe that many of the processor issues were merely a result of being cutting-edge in a fast-paced competitive environment, though Intel’s reputation need not suffer from inattention to that fact. The problem: convincing the CEO that a) there is a crisis, b) this crisis needs to be dealt with (costing money), and c) it needs to be dealt with openly and ethically in order to maximize the reputation of the company.

Previously, as a computer programmer and analyst, I was intimately familiar with Intel line of processors, and I can attest to the overall positive reputation Intel has enjoyed since moving into the consumer computing arena; however, as stated above, the company’s reputation was not always seen in a positive light. Using my familiarity with Intel, my primary suggestion to the CEO regarding the Pentium debacle would be to remain honest and open with external publics while making the situation right. The honesty of the situation should be accepted by many consumers so long as Intel garners a net positive reputation. This net positive should be reinforced with the professed willingness of correcting the situation. The message should be: “We are on the cutting-edge of computing and consistently push the envelop in leaps and bounds, and we cannot always get everything right, but we can make it right… and, we will!”

The CEO, however, may decide that the situation is minimal and not unlike others that the company has faced in the past. Dealing with these issues previously may have created an air of complacency that needs to be countered in order to prevent further cumulative effect on the reputation of Intel. Regardless, as Coombs (2012) points out, if implementing a crisis management plan “improve[s] the situation and benefit[s] the organization, its stakeholders, or both” (p. 125), the situation should be approached and handled as crisis. The ethical dictum of “do the right thing” should provide for, at least, the fundamental guiding principles in responding to any issue, which would help to ensure that negativity is deflected and minimized appropriately. A CEO who has no appreciation of the gravity of the circumstances may need to be reminded of this in order to prod him into action.

References

Coombs, W. T. (2012). Ongoing crisis communication: planning, managing, and responding. Thousand Oaks, CA: Sage.

Fontevecchia, A. (2011, January 31). Chip recall hurts Intel’s reputation, tablet fears a bigger problem. Forbes. Retrieved from http://www.forbes.com/sites/afontevecchia/2011/01/31/chip-recall-hurts-intels-reputation-tablet-fears-a-bigger-problem/

Mihaiu, R. (2001, July 3). Intel’s tricks! Retrieved from http://mihaiu.name/2001/intel_tricks/