Crisis Communications: A Casebook Approach, 4th Edition (Routledge Communication Series)

396 Pages·2010·12.53 MB·English

by  Kathleen Fearn-Banks

Crisis Communications

Crisis Communications: A Casebook Approach presents case studies of
organizational, corporate, and individual crises, and analyzes the commun -
ication responses to these situations. Demonstrating how professionals
prepare for and respond to crises, as well as how they develop com -
munications plans, this essential text explores crucial issues concerning
communication with the news media, employees, and consumers in times
of crisis.
Author Kathleen Fearn-Banks examines the steps of choosing the
appro priate words to convey a message, selecting the method and channels
for delivering the message, and identifying and targeting the most appro -
priate publics or audiences. She also addresses such important topics as
avoiding potential mismanagement of communication in crisis situations.
Key features of this fourth edition are:

•
Six new cases, including several international crises;
•
Current discussion of communications technology as it relates to
crises; and
•
A companion website with additional cases as well as supplemental
materials for students and classroom resources for instructors. Please
visit www.routledge.com/textbooks/fearn-banks.

A Student Workbook is also available for use with this volume, providing
additional pedagogy for each chapter, including discussion questions,
activities, key terms, case exercises, and worksheets.
Utilizing both classic and contemporary cases of real-world situations,
Crisis Communications provides students in public relations and business
with real-world perspectives and valuable insights for professional
responses to crises. It is intended for use in crisis communications, crisis
management, and PR case studies courses.

Kathleen Fearn-Banks is Professor of Communication in the Department
of Communication at the University of Washington.

Communication Series
Jennings Bryant/Dolf Zillmann, General Editors

Selected Titles in Public Relations (James E. Grunig, advisory editor)
include:

Austin/Pinkleton
Strategic Public Relations Management: Planning and Managing Effective
Communication Programs, Second Edition

Berger/Reber
Gaining Influence in Public Relations: The Role of Resistance in Practice

Botan/Hazleton
Public Relations Theory II

Hearit
Crisis Management by Apology: Corporate Response to Allegations of
Wrongdoing

McKee/Lamb
Applied Public Relations: Cases in Stakeholder Management, Second Edition

Crisis Communications

A Casebook Approach
Fourth Edition

Kathleen Fearn-Banks

University of Washington

First edition published 1996
by Lawrence Erlbaum Associates Inc.

Second edition 2001
Third edition 2007

This edition published 2011
by Routledge
270 Madison Avenue, New York, NY 10016

Simultaneously published in the UK
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

© 2011 Taylor & Francis

The right of Kathleen Fearn-Banks to be identified as author of this
work has been asserted by her in accordance with sections 77 and 78
of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this book may be reprinted
or reproduced or utilized in any form or by any electronic,
mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information
storage or retrieval system, without permission in writing
from the publishers.

Trademark Notice: Product or corporate names may be
trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.

Library of Congress Cataloging in Publication Data
Fearn-Banks, Kathleen.
Crisis communications: a casebook approach/Kathleen Fearn-Banks—
4th ed.
p. cm.
Includes index.
1. Public relations—Management—Case studies. 2. Crisis
management—Case studies. 3. Advertising—Case studies. I. Title.
HD59.F37 2010
659.2—dc22
2010014680

ISBN 13: 978–0–415–88058–9 (hbk)
ISBN 13: 978–0–415–88059–6 (pbk)
ISBN 13: 978–0–203–84952–1 (ebk)

ISBN 0-203-84952-3 Master e-book ISBN

This edition published in the Taylor & Francis e-Library, 2010.

To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.

Brief Contents

Preface
x

1 Crisis Communications Today
1

2 Crisis Communications Theory
16

3 Communications to Prevent Crises
27

4 Communications When the Crisis Strikes
33

5 Social Media and Crisis Communications
55

6 Rumors and Cybercrises
63

7 “Textbook” Crises
90

8 Culture Crises: Foreign and Domestic
110

9 Environmental Crisis
161

10 Natural Disasters
176

11 Transportation Crises
215

12 Product Failure and Product Tampering
236

13 Death and Injury
260

14 Individuals in Crises
291

15 The Crisis Communications Plan
301

Appendix A Generic Crisis Communications Plan for a Large
Company
320

Appendix B Crisis Communications Plan for Seattle’s Union
Gospel Mission
340

Appendix C Crisis Communications Plan for a Fictitious
Small Business
347

Sources
366
Index
377

vi
Brief Contents

Full Contents

Preface
x

1 Crisis Communications Today
1

What is a Crisis and What is Crisis Communications? 2
The Five Stages of a Crisis 4
Public Opinion 9
Mini-Case: White Star Line’s Titanic Sinks 10

2 Crisis Communications Theory
16

Apologia Theory 16
Image Restoration Theory 18
Decision Theory 19
Diffusion Theory 19
Excellence Theory 20
Summary 26

3 Communications to Prevent Crises
27

The News Media 27
Internal Publics 28
Customers/Consumers 30

4 Communications When the Crisis Strikes
33

Communicating with the News Media 34
Communicating with Lawyers 44
Communicating with Internal Publics 47
Communicating with External Publics 49
Communicating Directly with the Masses 50

5
Social Media and Crisis Communications
55

6 Rumors and Cybercrises
63

Word-of-Mouth Rumors, E-mail Rumors, Rogue Websites,
and Blogs 64
The Nature of Rumors 64
How Rumors Start 65
Mini-Case: Procter & Gamble and the Satanism Rumor 66
Case: Snapps Restaurant and the AIDS Rumor 66
Types of Rumor 72
How Rumors Spread 75
Detecting a Rumor and Preventing its Spread 75
Fighting the Rumor 77
Social Media Rumors 78
Battling Online Rumors 79
Mini-Case: Microsoft Fights Fake E-Mailed News Release 81
Mini-Case: The Killer Banana Rumor 82
Rogue Websites 82
How Do Companies Prevent Rogue Websites? 84
What to Do After an Attack Site Is Up 85
Mini-Case: Alaska Airlines and the Good and Bad News
Websites 86
Mini-Case: Dunkin’ Donuts Adopts a Rogue Website 87
Mini-Case: America Online and a “Sucks” Site 88
Blogs 89
Conclusion 89

7 “Textbook” Crises
90

Case: Johnson & Johnson and the Tylenol Murders 90
Case: Exxon and the Valdez Oil Spill 101

8 Culture Crises: Foreign and Domestic
110

Case: Saginaw Valley State University and the Theater
Controversy 110
Case: AIDS in Africa 116
Case: Texas A&M University and the Bonfire Tragedy 145

9 Environmental Crisis
161

Case: Häagen-Dazs and Honey Bees 161

10 Natural Disasters
176

Case: Hurricane Katrina and New Orleans 176

viii
Full Contents

11 Transportation Crises
215

Case: Holland America Line and Cruise Crises 215
Case: US Airways and the Emergency Landing in the Hudson 226

12 Product Failure and Product Tampering
236

Case: Yuhan-Kimberly and Baby Wet Wipes 236
Case: Maple Leaf Foods and the Battle against Listeria 243
Case: Wendy’s and the Finger-in-the-Chili Hoax 252
Mini-Case: Domino’s Pizza 258

13 Death and Injury
260

Case: Columbine High School and the Shooting Tragedy 260
Case: Metro Transit: Driver Shot, Bus Flies Off a Bridge 275

14 Individuals in Crises
291

The Public Person 293
Publicist or Lawyer? 294
Apologies 294
Talk or Keep Silent? 297
Responding to a Scandal 298

15 The Crisis Communications Plan
301

Crisis Inventory 301
Developing the Crisis Communications Plan 306

Appendix A:
320
Generic Crisis Communications Plan for a Large Company

Appendix B:
340
Crisis Communications Plan for Seattle’s Union
Gospel Mission

Appendix C:
347
Crisis Communications Plan for a Fictitious Small Business

Sources
366
Index
377

Full Contents ix

Preface

This, the fourth edition of Crisis Communications: A Casebook Approach,
like the previous editions, is concerned with how organizations, compa-
nies, and individuals cope with the communications aspect of crisis
management. How do they, or should they, communicate with the news
media, employees, and consumers? They must choose the best possible
words to convey their message, the best possible method of delivering the
message, and the precise and most appropriate public(s) or audience(s).
There are obviously many more methods of communications as time
passes; this makes the choices of methods challenging. However, the ideals
and principles remain—doing what is fair and honest.
Six new case studies are included in this volume. “Häagen-Dazs and
Honey Bees” is about the worldwide disappearance of honey bees, the
foods and food products we will be without unless something is done,
and the work that the ice cream manufacturer Häagen-Dazs is doing to
help propel the study that will, hopefully, find a solution. “Holland
America Line and Cruise Crises” shows us how limitless the kinds and
numbers of crises one organization may endure are. “Saginaw Valley
State University and the Theater Controversy” centers on a Michigan
university’s fight to serve its students and teach others about tolerance.
“US Airways and the Emergency Landing in the Hudson” is the familiar
crisis from the unfamiliar point of view of the communication team at
US Airways. “Yuhan-Kimberly and Baby Wet Wipes” is one of two
additional crises outside of the U.S., and it is about how the Korean-
based company used communications when consumers perceived one of
their products as harmful to infants.
The other crisis originating outside the U.S. is from Canada; “Maple
Leaf Foods and the Battle against Listeria” centers on how that company
took the high road when consumers became ill and died from their
products laden with the bacteria. There is a chapter, “Social Media and
Crisis Communications,” on the newest technology rage and a chapter,
“Individuals in Crisis,” on what public individuals do and should do when
involved in scandal. A chapter on how to develop a crisis communications

plan remains, updated to include social media. There are three crisis
communications plans in the appendices and all have been revised to
include the new technology. Two are generic—the large company and
the small business—and the third is an actual crisis campaign plan for a
nonprofit, Seattle’s Union Gospel Mission.
Four case studies have been removed from the print edition and can
now be accessed on the website, www.routledge.com/textbooks/fearn-
banks. Most remaining chapters and case studies have been updated.

Acknowledgments

I thank the crisis communicators and their staff members who helped
provide me with the information for the case studies. At Yuhan-Kimberly
in Seoul, Korea, the assistance was provided by S. W. Son, E. W. Lee, Y.
I. Kim, K. H. Kang, J. W. Shin, K. S. Cho, J. W. Lee, J. W. Leekim. Dr.
Yang-ho Choi of Chosun University introduced me to the crisis at Yuhan-
Kimberly. My former student, Boram Park, also assisted in translating from
Korean. For Maple Leaf Foods in Toronto, I was assisted by Linda Kuhn,
Jeannette Jones, and Linda Smith. Häagen-Dazs simply asked to be
recognized as “The Häagen-Dazs Brand team.” For Saginaw Valley State
University, I was assisted by Eric Peterson, J. J. Boehm, and Gene Hamilton
as well as Justin Engel and Janet Martineau of the Saginaw News.
Erik Elvejord and Michael Versteeg at Holland America Line found
time to help despite their work schedules.
Sister Mary Lou Specha, PBVM, of Reconcile New Orleans kept me
apprised of the progress of the youths she serves. Kathy Gill of the
University of Washington’s Master’s Degree in Digital Media program and
Ron Schott of Spring Creek Group were my social media experts. Henry
Marsh, Ruth Marsh, and Osie Thornton, Jr. in Michigan, Gerald Brown
in Los Angeles, Agnes Marsh in Louisville, and Elva Miller in Blacksburg,
Virginia, sent me information and material. Gina Arnold was my artist.
I thank Sharon Thomas-Hearns and Jeff Lilley at Seattle’s Union Gospel
Mission for permitting us to publish their crisis communications plan.
Very helpful University of Washington student researchers were Zach
Buck, James Tosch, Katie McElroy, Rachel Huntsberger, Kristin Marie
Scheidegger, Amina Saleh, M. S. Erickson, and students in COM 452
Crisis Communications. The Department of Communication’s reference
librarian Jessica Albano is indispensable to students and to me. Staff
members Patricia Humphrey and Robin Brooks helped organize the
cases. Kristina Bowman, Nika Pelc, and her staff of computer support
specialists are always helpful.
Professor Albert Sampson of Argosy University has been an excellent,
dutiful proofreader for all four editions. I thank him and also Routledge
editor Linda Bathgate who has been supportive from the beginning.

Preface xi

Crisis Communications Today

People who pick up a book on crisis communications are aware of social
media. Perhaps they do not use them or use them only socially. Perhaps,
they don’t know how to use them or don’t know if they should use
them. However, they are aware that social media exist and are major
communications tools in the second decade of the 21st century.
Between the date this book goes to press and the date it is in book
stores there will undoubtedly be new networks and usages of social media.
Many experienced crisis communicators are exploring, developing, and
learning how best to use social media. Chapter 5, “Social Media and
Crisis Communications” of this textbook addresses how organizations
and companies have used Twitter, Facebook, MySpace, YouTube, blogs,
and other social media to cope with crises. The chapter includes advice
on using social media and cites some crises caused by the use of social
media.
Crisis communications demands that one uses the best crafted message
delivered by the most effective method to the precise public (audience).
This has not changed. What has changed is the fact that social media
make it possible for faster communication than traditional methods and
to a very precise, often chosen, public. Whereas we used to have a
“golden hour” to disseminate crucial information about a crisis, now we
have a “golden few minutes” before publics expect information. The
message still needs to be carefully written—mistakes on social media can
live forever—but social media encourage rapid and frequent two-way
communication between an organization and its segmented publics,
without a gatekeeper. Social media can build positive relationships with
these publics.
So what the new technology has done is present new methods of com-
municating faster, possibly better and possibly not. It has not eliminated
the need for traditional methods. And it has not changed the facts of
human behavior—ethical and professional standards, the basic tenets
of crisis communications.

Chapter One

What is a Crisis and What is Crisis
Communications?

A crisis is a major occurrence with a potentially negative outcome
affecting the organization, company, or industry, as well as its publics,
products, services, or good name. A crisis interrupts normal business
transactions and can sometimes threaten the existence of the organization.
A crisis can be a strike, terrorism, a fire, a boycott, product tampering,
product failure, or numerous other events (see the list in Chapter 15,
p. 308). The size of the organization is irrelevant. It can be a multi-
national corporation, a one-person business, or even an individual.
Public relations (PR) professionals often say, “I have a crisis every day.”
This is an exaggeration, of course. The term crisis denotes something more
serious than a “problem.” Public relations people deal with problems—
solving them or avoiding them. By definition, however, a crisis interrupts
the normal flow of business, so a crisis cannot be a normal part of this
flow.
On the other hand, a crisis is not necessarily so catastrophic that the
life of the organization is destroyed. Exxon suffered the crisis of crises
after its oil spill in 1989. It still suffers from a bad image, but it continues
to thrive in business. (See the Exxon case in Chapter 7.)
This book advises you to plan for the worst that can happen, whether
it be a crisis or a problem, and it brings us to another expression: “Be
prepared.” This book shows you how to prepare yourself and your
organization to cope with crises that may occur. It deals with preparations
made far in advance, as well as with strategies and tactics to be used
during a crisis. It examines the experiences of public relations profes-
sionals in crises, describing what they did, what they wished they had
done, and what hampered their progress. You can learn from their
successes and failures.
In a crisis, in contrast to a problem, emotions are on edge, brains are
not fully functioning, and events are occurring so rapidly that drafting
a plan during a crisis is unthinkable. Simply following one is difficult.
Crisis management is a process of strategic planning for a crisis or
negative turning point, a process that removes some of the risk and uncer -
tainty from the negative occurrence and thereby allows the organization
to be in greater control of its own destiny.
Crisis communications is the dialog between the organization and its
public(s) prior to, during, and after the negative occurrence. The dialog
details strategies and tactics designed to minimize damage to the image
of the organization.
Effective crisis management includes crisis communications that not
only can alleviate or eliminate the crisis but also can sometimes bring
the organization a more positive reputation than it had before the crisis.

2
Crisis Communications Today