Risk issues and crisis management : a casebook of best practice

257 Pages·2005·1.009 MB·English

by  Larkin, Judy, Regester, Michael

Risk Issues & Crisis Mngmnt FB 15/6/05 3:18 pm Page 1
P R I N P R A C T I C E S E R I E S
Risk Issues
and Crisis
Management
A Casebook of Best Practice
Third Edition
Michael Regester
& Judy Larkin
Risk Issues HP 15/6/05 3:17 pm Page 1
Risk Issues
and Crisis
Management
Praise for Risk Issues and Crisis Management
“It used to be said that ‘reward is commensurate with risk’; now I fear
more apt is ‘risk is likely to end in crisis’. Who better to guide us through
the risk/crisis minefield than Mike Regester and Judy Larkin, who have
guided so many so well for so many years. Read it before you need to
would be my advice.”
Robert Worcester, Chairman, MORI
“As one involved in MBA teaching and executive development, I find
this book invaluable – not only for students, but also for managers
seeking insights into these crucial areas of modern management. It’s a
clear and highly readable overview of the requirements of risk, issues and
crisis management, informed by the expertise and experience of two
leading practitioners and consultants, as well as by skillfully chosen and
‘classic’ case studies. The book is recommended early reading for any
manager involved in risk assessment, in trying to understand and
manage issues, and concerned to prepare him or herself for the demands
of crisis management.”
Jon White, Associate, The John Madejski Centre for Reputation,
Henley Management College
“In a world where the hardest won corporate reputation can disappear
overnight, this is required reading. Industry has learned little from the
mistakes of the past, say the authors, who go on to give a compelling
account of just how much there is to learn. Their first-hand experience in
dealing with reputational issues and managing crisis shines through.”
Paul Marriage, Head of Corporate Communications, Standard Chartered Bank
“Regester Larkin is a key business partner helping us to shape our
thinking on proactively managing our reputation. This book is a leading
work on reputation management.”
Isobel Hoseason, Director of Communications, National Grid Transco
“This book is full of wisdom, insights and practical advice from two of
the real gurus in the PR industry. It’s also one of the few books on public
relations which is a pleasure to read. We keep it as a standard reference in
our offices and I recommend it to anyone, at any level, who wants to
know more about corporate communications under extreme pressure.”
Adrian Wheeler, Chairman, GCI UK and Europe; Chairman, PRCA,
1999–2000
Risk Issues TP 15/6/05 3:17 pm Page 1
P R I N P R A C T I C E S E R I E S
Risk Issues
and Crisis
Management
A Casebook of Best Practice
Third Edition
Michael Regester
& Judy Larkin
London and Sterling, VA
for
Paul
Lucinda, Alice, Kimberley and Daniel
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book is accu-
rate at the time of going to press, and the publisher and authors cannot accept responsibility for
any errors or omissions, however caused. No responsibility for loss or damage occasioned to any
person acting, or refraining from action, as a result of the material in this publication can be
accepted by the editor, the publisher or any of the authors.
First published in 1997
Second edition published 2002
Third edition published 2005
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as
permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro-
duced, stored or transmitted, in any form or by any means, with the prior permission in writing of
the publishers, or in the case of reprographic reproduction in accordance with the terms and
licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent
to the publishers at the undermentioned addresses:
Kogan Page Limited Kogan Page US
120 Pentonville Road 22883 Quicksilver Drive
London N1 9JN Sterling VA20166–2012
UK USA
© Michael Regester and Judy Larkin, 1997, 2002, 2005
The right of Michael Regester and Judy Larkin to be identified as the authors of this work has been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
British Library Cataloguing in Publication Data
ACIPrecord for this book is available from the British Library.
ISBN 0 7494 4382 0
Library of Congress Cataloging-in-Publication Data
Regester, Michael.
Risk issues and crisis management: a casebook of best practice/Michael
Regester and Judy Larkin – 3rd ed.
p. cm.
Includes bibliographical references and index.
ISBN 0–7494–4382–0
1. Issues management. 2. Social responsibility of business. 3. Crisis
management. I. Larkin, Judy. II. Title.
HD59.5.R44 2005
658.4’056–dc22
2005000815
Typeset by Jean Cussons Typesetting, Diss, Norfolk
Printed and bound in Great Britain by Clays Ltd, St Ives plc
Contents
About the authors xi
Foreword xiii
Preface xv
Acknowledgements xvii
Introduction 1
PART 1 RISK ISSUES MANAGEMENT
1. Outside-in thinking 7
Who can we trust? 7
Consumer power and the rise of a non-governmental 10
order
Case study: SHAC attack 16
Dealing with risk 17
Case study: MMR 19
Handling the organizational response 21
The advocacy approach 23
Public consultation – building dialogue into the 27
communications process
The rise of the precautionary principle 28
Case study: phthalates in toys 29
Case study: mobile phones and radiation 32
Summary 37
v
Contents
2. Issues management defined 38
What is issues management? 39
What about the sceptics? 41
What is an issue? 43
Who should practise issues management? 44
What are the functions of issues management? 44
Summary 47
3. Planning an issues management programme – 48
an issues management model
Issue lifecycle 50
Case study: Norplant 53
Case study: Monsanto wrecked brand and lost 55
opportunity
Case study: the pill panic, a lesson in over-caution 57
Case study: ‘In the goo’ – industry failing to learn the 61
lessons
Case study: Intel 61
The importance of early action 64
Case study: 2004 Olympic scandals – where now for 65
world’s greatest sporting event?
Summary 68
4. CSR: the new moral code for doing business 69
Introduction 69
The growing business imperative 70
What constitutes good socially responsible corporate 76
behaviour
New business values 78
CSR best practice policy development and management 80
Summary 84
5. An issue ignored is a crisis ensured 85
Case study: decommissioning the Brent Spar – 85
implications for a global industry
Case study: mad cows and Englishmen – the story of BSE 95
Case study: drug pricing in South Africa – 104
the business perspective is not the only perspective
Case study: CFCs – finding an essential breathing space 107
Case study: Ford and Firestone – a management and 113
communication failure
6. Implementing an issues management programme 117
Examples of issue management models and processes 126
Summary 130
vi
Contents
PART 2 CRISIS MANAGEMENT
7. So it hits the fan – now what? 133
Case study: supersonic disaster 134
Case study: the Asian tsunami and the travel industry 135
Business crises 139
Case study: Sayonara Citibank 140
How the mighty fall 142
Case study: Challenger space shuttle tragedy 142
Case study: Piper Alpha catastrophe 143
Case study: Paddington rail disaster 143
CEOs are not infallible 145
Case study: Marks & Spencer 146
Product-related crises 147
Case study: the Tylenol tale 147
Case study: what took the fizz out of Perrier 148
Case study: Coca-Cola 150
Who will have a crisis? 156
What kind of crisis will happen? 157
Summary 162
8. Perception isthe reality 163
Atale of three sorry tankers 164
Case study: Exxon Valdez 164
Case study: Braer 167
Case study: Sea Empressin distress 170
Summary 172
9. The media in crisis situations 173
How JALand British Midland got it right 174
Gaining media support 176
Case study: Hillsborough 176
The media as an ally 179
Case study: Thomas Cook coach crash 180
Case study: Inghams Austria coach crash 183
Monitoring the media 184
Summary 185
10. The legal perspective 186
Legal pitfalls when communicating in crisis 187
Case study: Herald of Free Enterprise 188
Case study: TotalFina and the Erikaoil-spill disaster 192
So what is the lawyer’s role in a crisis? 193
Compensation 194
vii
Contents
Ex-gratia payments 194
Summary 195
11. Planning for the unexpected 196
Calm and positive thinking 196
Deeds versus declarations 197
Planning to manage the crisis 198
Appointing the teams 200
Communication hardware 201
Crisis prevention 203
Selecting team members 205
Putting the plan in writing 206
Testing everything 206
Summary 208
12. Crisis communications management 209
Stena Challengergrounding 209
Background information to seize the initiative 210
Set up a press centre 211
Managing the press conference 211
Dealing with the television interview 213
Coping with hundreds of telephone calls 214
Responding to calls from relatives 216
The news release 217
Keeping employees informed 219
Using your website 219
The role of the emergency services 220
When it is all over 221
Summary 222
References 223
Index 227
viii
PR in Practice Series
Published in association with the Chartered Institute of Public Relations
Series Editors: Anne Gregory and Gro Elin Hansen
Kogan Page has joined forces with the Chartered Institute of Public Relations to
publish this unique series, which is designed specifically to meet the needs of the
increasing numbers of people seeking to enter the public relations profession and the
large band of existing PR professionals. Taking a practical, action-oriented approach,
the books in the series concentrate on the day-to-day issues of public relations practice
and management rather than academic history. They provide ideal primers for all
those on CIPR, CAM and CIM courses or those taking NVQs in PR. For PR practi-
tioners, they provide useful refreshers and ensure that their knowledge and skills are
kept up to date.
Anne Gregoryis one of the UK’s leading public relations academics. She is Director of
the Centre for Public Relations Studies at Leeds Business School, a faculty of Leeds
Metropolitan University. Before becoming an academic, Anne spent 12 years in public
relations practice and has experience at a senior level both in-house and in consul-
tancy. She remains involved in consultancy work and is a non-executive director of
South West Yorkshire Mental Health NHS Trust with special responsibility for finan-
cial and communication issues. Anne is Consultant Editor of the PR in Practice series
and edited the book of the same name and wrote Planning and Managing Public
Relations Campaigns, also in this series. She was President of the CIPR in 2004.
Gro Elin Hansenis the in-house Editor of the PR in Practice series, as well as being
Editor ofProfile, the Chartered Institute of Public Relations’ member magazine.
Other titles in the series:
Creativity in Public Relationsby Andy Green
Effective Media Relationsby Michael Bland, Alison Theaker and David Wragg
Managing Activismby Denise Deegan
Online Public Relationsby David Phillips
Planning and Managing Public Relations Campaignsby Anne Gregory
Public Relations: Apractical guide to the basicsby Philip Henslowe
Public Relations in Practiceedited by Anne Gregory
Public Relations Strategyby Sandra Oliver
Risk Issues and Crisis Management in Public Relationsby Michael Regester
and Judy Larkin
Running a Public Relations Department by Mike Beard
Forthcoming titles:
Effective Internal Communicationsby Lyn Smith and Pamela Mounter
Introduction to Public Affairsby Stuart Thompson and Dr Steve John
The above titles are available from all good bookshops. To obtain further information,
please go to the CIPR website (www.ipr.org.uk/books) or contact the publishers at the
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