Julie Cormier-DoironKevin DiasKathleen FraserStephanie FrisinaMeagan Taylor

Crisis Communicatio

nWhen it’s not business as usual

FIERCE STORMS

SHOCK

PRODUCT RECALL

SCANDALFINANCIAL CRISIS

MELTDOWN

COMPANY RELOCATION

EXPLOSION

What Is a Crisis?• A situation that has

reached a critical phase

• Three types of crises– Immediate crises–Emerging crises–Sustained crises

• Management will be prepared in a crisis situation.

• Can support vision and mission of organization

Why Bother with Crisis Planning?

Why is PR Important During a Crisis?

• Deal with internal and external publics

• Uphold and maintain an organization’s reputation by communicating with stakeholders and target publics.

Enables an organization to..

Scenarios

Maple Leaf Foods: A crisis handled well

Cadbury: A crisis handled poorly

Maple Leaf Foods

• Maple Leaf Foods issues news release on August 17, 2008,notifying public that products at their Toronto facility may have been contaminated with Listeria monocytogenes.

• Recall begins immediately after positive confirmation by public health agency.

• There are 19 deaths and more than 60 cases of illness.

First Reports

MLF representatives made available to media:• Linda Smith (Spokesperson)• Michael H. McCain (CEO)• Lynda Kuhn (Investor Inquiries Contact)• Michael Vel (CFO/VP)

Information & Media

Seventeen official news releases and 45 stories in the Toronto Star between August and October.

Public ApologyMaple Leaf Foods CEO Michael H. McCain issues public apology. 

“When listeria was discovered in the product,we launched immediate recalls to get it off the shelf, then we shut the plant down. Tragically,our products have been linked to illnesses andloss of life. To Canadians who are ill and tofamilies who have lost loved ones, I offer my deepest sympathies. Words cannot begin to express our sadness for your pain…

“By this week, our best efforts failed and we are deeply sorry. This is the toughest situation wehave faced in 100 years as a company. Weknow this has shaken your confidence in us; Icommit to you that our actions are guided by putting your interests first.”

—Michael H. McCain, CEO Maple Leaf Foods, August 2008

The Apology

Public ReactionBy August 26, the Toronto Star reports that Maple Leaf Foods was “winning applause for its proactive and open public relations approach.” “It's a tragedy; people got very sick, people died, and that's bad news no matter how you look at it. But a company in that kind of a crisis can gain or lose a lot. They can lose everything or they can gain some public trust if they're handling the problem the best they can...I think Maple Leaf Foods did that.” —interview with J. Fred Kuntz, Toronto Star editor-in-chief at the time of the crisis, October 2011

• Leak at facility in England, which may have caused salmonella contamination, discovered in January 2006.

• Notification made to FSA on June 19, 2006.

• Product recall begins on June 23.

• There are 45 illnesses believed to be associated with the recall.

CadburyFirst Reports

• Unnamed spokesperson says that Cadbury’s recall is a precautionary measure.

• Cadbury sets up a free helpline.

Information & Media

• Accountability is deflected by Cadbury asmedia stories fail to convey any sense ofsincerity.

Little Accountability

• British media began to report by July that Cadbury CEO Todd Stitzer and the company were being criticized for the huge embarrassment.

Public Reaction

• Mitigate impact with issues management vigilance and open communication.

• Organizations better equipped to respond with proactive solutions to reduce risk and policies to react swiftly to crisis situations.

Planning for CrisisBeing prepared is the first step to success.

“Given that the potential for damage increases exponentially if it takes time to react effectively, Bernstein argues that it is better to prepare for a crisis than to simply react.”

• Building cultures of cooperation and collaboration among key decision-makers is critical to emergency preparedness.

Reacting to CrisisTransparency, Reaction Time, Leadership

• Cadbury’s crisis communications methods and message deemed unethical by consumers, stakeholders and media.

• Decision to remain silent and accept responsibility did not resonate well with concerned consumers.

• Lack of information and delays caused speculation and hysteria, as contaminated chocolate unknowingly consumed over Easter holidays.

Strategies: Cadbury’s Risky PR Approach That Did Not Pay Off

• Delay in Cadbury’s response time severely limited public relations efforts to mitigate risk.

• Cadbury’s PR efforts and good regard for historic company outweighed by public outcry over lack of corporate transparency.

Long-term cultures of cooperation and collaboration among key decision makers builds trust.

Strategies: Cadbury’s Short-Term Thinking and Lack of Transparency Frustrated Consumers

• Cadbury’s decision to remain silent for months a risk that did not play out in their favour.

• Duck-and-dodge tactic ultimately severely damaging to reputation and broke trust of consumers.

In Court of Public Opinion, Cadbury’s Crisis Communications Deemed a Fail

“If not dealt with, the damage done by crises will not go away; they will become long-term reputation issues.” — Marra, Francis J. (1989)

• Immediate, transparent and proactive communications proof that Maple Leaf Foods had an emergency plan in place to deal with the outbreak.

• Strategic plan executed across a variety of media outlets, CEO made available to media, and openly apologized for endangering public.

Strategies: Maple Leaf Foods Effective PR Strategy Well Executed

Strategies: Maple Leaf Foods Uses CEO’s Presence to Successfully Add Credibility

• Use of familiar spokespeople and the CEO as key authorities reaffirm public’s perception of organization’s honesty, integrity and accountability.

to PR

• Maple Leaf Foods successfullymade strong long-term effortsto repair broken trust by communicating their “Food Safety Pledge” to consumers,investors, shareholders and employees.

• By firmly stating organizational priorities, Maple Leaf Foods executed a top-down approach to corporate food-safety values.

• By providing more than short-term solutions (press conferences, public apology), and building a long-term strategy, the company is upholding values on an ongoing basis and at all levels of the company.

Strategies: Maple Leaf Foods Long Term Commitment to Consumers

• Maple Leaf Foods handled their contamination crisis with transparency, swift action and public accountability, which resonated positively with all stakeholders.

A crisis well managed, praised by industry analysts, media and consumers alike

In Court of Public Opinion, Maple Leaf Foods Crisis Communications Deemed a Pass

Role of the PR Practitioner• The career of a PR practitioner can be a multi-faceted

journey. • A well-respected public relations professional is a key

contributor to the executive management of any organization.

• The PR professional must be able to deliver a message that is timely, authentic and empathetic.

“There’s two tenets that you seek to reinforce. One is timeliness, and the other one is authenticity of message — and what people need to hear emotionally, for the empathy side of the equation.” —interview with Linda Smith, Maple Leaf Foods spokesperson at the time of the crisis, October 2011

Lessons Learned

• Well-informed• Prepared to act• True to the organization’s mission and values• Trusted and valued within the organization• Available to and trusted by the public and the media

A PR practitioner can, with the support of all management, craft and execute a plan that will help an organization weather any storm.

An effective crisis communications plan, well-executed, will ensure that the organization and its PR representatives are

It is in a crisis that the value of the communications plan and the character of an organization will be most tested.

Sources and Credits