A compassion-centric behavioral agency perspective for organizations in times of crisis

In times of crisis, organizations face a dilemma: How should they balance between minimizing losses and surviving financially, and acting for the benefit of all stakeholders and of society at large? In theory, managers should balance between multiple demands, forgoing short-term profits to address human needs when necessary. But in practice, managers may face challenges in balancing demands during a crisis. Combining the stakeholder-agency and compassion perspectives in the context of crisis management, we present the compassion-centric behavioral agency in crisis (CCBAC) framework to address this theory-practice gap. We suggest three levers for organizations and policymakers to encourage this behavior from organizations: developing and using technological and innovation capabilities, paradoxical leadership behaviors, and employee well-being and generosity programs. Organizations benefit from the CCBAC framework because they become better positioned to maintain their long-term competitive advantage and positive organizational identity while contributing to the needs of society. Policymakers benefit from incentivizing such organizations because they serve as an intermediary to achieve outcomes for society at large. Throughout this article, we use the COVID-19 pandemic, responses to mass shootings, and other example crises to highlight the tension and opportunity within our “both/and” approach. We conclude that organizations can be compassionate even as they pursue profit and efficiency in the long run.     

Guilty by association: The risk of crisis contagion

Crisis contagion, or how a crisis spreads from one company to another, has received very little attention from researchers. This is surprising as the negative consequences of crisis contagion can be significant when customers make assumptions of guilt by association. This article focuses on this important issue and describes four risk factors—country of origin, industry, organizational type, and positioning strategy—that increase the likelihood of crisis contagion. Valuable guidance is also provided on whether a company should issue a denial or remain silent if it faces the risk of crisis contagion.     

A ‘glocalization’ approach to the internationalizing of crisis communication

This article focuses on the field of international crisis communication, whereby multinationals and their expatriate staff respond to crisis events in international and/or multicultural contexts. The field of international crisis communication is at or near a state of crisis due to lack of research and, more importantly, methods useful for practitioners. ‘Glocalization’—which is used successfully in fields as diverse as marketing, education, theology, and others as an effective and expedient way of leveraging global capabilities to meet local demands—is proposed as one method for addressing this need pragmatically. Using glocalization for the internationalizing of crisis communication benefits practitioners and researchers alike in a way that avoids imposing Western frameworks and interpretations onto non-Western crisis situations. We demonstrate the approach with a case study involving multinational McDonald’s Corporation and its foreign subsidiary, McDonald’s Japan.     

Stealing thunder as a crisis communication strategy in the digital age

The proliferation of social media and information communication technologies (ICTs) has transformed the crisis communication landscape. We are increasingly seeing new crisis development patterns and stakeholder communication processes that overwhelm traditional crisis communication protocols. Crisis communication theories and best practices, however, remain largely reactive and may not provide practical implications for effective communication strategies in the digital age. Crisis communication must advance to proactive strategies with stakeholder-focused communication. This article provides research-based evidence with real-world examples to illustrate why stealing thunder must be considered a strategic crisis communication option in the digital age. Managers must understand how social media and ICTs influence the current crisis communication ecosystem and how stealing thunder can help them navigate crises.     

Avow or Avoid?

Abstract

Sixteen press releases from Enron and 16 releases from WorldCom representing the first three months of each organization's financial crises were gathered from the organization's web sites. The goal of this study was to determine whether the dominant public communication tactic of these companies was to avow or promote frankness, a traditional public relations stance, or to avoid or be evasive, a traditional legal stance. The releases were compared with 47 published accounts of the unfolding financial crises to determine whether the organizational messages remained intact. The findings show no dominant communication strategy in either company. Both professed openness but engaged in blame shifting. The combined message strategy suggests cooperation between legal and public relations counsel. The messages of both organizations were successfully transmitted via the mass media but were tempered by solid reporting. These findings suggest additional evidence that legal and public relations crisis communication strategies are starting to blur.     

近年来危机传播之研究综述

本文从公共关系学和修辞学两种取向，针对国内外近年来的危机传播（crisis communication）研究进行了综述。从公共关系学取向而言，危机公关研究仍关注实践层面的传播策略，危机时的媒介策略与议题建构、网络危机公关成为两个较受重视的研究领域。从修辞学取向而言，危机情境与危机反应策略之间的关联成为近年来此取向研究的重点，并开始探索情感在危机时对利益相关者行为意图的影响。最后，本文针对已有的研究存在的不足，建议未来的危机传播研究加强取向的整合、拓宽学科视角、重视新媒体和文化差异研究。     

The Protective Powers of Crisis Response Strategies

Abstract

This study examines how stakeholders perceive the various crisis response strategies identified in the Situational Crisis Communication Theory (SCCT). SCCT seeks to use research and theory to develop recommendations for the use of crisis response strategies. The crisis response strategies are matched to the nature of the crisis situation. The idea is to match the level of responsibility and aid to victims in the crisis response strategy that would be warranted by the crisis responsibility and reputational damage generated by the crisis situation. This study reviews previous research in SCCT, establishes the need to examine stakeholder perceptions of crisis response strategies, and examines how respondents perceive crisis response strategies in terms of accepting responsibility and helping victims. The results and implications confirm many of the ideas about crisis response strategies advanced in SCCT.     

What makes crisis response strategies work? The impact of crisis involvement and message framing

This study investigates the moderating impact of crisis involvement and message framing on the effect of crisis response strategies on post-crisis attitude toward an organization. In the experiment, 274 respondents participate in a 2 (crisis response strategy: match vs. mismatch) × 2 (crisis involvement: low vs. high) × 2 (message framing: emotional vs. rational) between-subjects factorial design. The results show that in the case of high crisis involvement or in the case of rational framing of crisis communication, crisis response strategies that match the crisis type increase the post-crisis attitude toward the organization. In the case of low crisis involvement or in the case of emotional framing of crisis communication, the impact of a matched or mismatched crisis response strategy on the post-crisis attitude toward the organization does not differ. In addition, the study suggests that crisis involvement has a moderating impact on the efficacy of message framing in terms of post-crisis attitude toward the organization, which depends on whether the crisis response strategy matches the crisis type or not.     

Firm Shutdown During the Financial and the Sovereign Debt Crises: Empirical Evidence from Portugal

This paper examines Portuguese firms’ survival over the business cycle and investigates whether the effect of firm size varies across the phases of the cycle and with the type of shock associated with periods of economic contraction. Our results show that smaller firms are more likely to shut down than larger firms. Within each size band, however, we found that during the two crises examined, micro firms experienced hazards of closing (relative to large firms) at least similar to those observed in the pre-crisis period, while medium-sized firms were found to have been more vulnerable during the financial crisis period but showed more resilience during the sovereign debt crisis. The results suggest that during the sovereign debt crisis, firms faced a higher probability of closing than they did during the financial crisis.     

Strategies for building effective virtual teams: Trust is key

The impressive growth in web-mediated organizational relationships has created an escalating interest in how to manage virtual teams successfully. As organizations increasingly expect their managers to lead employees in these online groupings, it becomes imperative to identify and train them in the skills to do this effectively. The purpose of this article is to organize and present strategies that organizations have found successful in helping their managers lead virtual teams. While all successful managers must ensure that they have provided the basic organizational support for their employees, especially effective leaders also ensure they build trustworthy relationships. Thus, we emphasize how each strategy contributes to building and sustaining a climate of trust in virtual teams.     

Building relationships through dialogic communication: organizations,stakeholders, and computer-mediated communication

Online media are integral to daily life, and while many organizations use them to reach broad audiences, others still appear to be uncomfortable with online media because they do not understand how to maximize their potential to interact effectively with stakeholders. Numerous organizations use online media for one-way communication to disseminate information, despite the affordances of the media platforms for two-way, dialogic communication. This article draws on two dominant interpersonal theories of computer-mediated communication—social information processing theory and the hyperpersonal model—to propose dialogic strategies that organizations can use to improve their online communication with their stakeholders. We illustrate the application of these principles through three stages of relationship building: initiating/experimenting, intensifying, and integrating/bonding. The article integrates the applications within an overall dialogic communication strategy, and provides organizations and practitioners with a model with which they can engage stakeholders with dialogic methods via social media.     

Catalytic defiance as a crisis communication strategy: The risk of pursuing long-term objectives

In 2014, Dairy Khoury, a medium-sized family dairy located in Lebanon, was accused of using a health-threatening carcinogenic substance as a preservative in its products. The news created an immediate food safety concern and a product harm crisis, resulting in dramatic reputation loss and operational risks to Dairy Khoury. In this article, we analyze Dairy Khoury’s response to the product harm crisis through an examination of the communication strategies used to address internal and external stakeholders. We then introduce traditional corrective action response strategies from the crisis communication literature. In the Dairy Khoury case study, the company opted to defend its reputation and clarify the misunderstanding using catalytic defiance, a long-term crisis response strategy. Our analysis provides insight regarding the risks and benefits of pursuing long-term versus short-term strategies during crisis recovery. This article contributes to crisis communication theory and practice and sheds light on the dynamics of crisis management in family businesses.     

国际金融危机与世界经济前景

国际金融危机目前已经发展到第二阶段,其影响从发达国家扩展到发展中国家,从金融领域蔓延到实体经济。2008年发达国家经济已经陷入衰退,全球经济增长率大幅放慢。鉴于国际金融危机还在继续恶化,2009年全球经济增长率会进一步降低。但我们认为,房地产市场2009年下半年可能会趋于走稳,油价下跌,通货膨胀压力减轻,由于主要大国采取政府干预措施以及经济政策的国际协调,全球经济发生20世纪30年代那样大萧条的可能性不大。除了短期内经济衰退之外,这场国际金融危机的中长期影响将是深远的。     

“Unprecedented,” “extraordinary,” and “we're all in this together”: Does advertising really need to be so tedious in challenging times?

As government-mandated lockdowns and steep declines in trade set in because of the COVID-19 pandemic, a common theme became apparent in the advertising of the time: It was all the same. Regardless of the product category or brand personality, many ads were remarkably similar. They began with melancholy music, voiceovers reminding the audience that the brand is here for them, and referred to these times as “unprecedented” and “extraordinary.” Ads reassured viewers that “together, we can get through this.” In this installment of Marketing & Technology, we articulate the problem of advertising sameness and explore how and why it likely arises during a time of crisis. We then discuss why advertising uniformity is a problem and present a series of strategic, media, and creative considerations—taking into account the constraints of a crisis— to help marketing professionals produce more effective advertising in the context of a disaster.     

Are you ready for your next product recall crisis? Lessons from operations and supply chain management

Most manufacturing companies face the possibility of a product recall crisis, if not within their own firms, then certainly somewhere within their supply chains. Recall crisis management typically finds a home within literature on crisis management, public relations, communications, marketing and brand management, and related fields. However, this research seldom addresses the operations support that must be mustered behind the scenes. The tumultuous material flows that can occur during a product recall imply a supply chain disruption. An effective response during the heat of a crisis therefore requires the foundation of a well-oiled supply chain. In this article I draw on learnings from the operations and supply chain management (OSCM) literature, integrate them with important precepts from the general crisis management and product recall literature, and identify managerial best practices that will help managers better prepare for product recall crises.     

试论我国高校危机管理

当前各国高校危机事件频发,建立一套行之有效的高校危机管理机制对我国高校管理是非常有意义的。对高校危机管理的概念进行界定,我国高校危机管理应组建完备的组织机构,建立高校危机管理的预警机制,建立信息沟通制度。     

Crisis challenges of small firms in Macao during the COVID-19 pandemic

This research develops a framework that combines crisis stages, stakeholder engagement, and crisis challenges. The framework is applied to small firms in Macao during the 2019 novel coronavirus disease (COVID-19) pandemic crisis. We conduct a qualitative study based on semi-structured interviews with the leaders of six small firms in Macao. The findings suggest that the COVID-19 pandemic has turned into a “normal” context, which blurs the traditional crisis termination stage. We also find that participating firms engage more with internal stakeholders than external ones. The strategies adopted by small firms include flexible human resource (HR) practices, cost reduction, enhancing customer relations, and using government support schemes. These strategies are effective in the short term; firms need to pay attention to diversity and learning for the long term.