| Talking about corporate organization, we take into | | | | a share to nearly $3 a share: what a great loss to |
| consideration all business entities registered by law | | | | investors! |
| for the provision of either services or products | | | | The examples given would make you understand |
| that stimulate profitability. | | | | that crisis is a threat or any issue that stands as |
| By implication, a corporate organization could be | | | | a threat to the existence and development of an |
| profit or service oriented. Mostly, profit oriented | | | | organization. We can also observe that in every |
| corporate organizations are committed to | | | | case where there had been the issue of crisis, |
| profitably filling the economic needs of consumers | | | | companies have experienced great losses, not |
| and in general members of the society, while | | | | only in terms of reputation, but also financially, |
| service oriented corporate organizations are | | | | why because they did not take into consideration |
| usually committed to providing the socio-economic | | | | the possibility that those issues (crises), which |
| (infrastructure) needs of the members of the | | | | have cost them their entirety could have |
| society with the primary aim of effecting a | | | | occurred. |
| standard livelihood for the society. | | | | That is to say, they never had any workable |
| In most economies of the world, especially where | | | | crisis plan on ground to contain those |
| the conservative neo-classical system of | | | | contingencies that arose. Geary Sikich mused in |
| economy thrives, the government is usually | | | | one of his works stating “Failure to have a |
| committed to provision of services to the | | | | workable Crisis Management Program is akin to |
| citizenry, while profit oriented corporate | | | | playing Russion Rullete with an automatic pistol. |
| organizations are manned by private individuals | | | | You don’t have the luxury of pulling the |
| – this system is known as capitalism and | | | | trigger on an empty chamber” |
| characteristic of neo-liberalism economic system. | | | | Where an organization fails to plan ahead to |
| Having absorbed the fact on what a corporate | | | | contain crisis, its publics are allowed to form |
| organization is, and what characteristics could | | | | opinions about the organization when it hits the |
| differentiate one type from the other, we still | | | | iceberg of crisis, and this is generally dangerous, |
| arrive at the conclusion that the point of | | | | because the publics may conflagrate the real |
| confluence between corporate organizations, | | | | matter on ground and it becomes difficult for the |
| irrespective of their inclination is that they are | | | | organization to change these views. After all, it is |
| indebted to a set of ever-willing patrons who | | | | psychologically true that it is easier to form |
| comprise buyers and sellers (market). | | | | opinions for people than to change people’s |
| This patrons classified as markets are the major | | | | opinions. |
| focus of every corporate organization. The | | | | Trying to change opinions in terms of crisis can be |
| success of any corporate organization is | | | | termed as crisis management. In this case, the |
| measured by the extent to the share of the | | | | organization will only be reacting to public opinions, |
| market that it controls, and how it is able to | | | | which will be concentrated divergently from the |
| shape the opinion of those patrons towards | | | | publics on the organization. The model below |
| accepting it as socially and financially responsible. | | | | explains the situation an organization is in when |
| Patrons on one hand, the corporate organization | | | | reacting to crisis. |
| on the other hand is subjected to a stream of | | | | The diagram above shows that when an |
| spontaneous elements created out of the | | | | organization waits till it is hit by crisis, its begins to |
| naturalness of the artificialness of the business | | | | shrink, due to the convergent rays of crisis |
| environment. This is however not to say that the | | | | focused on it form the crisis source. The |
| business environment is independent of the natural | | | | organization loses all of its contacts with the |
| environment. | | | | market it usually controls. Publics also begin to |
| The artificial business environment is further | | | | form riotous opinions, which altogether does not |
| grouped into (1) The Internal business | | | | augur well for the organization. The |
| environment (or controllable business environment) | | | | organization’s shrinking refers to financial |
| and (2) The External business environment (or | | | | impoverishment, while the fading contacts refers |
| uncontrollable business environment). | | | | to loss of goodwill. |
| The internal environment of business are those | | | | As earlier stated, most companies or |
| elements of business that are put in place by the | | | | organizations like Johnson and Johnson and |
| business itself for operation purposes, these are | | | | Indomie swim through the crisis stream, and |
| basically regarded as the factors of production. | | | | some don’t; it is still evident that in both |
| They can be acronymed as CELL – Capital, | | | | cases, the organizations goes through the process |
| Entrepreneur, Labour, Land. | | | | depicted by the model. |
| The uncontrollable elements that form the | | | | Though, no organization, not even Microsoft can |
| business environment are those elements created | | | | envisage all crises that would (not could) hit it |
| out of basic social structure, they include Politics, | | | | from behind, putting into effect issues |
| Economy, Religion, Law, competition, Technology, | | | | management, which is proactive in nature can |
| Environment, Consumer behaviour etc. These | | | | save organizations the cost of having to react to |
| elements, the corporate organization can only | | | | crisis, hence facing despair when crisis finally are |
| attempt to influence (but not control). | | | | conceived or fully matured. |
| As much as the organization automatically | | | | Issues Management alternatively unlike Crisis |
| becomes subjected to the analyzed | | | | Management is focused on identifying issues that |
| environments, there are certain reactions from | | | | are likely to mutate into crisis. Issues Management |
| the environment that can cause the death or | | | | is aimed at either working out plans to tackle the |
| instability of the business. This analogy brings us | | | | issue when it is conceived or nip it in the bud |
| to the major thrust of this discourse – The | | | | even when it is still latently hibernating. |
| Death and Life of Organizations | | | | In issues management, the organization through |
| Businesses are bound to fail when in the course | | | | its Public Relations Executive is able to shape the |
| of business operation they ignore or undermine | | | | opinion to be shared by the public rather than |
| the dynamism, complexity and mutifacetedness | | | | change their opinions during the tackling of the |
| of the environment they operate in. | | | | crisis. |
| We should not forget that a business is patronized | | | | The Public Relations Executive should be the first |
| not only on the basis of the product or services it | | | | person after sitting with the Board of Directors to |
| can offer, but the image, the goodwill and the | | | | form a crisis committee comprising key officials |
| way in which such business has proven to be | | | | of the organization, and a corporate crisis policy |
| socially responsible in its day to day activities. | | | | statement, which would be relayed to the media |
| In Public Relations terms, the internal and external | | | | from time to time. This portrays the organization |
| elements of the business environment that | | | | as being in charge of the situation on ground. |
| comprises human beings are highly taken into | | | | The corporate crisis policy statement mentioned |
| consideration. This is due to the fact that it is | | | | here should not be mistaken for propaganda or |
| believed that humans are the builder and | | | | fabrications, but an honest statement, which |
| destroyer of any institution. This human aspect of | | | | would make the public know that their interest in |
| the organization in PR is known as Publics. | | | | the organization is protected. |
| As long as a corporate body is in favour with its | | | | The issues management model shows the |
| Publics, its existence is assuredly continuous, | | | | position of the organization when it takes |
| where it does not, the company were better not | | | | proactive measures to check crisis that could |
| established. | | | | affect the organization. |
| Any organization that lacks good reputation with | | | | The diagram shows that the organization is in |
| its publics will definitely be impeded in growth and | | | | control of both the budding crises and its publics, |
| consequently die off. | | | | hence it remains financially reputable and does not |
| For instance, the case of the Nigerian Indomie | | | | lack in goodwill. |
| Noodles “killer products” can be | | | | Here in issues management, issues that could |
| considered. When consumers who were not even | | | | affect the organization in say period of three |
| affected by the widespread rumour that the | | | | years time. So short-term plans to accommodate |
| death of one young man was caused by his | | | | the event of crisis, likewise long- term plans are |
| consumption of Indomie Noodles, and that | | | | put in place. |
| Indomie contained toxic materials; the public | | | | For instance, corporate organization such as ADC |
| (target audience/consumers of Indomie) dropped | | | | should have taken plane crash as an issue and |
| their demand of the product and helped in the | | | | should have drawn up plans to tackle the issue of |
| spreading of the rumour, such that those who | | | | crashes. Plans should include tracking the plane on |
| were ardent loyalists of the product had to take | | | | time, rushing to the rescue of possible survivors |
| the product with utmost caution. | | | | and flying them abroad for treatments (if |
| Indomie was then at the verge of extinction. | | | | necessary), getting the Chief Executive Officer to |
| Were it not for urgent steps taken in | | | | talk to the media, relating timely with relevant |
| professionally handling the crisis through the | | | | government agencies, give adequate report of |
| instrumentality of PR, Indomie would have | | | | what went wrong, prepare condolence packages |
| become history. | | | | for bereaved victims etc. |
| Do not forget that the case then was said also | | | | All these may not in realistic terms prove the |
| rumored to be an instigated crisis by one of the | | | | organization innocent or make it not suffer any |
| competitors in the pasta market. This could be | | | | setbacks, but at least it would have proven that |
| possible, so corporations should not be ignorant of | | | | the organization really felt its Corporate Social |
| the wiles of the wicked: some competing | | | | Responsibility and care more for its publics. |
| organizations could go as far as destroying the | | | | Rather, the pilot of the plane was blamed for |
| image of its competitors to create problems for | | | | being self-willed and such things like that. Even if |
| the business, so that while the affected business | | | | that were the case, it is not worth mentioning, |
| is embattled, the publics of the affected product | | | | especially were the family of the pilot is also |
| could be snatched. | | | | bereaved. This portrays the organization as |
| In 1982, Europe’s Johnson and Johnson had a | | | | irresponsible, and this is where organizations should |
| taste of what crisis really is. Theirs was a major | | | | know that the role of profession Public Relations is |
| crisis. It was discovered that numerous bottles of | | | | one of the life wires of any organization. |
| Johnson and Johnson’s Extra-Strength Tylenol | | | | Had professional public relations activities been |
| capsules had been laced with cyanide. By the end | | | | rolled out as in the case of Johnson and Johnson |
| of the crisis, seven people had died. How Johnson | | | | and Indomie, not minding the cost, ADC might be |
| and Johnson dealt with this situation set a new | | | | doing even better than it was doing. |
| precedent for crisis management. The company | | | | Most organizations that have died today might |
| was lauded for its quick decisions and sincere | | | | have been able to shape the opinions of their |
| concern for its consumers. Despite initial losses, | | | | publics to swim through the times of crises, but |
| Johnson and Johnson regained and exceeded its | | | | they allowed themselves to shrink gradually to |
| previous market share within months of the | | | | death, by waiting without planning for crises. |
| incident. | | | | The importance of Issues Management nay Public |
| Same was the case with. Odwalla's apple juice, | | | | Relations to any organization cannot be |
| which was thought to be the cause of an | | | | underestimated and should not be, especially if it is |
| outbreak of E. coli bacteria, the company lost a | | | | an organization that intends being counted among |
| third of its market value. The same allegation | | | | the top reputable and financially capable corporate |
| against Jack in the Box restaurant in 1993 caused | | | | organization in the growing global village. |
| the hamburger chain's stock price to fall from $14 | | | | |