Introduction
Following the discovery of the extremely toxic contamination of surrounding land, that is believed to have been caused by leakages of the underground storage tanks, ConsoE has decided to handle the case as a crisis. As such, the Office of Communications and Marketing has been tasked with the management of all the information during the crisis, the director will be the official spokesperson for ConsoE.
Crisis Situation
Contamination of land as a result of a leaking underground storage tank
Possible adverse financial loss and negative publicity
Objectives of the Communication Plan
Convey accurate information to the public, employees, local community, and other stakeholders
Define timing of the release of information to the stakeholders
Cushion the effect of the crisis on the company
Stakeholders
ConsoE executives
Employees
Local community (families within the establishment)
Local authorities
The media
Customers
Risk Analysis
The 450 residential families within the establishment might sue the company for damages relating to the contamination. Damages may include health effects, contamination of water systems, destruction of property, and depreciation of the value of land among others.
The crisis is likely to affect the sales and marketing strategy and plan for the company as a result of shutting down manufacturing activities. ConsoE might lose it control of the 65 percent of the market to competitors and might never recover the lost portion.
Shutting down the production activities means that 4500 employees will have to lose their jobs, and the company will have to foot the compensation claims for workers. They will include numerous solicited claims that include medical payments and other assertions.
The relationship with more than 50 contracted suppliers in the country will be affected.
Private environmental agencies distrust the local agencies in enforcing appropriate legislations against ConsoE’s leakage. As such, they may dent the public image of the company further affecting the stock performance of the company.
The county attorney, Crathett, is suing ConsoE for leaked hazards into the environment for years, violation of state laws on regulation of underground tanks, and seeking civil penalties for the damages caused.
Handling the Crisis
The most important aspect of the crisis that needs careful management is the proper communication with the employees. The employees face the possibility of losing their jobs and as such, are bitter and might contemplate converging information to the media, prosecution, or the competitors. The management therefore, should cultivate a positive and friendlier relationship with the employees during the crisis. First, the management should ask the employees to sign a non-disclosure agreement to compel them to shun from sharing information that has not been approved by the crisis communications team even after they have stopped being employees of ConsoE.
The management should directly communicate the crisis situation to the employees to help avoid or minimize the spread of rumors and speculations. A clear and precise communication of information ensures that employees do not make wrong decisions or engage in behaviors that are detrimental to the survival of the company. The social media is convenient for an ongoing communication crisis information to employees because it is convenient, engaging, and credible because personal recommendations from users. Employees use the social media during a crisis to communicate insider information among themselves and with friends and family (Austin, Liu, & Jin, 2012). The company should contemplate creating a closed group social media account where employees can access information and discuss consequences expected.
Numerous legal issues against ConsoE are likely to be pursued by the local government, families, and employees. The company should contemplate these issues and prepare evidence in advance for their defense in court. Conversely, the company should identify any legal obligations such as reporting, notification of insurers, and health intervention measures for those affected.
Steps of Crisis Communication and management
Communication
Set up a brief training of the Crisis communication team
Identify stakeholders
Gather facts
Debrief employees
Provide accurate, precise, and timely information to the public in a consistent manner
Identify compensation issues
Preserve all document and data that can be used as evidence
Control flow of information
Messages to Be Communicated
There is a serious toxic contamination of land that is linked to the leakage of the underground storage tanks
The link has not been entirely proven to originate from the company’s storage tanks, but if so, ConsoE may be forced to shut down its production activities
The 4500 employees are likely to lose their jobs as a result
Numerous litigations will arise as a result of this revelations
There will be a possible negative publicity campaign against the company by the environmentalists and media
These two factors are likely to affect the performance of ConsoE stocks and loss of its 65% market share to the competitors
The company will lose a lot of money in litigation fees, compensation of damages, and payment of employee compensation claims
References
Austin, L., Liu, B. F., & Jin, Y. (2012). How Audiences Seek Out Crisis Information: Exploring the Social- Mediated Crisis Communication Model. Journal of Applied Communication Research.
Doorley, J., & Garcia, H. F. (2007). Rumor Has It: Understanding and Managing Rumors. The Public Relations Strategist of America.
Isaacs, L. (2013). Broomfield Community Up in Arms Over Company Government Connections. The Broomfield Times.
Mazzei, A., & Ravazzani, S. (2010). Manager‐employee communication during a crisis: the missing link. Corporate Communications: An International Journal, 243 - 254.
Press Release. (2013). County files suit against ConsoE for pollution from leaking underground storage tanks. Press Release.
Reich, Z., Bentman, M., & Jackman, O. (2008). A crisis Communication Guide for Public Organizations. Developing a crisis communication scorecard. Outcomes of an international research project.
Shandwick, W. (2011). Managing Legal and Reputation Risk: A View from the Field.
USC. (2016). Case Study: Crisis Communication. School for Communications & Journalism.
USNewswire. (2013). Denver Chamber of Commerce (DCC) announced its support of ConsoE’s Plan. Denver.
Weintraub. (2003). Crisis Communication Primer.
