Crisis Management: Defensive & Accommodative Responses

Crisis Management

What is a Crisis?

A crisis is an extraordinary event or series of events that negatively impact an organization's product integrity, reputation, or financial stability, or the health and welfare of workers, the community, or the general public.

Examples of Crises:

• Product recall
• Plane crash
• Public sexual harassment complaint
• Hostage situation
• Product contamination
• Market/stock crash
• Indefinite strike
• Lawsuits

Crises are not always unexpected. Often, the organization is aware of the situation before the public.

Types of Crisis Responses

1. Defensive Responses

These are less effective if the organization is held responsible for the crisis.

a. Attacking the Accuser

This involves questioning the crisis's validity, challenging the logic and facts presented, and undermining the accuser's credibility. It may include threats of legal action.

b. Denial

This involves denying the existence of a crisis.

c. Excuses and Justifications

This involves minimizing the organization's responsibility or deflecting blame. It denies intent to harm and claims lack of control over the events. This is often used in natural disasters, like the U.S. administration's response to Hurricane Katrina.

Common Justifications:

• Provocation
• Accident
• Good intentions
• Differentiation
• Good history/track record

2. Accommodative Responses

These are more effective and focus on repairing the organization's image.

a. Palliation

This involves taking actions to appease the affected public, such as offering vouchers to complaining customers or donating to a charitable organization.

b. Corrective Action

This involves taking steps to repair the damage and prevent recurrence.

c. Apology

This involves taking full responsibility and asking for forgiveness, often including compensation or a palliative strategy.

Constraints on Response Strategies

Organizations may adopt less adaptable strategies due to:

• Management's conviction that the public is wrong
• Moral neutrality between two publics, favoring one over the other
• Legal restrictions
• Senior management's refusal to adopt conforming positions