Definition And Importance Of Crisis, Crisis Management And Communication

1832 words - 7 pages

1.0 Introduction
Every organisation aim to be successful. A good and effective management strategy is one necessary thing that a business should have to be able to run well. In business, crisis which can interfere the running of the business (Fearn-Banks 2009, p.6), can happen anytime, therefore, this includes the need of a good crisis management plan. "Crisis management is a set of factors designed to combat crises and to lessen the actual damage inflicted" (Coombs 2012, p.5). To be able to have an effective crisis management, effective crisis communication is necessary.
The purpose of this report is to explain the importance of crisis communication, as well as an effective crisis communication strategy for business. This report covers the definition and importance of crisis, crisis management and communication, and a case study of a failing crisis communication strategy in business as an example.
The information in this report was gathered from several books and journals related to crisis communication.

2.0 Crisis
“A crisis is a major occurrence with a potentially negative outcome affecting the organization, company, or industry, as well as its publics, products, services, or good name” (Fearn-Banks 2009, p.6).
Crisis is more serious than just a problem. It occurs rapidly; therefore, it is hard to think of the way out. In trying to handle a crisis, removing the risk and uncertainty of it, and allows the business to control their destiny, they usually use a strategic planning, which is called crisis management. To have an effective crisis management, a business should have an effective communication. (Fearn-Banks 2009,p.6-7)
3.0 Case Study of Foxconn’s 2010 Employee Suicide Crisis
3.1 Problems
Foxconn is a contract manufacturer and the world’s largest maker of electronic components. In the first five months of 2010, 12 Foxconn employees committed suicide. The set of suicide has drawed attention to medias and reports and has created a bad reputation for this organization.
3.2 Crisis Communication Approach
Research found that this company has failed in doing their crisis communication strategy. Some factors that cause the failing of their crisis communication strategy includes:
1. No comment and denial strategy. Foxconn confirmed about the death but didn’t give any comments between the first and sixth suicide, which is in 2.5 months. This cause dissatisfaction to other employees and confusion to medias and publics of unanswered questions. They uses “ongoing police investigation” and “respect for victim” as excuses, which can’t be accepted by public. Furthermore, they use the denial strategy. The spokesperson says that the first several deaths are caused by their personal problem and Foxconn does not have any responsibility of it.
2. Inconsistent message. Foxconn’s spokesperson, Liu Kun, admitted that they have problems in their military management style about how they addressed the younger generation of workers, which are...

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