Effective crisis communication

in a perennially evolving media environment

Thesis

By

Karin Klimentová

Submitted in Partial Fulfillment

of the Requirements for the Degree of

Bachelor of Arts

In

Communication and Mass Media

State University of New York

Empire State College

2018

Reader: Todd Nesbitt

 Effective crisis communication

in a perennially evolving media environment

Thesis

By

Karin Klimentová

Submitted in Partial Fulfillment

of the Requirements for the Degree of

Bachelor of Arts

In

Communication and Mass Media

State University of New York

Empire State College

2018

Reader: Todd Nesbitt

 Statutory Declaration / Čestné prohlášení

I, Karin Klimentová, declare that the paper entitled:

Communication and administration of crisis at the continually evolving media environment

was written by myself independently, using the sources and information listed in the list of

references. I am aware that my work will be published in accordance with § 47b of Act No.

111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the

valid publication guidelines for university graduate theses.

Prohlašuji, že jsem tuto práci vypracovala samostatně s použitím uvedené literatury a zdrojů

informací. Jsem vědoma, že moje práce bude zveřejněna v souladu s § 47b zákona č.

111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou

Směrnicí o zveřejňování vysokoškolských závěrečných prací.

In Prague, 26.11.2019 Karin Klimentová

 Acknowledgments

I would like to express my sincere thanks to Dr. Todd Nesbitt, Dean of School of

Communication and Media at UNYP and my mentor, for his fundamental support, assistance,

and continuous encouragement.

I am also thankful to all of the Department faculty members for their help, support, and for

sharing their expertise and experience.

I would like to take this opportunity to express gratitude to my mother and family for the

unceasing encouragement. I am also thankful to my partner and my friends who supported me

throughout this venture.

 Table of Contents

1. INTRODUCTION ......................................................................................................................... 7
2. PUBLIC RELATIONS AND SOCIETY ...................................................................................... 10
2.1 A History of Public Relations...................................................................................................... 10
2.1 Functions of Public Relations...................................................................................................... 12
2.3 The Impact of Public Relations on Society ................................................................................. 16
3. CORE CONCEPTS IN CRISIS COMMUNICATION ............................................................... 20
3.1 History and Milestone Events of Crisis Communication ............................................................ 20
3.2 Definition of Core Concepts in Crisis Communication............................................................... 22
3.2.1. Definition of Crisis Communication and Crisis Management ............................................ 22
3.2.2. Stages of Crisis Management .............................................................................................. 23
3.2 Theories behind Crisis Communication ...................................................................................... 25
3.3.1 Crisis Communication Management Theories ..................................................................... 25
3.3.2. Six Principles for Crisis Management ................................................................................. 28
4. CASE STUDIES IN CRISIS COMMUNICATION ..................................................................... 33
4.1. Emerging Crisis Threats in the Constantly Changing Media Landscape ................................... 34
4.2. Social Media Crisis and Faliure of Image Repair at United Airlines ......................................... 37
4.3. Social Media Case Study of Pepsi Commercial Faliure ............................................................. 41
5. KEY LESSONS IN CRISIS COMMUNICATION ...................................................................... 47
5.1. The Importance of Crisis Communication Plan within Crisis Management .............................. 47
5.1.1 Process for Development of Effective Crisis Communication Plan ..................................... 49
5.2. General Guidelines to Managing Social Media Reputation Risks ............................................. 53
5.2.1 Components of Effective Management of Social Media Reputational Risks ...................... 54
6. CONCLUSION ................................................................................................................................ 61
References ............................................................................................................................................ 64
Bibliography ........................................................................................................................................ 70
 Abstract

This paper examines the topic of crisis communication in the continually evolving

contemporary media environment that introduces new threats for organizations and their

reputation. It aims to characterize these new emerging threats that are resulting from the use

of contemporary online tools. Moreover, this thesis introduces generally applicable

approaches for effective crisis communication, prevention, and management. To properly

analyze emerging threats and propose strategies for their prevention and elimination, the

Public Relations and Crisis Communication fields are introduced and examined in this paper.

Crisis communication case studies are explored to illustrate the threats and the most

convenient approach to their solution. Finally, the thesis proposes effective strategy for crisis

prevention and components of effective management of social media reputational risks. The

paper concludes with remarks on the topic of effective crisis communication such as the

importance of preparedness for crisis communication in every organization regardless of the

size, the significance of effective use of social media for organizations, the need for employee

education on the topic of crisis communication and the demand for further research in the

field of contemporary crisis communication

 7

1. INTRODUCTION

Media began to develop and shape the lives and thoughts of society from 100 BCE when

paper was developed in China. However, it took another 1500 years for the media to advance

toward the road to the ´mass‘ thanks to the features of Gutenberg’s printing press, that

introduced the possibility to reprint and reproduce the books and texts in a faster manner. The

media environment had many important milestones that once again significantly changed both

the production and consumption of mass media content such as the advent of newspapers,

photography, telegraph, radio, and television.

However, the development of mass media has continued in a much faster manner and the

speed of advancement is not letting up in recent years. Zimmermann and Emspak (2017)

claim that the most recent media jolt ,the Internet, was not noticed at first in 1965. Despite the

lack of popularity at the beginning, the Internet managed to obtain enormous popularity and

continue to do so in recent years. According to Zimmermann and Emspak (2017), the Internet

is the fastest advancing media jolt that was also shaped by developments within its field such

as the birth of Google search engine that changed the way how people use the Internet

forever. Another milestone for the mass media environment and society’s lifestyle was the

launch of Facebook in 2004. Facebook triggered the social media phenomenon, and had a

significant influence on the world and society we live in. Facebook and other social media

platforms have transformed the relationship between the members of the public and those

communicating with them.

 8

The actual influence of social media on society has been highly discussed in recent years, and

discussions and research produce both negative and positive results. Furthermore, the

increasing popularity of these platforms also persuaded different business sectors to follow

rapid change. The electronics industry is the most obvious example that faces pressure to

deliver electronic devices with the ability to use and showcase the Internet and social media

platforms. These devices provide people with the ability to not only communicate, but present

themselves and their opinions through the media. However, the increasing popularity and

usage of social media platforms and the Internet influenced not only the most obvious but all

sectors of the business environment, created new job opportunities but also eliminated some

of them.

Public Relations is one of the business sectors that has been profoundly affected and redefined

by the increasing popularity of the Internet and social media platforms. Loss of full control

over what would be communicated about the organizations and individuals created a new

challenge for PR professionals. “Before the rise of social media, public relations was about

trying to manage the message an entity was sharing with its different audiences, now, P.R. has

to be more about facilitating the ongoing conversation in an always-on world," (Elliott, 2011,

p. 1). Moreover, the social media phenomenon caused an increased possibility for a different

crisis that has the potential to ruin the reputation of organizations within a few short hours.

According to the Institute for PR (2007), a crisis is characterized as a critical threat to

processes of the organization or individual that carries the potential to produce negative

outcomes when it lacks appropriate administration. Based on the increasing threats in the

form of crisis, the well-established crisis communication management became significantly

important for organizations and businesses. As Elliott (2011) asserts, social media platforms

modified the corporate communication from monologue to the conversation, and offered the
 9

possibility for consumers to learn more about the influence that organizations aimed at them

intending to influence and make a profit.

However, the adaptation of the Public Relations sector and crisis communication management

does not require only one-time change. The media environment is still evolving at high speed,

and business has to follow these changes, and adapt their practices and tactics to stay on track.

Public Relations agencies and departments are facing continuing pressure to not only

represent organizations, but also make sure to act right at the time of crisis to maintain the

reputation, and eliminate the crisis as soon as possible. Furthermore, the constantly changing

contemporary media environment demands for even small organizations and companies to

prepare the crisis communication plan and Public Relation representation to avoid the crisis

and possible loss of reputation.

The contemporary media environment, characterized by an increasing number of channels

unrestricted by time and space, presents distinct challenges for organizations in times of crisis.

This paper aims to explore the threats that entities face as a result of constantly changing

media environment and propose practices that can be universally applied towards their

solution and prevention.

An analysis of the Public Relations field and its influence on society, along with an

examination of crisis communication will be provided to define the threats and propose

solutions and prevention approaches. Case studies will be used to determine effective and

failed practices. Further, a universally applicable guide concerning dealing with crisis

communication in a constantly changing media environment will be composed.

 10

2. PUBLIC RELATIONS AND SOCIETY

Public Relations can be defined as the means for the maintenance of a mutually beneficial

relationship between the chosen organization or individual and the public. "PR is the art of

presenting a company (or person) to the public, usually via the media, ideally in a positive

manner that improves the reputation of that company (or person) and subsequently impacts

positively on that company's sales or individual's overall reputation," (Bussey, 2011, p. 4).

This quote embodies all fundamental elements of the successful PR process and defines the

essence of this field. The sector of Public relations became progressively attractive for

society and different businesses over the course of recent years. Moreover, this sector also

acquires the ability to influence society and public opinion. Public Relations are the essence

of crisis communication and it is important to understand their fundamentals to be successful

in handling the crisis with effective crisis communication and management. This chapter will

guide through a brief history and the principal functions of the PR field. Also, different areas

of PR's impact on society will be explained.

2.1 A History of Public Relations

It is very challenging for historians and PR authorities to determine the beginning of Public

Relations because a man has in his nature to communicate, negotiate and promote. Scott M.

Cutlip (1994) explains that the factors including the origin and development of Public

Relations are many and complex. No concrete date can be established for the birth of Public

Relations but historians can all acknowledge that this sector started to rise around the 20th

century. There are various claims concerning the place where Public Relations originated but

the United States are the most probable establishers of the term. However, PR also evolved in

Europe.
 11

The US PR is defined by two separate inceptions according to historians. The first was

publicity and press agentry for the circuses intending to maintain entertainment. As reported

by Watson (2012), circuses presented the direction to contemporary merchandise publicity

and celebrity Personal Relations.The railroad and public services and oil companies

demanding more deliberate publicity accounted for the second starting point that was later

evolved to modern corporate Public Relations and communication. Scott Lee (1994) identifies

the Boston Publicity Agency as the first of its type in the US. Besides, PR in the US has begun

to develop in the middle of the wars with the spotlight on great men and large companies.

PR in Europe, on the other hand, initiated after the Second World War. European PR centers

were Germany and the UK with the first Public Relations office named Editorial Services in

London. Another important milestone for the PR field was the establishment of

the International Public Relations Association (IPRA). According to Watson (2012), the

association possessed extensive European influences in its formation and development.

Europeans were more active in the PR utilization to develop the platform for global

comprehension and advancement of democracy following severe Second World War.

Besides, IPRA also founded the first code of professional practice and ethics named the Code

of Athens that was frequently executed since 1965.

It took some time for Public Relations to anchor as a profession. The first notable example of

PR as a profession will be discussed later in the paper due to its association with crisis

communication. However, first corporate communication and PR departments were arranged

essentially due to the development of the European transnational companies. Consequently,

the PR field started to orient towards Media Relations in the 1960s and 1970s. Watson (2012)

notes that orientation towards media relations displayed the reportorial practice of numerous

recruits and their employers in organizations and governments. Furthermore, Public Relations

also captured its‘ place in university education.

 12

The Post-Communism era in Eastern Bloc contributed to the advancement of the PR

profession in corporate, governmental and consulting areas. The privatization of

governmental systems and the internalization of consulting were the first generators of the PR

expansion. Watson (2012) adds another generator - technology Public Relations that

accelerated in the 1990s. Online tools such as email and different websites transformed the

tasks and communication techniques of PR specialists. However, technical progress has not

settled with the establishment of the Internet that only introduced the formation of New Media

communication tools. The required PR attention to the constantly changing media

environment generates more opening positions within this sector. Watson (2012) provides the

example of the United Kingdom within 2004 when the Public Relations sector employed

approximately 45 thousand people, yet, through 2011, the number had increased to about 60

thousand employees and the same pattern can be implemented across whole Europe.

Recently, the Public Relations Sector accounts for the leading communication practice

throughout the world.

2.1 Functions of Public Relations

The PR sector entailing the PR professions acquires multiple functions in society. According

to Bussey (2011), the overall aim of the PR activity is to ensure the benefit to the citizens. The

chief functions of the Public Relations field are establishing relationships and generating

contact, media relations, formulating research, planning, PR campaigns, developing image

and reputation, and crisis communication management and prevention.

The first important function of Public Relations is to build a relationship with the preferred

public and generate contact. Fahad Alzahrani (2016) also inserts in his study The Functions of

Public Relations, that contact in Public Relations serves for identification of the trends for the
 13

society concerning the products and services that organizations produce for consumers, that

promotes the duty of judicial administration. The best way to constituting a contact with the

social groups and institutions is trough activities of common interest. Public Relations

functions through the contact to the society in advocating for the formation of public opinion.

Furthermore, PR is also able with the help of the contact function to adjust the intended public

opinion in favor of the organization it represents. Contact is the key function in Public

Relations that encourages the establishment of the following functions.

Media Relations stand for another crucial function of the Public Relations sector. As stated by

Alzahrani (2016), media relations are the means for distribution of information through the

media, such as TV, radio, internet or newspapers. A significant part of this function is to

communicate and maintain a positive and beneficial relationship with the news media.

Moreover, PR professionals also need to reassure credibility and factuality among media

gatekeepers to get profitable coverage in the media. This function can be characterized as the

most visible part of the PR process. Multiple tactics are used in PR to build a relationship with

the media and get publicity such as press releases, videos, brochures, press kits or social

media tools. Media relations also highly influence the public opinion and perception of

organizations and individuals they represent in society. Bussey (2011) explains that media

relations are an essential element of PR that requires developing relationships with journalists

to present advanced information about organizations and their product.

Research is the initial and another key function of Public Relations professionals. Alzahrani,

(2016), research in Public Relations accounts for the collection of ideas and methods for the

gathering of reliable information and generating the accurate results influenced by the least

mistakes. The first step in the PR process is to develop detailed research and based on its
 14

findings generate strategy and tactics. The most effective way to generate reliable research

findings is to use both primary and secondary data. The role of PR specialists is to analyze the

trends in public opinion and collected data. Based on the results opinions and attitudes of their

target group are defined and applied towards the strategy. Moreover, it is the essence of the

PR professional to know his target group. However, this PR function also proposes benefits

for society because it presents the current trends and their evaluation for the chosen target

group. This evaluation can often facilitate positive shifts among the target group.

The planning function of the PR professionals comes right after research because it is based

on research findings. The great essence of planning is that it helps to clear the intentions and

goals of the PR strategy. Moreover, the process of planning prevents ineffective

communication and possible hardships. Generating the objectives of the PR plan is part of the

process of planning that profoundly influence the adopted strategy. Smith (2017) describes the

PR objective as a statement compatible with an organization's positioning that develops from

the organization's goals. The effective objective also addresses the question of what it aims to

achieve within a PR plan and action verbs. Moreover, each objective requires a specific

strategy to approach the challenge of accomplishment. Besides, the strategy needs to be

covered by numerous tactics that are divided into specific activities. "Ideally, actions and

messages work hand in hand, complementing each other as the organization interacts with its

public," (Smith, 2017, p. 81). Establishing a budget is another important part of the planning

process that can forestall inconveniences with the client.

PR campaigns constitute the Public Relations function that is based on PR planning.

According to Alzahrani (2016), it is important to consider reasons for engagement, ways of

administration, and installation of various forces while developing the campaign. In this stage
 15

of the PR process strategy and individual tactics are set into practice. Public Relations

campaign activities include speeches, events, special launches or PR kits and annual reports.

This stage is also significantly relevant because it is directly affecting the image and

reputation of the represented organization or individual and influence the attitude of the

public. There are many disputes towards the influence of PR campaigns upon the public.

Especially in the field of political PR that is extensively considered as too manipulative.

However, the role of the PR campaigns is to maximize the favorable circumstances for media

coverage and achieve a particular goal. Moreover, PR campaigns provide information about

the organizations and individuals they represent to the public. The public can freely formulate

an attitude towards them and share it with others.

The development of reputation and image is the concluding stage of the PR process.

Reputation and image are the final outputs of subjective impressions towards the represented

organization or individual. Yang and Grunig (2002) describe reputation as beeing a unified

image shared in multiple publics regarding an organization across time. This PR function

determines the effectiveness and impact of previous functions. This stage also provides the

occasion to evaluate previous steps and decisions. The final essence of the PR process is to

evaluate the results at the end of the PR plan. Evaluation can reveal the actual effectiveness of

the adopted strategy and determine the priorities for the following PR process. Results can be

easily evaluated based on observation of the statistics, page visits, level of interaction and

other measurement tools. A good reputation is the most valuable PR asset that entails the

whole role of Public Relations within the organization. Alzahrani (2016) considers Public

Relations as the backbone of the company based on the fact that it represents an

administrative system that analyzes the affairs of the organization inside-out.

 16

Crisis communication is a crucial and distinctive part of the PR functions. Proceedings within

the crisis communication and management determine the loss or accomplishment of the

reputation. Yet, as Comer (2018) writes crisis communication involves both preparing and

reacting to emergencies. Detail analysis of the crisis communication will be implemented later

in this paper. As mentioned before, the Public Relations field was significantly affected by the

advancement of social media platforms. Furthermore, this advancement put the crisis

communication sector of PR to the highest risk. However, if handled well crises can bring

many possibilities for the organization and its reputation. This thesis will discuss possible

risks but mainly proceedings to manage a crisis well in the constantly changing media

environment of today’s world.

2.3 The Impact of Public Relations on Society

Public Relations field is often misunderstood and misjudged by the public. The lack of

research exists that would portray the influence of the PR field on society but that does not

mean it has no impact. Notwithstanding, most studies are concentrated on the negative

influence and possible harm of Public Relations on society. The opposing researches proved

that PR has no harm upon society and that there also possible contributions. Moreover, the

research What is public relations to society? Toward an economically informed understanding

of public relations, was conducted by Gregor Halff and Anne Gregory (2015) who declare

that PR can be interpreted as a social establishment helping to reduce market shortcomings

and enhancing the effectiveness of distribution of population resources and also opening the

opportunity to gain the worth from economic activities for market associates. The research

evaluated that with the prevalence of the right conditions, PR can acquire the macro-social
 17

relevance within economic terms. However, they also highlighted the need to develop an

understanding of the relationship between the PR field and society.

Another challenge of PR stance and impact on society is that it cannot be precisely measured.

According to Hon & Gruing (1999), many scholars have been exploring methods of defining

the overall value of Public Relations, not only to organizations but also to a society in general.

However, PR is generally perceived as the most valuable source of information because the

publications in the media cannot be bought or ordered. It is one of the main functions of PR to

inform and create contact with the public that is dependent on the provided information. All

the elements such as the chosen channel, spokesperson and structure of the information are

influencing the decisions and attitudes of the receivers. Yet, there is an ethical issue connected

to the information presented by PR departments. Most people view Public Relations as a way

to manipulate the target audience and consequently society. "There is an irony that industry

all about the construction and manipulation of the image might itself suffer from an image

problem, but it does," (Webb, 2013). However, it is important to realize that PR professionals

can only harm themselves and the organizations or individuals they represent by spreading

lies and fabricated information. Moreover, PR departments within the same field should also

agree upon some norms when pitching the information to the media. The overload of

information on the same topic can only make the receiver more confused and distrustful.

Precise and on-point information that are transparent can help receivers to form public

opinion on the topic and also enhance the reputation of the organization that conferred the

information to the public.

The informational impact is directly attached to the persuasion impact also affiliated with the

field of Public Relations. The main role of PR is to change the attitudes of the public towards

some organization or individual and improve its reputation in their eyes. However, the
 18

greatest part of society connects this claim with unethical persuasion that is outside of their

intention. Bowen (2007) illustrates the unfortunate belief among journalists, laymen, and

policymakers that view the phrase Public Relations ethics as both an unreal probability or

smog for camouflaging frauds and lies. However, Public Relations departments are required

to represent the organization or individual within the lines of ethics because they would be

damaged and also the reputation of the organization so the unethical persuasion has no

position within the PR tactics. In other words, an unethical approach to society would

undermine the main goal of the PR process – to generate publicity and retain the reputation of

the represented organization or individual. Furthermore, the contemporary position and

application of ethics within Public Relations and many other fields highly depends on the

code of ethics conveyed by the leading professional associations.

The Public Relations field should not obscure any information from the public and rather

ethically promote them and manifest the formulation of the public opinion. Bowen (2007)

explains that the capability of involving ethical rationalizing in PR advances in need,

accountability, and value. Besides, it is an essential sign of an effective PR team to get

accepted in the public opinion market place. Public Relations field surely holds the impact of

persuasion on society. However, the impact that is within the ethical norms and rather

promotes the interests of the society that meets the interests of the represented organization of

individuals. "Careful and consistent ethical analyses facilitate trust, which enhances the

building and maintenance of relationships – after all, that is the ultimate purpose of the public

relations function," (Bowen, 2007, p. 2).

The field of Public Relations also has a significant impact on different businesses and their

profits. It provides them with the opportunities to expand and formulate satisfactory

conditions for the employees that also represent a component of the society. Besides, PR also
 19

facilitates the production of quality goods for consumers and forms knowledge about them for

society.

Issue management is another discipline within the Public Relations field that impacts society

based on addressing public policy issues. As stated by Coombs and Holladay (2013), issue

management is a method applied by organizations to limit difficulties and foster beneficial

opportunities. This discipline goes beyond organization interests and rather approaches the

matters in society intending to recover. Public Relations field influences and draws awareness

to environmental, health and hygiene issues. According to Ebitu, Glory, and Kajang (2014),

environmental Public Relations develop a powerful platform for the establishment of effective

communication and information system among multiple communities for the management of

climate change. Moreover, charity and various fundings for noble causes were formed thanks

to the activities within the PR sector. However, the most precious influence that can PR

possess upon society is in the frame of an increased understanding of global and national

issues. Many positive and negative influences can be generated from the activities of the PR

sector, but all of them should be concentrated on helping and developing the society and not

only the represented organization or individual.

 20

3. CORE CONCEPTS IN CRISIS COMMUNICATION

The sector of Public Relations has a significant influence on society regarding reputation and

attitude to different organizations and individuals as mentioned in the previous chapter.

However, the most important and also intimidating task of the Public Relations specialists is

to make sure that even unexpected situations and occurrences are handled well to secure the

reputation that is related to the profit of the organizations. These unexpected threats can be

interpreted as a crisis that demands special and careful treatment from the site of PR

specialists. The widely applicable and the most essential steps for handling the crisis at the

constantly changing media environment will be introduced in this paper. However, it is

fundamental to introduce the core concepts as well as the history and theories behind the crisis

communication beforehand. This chapter will examine the history of crisis communication,

core definitions, and concepts within the field and also the recognized theories behind crisis

communication management.

3.1 History and Milestone Events of Crisis Communication

The history of crisis communication is linked with the history of Public Relations. Crisis

communication was the first notable example of Public Relations. Pennsylvania Railroad

services were the first company to employ the PR crisis communication consultant Ivy Lee

(one of the founding fathers of Public Relations) after 53 people were killed in the train crash

at the Atlantic City. Daniel Adolph (2014) explains that Lee persuaded the railway executive

to remain honest and accessible toward the media. Moreover, Lee also drafted the statement

of apology that was published in the New York Times and this statement is considered as the

first press release ever published.

 21

The history of crisis communication was marked by few crises that changed the whole

concept and approach to crisis communication. Both successful and unsuccessful approaches

to crisis communication enabled the next generations of businesses and organizations to solve

appearing crises more efficiently and in a faster manner. The great historical example of the

well-handled crisis communication was proposed by the company Johnson & Johnson and

their painkiller Tyrenol that managed to kill seven users in 1982. Besides the highly

challenging threat to the reputation of the organization, the chairman James Bruke handled the

crisis promptly and openly for the public. As Adolph (2014) explains the company placed

customers first and recalled 31 million bottles let in the circulation and ensured the proper

investigation. The investigation revealed that the mistake was on the side of the stores and not

the production process and the company managed to overcome the crisis and even enhance

the reputation by relaunching the painkiller in the tamper-proof bottles. The Johnson &

Johnson crisis is considered as the landmark event in the crisis communication that

showcased that with the right crisis communication and management company can not only

maintain the reputation but build even stronger trust and loyalty in the eyes of the public.

However, the history of crisis communication is also marked by a few unsuccessful crisis

communication managements that ruined the reputation of the organizations forever.

According to Adolph (2014), the Exon-Valdez Oil Spin is the most significant case of the

history of failed crisis communication. The Exon and especially its leader failed to

acknowledge the severity of the situation and pay attention to the prompt communication with

the public that marked this crisis as the manual on how to never deal with the crisis.
 22

3.2 Definition of Core Concepts in Crisis Communication

Crisis communication is an essential part of dealing with the crisis that puts the reputation and

the livelihood of organizations, individuals and stakeholders on the line. An overload of

research and scholar contribution exists on the topic of crisis communication that makes it

challenging for organizations to synthesize what is the best possible practice in the time of

crisis. However, it is crucially important to start from the roots and provide the definition of

core concepts.

3.2.1. Definition of Crisis Communication and Crisis Management

According to the Institute for PR (2007), crisis implies a serious threat upon processes with

the potential to produce negative outcomes if not managed accurately. A crisis can generate

three basic interrelated risks of public safety, financial loss and reputation loss. Coombs

(2018) establishes crisis communication as the acquisition, processing, and distribution of

knowledge needed to approach a crisis. It is significantly important to be prepared to handle

the crisis with the best possible outcomes that can also turn into the opportunity for the

organizations and individuals.

The crisis is handled by so-called crisis management that is the critical organizational function

that can be defined as the process by which organizations handle out-of-control situations.

Moreover, it is particularly important to manage the crisis in the right order that prevents all

three interrelated risks. The primary interest in a crisis should be public safety because failure

to control it intensifies the crisis and its outcomes. "One thing to remember about crises is that

they may be sudden and unpredicted, but they seldom are unpredictable, crises are more like

volcanoes that smolder for a while before they erupt," (Smith, 2002, p. 22). This statement
 23

manifests another critical duty of crisis communication that should not only eliminate the

existing crisis but also prevent the formation of an imminent crisis. Therefore the importance

of observing the warning signs and preparing for the potential crisis is essentially important to

eliminate and also prevent the crisis in some cases.

3.2.2. Stages of Crisis Management

According to the Institute for PR (2007), crisis management is a process comprising three

stages that present the organizing framework for the crisis: pre-crisis, crisis response, and

post-crisis. The first phase of crisis management pre-crisis emphasizes the importance of the

discussed prevention of crisis that can forestall loss of reputation and profit. Laurence Barton

(2000) explains in his book Crisis in Organizations II that organizations have a higher ability

to manage the crisis successfully when they have an annually renewed crisis management

strategy, obtain a well-trained and experienced crisis administration unit, and practice crisis

training annually to evaluate both crisis team and plan. Furthermore, the organization should

have also prepared pre-drafted crisis messages and templates for statements that are approved

by the legal department. In consonance with Coombs (2007), the first critical step in training

is to evade the expression no comment because it projects the blame to the organization he

also adds that spokesperson should avoid jargon and technical terms to ensure clarity for the

public. Furthermore, the spokesperson should also eliminate signs of nervousness in training

that can reflect deception in the eyes of the public. On the other hand, strong eye contact can

reassure credibility and honesty. More on the topic of crisis communication plan will be

discussed in the last chapter.

Institute of PR (2007), places crisis response as the secondary stage of crisis management. It

can be divided into two stages: initial response and reputation repair and behavioral

intentions. The initial crisis response is adjusted to the situation each time, but it should
 24

follow three ground rules: be quick, be accurate, be consistent and these three rules are

especially important in the times of social media phenomenon because they have the ability to

spread and exaggerate the crisis to an unbelievable extent. Furthermore, the Institute of PR

(2007) continues that the fourth important element was included in principal rules and that is

to express sympathy to any victims of the crisis. This approach helps to reduce reputational

and financial loss. It is also crucially important to determine the basic type of crisis before

implementing the strategy for the solution. There are three basic types of crisis: victim crisis

that accounts for minimal responsibility, accident crisis with low organizational responsibility

and preventable crisis with a strong responsibility that demands the best possible crisis

management and reputational repair.

The second stage of the Crisis Response is the reputation repair and behavioral intentions that

would be discussed further in later chapters of this paper. Many different types of research

and studies examined the best practices for the most effective reputation repair over the years.

Multiple of them connected the reputation repair strategies to the attribution theory.

Responsibility for the crisis is often linked to the organization or the situation and the

responsibility of the organization often generates three reactions: reduced buying intentions

expanded damage to the reputation of the organization and increased the tendency to involve

in negative word-of-mouth.

The last stage of crisis management is labeled as the post-crisis phase. In this phase, the

organization mainly focuses on the business and day-to-day tasks, but the crisis should still

get some attention. Even though the immediate crisis is solved, this stage is the most

important for maintaining the reputation and communication with the public and target

audience. This stage determines if the organization fulfills the promises made in its crisis
 25

statements. Moreover, it is also important to provide follow-up communication, and recovery

updates for the public and its' extent depend on the severity of the crisis. Other important

target audiences that need to be informed about the post-crisis stage are the employees and

associates of the organization. The last level of post-crisis is the evaluation of the occurred

crisis. Evaluation can display for the organization the gains as well as losses, and most

importantly, the lessons learned to support the first stage of possibly upcoming crisis.

3.2 Theories behind Crisis Communication

Among the increasing emergence of crises and different approaches to their resolution, many

different scholars contributed to the topic of crisis communication. Multiple theories were

conducted across years based on changing trends in society. Besides theories defining the

approach to crisis communication, various scholars also founded the principles for crisis

management. The model of 6 principles is the most commonly used and will be analyzed later

in the paper.

3.3.1 Crisis Communication Management Theories

Approaches to crisis communication are divided into multiple categories with various

contributors. These theories are not ordered in a timely manner. Some of them have been used

in the 19th century but also recently and emerged over time. Zamoum and Grope (2018)

identify these crisis communication management theories in the book Crisis Management -

Theory and Practice: situational crisis communication theory, issue, and crisis management

theory, image restoration theory, apology theory, contingency theory. The description of these

theories following crisis communication is the essential knowledge for the crisis solution and

prevention. Organizations, and also individuals should be aware of these principal theories to
 26

comprehend the character of the occurred crisis and implement the most effective solution.

Moreover, the understanding of these theories will be essential for further analysis and

comprehension of the selected social media crisis case studies in this paper.

Situational Crisis Communication Theory introduced by W Timothy Coombs extends the

attribution theory. According to Coombs (2007), Attribution Theory asserts that people

explore the origins of events (make attributions), particularly negative and abrupt ones. The

principal notion behind Situational Crisis Communication theory is a recommendation that

organizations or individuals shall deliberately react toward a crisis depending on

comprehension of how society assigns accountability for the crisis. Coombs (2007) proposes

significant questions within resolving the crisis that asks if the crisis emerged from situational

circumstances or from factors that could be regulated by the organization. If the public regard

crisis as something that organization or individual could control it would attribute more

responsibility and negative perception towards the organization or individual and vice versa.

Therefore, Situational Crisis Communication theory is applied to examine various crisis

response approaches. Moreover, it is the audience-oriented theory that is still evolving.

The issue and crisis management theory developed by Howard Chase explains that issues and

crises possess correlative relationships. "Issues management is the capacity to understand

mobilize, coordinate and direct all strategic and policy-making functions, and all public

affairs/public relations skills, toward the achievement of one objective: meaningful

participation in the creation of public policy that affects the personal and institutional

destiny," (Zamoum & Gorpe, 2018, p. 208). This theory emphasizes that if the issue is not

managed well it can convert into crisis so adequate crisis management is critical. The

necessity for the anticipation of emerging issues is the core of this theory.
 27

Image restoration (repair theory) conducted by William Benoit. Mr. Benoit (1997) defines

that image restoration approaches are reputation repair procedures that can be implemented in

a crisis, and effective crisis administration and resolution demands a reliable and ethical

dialogue with the public. This theory proposes multiple crisis response tactics such as denial,

decreasing offensiveness, or avoiding liability. As reported by Zamoum & Gorpe (2018),

offensive action or impeachment of accountability for the act is a threat to reputation, and the

theory applies communication to protect its reputations. Image restoration theory also

developed across the years.

Apology theory and corporate apologia emphasize the difference between these two

strategies. The main difference is that apologia is more stimulating than an apology.

According to Zamoum and Gorpe (2018), apologia is a contrary description where the

individual or an institution defends itself by formulating a more flattering matter for the

accusations. Apology theory also proposes 4 approaches to the prosecution of wrongdoing.

Transcendence suggests installing wrongdoing in an innovative and desirable setting. Denial

strategy implies to refuse the association with wrongdoing. Differentiation intends to separate

wrongdoing from its' negative context. Finally, bolstering aims to recall beneficial elements

that have been produced before wrongdoing.

Contingency theory based on the notion of "stance" indicates how an organization of

individual reacts to opponents and disputes. The theory attempts to describe the interaction of

the organization or the individual with its target groups. Besides, it stipulates the multiple

circumstances that produce an impact on this interaction. Stances installed at a continuum

stamp advocacy on one edge and accommodation on the other. Zamoum & Gorpe (2018)

demonstrate that advocacy stands for institution maintaining its concern, and accommodation
 28

symbolizes organization producing permissions to other parties. Contingency theory suggests

recognizing additional variables such as threat type, and threat span.

3.3.2. Six Principles for Crisis Management

Besides the crisis communication theories, approaches for managing the crisis can be also

divided into 6 principles. Smith (2002) and Reynolds and Seeger (2014) define these 6

principles to approach the crisis: Principle of Existing Relations - Express Empathy, Principle

of Media as Ally - Be Right, Principle of Reputational Priorities - Promote Action, Principle

of Quick Response - Be First, Principle of Full Disclosure - Be Credible, Principle of One

Voice - Show respect. These principles form a core of crisis communication and management.

Organizations and individuals should take these principles into account within each crisis

occurrence, but also prevention of crisis. They are universally applicable to crisis emergence.

Moreover, it is also important to list them to comprehend the failures of organizations in

chosen case studies in crisis communication. Key lessons in crisis communication that will be

pitched in this paper were also drawn from these principles.

Principle of Existing Relations/ Express Empathy demonstrates the importance of

continuously providing the information to all parts and associates of the organization to secure

credible and effective communication with the media. Existing relationships can incorporate

employees, volunteers, stockholders, donors, community leaders, customers, government,

professional authorities, and media. Reynolds and Seeger (2014) demonstrate that confessing

and declaring empathy for the associate audiences' doubt and distributing the implemented

process to present them with more information about the evolving situation helps to secure the

reputation of the institution. Besides, this approach will help to manage the anxiety of people

and secure the prosperity of rebuilding activities following the crisis. The information that
 29

should contain what is known, what is not known, and what process is implied to get more

knowledge. Paul Argenti (2002) demonstrates a great example while interviewing survivor

crisis managers of the 9/11 attacks that collectively agreed on the concept the employees are

one of the strongest audiences that should not be neglected during the crisis. Conveyed

information support the prevention of a more elevated crisis.

Principle of Media as an Ally/Be Right explains that maintenance of good media relations

before the times of crisis and willingness to provide accurate information in a time of crisis

can prevent the media from spreading hostile and exaggerated information to the target

audience of the organization or individual. "Accuracy establishes credibility," (Reynolds &

Seeger,2014, p. 2). It is the right time to use all media contacts and established relationships.

Moreover, good media relationships are presenting opportunities to interact with fundamental

publics. However, it is essential to think of media that helped during the crisis after it is

secured as well. The best way to reward media and journalists that helped is to provide them

with first-hand information.

Principle of Reputational Priorities/ Promote Action claims that after securing the safety

issues, organizations should switch their focus to maintaining or restoring credibility. After

securing the crisis, the reputation of the organization or individual should be the central

concern for PR specialists. As Smith (2000) explains organization or individuals should

consider corrective activities assuming that they are in a situation to secure a difficulty,

exceptionally if they were in any custom not ready or neglectful. Providing people with

meaningful actions and plans help to calm anxiety and restore order. Moreover, the outline of

planned actions facilitates the reestablished sense of control in the eyes of the public.

However, the perseverance of reputation is a perpetual process. Organizations or individuals

 30

should be proactive to their publics for a considerably long period after the appearance of the

crisis.

The principle of Quick Response/ Be First demonstrates that organizations in crisis should

address the public as soon as possible. Access is fundamental in the crisis. Reynolds and

Seeger (2014) declare that for the public, the initial information source usually matches the

favored source. Being open to the public as quickly as possible equals securing the reputation

and preventing the spread of the crisis. In a severe crisis, one hour is an official guideline and

limit to reach the news media. Within the first hour of a crisis, organizations should convey

the first report to the public and especially the media. In the case of a mediocre crisis, it is

acceptable to address the first message in five or six hours after the emergency. The first

statement should contain the announcement that the organization is aware of the crisis and

reassurance of further investigation and action towards a solution.

The Principle of Full Disclosure/ Be Credible claims that everything that organizations know

at the given moment should be available for the public. Silence is not the right strategy

because it can generate an even greater threat to the organization or an individual. Reynolds

and Seeger (2014) emphasize that the confirmation of the possible crisis event should be the

first stage of the crisis management process to settle the matter toward perspective concerning

public and media curiosity. Moreover, this principle also opens the possibility for the chosen

form of rectifying behavior. "The strongest type of rectifying behavior is repentance, which

involves both a change of heart and a change in action," (Smith, 2000, p. 108). Repentance

indicates the organization's complete amends that confirms to the public that it shifts from a

past position and enhances an advanced and innovative approach to managing the business.

However, the organization and individuals need to keep promises of repentance to secure

credibility and reputation.

 31

The Principle of One Voice/ Show Respect illustrates the importance of having one strong

and trained united voice representing the organization at the time of crisis. However, some

crisis events also require more representing voices but all should be united and following the

same principles. Notification about the situation to all associate parts of the organization

should follow the verification of the situation. According to Reynolds and Seeger (2014),

announcement renders into more effective responses with fewer complications and the

communication plan should specify people who must be informed. Respect should be the

main strategy while addressing the situation to the associates, but also the public because it

elevates the opportunity for an organization or the individual to retain the reputation. The

most effective way to express respect to the public is to apologize. " Issuing an apology

involves publicly accepting full responsibility and asking for forgiveness," (Smith, 2000, p.

105). However, the organization should verify its blame before issuing an apology.

These six principles can be applied individually but also combined to address and solve the

crisis more effectively. These principles constitute the fundamentals of crisis resolution and

management and should be taken into consideration whenever a crisis emerges. However,

each crisis is different and requires special treatment but some steps can be universally

applied and implemented into the crisis management strategy. These 6 principles should

constitute the basis of crisis communication and management.

The most recent scholarly inputs for managing the crisis are mainly directed at the influence

of social media on crisis communication management. Adolph (2014) argues that the

performance of social media in crisis communication promotes a more elevated two-way

dialogue. However, it can be argued that the literature on the topic of social media influence

on crisis communication is currently lagging behind the practice. The fact remains that social
 32

media enabled crisis to have greater immediacy and reach that should be managed under

different conditions than before the advancement of social media. Moreover, scholars should

also take the constantly changing media environment into account and update the theories

concerning crisis communication regularly to resemble the development of the media

environment. Scholars should also extend their target audience by smaller organizations and

businesses because the recent state of the media environment advances threats to all

organizations within the business sector.

 33

4. CASE STUDIES IN CRISIS COMMUNICATION

The media environment was redefined and swiftly transformed by the advancement of the

Internet and social media platforms. In the beginning, only a few business sectors felt the

pressure to adapt to the new media landscape. However, the pressure increased in the recent

past years and all the organizations regardless of the size have to adapt to the novelties within

the media environment. Moreover, the progress did not terminate with the advancement of

social media. Though social media platforms only sustained the development of media

landscape at an even more rapid manner. As Dijck (2013) interpolates, the interdependence of

platforms established the infrastructure of connective media consisting of several large and

multiple small participants, followingly the alteration of networked communication to

platformed sociality occured in a comparably brief span of a decade. Besides, these

transformations also modified the culture from participatory to a culture of connectivity. Even

though the new and constantly changing media landscape offers many opportunities for

organizations and individuals, it also expanded the threats and manufacturing of crisis.

This chapter will introduce the current threats for organizations and individuals that emerged

within the new media environment. Two case studies of dealing with the crisis will be

introduced to illustrate these threats in practice. The first case study will display the failure to

handle the crisis effectively in a continually changing media environment. The second case

study will demonstrate a more relevant approach to crisis management in the social media

environment.
 34

4.1. Emerging Crisis Threats in the Constantly Changing Media Landscape

Social media platforms portray two different points in the crisis communication process. The

first point presents social media as the most efficient tool for communication with the public

at the time of crisis. According to Farha (2015), the progression of social media and

associated technologies commenced the development of effective tools for monitoring social

media issues at the initial stages and facilitated quicker response for solving issues to decrease

unfavorable consequences toward organizations. However, the features of social media that

enable everyone to express their opinion and disseminate them in a fast speed introduces the

second point of social media in the crisis communication process. As Ristuccia and Rossen

(2015) explain, social media platforms are probable sources for reputation threads, such as

brand or reputation damage, legal and regulatory compliance, security and privacy issues, and

employee issues.

The risk to the reputation of the organizations and individuals increased rapidly by the

advancement of social media platforms. Aula (2019) asserts that social media platforms

extended reputational threats and boosted risk dynamics for organizations and individuals.

However, organizations are aware that social media reputation risks are the top-level issue in

the contemporary world. Besides, they are taking more measures against social media crisis

than ever before. Ristuccia and Rossen (2015) demonstrate that a contemporary study carried

by Forbes Insights on behalf of Deloitte Touche Tohmatsu Limited exposed that 88 percent of

above three hundred officials concentrate exceptionally on reputation risks as a fundamental

obstacle to their organizations. Yet, it is not only important to manage the crisis when it

occurs but to be conscious of the current threats that emerged with the advancement of social

media and strategies to prevent them as well.

 35

The first threat that advanced by social media platforms is the complaint about the

organization that has the potential to go viral in a matter of minutes based on the features of

social media. The reactive chain that continues from social media with catching the attention

of mainstream media. Aula (2019) describes this threat as a risk that is enhanced by a

difference in the expectations of consumers. It is difficult to follow the principle of Quick

Response or Being First in this case because there are many shares with reactions before the

organization or individual has the opportunity to issue the statement. Ristuccia and Rossen

(2015) also emphasize that this latest threat develops as social media users explore fresh

sharing methods, social media instruments progress, the latest information search mechanisms

provide users with new techniques of obtaining the information that has the potential to

impact their attitude towards the organizations and individuals. This threat stresses the

importance of close collaboration between the customer care department and the Public

Relations or Crisis Communication department within the organization. "A single complaint

on an issue is one thing, one hundred complaints on the issue can signal a trend and magnify

the impact of reputational risk," (Ristuccia & Rossen,2015, p. 2). However, the positive side

of this threat is that it can work virally for spreading the information issued by the

organization or individual as well.

The second threat that emerges by the advance of social media is a reveal of repressive

company culture or employee issues on social media. Publishing of improper employee

treatment on social media can consequently harm the reputation of the organizations in the

eyes of the public. Aula (2015) labels this threat as the state of internal incapability of an

organization to counter the changes and adds that a critical cause of reputational loss risk is

inadequate engineering of the settlements established by various sectors and functions within

the organization. However, this threat to the loss of reputation rise from the organization and
 36

its culture and not social media platforms. They only act as the tool for spreading the issues of

employees to the public. If the organization is open and available to the complaints of its

employees they would not feel the need to express themselves at the social media platforms.

This threat highlights the importance of accurately established company culture. An

organization that has standardized ethical conduct and openness will be adequately equipped

to distinguish reputation threats before they intensify on the social media platforms.

Nevertheless, if a crisis of this type occurs it is especially difficult for the organization to

recover and attain its lost reputation.

The third major threat that escalated for entities with social media use is the security or

privacy breach. According to Aula (2015), the reputational thread is enhanced while the

disparity among the institution's reputation and its reality arises. The security or privacy

violation has multiple damaging effects on the reputation of the organization. It shows the

public that their information is not safe within the organization, and the trust factor is ruined.

Moreover, a security breach can also reveal the knowledge about the company that should

stay confidential because it does not match the image that the organization presents to the

public. Crenshaw (2017) asserts that a security breach can have a tremendous PR ripple

effect, undermining relations with customers, partners, and employees, not to mention the

public. The privacy and security infrastructures and measures should have the topmost

attention in recent years because the privacy breach is rather apparent than only possible.

However, in this case, effective crisis communication is more than crucial for the reputation

of the organization. Immediate acknowledgment and honest communication with each

affected audience is critical to secure the reputation.

 37

4.2. Social Media Crisis and Faliure of Image Repair at United Airlines

This case study will be examining the crisis that occurred on the 9th of April 2017 in the

United Airline's flight number 3411. The elevation of the crisis and its failed management

were highly influenced by the presence and popularity of social media platforms.

The fully booked plane should fly from Chicago to Louisville but shortly before the boarding,

it was announced by the crew member that flight was overbooked. United Airlines had to

transfer four of its employees and declared that they need for volunteers to cancel their flight

in exchange for $400, hotel room, and flight ticket for the next day.

Unsurprisingly, no one volunteered, so the crew decided to pick four random passengers after

everyone was already seated on the plane. Three of the chosen passengers accepted the

conditions and left the plane. However, passenger David Dao refused to leave explaining the

crew members that he is a doctor and has to get to his patients. The crew was ignorant of his

reasoning and Chicago security personnel removed David violently from his seat. According

to Benoit (2018), one of the passengers published a recording of the conflict on Facebook and

it was shared approximately fifty thousand times and seen by 3.8 million users. The video

revealed the bleeding and yelling man dragged through the aisle and displaced from the plane.

McCann (2017) describes that Mr. Dao's injuries involved a concussion, a broken nose, and

two broken teeth. Yet, the power of social media to addressing the issues was displayed

immediately trough this incident. Following Petersen and Kragh (2017), another passenger

posted a broadcast on Twitter, and it reached over 24 million hits before being removed.

The crisis developed at the point when United Airlines was not capable of organizing the

flight and employee transfer in advance. Moreover, the organization neglected the warning
 38

signs and the situation that has occurred and decided to prefer their employees among the

customers that bought the tickets for their services. The crisis could be settled at its initial

point, but the lack of employees' knowledge towards solving the crises caused the

internationally recognized issue. The first shared video of the incident and its viral spread

proposed named reputational threat of the complaint about the organization that has the

potential to go viral in a matter of minutes.

The situation intensified by the management of the crisis when leaders of the organization

failed to address the issue and secure the reputation of the company. Benoit (2018) reports

that United Airlines CEO Oscar Munoz attempted to minimize the crisis at first, instead of

confessing abusive behavior toward Mr. Dao, and he also implied that Dao's aggressive

behavior provoked the conflict. In other words, Munoz undermined the power of mentioned

leading principles within crisis management: expressing empathy and respect, and the

principle of full disclosure that involves verification of the incident. The organization posted

five statements in total on their social media accounts. However, the content of the "apology"

made the situation even worse and spread in a fast manner throughout social media platforms.

Based on Apology Theory, United Airlines incorrectly implied the denial strategy to refuse

the association with the wrongdoing that was obviously on the side of the organization.

Differentiation was also applied to separate the situation from its actual context by the CEO

rather apologizing to the other passengers from the flight than to harmed Mr. Dao. Moreover,

the crisis communication department of United Airlines also did not manage to apply the

Contingency theory properly and took the wrong stance towards the situation. According to

Petersen and Kragh (2017), the broadcasts and the subsequent declarations provoked the

beginning of all social media crises.

 39

The consequences of the occurred issue and failure of United Airlines to address it

immediately reflected on the reputation and also the revenue of the organization. This event is

definite proof of the power that social media posses among organization reputation at the time

of crisis. Furthermore, the features of social media platforms have also the potential to create

new satirical content besides the shares of the released videos and statements of apology.

GIFs and memes that mocked United Airlines appeared instantly at social media and worsen

the crisis that was already severe. As reported by Benoit (2018), stakes of United Airlines

stock declined by $1.4 billion following the incident and crisis management implied by

United Airlines.

United Airlines made numerous mistakes in managing this crisis. First is their failure to

prevent and anticipate the occurrence of the crisis that emerged from the lack of employee

management and crisis training. Additionally, they undermined the content of issued apology

and the power of social media users to spread it with expressing their opinions. The strategy

of their crisis communication team also revealed the lack of knowledge of theories concerning

crisis communication that would prevent them from the wrong proceeding. This case study

confirms the importance of being knowledgeable about the background of crisis

communication while managing the crisis. The image repair strategy of United Airlines was

separated into 2 phases.

Benoit (2018) explains that the first statement attempted to downplay the assault, applying

differentiation and denial and this approach provoked outrage. Differentiation was introduced

in the language the CEO used in his issued statement. For example, the term "re-

accommodate" was used instead of violently dragging the passenger from the plane. However,

the approach of differentiation did not succeed for thousands of social media users following

the crisis. The first statement of an apology should be oriented not only towards the
 40

passengers but mainly towards abused Mr. Dao. Moreover, the statement of apology lacked

accountability, respect, and understanding of the situation and undermined the basic principles

of crisis communication management. According to Benoit (2018), the CEO stated that

treating clients respectfully holds for the essence of United Airlines. However, methods of the

United Airlines employees did not reflect his statement and caused even more severe threat to

the reputation of the company. The lesson for United Airlines but also other organizations in

the crisis is that exceptional attention should be dedicated to the composition and

consideration of the statement of apology or any statement for social media. The feature of

social media to share posts presents no way of going back once it is published. A statement of

apology should not reflect a press-release. In a time of crisis, entities should own up to their

mistakes and acknowledge the approach to situation and reassurance it never happens again.

The second phase of the image repair resembled emerging cautiously, applying mortification,

and corrective action. CEO and United Airlines realized that their company is on the edge of

absolute loss of reputation and decided to implement the approach that they should use

incipiently. Benoit (2018) describes that Munoz announced that there is always the chance for

making the situation right, and said that he was disturbed by the events. The deepest apology

was also submitted by Mr. Munoz and this time he also mentioned the victim, although not by

name. Besides, he took full responsibility for the action in the statement that was the most

desired approach for the public. Corrective action was also demonstrated by Munoze's

proclamation at ABC's Good Morning America. "This can never-will never-happen again on a

United Airlines Flight, that's my premise and that's my promise," (Benoit, 2018, p. 19). Also,

he offered a full refund to all the passengers of the flight. However, many social media users

did not take the second apology as a genuine one but only as a way to secure the declining

reputation of United Airlines.

 41

The core indication of this case study is that the accelerated advance of modern technology is

presently a crucial element of the crisis communication situation. Benoit (2018) also implies

that this crisis reinforces the importance of corrective action as a potential strategy in crisis

communication theory that does not have to be used in all cases but surely belongs to major

crisis communication toolbox. The lack of knowledge of crisis communication theories was

apparent in this case study and accelerated the crisis to critical state concerning the loss of

reputation.

This case study examined the reputational threat of the complaint about the organization that

has the potential to go viral in a matter of minutes. Moreover, this case study also examined

the improper application of Apology and Contingency theory on a crisis. However, the

reputation of the organization was partially saved by the application of the Image Restoration

theory that was employed in the second phase by United Airlines.

4.3. Social Media Case Study of Pepsi Commercial Faliure

The second case study will be focusing on the well-known, international brand PepsiCo

protest-themed advertisement for carbonated soft beverage Pepsi staring the supermodel

Kendal Jenner and the consequent decline in millennial purchase consideration and brand

perception. This case study also reflects the power of social media in spreading the crisis but

also the situation when the good intentions of the company did not reflect the assumptions of

the users. However, Pepsi managed to handle the crisis more solidly and effectively than

United Airlines.
 42

Pepsi’s advertisement titled Jump In’ Pepsi Moments was launched on the 4th of April 2017.

The company had an enthusiastic effort to showcase the brand as a millennial-friendly.

Moreover, the commercial also aimed to present the socially relevant and unifying message of

peace and understanding. The advertisement displayed young top model Kendall Jenner

running away from a photoshoot and taking off her blond wig. Later joining the diverse crowd

of protestors marching along the way with posters stating words love and join the

conversation (kendallandkylie, 2017). Commercial finishes by Jenner approaching a police

officer with a can of Pepsi beverage who smiles and drinks from the can. Advertisement

finishes with words: “Live bolder, live louder, live for now,“ (kendallandkylie, 2017).

Tillman (2018) explains that Pepsi trusted that their in-house marketing crew had created a

wonderful and socially responsible commercial that everyone would understand, support and

encourage to purchase a Pepsi. However, the public response did not match their

expectations, created a crisis and harsh critique towards Pepsi and also Jenner. The social

media backlash was directly following the release of ad and critique was aimed at multiple

elements of the advertisement. Furthermore, the critique was so harsh that Pepsi had to pull

down the commercial after only 48hours. The critical statements appeared above all the social

media platforms and addressed multiple topics.

The majority of reactions were aimed against the theme and the cast of the advertisement.

Social media users were mainly employing satire and sarcasm to address their opinions. Lang

(2017) addresses in her article that advertisement was instantly labeled as the best

representation of white and economic privilege. Moreover, some social media users went as

far as comparing the commercial to real memorable protest displays such as the Banton

Rouge protest, the popular "Tank Man" photo or the Black Lives Matter movement. Pepsi not
 43

only jeopardized their reputation and the image but also decreased the market value and

revenue by publishing the commercial. Hobbs (2017) reports that Pepsi's brand value dropped

by 4 percent to $18.3bn due to the commercial.

This case study will also examine the reputational threat of the criticism towards the

organization that has the potential to go viral in a matter of minutes. However, unlike United

Airlines, this case study showcases the appropriate implementation of the Apology theory,

skills of the crisis communication team, and the accurate application of the crisis management

principles. Furthermore, this case study is an illustration of the Attribution theory and

Situational Crisis Theory. The public made attribution to Pepsi for being racially oriented

promoting white supremacy even though it was not at all the intention of Pepsi. Moreover,

attributions for promoting white and economic privilege were also aimed at the star of the

advertisement Kendall Jenner. This case study, therefore, examines two types of crisis

communication: organizational and also individual. Situational Crisis Theory that applies the

answer to the question if the crisis emerged from the situational factors or the ones that

organization could control will be also discussed in this case study. However, the knowledge

of crisis communication theories and principles was apparent for the Pepsi crisis

communication team and helped them to manage the crisis effectively.

The emergence of the crisis started long before the Pepsi ad release. Tillman (2018)

demonstrates that the leading problem with the commercial for critics was the absence of

market analysis explicitly portrayed in the advertisement. President of Pepsi Brad Jakeman

proclaimed at the 2016 Cannes Festival that Pepsi needs to focus on creating more content in

a shorter time manner and that is why they are establishing an in-house content production

team. This was the point when the crisis already emerged for Pepsi. According to Hobbs
 44

(2017), the backlash over the Kendall Jenner commercial proves that marketers demand an

external perspective, whether from an ad agency or from carrying market research and

reaching out to customers. An outside perspective was missing from the advertisement

because Pepsi only employed an in-house team for the creation and production process.

Situational Crisis Theory can be applied at this stage of pre-crisis management because crisis

emerged from the factors that the organization could control by employing the external source

or conducting market research that would avoid the negative attributions of the advertisement

message to their customers.

Besides, the speed of the production that was a new priority for Pepsi according to their

president also failed in practice to deliver the right message. However, the major issue with

the ad is not so much the in-house team but primarily the lack of market research. Pepsi did

not approach the protest groups to understand them and their insights. Hobbs (2017) describes

if the organization wants to get associated with the protest movement in the advertisement

they need to engage with these people and comprehend their nuances at first because if they

will neglect this step results will look like the Pepsi crisis. Furthermore, the celebrity

endorsement that Pepsi implied in the ad made the whole viewer's perception even worse. It is

crucial to choose the relevant spokesperson for the massage that should promote core

significance and address the global issues.

Despite the challenging and harsh crisis, Pepsi found the appropriate way to handle the

situation by accurately implementing the Apology theory and the principle of expressing

empathy and respect. The first and most relevant step was to take down the ad from

circulation. However, at this time, it is difficult to extract the online material because it is

already present in hundreds of sources that are not under control of the company. Pepsi posted

the apology press release on their websites implementing the transcendence and bolstering.
 45

"Pepsi was trying to project a global message of unity, peace, and understanding. Clearly, we

missed the mark, and we apologize. We did not intend to make light of any serious issue. We

are removing the content and halting any further rollout. We also apologize for putting

Kendall Jenner in this position,” (Pepsi, 2017). Pepsi showed respect and full responsibility

with this statement and apologized to all affected parties. Moreover, they also publicly

apologized to Mr. King's daughter Bernice King that publicly shamed the commercial on her

social media. This apology is much more relevant and also effective for the crisis

management that the one by United Airlines.

Kendall Jenner also released her unofficial apology approaching the situation. However, it

was released eight months later at her family's reality show Keeping Up with the Kardashians.

"I trusted the teams. But after I saw the reaction and I read what people had to say about it, I

most definitely saw what went wrong. I was so stuck, and I really didn't know what to do, that

I completely shut down," (Lang, 2017). Yet, it would be much more effective for Jenner and

also Pepsi if the Jenner's statement came during the crisis management process. Moreover,

Jenner's team should also consider the content of the advertisement and the possible effects of

attribution theory in advance before accepting Pepsi's offer. Even though she was just a

performer in the advertisement, negative attribution to racial supremacy and economic

privilege jeopardized Jenner's reputation to the same extent as Pepsi's or even more rapidly.

The principle of being first was also undermined by the model's crisis communication team

and negligence of this principle reflected on her reputation.

The main lesson that comes from the Pepsi crisis is the importance of market research before

the release of the commercial. Especially the one that addresses highly discussed social issues.

Moreover, there should be always an outside source judging the advertisements and message
 46

that attempts to be conveyed to the public. Issue and Crisis Management theory can be

practiced in this case study to prove that the issue of holding only an in-house creative team

can develop into a crisis for the organization. Hobbs (2017) explains that agencies also make

mistakes, but if organizations manage an in-house creative department like Pepsi, they need to

examine their approach and make sure they are not blinded by their brand. The phrase quality

over speed also fits well for this crisis. However, the crisis management part and image

restoration was handled well by Pepsi, but not all involved parties of the crisis addressed the

issue straight after its culmination. All parts of the organization should have a united voice in

the crisis following the crisis management principle of a united voice. The immediate and

honest statement from Jenner could secure the reputation of Pepsi and decrease revenue loss

according to Image Restoration theory.

After one year of release of a controversial commercial, Pepsi’s brand perception has gained

an unusually perceived recovery among Millenials. The proactive strategy following the

Image Restoration theory that Pepsi implied after the scandal aided the recovery process. The

most effective was the introduction of the new spicy cinnamon flavor during the football

season. However, as Marzilli (2018) asserts, the commercial decreased the Pepsi’s Purchase

Consideration Millennials Score from 27 percent to 24 percent from the beginning of April to

July. Pepsi should invest time and money in the following years to the market and perception

research to avoid the repetition of the crisis. However, this case study is an appropriate

example that the knowledge of the background of the crisis communication entailing the

theories and principles can help the organization to solve the crisis more quickly and

effectively even in the constantly changing media environment.

 47

5. KEY LESSONS IN CRISIS COMMUNICATION

Any general guide does not exist that would solve all the emerging crisis for organizations

and individuals. Each crisis is complex and requires special treatment from the organization

or individual. However, there are some general, but often forgotten elements that can not only

aid in resolving the crisis but also prevent its occurrence. The constantly changing media

environment requires exceptional attention to crisis prevention and management for not only

the large and well-established organization but toward organizations of all types and sizes.

Moreover, social media rapidly increases the possibility of crisis occurrence and this fact

should be acknowledged and concocted by organizations and individuals. The crisis

communication and management are dependent on preparedness and prevention.

This chapter will propose two significant proactive strategies that could help to prevent crisis

occurrence and handle it more effectively in case it emerges. The first subchapter will focus

on the importance of the establishment of a crisis communication plan for organizations.

Furthermore, it will also propose an adequate way of development of a crisis communication

plan. The second subchapter will concentrate on the effective management of reputational

risks on social media platforms. The module of the three components will be introduced to

lead the process of effective risk management on social media.

5.1. The Importance of Crisis Communication Plan within Crisis Management

The first general, essential step to effectively handle the unexpected crisis is the formulation

of the crisis communication plan in advance. Argenti (2012) accurately demonstrates that

crises are unavoidable, so there is no question or if a crisis will arise but of when it will. Crisis

communication plan is composed to implement guidance and easy-to-follow actions

 48

supporting the organizations in the preparation for crisis communication and management. A

crisis communication plan entails numerous benefits. According to Seeger (2006),

identification of risks and means for risk reduction, the establishment of initial crisis

responses, and the classification of inevitable response sources are the essential benefits of the

crisis communication plan.

However, it is important to note that there is a significant difference between the Crisis

Communication Plan and Crisis Management Plan. As Lexicon Communications Corp.

(2016) asserts, not understanding the distinction is critical for an inexperienced company in a

crisis that assumes that implementation of one plan is enough and realizes with the delay that

the plan that was implemented cannot do the required job. Crisis management plan

administers the reality of the crisis. Crisis communication plan focuses on the perception of

this reality. In other words, Crisis Communication plan is the part of the Crisis Management

plan. However, the crucially important part that manages the outcome of crisis management.

Seeger (2006) explains that often, the two are integrated into one document, but crisis

management preparation needs to recognize communication processes.

The development of a crisis communication plan consists of numerous steps. In accordance

with Reynolds and Seeger (2014), a crisis communication plan shall be designed considering

realistic probabilities and also the probability of a worst-case scenario. It is impossible to

create a step by step structure for the crisis communication plan because each crisis is

different and requires separate administration. Still, some steps and proceedings should be

included in each crisis communication. Reynold and Seeger (2014) maintain that crisis

communication plan should address all of the roles, lines of responsibility, and resources that
 49

organizations should reasonably expect to encounter while providing information to the

public, media, and partners during an emergency.

The model of the crisis communication plan that will be presented in the following subchapter

was developed from the combination of study Crisis and Emergency Risk Communication by

Reynold and Seeger (2014) and journal study The Critical Role of Crisis Communication

Plan in Corporations’ Crises Preparedness and Management by Lando (2014) to generate the

most effective approach.

5.1.1 Process for Development of Effective Crisis Communication Plan

The first important step is to choose the right team for the establishment of the plan. The plan

should include mostly internal resources that understand the organization well but also the

external specialists that would perceive the possible crisis from a different perspective. The

leader of the communication plan composition should be identified to give the process a

structure. According to Reynolds and Seeger (2014), the leader and members of the

committee should be chosen thoughtfully to incorporate all the topics in the plan by

knowledgeable characters. This team should meet on a regular basis, update the plan and

make changes according to the changes in the organization. Moreover, the leaders of the

organization should be involved in the composition process as well.

The second essential step in the development phase of the crisis communication plan is to

precisely assign people to specific roles in case the crisis. Lando (2014) states that the

division of roles is critical towards presenting chosen speakers, expected expense on

communication, and preparedness for crisis management. Furthermore, it is also important to

define the responsibilities of assigned people, not only their roles. Reynolds and Seeger

(2014) explain that if the organization is incompetent to meet the likely media, social media,
 50

partner, and public information reguirements during a crisis internally, they have to ensure

that the plan states the place of support for the response.

The first person that should be assigned to the crisis occurrence is the spokesperson that

would in some situation also need an assistant. According to Lando (2014), naming the main

spokesperson decreases the likelihood of the release of contrasting statements, contrasting

organization values, or conflicting interpretations for the media. The second role is the

coordinator of the responses within the crisis. Contact persons for each of your audiences

should be listed. Reynolds and Seeger (2014) assert that e-mail addresses and phone numbers

should be verified and updated regularly. This verification can be part of an annual tabletop

exercise. Besides, phone line workers are also essential to provide scripted information for

people calling in. A media coverage collector that would find published information about the

crisis is also required. Moreover, the press release director and speechwriter, and the scenario

planner also hold significant roles within the crisis.

The third important step is to define the audiences to notify in the time of crisis. The nature

of audiences varies across different organizations. The general audiences that could be found

in each organization are the employees - first and the most important audience to prevent the

dissemination of the crisis and inaccurate information. The employee audience also includes

the CEO, the chief of marketing or communication and any additional executive committee

members. News media stands for the second important audience where the principle of being

first and fast should be taken into consideration. Owners, investors, and stockholders, as well

as the customers, represent other critical audiences. Moreover, state and government officials

should be named. The stage of defining the key audiences in crisis also includes their

contacts. Reynold and Seeger (2014) also suggest that the organization should select three
 51

people for the communication director, the policy director, and a subject matter expert to

check a report before presentation to key audiences.

The fourth move in the establishment of the plan is to determine the place for crisis

management epicenter. This place should be convenient in terms of size, facilitation, and

location. Reynold and Seeger (2014) also note that equipment such as computers, printers,

scanners, telephones, and lines as well as basic office supplies, and additional supplies, and

non-perishable food items like bottled water are required in the crisis management

epicenter. Equipment should be listed in advance and arranged for use in an unexpected crisis

situation.

The fifth step is to script the potential responses to the crisis. The primary step for this

proceeding is to determine what types of crisis can the organization possibly face. Reynolds

and Seeger (2014) suggest applying these features of pre-planning to decrease damaging

disputes. Narveson, Gomes, and Culp (2015) add that, some replies demand to be drafted and

accepted in advance by PR and the legal department, so responses can be generated as soon as

possible. This step also includes creating the template for fact sheets, answers, and

notification for the media. According to Lando (2014), crisis communication demands

creativity, inspiration, and adaptation in the establishment of a professional and productive

relationship with the press from communicators. In the process of considering the possible

scenarios and scripting the templates for possible questions, the principle of showing respect

and taking responsibility should be held.

The sixth action in the process of development of an effective crisis communication plan is to

test the plan and update it regularly. According to Seeger (2006), the update of the plan
 52

should embrace an occasion to provide new perceptions about risk, new partners, and new

response possibilities. The regular meetings of the crisis communication team should

guarantee the effectiveness of the up-to-date crisis communication plan. The most useful, but

also the most threatening way to test the plan is to analyze it in practice during the crisis.

However, it can be also examined based on the artificially constructed crisis. Besides, if the

organization tests the plan on the actual crisis the post-crisis meeting is required to evaluate its

effectiveness and room for improvement. Lando (2014) explains that the learning stage should

produce a development that would help to prevent future crises.

The seventh and the last essential step in the establishment of the crisis communication plan is

its distribution to the key employees. However, it is essential to stress the confidence of the

plan for only official use. Seeger (2006) notes that information-sharing networks are effective

and practical means of obtaining new insights and updates of the plan. Moreover, the plan

should be shared with appointed personnel as soon as it is completed.

It is also important to note that the crisis communication plan is essential for each

organization at the constantly changing media environment and not only the large

corporations. Besides, smaller, emerging organizations that have not experienced the crisis

before can profit from the crisis communication plan more than the bigger ones already used

to crisis communication and management. Corporations and well-established organizations

also usually possess a Public Relations and communication departments that are educated

about proceedings within the crisis.

 53

5.2. General Guidelines to Managing Social Media Reputation Risks

Social media platforms can stand for both the blessing and the cruse for the reputation of the

company. However, with the increasing number of users in recent years and the possibility for

users to freely express their opinions, risks started to overrule the benefits of social media in

reputation management. Based on the current situation, leaders of the organizations are

focusing on guidance, processes, and tools for managing the social media reputational risks.

However, social media move fast and organizations have to follow the speed to succeed.

According to Ristuccia and Rossen (2015), new techniques, technologies, and instruments

that can help leading organizations to approach social media risks are supporting leaders

within this evolution. The main threats to the reputation that can emerge from social media

platforms were identified in the previous chapter. However, a crisis on social media is even

more difficult to predict and control. Moreover, each of them is different and requires

different treatment. Yet, the strategy to social media reputation management can be classified

into four main categories. Narveson, Gomes, and Culp (2015) recommend a social media risk

management strategy following peculiar exceptional actions across governance, processes,

and systems.

The initial important process in managing social media reputation risks is to understand these

risks, their formation, and their classification. Narveson, Gomes, and Culp (2015) explain that

organizations that lack a complex understanding of social media risks also lack the complex

approach to controlling social media risks. This approach can be defined as proactive.

However, it is also required as the first step to manage reactive approach situations. Ristuccia

and Rossen (2015) explain that organizations have to know how they will interact with those

who complain and also search for complaints by themselves. The contemporary era of
 54

constantly developing technology offers various tools and searching engines to define the

risks and patterns of criticism before their progression into a crisis. As stated by Narveson,

Gomes, and Culp (2015), social media platforms represent an unstoppable cultural force,

despite the efforts of some organizations to block or reduce their use. With this understanding,

organizations should rather manage social media platforms adequately than to block their

way.

5.2.1 Components of Effective Management of Social Media Reputational Risks

The first component of effective management of social media reputational risks is

governance. Narveson, Gomes, and Culp (2015) define that governance is concentrated on the

establishment of new structures, policies, and responsibilities for management of social media

risk, and governance also delivers the knowledge of strategic and operational use of social

media. The essential step within this component is to set the specific roles within the

organization to manage and monitor distinct social media risks. Moreover, people backing

these roles need to cooperate to reach the highest effectiveness in crisis communication and

management. The most convenient approach is to establish a social media risk network that

would portray the structure, roles, but also system to manage risk situations. Besides, the

importance of crisis communication plan also belongs to the governance principle of

managing social media reputational risk.

Besides, it is crucial to focus on overall social media strategy and not only risk elements.

Ristuccia and Rossen (2015) stress that institutions are required for further action than just

actively control social media for reputation threads. Furthermore, Narveson, Gomes, and Culp

(2015) recommend having a central group such as the marketing and branding division that

manages the social media strategy. This recommendation references upon the principle of a

united voice.
 55

Another significant aspect of governance is the internal audience of employees and

stakeholders. The adequate rules of the employee social media practice incorporated into the

company culture present employees with the limits of coverage, confidence, and privacy of

the organization. Culp (2014) notes that such policies should develop upon existing standards

including media relations, public communications, and the treatment of confidential

information. Moreover, these rules prevent social media reputation risks such as the reveal of

repressive company culture or the employee issues on social media. According to Narveson,

Gomes, and Culp (2015), these policy declarations should support, rather than discourage,

social media activity, and accommodate clear guidelines to actions that are and are not

acceptable. The departments that should be especially conscious of these rules are the

marketing and the risk department because their activities can conflict with the rules. Besides,

the use of private social media on company computers can be also challenged because of the

hate comments and different expressions that are then attached to the IP address of the

organization.

Some of the business sectors encountered difficulties to become more accessible and active

within the social media environment. Areas such as banking or finance are relevant examples.

Culp (2014) interpolates that some banks and other financial services attempted to block or

reduce the usage of social media at first, but they realized that it is more adequate to manage

them effectively. Their main issues were the increased risks to reputation or privacy but they

needed to follow the advancing course social media platforms. However, in the organization

of any type and especially within these privacy-based sectors it is crucial to determine social

media risk tolerance boundaries. Companies need to develop scenarios with outcomes of

increasing levels of impact to determine where they want to set limits. Narveson, Gomes, and

Culp (2015) claim that these scenarios are necessary for companies to elaborate on the rank of
 56

results and determination of boundaries. The main focus should be on limits within the

privacy and accessibility of the organization on social media.

Processes are the intermediate stage between the governance and the system's component of

the effective management of social media reputational risks. The process part of social media

reputation management is arranging operations for proactive social media risk estimation and

monitoring. At this stage, organizations are already conscious of the structures and rules

established to effectively manage social media reputation risks. Narveson, Gomes, and Culp

(2015) explain that adequate social media risk administration processes preserve operations

and the brand cost-effectively by coordinating operations for proactive social media risk

monitoring. Furthermore, social media risk processes are included in the overall risk process

management of the organization.

The first process includes evaluating and listing different social media risks from various

operative aspects. The governance component has already distributed the specific function to

specific people. The methodology to process the evaluation and reporting varies based on

different positions. Ristuccia and Rossen (2015) asses that it is essential to read what

customers are stating, asking and recommending on social media, and observe their feedback

to adequately equip against crisis and address the customers' needs. Narveson, Gomes, and

Culp (2015) add that the data from social media encourages organizations to exercise rapid

changes to fix problems. Risk managers have the role to secure the monitoring process in an

adequate time manner. Moreover, they need to collect the data and produce reports of great

quality. The continuity of the reporting is especially important. However, the monitoring and

data collection do not rely only on assigned people in specific positions but also on the

technological tools that can gather the data more quickly and effectively.
 57

The second major process is the decline and transfer of social media risks in a cost-effective

manner. According to Narveson, Gomes, and Culp (2015), the main goal of effective risk

management is the reduction of the risk occurrence and enhancement of the capabilities of the

organization. Besides, this stage also develops the means that would transfer the risks to

different components outside of social media. These components may comprise insurance or a

pre-planned reputation damage plan. As Ristuccia and Rossen (2015) explain the organization

shall identify beforehand how to react to different reputational threats arising in the social

media sphere, whether is a string of complaint that would also catch the attention of

traditional media or the false social media page frolicking as the official one. Therefore,

planning feature is the key to the processes component of effective social media reputation

risk management. The cost of risk management also results in this component. It would be

always cheaper for the organization to invest in the processing and system segment than the

costs and loss of profits linked with an unexpected severe crisis.

The third and last component of effective social media risk management are the systems that

equal the tools to operate, monitor, and predict the reputational risk associated with the

advancement of social media platforms. However, these systems are mostly technology and

not humanly driven at the constantly evolving media and technological environment.

Monitoring of social media sites, search engines, and the Internet is only supervised by the

assigned personnel. Moreover, personnel is then in charge of interpreting the data reports and

creating the strategies to improve the stance of organization in the social media context.

Besides, as Ristuccia and Rossen (2015) assert long-term data collection can also classify

models contributing more profound perspicacity into the growth and influences of the

organization's reputation on social media. The data are the essence of the monitoring process
 58

and the organization should possess effective systems to collect them. Besides, the data are a

valuable source of information for numerous departments within the organization such as

Marketing or Public Relations department.

The first major system is social media data mining and capture. A variety of tools is already

on the market to maintain this system. " Data mining and analytics can turn the apparent

randomness and chaos of millions of posts and tweets into information to guide marketers and

business strategists," (Narveson, Gomes, & Culp, 2015, p. 15). However, it is necessary to use

these tools in accordance with the law. The secured storage of the data is significantly

important for the operations and also the reputation of the organization. However, as

Narveson, Gomes, and Culp (2015) evaluate data protection is challenging because social

media platforms are generally based on third-party cloud applications, and the organization

cannot control the security of these applications. Data mining has the ability to develop

business comprehension to implement more beneficial services and establish innovative

possibilities. The concrete outcomes of data mining can be the identification of influences on

the organization's target social media platforms or discover groupings of characters,

understand user attitudes, preserve safety and privacy, and assist in developing trust among

organizations and clients.

The second significant systems are the text analytic instruments that search for essential

patterns and address the insights in the data collection. The text analytical instruments operate

in three stages. The first is structuring the text, the second stage is determining trends in the

structured data, and the third stage is the evaluation and interpretation of the output. The

succession of significance, originality, and interest equals the high-quality text report. "These

engines can also segment information to support better decision making-decisions based on
 59

hard data, especially unstructured or "Big" data," (Narveson, Gomes, & Culp, 2015, p. 14).

This system is significantly important for the organization in terms of monitoring but also

evaluating the attitudes and objections of the target audience on social media. Yet, it is the

most effective in combination with other introduced systems.

The last but definitely not least essential process is the reporting of the data and establishment

of the indicator panel. This process occurs at the end when all the data are mined captured,

and patterns are proposed by the text analytics engines. "Data analytics and social listening

tools can help provide boards with real-time information on what their organization is saying

and what is being said about it, a capability that can help organizations to create an early

warning system for reputation risks related to social media," (Ristuccia and Rossen,2015, p.

6). Besides, these dashboards or indicator pallets also aid the organization by connecting

various operation dimensions and correlating the determinants of vulnerabilities and crisis.

The understanding of reputation risk on social media has unquestionably enhanced in recent

years. However, crises emerging from social media required a modified approach from crisis

communication and PR specialists. The essence of effective crisis management of reputation

risk on social media is the proactive strategy before any crisis occurs. The three components

of Effective Management of Social Media Reputational Risks proposed by Narveson, Gomes,

& Culp (2015) governance, systems, and processes also stress the element of preparedness

and research. Ristuccia and Rossen (2015) conclude that knowing the challenge is the major

step that helps to establish the course for the entire organization.

Nevertheless, it should be the main priority for the organization to have a favorable

presentation on the social media scene. The presentation has the power to influence the
 60

dissemination of negative commentaries and crises. Moreover, it is not only about the

organization's social media channels but also about the presentation of each person that

represents the organization. This understanding among the employees should be enhanced by

the establishment of risk-aware culture. As stated by Narveson, Gomes, and Culp (2015),

people and skills are crucial elements for delivering risk mastery in each industry. Installing

decent expectations and employing culturally conscious implementation effectively influence

social media crisis management. Moreover, well-controlled and used social media platforms

can not only prevent the loss of reputation and crisis but also open more possibilities and

increase the profit of the organization. The most effective strategy that can be employed is to

listen to customers but also employees. The active listening process can reveal the threats to

the reputation but also the opportunities for increasing the profit.
 61

6. CONCLUSION

The current media scene generates recognizable threats for organizations that often climax

into crises due to the expanding amount of channels unlimited by time and space. These

threats culminating in crises were defined and examined in this paper, and comprehensive

strategies were introduced towards their prevention and administration.

Without a doubt, social media platforms and other advancing media tools and technologies

transformed the crisis communication and management for organizations and individuals.

This transformation affected all of the organizations regardless of size or type. Besides, the

contemporary media environment also generates new threats for organizations that require

innovative and special handling to prevent the crisis.

Organizations in the crisis face a severe risk of the loss of reputation due to the nature and

capabilities of social media platforms. Besides, a crisis emerges in a much faster manner, and

for a much wider audience. The reputation of the organizations is, therefore, seriously

endangered, and its maintenance is more challenging than ever. However, if the crisis is

managed well, it can even deliver new possibilities for the organization.

The fundamental approach to preventing crisis occurrence and its administration in case it

emerges is the complex understanding of crisis communication and management theory and

principles. Moreover, comprehension of the threats proposed by the contemporary media

environment is also crucial in this process. Each crisis is unique and requires special

treatment, but some generally applicable strategies can be employed to manage the crisis

more effectively and promptly.

The first chapter of this paper examined the field of Public Relations and its impact on

society. This field was analyzed to provide a complex comprehension of crisis communication
 62

since it is its fundamental component. Moreover, the history of Public Relations was briefly

described because it aligns with the history and development of crisis communication.

The second chapter of the paper analyzed the crisis communication and its core concepts.

Main terms within crisis communication were identified to acquire the required knowledge

for the prevention and administration of advancing crisis threats. Furthermore, the principal

theories and principles behind crisis communication and management were introduced to

understand displayed case studies and to gain the essential knowledge for the identification of

crisis nature, solution, and prevention.

The third chapter of this paper analyzed the emerging threats for the organizations in the

constantly changing media environment that were subsequently portrayed in two social media

crisis communication case studies. Both case studies examined the reputational threat of the

criticism towards the organization that has the potential to go viral in a matter of minutes. The

first case study displayed the inappropriate administration of the crisis and the lack of

background knowledge of crisis communication. The second case study demonstrated the

importance of this knowledge and the appropriate application of crisis communication

theories towards the effective solution of the crisis. However, both organizations in the crisis:

United Airlines and Pepsi, managed to prevent the total loss of reputation at the end.

Furthermore, these case studies also served as an example for a general guide to solving the

crisis that was introduced in the last chapter.

The last chapter proposed the key lessons and general strategies in crisis communication and

management. These strategies were established based on acknowledged models combined

with gathered knowledge throughout the composition of this paper. The first introduced key

strategy is the development of a crisis communication plan that can not only manage the crisis

more effectively but also prevent its occurrence and extend crisis communication knowledge.

The second major proposed general strategy is based on the components and proceedings for
 63

the effective management of social media reputational risks. This strategy proposed the

approach with distinctive activities across governance, processes, and systems that were

analyzed to detail in the chapter.

Multiple essential observations were gathered on the topic of crisis communication and

management at the constantly changing media environment throughout the composition of

this paper. The first observation is that crisis communication and management should be

taken into account in each organization regardless of the size.The second observation is that

organizations should not obstruct the use of social media platforms but rather learn to manage

them effectively. The third remark is that organizations should invest more time and money

into education and training of their employees on the topic and importance of crisis

communication and management.The final remark is that research should be extended on the

topic of crisis communication and management in the contemporary media context to

emphasize its vulnerability and importance.

To conclude, the most appropriate approach to managing the crisis at the constantly changing

media environment is the knowledge of the crisis communication and management

background and mainly the proactive actions for the prevention of the crisis occurrence.
 64

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