Annotated-Leggett Businesswriting Project4 Whitepaper-1

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CRISIS

MANAGEMENT
Donald Trump’s “Hush
Money” Controversy

Communication
Strategies for Business
Crises Response

By Jimmy Leggett
Consultations Co.
April 16, 2023

CRI
Table of Contents

EXECUTIVE SUMMARY .......................................................................................................................... 3

INTRODUCTION ...................................................................................................................................... 4

-Background

-Objective

METHODOLOGY & FRAMEWORK ......................................................................................................... 5

RESULTS ................................................................................................................................................... 6

Initial Crisis ........................................................................................................................................ 6

Cohen’s Conviction ............................................................................................................................ 7

Trump Org. Subpoenaed.................................................................................................................... 8

Daniel’s Defamation Suit ................................................................................................................... 9

Manhattan DA Seeks Trump Inditement ........................................................................................ 10

CONCLUSION .......................................................................................................................................... 11

BIBLIOGRAPHY ..................................................................................................................................... 12

APPENDIX ...............................................................................................................................................13

CRISIS MANAGEMENT 2
EXECUTIVE SUMMARY
This decade long crisis stemmed from
accusations in 2016 that Donald Trump
violated campaign finance laws by
paying $130,000 in hush money to porn
star Stormy Daniels. A double pronged
problem: the moral allegations of
adultery, and misuse of campaign funds.

Trump Org., Michael Cohen, the news


media, and popular response all varied 1- Brandon Bell/Getty Images
wildly in opinion and strategy. Trump
has steadfastly denied all claims,
assumed the role of victim, and attacked
his accusers with counteraccusations.

The news media has largely framed this


as a conflict/political issue, following
closely and restraining itself mainly to
the legal aspects of the crisis.

Popular response, however, has


indulged in the scandalous, high stakes 2- Lorenzo Bevilaqua/DGE/Getty Images
moral/human interest side of the story.

With his entire presidency, political


future and reputation at risk, Trump has
employed a high-risk-high-reward crisis
management strategy: flat denial.

This paper will highlight by example


some of the key strategies and tactics
you can use in different circumstances to
mitigate damage to your brand in the
wake of crises.
Getty Images

CRISIS MANAGEMENT 3
Introduction These days, responsible, ethical, and
effective crisis management is more
important than ever. To proactively
mitigate the damage to an
organization’s reputation in the wake
of controversy, crisis communication
management is an invaluable tool.

This whitepaper outlines some of the


management strategies that J. L.
Consultations uses to prepare
3- Spencer Platt/Getty Images organizations to deal with crises, by
evaluating the media’s and Trump
Org.’s response to the Trump/Stormy
Daniel’s crisis.

Background Multiple scandalous accusations


lodged against Donald Trump during
his Presidency sparked a decade long
crisis. Allegations of adultery and
campaign fraud has caused a media
hay-day, and compelled Trump and
Trump Org. to navigate with crisis
management strategies. Trump
lawyers, Daniel lawyers and the
media all implemented different
strategies for their purposes.
4- Associated Press

Objective
If your organization is interested in proactive and informed crisis
management strategies as a sort of insurance against scandal, this paper will
give you an idea about the services that J. L. Consultations offers to preserve
your organization’s reputation. Like the ‘Scouts say, “Always prepared!”

CRISIS MANAGEMENT 4
METHODOLOGY & FRAMEWORK

Situational Crisis
Communication Theory (SCCT)
Mass-media communication strategies aimed at
eliciting a positive evaluation by stakeholders
via providing appropriate responses to media
coverage. This is achieved by understanding the
way that the media and readers react to
controversy. This paper is structured by
analyzing each major event of the
Trump/Daniels crisis according to the central
tenets of SCCT.

Framework

1. Crisis Types: Crises can be categorized in three ways, ranking from least level of
responsibility by the organization, to the greatest: Victim, Accidental, and Preventable.
Where a crisis falls on this spectrum will determine if a defensive or accommodative strategy
is more effective.

2. News Frames: The media can frame an issue in one of five ways; 1. Responsibility 2.
Economic 3. Conflict 4. Human Interest 5. Morality. These frames aim to reduce the
complexity of the issue. How a crisis is viewed will also influence the response strategy.

3. Grounded Theory: Analyzing and categorizing reader response patterns helps to clarify
the core issues of a crisis that are important to people, and the popular attitude towards the
controversy. Analyzed by number of comments per category in top twenty responses.

4. Response Strategies: An organization can take one of four stances or postures when
managing crisis communication, from least to greatest responsibility:
i. Denial (Attack accuser, Scapegoat, Suffering)
ii. Diminish (Excuse, Justify)
iii. Rebuild (Compensate, Apology, Repent)
iv. Reinforce. (Bolster, Transcendence,
Ingratiation)

CRISIS MANAGEMENT 5
Initial Crisis
Trump Response Crisis Type
Trump Org. strictly maintained WSJ1: Preventable Trump16: Victim
the stance of “victim” throughout
NBC2: Accident Trump17: Victim
the initial crisis, saying that News
Media and leftists are unfairly NPR3: Victim Cohen18: Victim
slandering him. He also flat out
denied the charges.

News Frame News Media Response


The news media’s framework was
WSJ: Conflict largely human interest. It seems
they were more interested in the
political ramifications than moral
NBC: Human Interest consequences.

NPR: Human Interest

Takeaway Grounded Theory


With the stakes so high and 8
allegations so slanderous and 7
6
damaging, sometimes a ‘winner
5
takes all’ mentality may be the 4
best strategy. Even the slightest 3
concession could have 2
disastrous consequences. 1
0
Victim Denial Diminish Reinforce

NBC Trump

CRISIS MANAGEMENT 6
Cohen’s Conviction
Crisis Type
CNN4: Victim Trump19: Victim
NBC5: Accident Trump20: Victim
APNews6: Accident Cohen21: Preventable

Trump Response
Compared to the typical response
strategy of Trump, Cohen took the
opposite approach. In his statements
to congress he confessed to and
repented of all the allegations. But he
also shifted blame to Trump

Eduardo Munoz Alvarez/Getty Images

News Frame Reader Response


CNN: Morality Reader response was largely
condemnatory of Trump and Cohen.
Most readers believed that the
NBC: Conflict sentence against Cohen was just,
and that Trump was likely culpable
as well.
APNews: Human Interest

Takeaway Grounded Theory


Given the severity of the charges 14
12
against him, by framing the
10
crisis type as ‘preventable’ and
8
confessing, it is likely Cohen
6
procured a lighter sentence than
4
had he remained in denial. 2
0
Victim Denial Diminish Reinforce

CNN Trump

CRISIS MANAGEMENT 7
Trump Org. Subpoenaed
Trump Response Crisis Type
Trump continued to label the
APNews7: Preventable Trump Lawyer22: Victim
accusations as a “witch hunt,”
maintaining that he is the victim CNN8: Preventable Trump23: Victim
of unfair news media. By Insider9: Preventable
digging in his heels, Trump’s
strategy at least drew out the
crisis.

News Frame Reader Response


As the allegations escalated into
APNews: Responsibility more rigorous criminal charges,
readers began to question the
CNN: Conflict integrity of the accusations and
evidence. Reader response was
more diverse, with many
Insider: Morality apologizing and defending Trump.

Takeaway Grounded Theory


It might be said that Trump’s 6
strategy of ‘blurring the lines’ 5
was bearing fruit in the reader 4
response. Popular opinion 3
became more balanced in his
2
favor. Maintaining the course
1
and sticking to your guns may
0
sometimes pay off. Victim Denial Diminish Reinforce

CNN Trump

CRISIS MANAGEMENT 8
Daniel’s Defamation Suit
Crisis Type
CNBC10: Preventable Trump24: Victim
NBC11: Preventable Trump25: Victim
Yahoo12: Victim

News Frame Trump Response


Trump upped the ante even more by
CNBC: Human Interest personally attacking Daniels and her
legal team with insults. This victory
NBC: Economic for Trump was largely under-
reported by the news media and
signals the success of his strategy.
Yahoo: Human Interest

News Media Response


Again, the news media did not
indulge in the moral implications of
this crisis but maintained a rather
unaffected human interest frame.

AP

Grounded Theory Takeaway


10 This event demonstrates that
8 what you may consider to be the
6
most important aspects of crisis
management, may be
4
interpreted differently by news
2 media. It’s important to
0 strategize around news
Victim Denial Diminish Reinforce response.
Yahoo

CRISIS MANAGEMENT 9
Inditement
News Frame
Crisis Type
CBS13: Accident Trump26: Victim
CBS: Conflict
Newsweek14: Victim Trump27: Victim
APNews15: Accident Trump28: Victim
Newsweek: Conflict

APNews: Human Interest

KTLA 5

CNN

Getty Images

Trump Response Takeaway


Donald Trump has continued to Trumps strategy over the past few
maintain a victim strategy. Counter- years is starting to pay dividends.
attacking his accusers and denying Popular opinion is more divided,
all allegations. He alleges that the the facts have become hazy, and the
political and news systems are to be crisis has escalated and meant that
blamed for the crisis and that he is popular response will play a larger
innocent. role in determining the ultimate
consequences of the allegations.

CRISIS MANAGEMENT 10
Conclusion
This crisis event shows an example of
how Grounded Theory, typical
evaluation, and framework all play a
part in navigating and deciding response
strategies. With the consequences so
large, Trump employed a ‘victim’
strategy and has refused to give a crumb
to his opposition. This response is very
risky, but Trump has successfully
walked the line so far without falling.

By appealing to popular sentiment,


evading any effect of legitimizing the
accusers, and strongly reframing the
issue in his favor, the Trump/Daniels
crisis shows that there is no one single
strategy appropriate for all occasions.

If your goal is total vindication, perhaps


Trump’s strategy may work for you. If
you want to tactfully mitigate damage
and move on, perhaps it’s best that some
concessions could be made. If you want
a chance at restoring your reputation
and have the opportunities in the future
to do so, it may be appropriate to
completely apologize and repent and
begin the road to reputational
restoration.

Crisis management requires proactive


strategies. Jimmy Leggett Consultations
Co. has the skills and experience to
make sure that your company comes out
on the other side of a crisis in the best
shape possible.

CRISIS MANAGEMENT 11
BIBLIOGRAPHY
Pictures
1. Cohen, Z., & Grayer, A. (2023, March 17). Trump and his family failed to report nearly $300,000-worth of gifts from foreign governments, House Democrats allege
in New report | cnn politics. CNN. Retrieved March 26, 2023, from https://www.cnn.com/2023/03/17/politics/trump-gifts-democrats-report/index.html
2. Dickinson, T. (2023, March 21). Sex, shark week, and Hush Money: A trump and Stormy Daniels timeline. Rolling Stone. Retrieved March 26, 2023, from
https://www.rollingstone.com/politics/politics-features/trump-stormy-daniels-timeline-1234700886/Photo
3. Forrest, J., & Cohen, Z. (2023, March 21). Trump's team puts forward ally in hopes of undercutting Cohen testimony in Ny Hush Money Case | CNN politics. CNN.
Retrieved March 26, 2023, from https://www.cnn.com/2023/03/20/politics/michael-cohen-robert-costello-manhattan-grand-jury/index.html
4. Johnson, C. (2018, May 31). Who is Stormy Daniels lawyer Michael Avenatti - and who is helping him? NPR. Retrieved March 26, 2023, from
https://www.npr.org/2018/05/31/615768441/who-is-stormy-daniels-lawyer-michael-avenatti-and-who-is-helping-him
Research
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2023, from https://www.wsj.com/articles/trump-lawyer-arranged-130-000-payment-for-adult-film-stars-silence-1515787678
2. Johnson, & Vitali. (n.d.). Trump’s lawyer says he paid Stormy Daniels out of his own pocket. NBC News. Retrieved March 25, 2023,
from https://www.nbcnews.com/politics/donald-trump/trump-s-lawyer-michael-cohen-says-he-paid-stormy-daniels-n847866
3. Naylor, B., & Overby, P. (2018, February 14). Attorney Says He Paid Adult Film Actress Who Alleges Affair With Trump.
NPR. https://www.npr.org/2018/02/14/585719431/attorney-says-he-paid-adult-film-actress-who-alleges-affair-with-trump
4. Tatum,Kara Scannell, E. O. (2018, December 12). Michael Cohen sentenced to three years in prison after admitting he covered up Trump’s “dirty deeds” | CNN Politics.
CNN. https://www.cnn.com/2018/12/12/politics/michael-cohen-sentencing/index.html
5. Winter, Williams, Rappleye, & Gregorian. (n.d.). Cohen gets 3 years, says Trump’s “dirty deeds” led him to “choose darkness.” NBC News. Retrieved March 25, 2023,
from https://www.nbcnews.com/news/us-news/michael-cohen-gets-3-years-cases-involving-stormy-daniels-lying-n946956

Lorem Ipsum is
6. Neumeister, & Hays. (2021, April 20). “Dirty deeds”: Ex-Trump lawyer Cohen gets 3 years in prison. AP NEWS. Retrieved March 25, 2023,
from https://apnews.com/article/donald-trump-us-news-ap-top-news-elections-crime-d6dbb8b02a4446f6800de794b45523e6
7. Condon. (2021, April 28). Manhattan DA subpoenas Trump Org over hush money payments. AP NEWS. Retrieved March 25, 2023, from https://apnews.com/article/nyc-
wire-donald-trump-us-news-subpoenas-new-york-city-636035b39d6742358b08ab584f738bcb
8. Scannell, K. (2019, August 1). Manhattan DA subpoenas Trump Organization and AMI in Stormy Daniels hush money investigation | CNN Politics.

simply dummy text


CNN. https://www.cnn.com/2019/08/01/politics/manhattan-da-trump-organization-stormy-daniels/index.html
9. New York DA subpoenas Trump Organization over hush money paid to protect President Donald Trump from allegations of adultery. (n.d.). Business Insider. Retrieved
March 25, 2023, from https://www.businessinsider.com/new-york-da-subpoenas-trump-organization-over-hush-money-payments-2019-8
10. Mangan, D. (2022, March 22). Porn star Stormy Daniels loses appeal in Trump case, vows “I will go to jail before I pay a penny” of $300,000.
CNBC. https://www.cnbc.com/2022/03/22/porn-star-stormy-daniels-loses-appeal-of-trump-case.html

of the printing and


11. Gregorian. (n.d.). Stormy Daniels must pay $300k to Donald Trump after losing defamation case appeal. NBC News. Retrieved March 25, 2023,
from https://www.nbcnews.com/politics/donald-trump/stormy-daniels-must-pay-300k-donald-trump-losing-defamation-case-appea-rcna21002
12. Gregorian, & Brogle. (n.d.). Stormy Daniels must pay $300k to Donald Trump after losing defamation case appeal. Stormy Daniels Must Pay $300k to Donald Trump After
Losing Defamation Case Appeal. Retrieved March 25, 2023, from https://www.yahoo.com/now/stormy-daniels-must-pay-300k-173651387.html
13. Becket. (2023, March 20). Timeline: Donald Trump, Stormy Daniels and the $130,000 payment to buy her silence. Timeline: Donald Trump, Stormy Daniels and the

typesetting
$130,000 Payment to Buy Her Silence - CBS News. Retrieved March 25, 2023, from https://www.cbsnews.com/news/donald-trump-stormy-daniels-investigation-
timeline-manhattan-district-attorney/
14. Kika, T., & Henican, E. (2023, February 26). Trump attorneys outline “options” amid possible indictment. Newsweek. https://www.newsweek.com/trump-attorneys-
outline-options-amid-possible-indictment-1783892
15. Sisak. (2023, March 10). Trump invited to testify before NY grand jury, lawyer says. AP NEWS. Retrieved March 25, 2023, from https://apnews.com/article/trump-

industry.
stormy-indictment-jury-new-york-564e1947c822a32c3111f5e1c4146138
16. Trump, Donald J. “‘Federal Judge Throws out Stormy Danials Lawsuit versus Trump. Trump Is Entitled to Full Legal Fees." @Foxnews Great, Now I Can Go after Horseface
and Her 3rd Rate Lawyer in the Great State of Texas. She Will Confirm the Letter She Signed! She Knows Nothing about Me, a Total Con!” Twitter, Twitter, 16 Oct.
2018, https://twitter.com/realDonaldTrump/status/1052213711295930368?s=20.
17. Trump, Donald J. “Mr. Cohen, an Attorney, Received a Monthly Retainer, Not from the Campaign and Having Nothing to Do with the Campaign, from Which He Entered
into, through Reimbursement, a Private Contract between Two Parties, Known as a Non-Disclosure Agreement, or NDA. These Agreements Are.....” Twitter, Twitter, 3
May 2018, https://twitter.com/realDonaldTrump/status/991992302267785216?s=20.
18. Abramson, Alana. “Michael Cohen Admitted He Paid Stormy Daniels. What Now?” Time, Time, 14 Feb. 2018, https://time.com/5158096/donald-trump-porn-star-
stormy-daniels-payment-michael-cohen/.
19. Trump, Donald J. “Congress Must Demand the Transcript of Michael Cohen's New Book, given to Publishers a Short Time Ago. Your Heads Will Spin When You See the
Lies, Misrepresentations and Contradictions against His Thursday Testimony. like a Different Person! He Is Totally Discredited!” Twitter, Twitter, 1 Mar.
2019, https://twitter.com/realDonaldTrump/status/1101469141213630464.
20. Trump, Donald J. “Oh' I See! Now That the 2 Year Russian Collusion Case Has Fallen Apart, There Was No Collusion except Bye Crooked Hillary and the Democrats, They
Say, ‘Gee, I Have an Idea, Let's Look at Trump's Finances and Every Deal He Has Ever Done. Let's Follow Discredited Michael Cohen.....” Twitter, Twitter, 1 Mar.
2019, https://twitter.com/realDonaldTrump/status/1101472084730003457.
21. Cohen, M. TESTIMONY OF MICHAEL D. COHEN COMMITTEE ON OVERSIGHT AND REFORM U.S. HOUSE OF REPRESENTATIVES. 7 February 2019.
22. “Trump Organization Subpoenaed over Hush Money Payments.” CBS News, CBS Interactive, 16 Feb. 2021, https://www.cbsnews.com/news/trump-organization-
subpoenaed-over-hush-money-payments/.
23. Trump, Donald J. “The Radical Left Democrats Have Failed on All Fronts, so Now They Are Pushing Local New York City and State Democrat Prosecutors to Go Get
President Trump. A Thing like This Has Never Happened to Any President before. Not Even Close!” Twitter, Twitter, 7 Oct.
2019, https://twitter.com/realDonaldTrump/status/1181212691203084289?s=20.
24. NY, FOX 5. “Stormy Daniels and Donald Trump Drama Continues.” FOX 5 New York, FOX 5 New York, 22 Mar. 2022, https://www.fox5ny.com/news/stormy-daniels-and-
donald-trump-drama-continues.
25. “Trump Lashes out after Deposition Ordered in E Jean Carroll Lawsuit.” The Guardian, Guardian News and Media, 13 Oct. 2022, https://www.theguardian.com/us-
news/2022/oct/13/trump-e-jean-carroll-lawsuit-deposition.
26. @RealDonaldTrump. Truth Social, https://truthsocial.com/@realDonaldTrump/posts/110044039949982181. 18 March 2023.
27. @RealDonaldTrump. Truth Social, https://truthsocial.com/@realDonaldTrump/posts/110078936348935686. 18 March 2023.
28. @RealDonaldTrump. Truth Social, https://truthsocial.com/@realDonaldTrump/posts/110078466327288792. 24 March 2023.

CRISIS MANAGEMENT 12
APPENDIX
Sources
Event News News News Trump Trump Trump
Initial Crisis WSJ1 NBC22 NPR3 10/16/201816 5/3/2018-117 Time- Cohen
5/3/2018-2 Statement18
5/3/2018-3
Cohen Convicted CNN4 NBC5 APNews6 3/1/2019 19 Cohen Congress Statement21
3/1/2019-120 3/1/2019-2
Trump Org. Subpoenaed APNews7 CNN8 Insider9 CBS - Trump Lawyer Statement22 10/7/201923
Daniels' Failed Lawsuit CNBC10 NBC11 Yahoo12 Fox5NY- Trump Statement24 Guardian- Trump Statement on
Similar Case25

DA Seeks Inditement CBS13 Newsweek14 APNews15 3/18/202326 3/24/202327 3/24/202328

Crisis Type Trump Response Strategy


Event News Source – Crisis Type Trump Response– Crisis Type Event Trump Response Strategy
Initial Crisis WSJ.................Preventable Tweet..............................Victim Initial Crisis Tweet Denial
Initial Crisis NBC......................Accident Tweet..............................Victim Initial Crisis Tweet Diminish
Initial Crisis NPR.................Preventable Cohen Statement............Victim Initial Crisis Cohen Statement Diminish
Cohen Convicted CNN..........................Victim Tweet..............................Victim Cohen Convicted Tweet Denial
Cohen Convicted NBC......................Accident Tweet..............................Victim Cohen Convicted Tweet Denial
Cohen Convicted APNews................Accident Cohen Statement...Preventable Cohen Convicted Cohen Statement Reinforce
Trump Org. Subpoenaed APNews..........Preventable Lawyer Statement…………Victim Trump Org. Subpoenaed Lawyer Statement Denial
Trump Org. Subpoenaed CNN................Preventable Tweet..............................Victim Trump Org. Subpoenaed Tweet Denial
Trump Org. Subpoenaed Insider............Preventable Daniels' Failed Lawsuit Trump Statement Denial
Daniels' Failed Lawsuit CNBC..............Preventable Trump Statement............Victim Daniels' Failed Lawsuit Trump Statement Denial
Daniels' Failed Lawsuit NBC................Preventable Trump Statement............Victim Manhattan DA Seeks Inditement Truth Social Post Denial
Daniels' Failed Lawsuit Yahoo.......................Victim Manhattan DA Seeks Inditement Truth Social Post Denial
Manhattan DA Seeks Inditement CBS.......................Accident Truth Social Post.............Victim Manhattan DA Seeks Inditement Truth Social Post Denial
Manhattan DA Seeks Inditement Newsweek...............Victim Truth Social Post.............Victim
Manhattan DA Seeks Inditement APNews................Accident Truth Social Post.............Victim
Grounded Theory News Frame
Event News – Reader Response Trump– Reader Response Event News Source Frame
Initial Crisis WSJ.............. Tweet......................1-0-2-5 Initial Crisis WSJ Conflict
Initial Crisis NBC....................... 5-1-0-2 Tweet........................... Initial Crisis NBC Human Interest
Initial Crisis NPR.................... Cohen Statement......... Initial Crisis NPR Human Interest
Cohen Convicted CNN.......................0-2-5-1 Tweet.....................0-1-4-3 Cohen Convicted CNN Morality
Cohen Convicted NBC.................... Tweet........................... Cohen Convicted NBC Conflict
Cohen Convicted APNews.............. Cohen Statement......... Cohen Convicted APNews Human Interest
Trump Org. Subpoenaed APNews.............. Lawyer Statement........ Trump Org. Subpoenaed APNews Responsibility
Trump Org. Subpoenaed CNN.......................1-2-3-2 Tweet......................3-2-2-1 Trump Org. Subpoenaed CNN Conflict
Trump Org. Subpoenaed Insider................ Trump Org. Subpoenaed Insider Morality
Daniels' Failed Lawsuit CNBC.................. Trump Statement......... Daniels' Failed Lawsuit CNBC Human Interest
Daniels' Failed Lawsuit NBC.................... Trump Statement......... Daniels' Failed Lawsuit NBC Economic
Daniels' Failed Lawsuit Yahoo....................9-2-0-0 Daniels' Failed Lawsuit Yahoo Human Interest
Manhattan DA Seeks Inditement CBS........................3-3-3-0 Truth Social Post.......... Manhattan DA Seeks Inditement CBS Conflict
Manhattan DA Seeks Inditement Newsweek......... Truth Social Post.......... Manhattan DA Seeks Inditement Newsweek Conflict
Manhattan DA Seeks Inditement APNews.............. Truth Social Post.......... Manhattan DA Seeks Inditement APNews Human Interest

CRISIS MANAGEMENT 13

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