PR CRISIS – KIEU GIA BAO

D. ISSUE MANAGEMENT – Proactive Phase:

Proactive phase is the time before crisis occurs. (Heimduo, 2021)

Maya Dollarhide (2022) states that a triggering event is a tangible or intangible

barrier or occurrence which, once breached or met, causes another event, usually a crisis,
to occur. MIPOOSAY deals with issues and crises in 3 main phases: proactive phase,
reactive phase and recovery phase. Regarding the proactive phase, we need to identify
potential issues that might occur and become crises.

I. Triggering Event 1:

1. Identification: We are cyberattacked.

2. Analysis:

It can pose great harm not only to our company, but to our customers, our artists,
our trainees, and our staff as well.

a) To our company:

Our company may lose the trust and respect of our stakeholders, who may
perceive us as irresponsible and unprofessional. We may also face negative media
coverage, public scrutiny, or legal action (lawsuits), which could damage our image and
brand value.

Besides, we may lose sales, profits, or opportunities as well as our competitive

edge, as our intellectual property or unreleased projects may be leaked, copied, or
sabotaged by our rivals or hackers. We may have to pay a ransom to the hackers as well.
Furthermore, if this incident occurs in one of our branches in certain areas, in Europe, for
instance, we may have to pay a fine, according to the GDP Regulation there.

b) To our customers, artists:

They are exposed to face identity theft, fraud, phishing, and other cybercrimes
when their personal information is compromised. Likewise, our artists, information such
as their contracts, salaries, contact details, personal photos and videos, being leaked could
expose them to cybercrimes as well.

3. Strategic solution:

a) Before the incident happens:

First, we need to improve our company’s cyber security, including implementing

and updating our cybersecurity policies, practices, and tools, to protect our data and
assets from unauthorized access, use, or disclosure. We also use encryption,
authentication, firewall, antivirus, backup, and recovery solutions as well. Besides, we
conduct training and courses for our staff and artists on cybersecurity and on how to
avoid cybercrime.

b) When the incident happens:

We maintain honest and open communication with our stakeholders, including our
customers, partners, artists, and the media, to inform them of the incident, apologize for
any inconvenience or harm, and assure them of our actions or plans to address the
situation. We will also seek their feedback, support, or cooperation, to enhance our
relationship with them, as well as our reputation.

Besides, we try to secure the data, track the hackers, and collect evidence for later
use. At the same time, we engage and consult with our legal, regulatory, or industry
authorities, to report the incident, comply with any rules or obligations, and seek any
guidance or assistance.

II. Triggering Event 2:

1. Identification: We are accused of treating less famous artists unfairly.

2. Analysis:

It can pose great harm not only to our company but to our partners and sponsors as
well.

a) To our company:

Our company could face a backlash from the fans of the less popular group, who
may feel that we are neglecting or discriminating against their idols. They may demand
an explanation, an apology, or a change in our management practices. They may also
boycott our products, services, or events, or spread negative word-of-mouth about
MIPOOSAY.

We could face legal action from the music groups or their fans, who may claim
that we breached their contracts, violated their rights, or discriminated. This could result
in costly lawsuits, settlements, or damages, as well as damage our reputation and
credibility in the industry. Besides, we may lose deals with our sponsors and our partners.

MIPOOSAY could also attract negative attention from the media, who may
investigate or report on our company’s issues or controversies. They may portray us as a
greedy, irresponsible, or abusive company, or compare MIPOOSAY unfavorably with
other entertainment companies. They may also influence the public opinion or perception
of our company, or trigger more accusations or complaints against MIPOOSAY.

b) To our sponsors and partners:

They might also suffer from boycotting and negative responses.

3. Strategic solution:

a) Before the incident happens:

We need to make sure that our artists are treated fairly, by maintaining a good
relationship with all of the artists, maintaining a fair and transparent work environment,
and listening to our artists. Besides, it is necessary to create fair and clear contracts and
make sure that our artists are well-informed of that.

b) When the incident happens:

We immediately conduct internal and external investigations, including collecting

feedback to check our company's policies, practices, and resources regarding the
treatment of our artists, and identifying the root causes of the problem, verifying the
accusation, then implementing some improvements or reforms to ensure that our artists
are treated equally and fairly and that their needs and interests are respected and
protected, if appropriate.

We also communicate openly and honestly with the stakeholders, including our
artists, our fans, and the media, by acknowledging the issue, apologizing for any mistakes
or shortcomings, and explaining our actions or plans to address the situation. We will also
express our appreciation, support, and commitment to our artists and fans, and highlight
our achievements, values, and vision as an entertainment company. At the same time, we
take legal action if necessary.
III. Triggering Event 3:

1. Identification: A music group member in our company is accused by his old

classmate of fat-shaming and bullying him when they were in high school.

2. Analysis:

It can pose great harm not only to our company, but to the accused artists, the band
working with him, and the sponsors, the brands collaborating with him as well.

a) To our company:

MIPOOSAY could face public backlash and criticism for harboring a bully and
not taking appropriate action against him. Our company’s image and brand value could
be tarnished, and we could lose the trust and respect of our fans, customers, partners, and
investors. We could also face legal consequences if the victim decides to sue our
company or the music group member for defamation, emotional distress, or other
damages.

Furthermore, MIPOOSAY could suffer financial losses due to the scandal. Our
music group’s sales, streams, downloads, and endorsements could drop significantly, as
fans and consumers boycott their products and services. Our company could also lose
sponsorship deals, advertising contracts, and broadcasting rights, as other companies and
media outlets distance themselves from the scandalous music group. We might also incur
additional costs for damage control, such as hiring lawyers, public relations experts, and
crisis management consultants.

b) The accused artist:

Regarding the accused artist, he could face a loss of reputation, fan support, and
career opportunities. He could also face legal action from the accuser or maybe worse,
from MIPOOSAY, depending on the contract terms and the validity of the accusation. He
may have to issue a public apology, take a hiatus, or leave the group altogether.

c) The band the accused artist is in:

The band could suffer from a decline in popularity, sales, and public trust. The
band may have to adjust their schedules, performances, or promotions without the
accused member. The band may also have to deal with negative comments, boycotts, or
protests from the fans or the media.
 d) The brands and sponsors working with him:

Regarding the brands and sponsors working with him, they might receive bad
reviews and face boycotts as well.

3. Strategic solution:

a) Before the incident happens:

First, we need to conduct background checks and interviews before signing or

hiring celebrities. We may verify the celebrities’ academic records, social media
accounts, and personal references to see if there are any signs of bullying or being bullied
in the past (we make sure that their personal information and privacy are not violated).
We may also ask the celebrities about their experiences and attitudes towards bullying
and how they would handle such situations.

We also provide training and education on bullying prevention and intervention

for our artists and staff, helping them to develop the skills and strategies to identify,
prevent, and stop bullying, as well as teaching them how to provide constructive
feedback, resolve conflicts, and cope with stress.

Meanwhile, we monitor and supervise the interactions and activities of our music
group members and staff for any signs of bullying, such as verbal abuse, physical
aggression, social exclusion, or cyberbullying, and then intervene promptly and
appropriately.

We also provide a safe and confidential channel for our celebrities, staff, and fans
to report any incidents or suspicions of bullying involving our celebrities. Our company
will investigate and verify the validity and reliability of the reports and take appropriate
actions to resolve them. We also provide counselling, mentoring, and other resources to
help the victims and the bullies of bullying recover from the negative effects of bullying.

b) When the incident happens:

We immediately conduct investigations, both internally and externally, to verify

the validity and the source of the accusation. We will also interview the music group
member involved, and the other members of the group, to get their side of the story and
their perspective on the issue. We maintain neutrality, fairness and objectivity in our
investigations, and avoid any bias or prejudice.

We will provide emotional and psychological support and counselling to the music
group member involved, the other members of the group, and the victim, if possible. We
also help them cope with the stress and the trauma caused by the situation, and help them
heal and recover from the ordeal.

We maintain honest and open communication with the public. We will

acknowledge the accusation and the public’s concern and express our sincerity and regret
for the situation, as well as inform the public of our investigation process, our intention to
resolve the matter as soon as possible, and our commitment to prevent such incidents
from happening again in the future.

We will take disciplinary action depending on the validity of the accusation.

Depending on the outcome of our investigation and the severity of the accusation, we
decide on the appropriate disciplinary action for the music group member involved. This
could range from a public apology, a suspension, a donation, a lawsuit, or a termination.

E. CRISIS MANAGEMENT

Crisis management is the application of strategies designed to help an organization

deal with a sudden and significant negative event while maintaining business continuity.
(Nick Barney, n.d).

In December 2023, a former trainee accused us of overworking trainees and

limiting their daily food intake to the extreme. MIPOOSAY has applied several crisis
response strategies to deal with this sudden and significant event.

I. Reactive Phase

The Reactive phase is the actual execution or implementation of any contingency

plan when a crisis occurs despite the proactive measures. (Kakal D'Great, n.d)

1. Investigation - Rectifying behavior strategies

Investigation is a short-term strategy to examine the facts that lead to the situation.
Depending on what is found, an organization can take further action. (Ronald D. Smith,
2017)

As soon as the incident occurred, we immediately contacted the accuser for more
information and handed out anonymous forms for all of our staff, trainees and artists for
feedback. The results are normal, no one reports that the environment is too harsh, or
their daily meal is not adequate. While we tried to contact the accuser, as well as ask her
to meet us directly, she denied to give us any further information and kept avoiding us.
2, Threat - Offensive response strategies

Threat is a strategy in which an organization threatens its accusers with harm from
such things as lawsuits or exposure. (Ronald D. Smith, 2017)

When we threatened the accuser that we would file a lawsuit against her, she
started to tell us the truth and give us evidence. As things turned out, she was a spy from
our competitor, and after months without gaining any confidential information, our
competitor demanded she accuse us.

3, Denial – Defensive response strategies

Denial is a strategy in which an organisation deny that a problem exists or that the
organisation had any role in the crisis. (Ronald D. Smith, 2017)

We officially denied the accusation. We also sued our competitor for defamation
and intrusion as well.

4, Condolence - Vocal commiseration strategies

Condolence is a strategy in which an organisation recognise the sorrow of personal

loss or misfortune experienced by others, but the organisation does not admit guilt.
(Ronald D. Smith, 2017)

We posted on our company website and social media a video of our current CEO –
Trinh Ky Anh, talking about this incident, as well as showing our condolence and
sincerity for the situation.

II. Recovery Phase

This phase involves actions taken after the crisis to restore normal operations
(Erika H. James, Lynn Perry Wooten, 2022)

After handling the crisis, MIPOOSAY implemented several solutions to restore

the trust of our stakeholders including our fans, and our partners, as well as to repair our
credibility.

a) Keep stakeholders updated (next actions)

We keep our stakeholders updated regarding our follow-up actions, by posting on

social media and the MIPOOSAY website the result of our lawsuit against our
competitor, as well as the welcoming-back party for the former trainee who accused us,
as we gave her another chance in MIPOOSAY.
 b) Correct the situation:

To make sure that no such incident happens again, we improved our artists’
working environment, as well as started to collect feedback from our artists about the diet
and schedules for later improvement.

c) Funding activities:

Meanwhile, we established “MyCewchey” – a non-profit, non-governmental

organisation providing the weak, especially trainees, with adequate legal information, and
raising their awareness of preventing slave contracts through courses and lessons, as well
as affordable lawyers and relevant services to support and guarantee their rights and
duties before signing any contracts, and defending them if necessary. We also fund the
“Body Positivity” campaign supporting free body shape to raise people’s awareness.

REFERENCES:

Triggering Event: Definition and Examples. (2022, December 19). Investopedia.

https://www.investopedia.com/terms/t/triggeringevent.asp

What is Crisis Management? | Definition from TechTarget. (2023, August 1). WhatIs.
https://www.techtarget.com/whatis/definition/crisis-management

Formulating Action and Response Strategies | 8 | v5 | Strategic Planni. (n.d.). Taylor & Francis.
https://www.taylorfrancis.com/chapters/mono/10.4324/9781315270876-8/formulating-action-
response-strategies-ronald-smith

What is proactive crisis management? – Heimduo. (2021, May 15). What Is Proactive Crisis
Management? – Heimduo. https://heimduo.org/what-is-proactive-crisis-management/

The Prepared Leader: The Five Phases of Crisis Management. (2023, December 15).
Knowledge at Wharton. https://knowledge.wharton.upenn.edu/article/the-prepared-leader-the-
five-phases-of-crisis-management/