business and society: ethics and stakeholder management, 5e
TRANSCRIPT
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
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Issues Management and Issues Management and Crisis ManagementCrisis Management
Search the WebThe Wilson Group is a major consulting firm that specializes in crisis management such as chemical spills: www.wilson-group.com
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
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Chapter Five Objectives
• Distinguish between the conventional and strategic management approaches to issues management
• Identify the stages in the issues management process
• Describe the major components in the issues development process and factors in actual practice
• Define a crisis and identify the four crisis stages• Outline the major stages in managing business
crises
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Chapter Five Outline
• Issues Management
• Crisis Management• Summary
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Introduction to Chapter Five
This chapter focuses on issue and crisis management and the planning processes required to improve stakeholder management and to respond to stakeholder expectations.
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues ManagementConventional ApproachConventional Approach• Issues fall within the domain of public policy or public affairs management.
• Issues typically have a public policy/public affairs orientation or flavor.
• An issue is any trend, event, controversy, or public develop-ment that might affect the corporation.
• Issues originate in social/political/ regulatory/judicial environments.
Conventional ApproachConventional Approach• Issues fall within the domain of public policy or public affairs management.
• Issues typically have a public policy/public affairs orientation or flavor.
• An issue is any trend, event, controversy, or public develop-ment that might affect the corporation.
• Issues originate in social/political/ regulatory/judicial environments.
Strategic Management ApproachStrategic Management Approach• Issues management is typically the responsibility of
senior line management or strategic management staff.
• Issues identification is more important than it is in the conventional approach.
• Issues management is seen as an approach to the management of external/internal challenges to company strategies, plans, and assumptions.
Strategic Management ApproachStrategic Management Approach• Issues management is typically the responsibility of
senior line management or strategic management staff.
• Issues identification is more important than it is in the conventional approach.
• Issues management is seen as an approach to the management of external/internal challenges to company strategies, plans, and assumptions.
Issues Management
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Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management
The Changing Issues MixA changing mix of issues often creates a cumulate effect that managers must face
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management
Issue Definition and the Issues Management
ProcessAn issue is a matter that is in dispute between two parties
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management
Issue Definition and the Issues Management Process
Emerging issues– Terms of the debate are not clearly defined– Parties have conflicting values and interest– Automatic resolution not available– Issue is often stated in value laden terms– Trade-offs are inherent
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management
Issue Definition and the Issues Management Process
Basic assumptions– Issues can be identified earlier, more completely, and more
reliably– Early anticipation widens the range of options– Early anticipation permits study and understanding of the issues– Early anticipation permits a positive orientation towards the
issues– Early anticipation allows for better identification of the
stakeholders– Early identification provides the opportunity for the
organization to supply information about the issue earlier
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Model of Issues Management Process
Identification of IssuesIdentification of Issues
Analysis of IssuesAnalysis of Issues
Prioritization of IssuesPrioritization of Issues
Formulation of Issue ResponsesFormulation of Issue Responses
Implementation of Issue ResponsesImplementation of Issue Responses
Evaluation, Monitoring, and Control of ResultsEvaluation, Monitoring, and Control of Results
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management Process
Identification of Issues• Scan the environment• Identify emerging issues
Issues Management Process
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Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management Process
Analysis of Issues• Which stakeholders are affected by the
issue?• Who has an interest in the issue?• Who is in a position to exert influence?• Who ought to care about the issue?• Who started the ball rolling? (Historical
view)• Who is now involved? (Present view)• Who will get involved? (Future view)
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management Process
Ranking of Issues• Xerox approach
– High priority– Nice to know– Questionable
• Probability-Impact matrix– Probability of occurrence– Impact on company
Issues Management Process
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Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management Process
Formulation and Implementation of Responses
• Formulation is the response design process• Implementation is the action design process
and might include:– Plan clarity– Resources needed– Managerial support– Organizational structure– Technical competence– Timing
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Management Process
Evaluation, Monitoring and Control
Constant evaluation of results of their responses to the issues to keep strategy on track– Social audit
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Issues Development Process
Issues development process is the growth process or life cycle of an issue
Issues Development Life Cycle Process
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Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Crisis Management
To manage a crisis one first must understand that crises:•Occur abruptly •Cannot always be anticipated or
forecast
Search the WebThe Lexicon Communications Corporation is a major consulting firm that specializes in crisis management. To learn more, check out the Lexicon web site www.wilson-group.com
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
The Nature of a Crisis
Crisis Definitions• A major, unpredictable event that has
potentially negative results that can significantly damage an organization
• A low-probability, high-impact event that threatens the viability of the organization that has an ambiguous cause, effect and resolution
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
The Nature of a CrisisTypes of Crises
• Economic• Informational• Human recourse• Reputation• Psychopathic• Natural
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Crisis Management: 4 Stages
Prodromal Crisis StageWarning—precursorSymptom —precrisis
Prodromal Crisis StageWarning—precursorSymptom —precrisis
Acute Crisis StagePoint of no return
Crisis has occurred
Acute Crisis StagePoint of no return
Crisis has occurred
Crisis Resolution StagePatient is well/Whole again
Crisis Resolution StagePatient is well/Whole again
Chronic Crisis StageLingering on—perhaps
indefinitely; period of self-doubt and self-analysis
Chronic Crisis StageLingering on—perhaps
indefinitely; period of self-doubt and self-analysis
Learning
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Managing Business Crises
Fink’s Three-Stage Model
• Identifying the crisis• Isolating the crisis• Managing the crisis
Managing Business CrisesBusiness Week’s Steps in Managing Crises
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Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Managing Business Crises
Augustine’s Stages of Crisis Management
• Avoiding the crisis• Preparing to manage the crisis• Recognizing the crisis• Containing the crisis• Resolving the crisis• Profiting from the crisis
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
Crisis Communications• Identify crisis
communication team
• Identify key spokespersons
• Train your spokesperson
• Establish communications protocols
• Identify and know the audience
• Anticipate crises• Assess the crisis
situation• Identify key
messages to communicate
• Determine communication methods
• Prepare to ride out the storm
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & BuchholtzCopyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved.
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Chapter 5 • Issues Management and Crisis Management
• Acute crisis stage• Chronic crisis stage• Conventional
approach• Crisis• Crisis
communications• Crisis management• Crisis resolution stage • Crisis teams• Emerging issue
• Issue• Issue development
process• Issues management• Probability-impact
matrix• Prodromal crisis stage• Strategic management
approach to issues management
• Ten steps in crisis communications
Selected Key Terms