Conflict Management: Dealing with Issues, Risks, and Crises Chapter 10 Public Relations is involved in “influencing the course of conflicts to the benefit of the organization and, when possible, to the benefit of the organization’s main constituents.” The use of public relations to influence the course of a conflict is called “strategic conflict management.”

Competition vs. Conflict It is important to understand the differences between the two. Competition can be defined as when two or more groups or organizations vie for the same resources. In business these “resources” could be sales, market share, contracts, employees, and ultimately, profits. In the nonprofit sector, the competition might be donations, grants, clients, volunteers, and even political influence.

Conflict Conflict, on the other hand, occurs when two groups direct their efforts against each other, devising actions and communication that directly or verbally attack the other group. PR pros play a key role in organizations’ competition and conflict efforts and obstacles– successful handling of such situations increases the value of public relations to top management.

In competition/conflict, a sense of mission and conviction is needed: That your organization’s behavior is honorable and defensible Your organization is ethical Your organization’s mission is worthy Your advocacy of the organization has integrity Your organization works at creating mutual benefit whenever possible “Fight the good fight!”

Phases of the Conflict Management Life Cycle: Proactive Strategic Reactive Recovery

Proactive Phase This phase involves activities and thought processes that can prevent a conflict from arising or from getting out of hand. One way is through “environmental scanning”—the constant reading, listening and watching of current affairs with an eye to the organization’s interest. Issue Tracking– attention becomes more focused and systematic through, for example, the daily clipping of news stories Issues Management– when an organization makes behavioral changes or creates strategic plans in ways that address the emerging issue Crisis Plan– the first step in preparing for the worst– an issue or event that has escalated to crisis proportions

Strategic Phase An issue that has become an emerging conflict is identified as needing concerted action by the PR professional. Three broad strategies take place in this phase: Risk communication Conflict-positioning Crisis management

Strategy Phase Three Strategies: Risk communication—dangers or threats to people or organizations are conveyed to forestall personal injury, health problems, and environmental damage Conflict-positioning—strategies to favorably position the organization in anticipation of actions such as litigation/lawsuits, boycott, adverse legislation, elections, or similar events that will play out in the “court of public opinion.” Crisis management—a plan of action for dealing with worst case scenario crisis situations

Reactive Phase This is when an issue or conflict has reached a critical level of impact on the organization Now PR professionals must react to events in the external communication environment as they unfold.

Reactive Phase Strategies can include: Crisis communications—implement your crisis communication plan Conflict resolution—techniques used to bring a heated conflict, such as collapsed salary negotiations, to a favorable resolution (PR people employing strategies to assist negotiation or arbitration efforts to resolve conflict, for example) Litigation public relations—employs communication strategies and publicity efforts in support of legal actions or trial

Recovery Phase In the aftermath of a crisis or a high profile, heated conflict with a public, the organization should employ strategies either to bolster or repair its reputation in the eyes of key publics. Two ways: Reputation management and image restoration

Recovery Phase: Two Approaches Reputation management—includes systematic research to learn the state of the organization’s reputation and then taking steps to improve it Image restoration—strategies to help a company’s or organization’s reputation that has been damaged by the poor management of issues or controversies, or callous responses to a crisis

How to Communicate during a Crisis Put the public first Take responsibility Be honest Never say “No comment” Designate a single spokesperson Set up a central information center Provide a constant flow of information Be familiar with media needs and deadlines Be accessible Monitor news coverage Communicate with key publics (from page 263)

How organizations respond to crises: Attack the accuser-confront, challenge, threaten Denial-there is no crisis! Excuse-minimize responsibility; no control/harmful intent Justification-minimize crisis- no serious damage/injury Ingratiation-take actions to appease publics involved Corrective action-steps taken to repair damage; prevent from happening again Full apology-take full responsibility, ask forgiveness (from page 264)

Crisis Management Examples Intel’s Pentium Chip Problems Exxon Valdez Oil Spill in Alaska Pepsi’s Syringe Hoax Crisis Wendy’s “Fickle Finger of Fate” (pages 265-7) Bottled Water Industry Reacts (page 259) Wal-Mart’s Shrimp Dilemma (page 248) Home Depot Staging Community Support? (page 258) China Tries to Counter Criticisms (page 270)