Tag: Johnson & Johnson

Values Guide Action in Crisis Management

Author: nst - April 12, 2010

So Massey Energy CEO Don Blankenship rose from rags to riches kicking the mining community in the family jewels.  In every case study and textbook on crisis management and crisis communication, values are the compass that guide individuals, governments and corporations through the most trying circumstances.

Massey Energy and Blankship’s values?  Money and power, and if there’s a ring of truth to the cascading revelations on safety violations and the wielding of political influence, we’re witnesses to what could be the most shocking view of corporate greed.  This could make Enron look like a hiccup.

Twenty-nine coal miners died in the April 5 mine explosion in West Virginia, and Blankenship’s communication strategy is ignorance – void of action and commitment for the victims, their families and the community. “It’s natural that the enemies of coal would view Massey as the primary enemy . . . I think that I’ve proven that we run safer coal mines — you know, most of the time — and accidents sometimes happen. We’ve got to figure out what happened here,” he said, according to Associated Press.

Human instinct puts us all in a defensive position when faced with potential blame, but smart and careful thinking of our impact on others makes us realize compassion is critical in the worst of times.  Rather than displace blame on “enemies,” or ridiculously state Massey sometimes runs safe mining operations, Blankenship’s better approach would have been to focus on the tragedy, its impact on employees, their families and the mining community, and an investment (whether intellectual, financial or both) in working with federal regulators in determining the cause of the accident and ensuring the mitigation of something like this happening again.

If Blankenship were smart enough to rise to the top of the mining industry, he’d be wiser to do a little homework on best practices in crisis management and communication.  Here’s Johnson & Johnson’s, which has been in the textbooks for decades and will be for decades more.

This is when true colors come out, and right now Massey and Blankenship’s is green – everyone else, no more than the victims’ families and the mining community, is seeing red.


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Will we Witness Toyota Gain or Lose Trust?

Author: nst - February 24, 2010

Toyota is curiously sitting at no. 7 in Millward Brown’s top-10 list of most trusted brands as Congress spent the better half of the week giving Toyota a tongue-lashing for its handling and mishandling of the automaker’s quality control crisis.

The study’s authors readily point out that the data was collected over the course of 2009 and doesn’t reflect Toyota’s current dilemma as it unfurled at the beginning of this year.  The authors also note the automaker could learn from Tylenol, which in 1982 recalled 31 million bottles of pills after seven people were killed in the tampering scare.  That brand, which was forced to recall children’s liquid medicine last year, sits at no. 6 in the study.

Tylenol maker Johnson & Johnson has a history of effectively managing crisis situations, though the FDA earlier this year ridiculed the company for being slow to respond in its most recent crisis.  What this goes to show you, however, is a history of doing the right thing and acting aggressively in a crisis situation can maintain and build trust among stakeholders, consumers in particular.  Trust is fragile, and how you respond in a crisis situation can build and maintain trust, the authors state.

Toyota started off this week with public apologies before Congress.  How it fixes its problems, communicates with stakeholders and develops systems to prevent further lapses will determine if the automaker regains or builds trust, and where it will stand in next year’s report.


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