... EXXON VALDEZ CASE Companies would always be prone to crises and problems beyond their control. What makes a company stand; amidst all problems they are dealing with is how they deal with it. One of the greatest controversies during the 1980’s was the Exxon Valdez oil spill that happened on a reef in Alaska’s Prince William Sound. The Exxon Valdez ship had identified icebergs and decided to take a different route to get around them. Unfortunately the oil tanker crashed into shallow water, this area is actually called the Bligh Reef, but because of the hit the tanker had about 10 million gallons of crude oil into the reef.This catastrophe got the media’s attention, and Exxon’s response to the environmental damage they had caused was very unprofessional. The company completely refused to communicate openly and effectively. The CEO of the company, Lawrence Rawl even refused to be seen for almost a week. Efforts to contain the spill were slow and Exxon's response was even slower. Because of the lack of appearance from high profile personnel from Exxon and the lack of action from their company, it left the impression that the Exxon Corporation did not take this accident seriously. Exxon Valdez case became one of the classical case examples of a “not to do in handling with a crisis”. By the time, they started to do some action; their reputation is already tainted with negative comments from the public. JOHNSON AND JOHNSON TYLENNOL CASE Sometimes, problems...
Words: 2314 - Pages: 10
...Public Relations A Bagful of Knowledge Response Script Characters: Celdran : President Sunga : Applicant Navarro : Man, Reporter, employee 3 Lim : Woman, Reporter, employee 2 Gamboa : Organizer, Reporter, employee 1 Lao : Spokesperson/Technicals Proposed running time : 7mins. Set design : reality (office), re-enactment 1, re-enactment 2, re-enactment 3 Costume : business attire Things needed: Sounds Music Laptop Speaker Bangko Kimkim sign (2) Posters for the concert Presentation Flow * The president is not satisfied with what his bank have achieved, he will think of something deeply/ visualize/ dream / reflect. * Then, he will search on the internet about Public Relations. * The President will call the secretary to hire someone to “do the PR” for the bank. * The Secretary will post a wanted signage. * Experienced PR person saw the signage and he will be interested about it. * He will be applying for the job. (Note: two other applicants in line) the secretary will call his name. * Interview Session President : Good morning! Applicant : Good morning Mr. Celdran, I am applying for the position of Public Relations person. President : oh I see, can you tell me more about yourself? And just call me Mr. Miguel Applicant : I am a graduate from De La Salle University- Dasmariñas taking an extensive course in Public Relations. I join the first national PR conversity here in the Philippines...
Words: 1137 - Pages: 5
...misadventure. Often, a situation is created which cannot be blamed on the company - but the company finds out pretty quickly that it takes a huge amount of blame if it fumbles the ball in its response. One perfect example of this is that of Johnson & Johnson, and their response to the Tylenol poisoning back in the year 1982 when the company’s Tylenol medication commanded 35 per cent of the US over-the-counter analgesic market. Unfortunately, one individual succeeded at lacing the medication with cyanide. This caused the death of seven people which resulted into a nationwide panic about how widespread the said contamination may be. In the end of that certain incident, everyone knew that Tylenol was associated with the scare and J&J’s market value fell by one billion dollars as a result. History repeated for Johnson & Johnson. The incident reenacted itself in 1986, but the company has learned its lesson and is not willing to suffer the same consequences. It acted rapidly and recalled every Tylenol products from every market – not just those which are in the affected state. Not only that, the company also stated that the product would not be re-established on the market until something had been done to provide better product protection. Thus, Johnson & Johnson developed the “tamperproof” packaging that would make it difficult for a similar incident to occur in the future. Another example is the tragic oil...
Words: 2465 - Pages: 10
...Information Exxon Valdez March 24, 1989, the tanker Exxon Valdez ran aground on the Bligh Reefs in Prince William Sound, Alaska spilling 10.8 million gallons or 20% of the ship’s cargo. It was the 34th largest oil in the world at the time and the largest in U.S.A. The oil spill killed 500,000 birds over 90 species more than 4000 sea otters, 14 killer whales and destroyed tourism and the fish industry of the area. It was said on reports that the probable reason on why the tanker has gone aground was because of the captain and its crew being drunk. The "Exxon Valdez" entered the language as a shortcut for corporate arrogance and damage because of its lack of action as soon as possible by the owners of the company when the oil spill happened. 2/9 Johnson & Johnson: Tylenol Tylenol an over-the-counter product in the U.S. with over hundred million users was the most successful in selling painkillers. Tylenol was the absolute leader in the painkiller field accounting for a 37 percent market share, outselling the next four leading painkillers combined, including Anacin, Bayer, Bufferin, and Excedrin. Unfortunately in 1982 a total of seven deaths occurred in Chicago resulting to a recall of all Tylenol bottles all over the U.S. which led to a drop in sales of $1.2B but has recovered because of its great strategies by using public relations and media as a tool to once again gain the trust of its consumers. 3/9 II. Situational Analysis Exxon Valdez I’ll...
Words: 1300 - Pages: 6
...Department REACTION PAPER: JOHNSON & JOHNSON AND EXXON VALDEZ Submitted by: MARK ABELARD ARIAS BAUTISTA Submitted to: Prof. ROEL S. RAMIREZ, APR July 12, 2012 1/9 I. Background Information/ Additional Perspectives Johnson & Johnson: Tylenol Tylenol known as a kind of pain reliever also known as Acetaminophen and it may be used even without physician’s prescription. This pain reliever became controversial when an issue involving seven death people, cyanide, and Johnson & Johnson broke out on September 1982. In print, more than 125, 000 stories appeared describing the said issue. Johnson & Johnson is well-known industry in terms of health, medical devices, biological studies and pharmaceutical field. Way back on1960’s , Tylenol ended the almost a score dominance of P&G’s Crest toothpaste after being recognized as biggest-selling item in drug, food, and mass merchandising outlets. Focusing with the 1982 Johnson & Johnson’s Tylenol issue, many business analysts predicted that the said issue would be detrimental for Johnson & Johnson’s perception from the public. In print media alone, 125,000 stories published regarding the Tylenol issue. Due to that eventuality, Johnson & Johnson decided to recoil the product within just six months to reclaim 30 % of the market. In spite of being sensational, suspects 2/9 had not been caught. Good thing for Johnson & Johnson was they able to adopt the...
Words: 1460 - Pages: 6
...residents near the waters of Prince William Sound awoke to the catastrophe brought by the tanker Exxon Valdez spilling more than 10 million gallons of crude oil. This incident caught the attention of the public and received many and different criticisms. Eight of eleven cargo tanks were ruptured during the incident. ARLIS or Alaska Resources Library and Information Services with the help of Exxon Valdez Oil Spill Trustee Council released a collection of materials on Exxon Valdez Oil Spill. It included the following information: * The crude oil spread approximately 1, 300 miles. 200 miles were heavily oiled. The impact was obvious while the remaining 1, 100 miles were lightly or very lightly oiled. * Aerial observations were used to determine the size of the oil spill to give immediate response and clean-up activities. It includes the estimation of the thickness and volume of oil on the water. * Exxon spent more than $2.5 billion on clean-up expenses. * Caption Joseph Hazelwood was the captain of the ship, a senior officer. He was convicted of a misdemeanour charge of negligent discharge of oil, fined $50, 00 and sentenced to 1, 000 hours of community service. * Exxon was fined $150 million, it was the largest fine imposed for an environmental crime. The court forgave $125 million in acknowledging Exxon’s cooperation in cleaning up the spill. During the clean-up, Exxon hired thousands of workers through several companies. There were more than 11, 000 workers, 1...
Words: 2581 - Pages: 11
...In 1989, Exxon Corporation caused one of the worst environmental disasters. The oil tanker Exxon Valdez spilled 250,000 barrels, an amount equal to more than 10 million, into the waters of Alaska’s Prince William Sound after striking Bligh Reef at approximately 12:04 a.m. on March 24. The spill eventually covered 11,000 square miles of ocean and coated 1,300 miles of coastline. Shortly after the incident, different media piled in to begin extensive coverage often pointing out Exxon’s corporate irresponsibility. Company’s efforts to contain the spill were not good enough and slow but Exxon’s response was even slower. In addressing the problem, it tool company officials 10 hours after the accident to deploy booms that will contain the spill. Company executives refused to comment on the accident for almost a week and refusing to acknowledge the extent of the problem. In addition, statements made to the press by high-ranking executives were often inconsistent and contained contradictory information making the press question the credibility and truthfulness of Exxon. After the Exxon Valdez ran aground, the company conducted all its communication from the small town of Valdez, Alaska. This area proved inadequate, having only limited communication capabilities. Exxon seemed unwilling to disseminate its information using any other method or location. But the biggest criticism the company received was the fact that CEO Lawrence Rawl waited nearly six days to make a public statement...
Words: 1974 - Pages: 8
...I. Background Information/ Additional Perspectives A. Exxon Valdez Oil Spill March 24, 1989 marked the date of the largest oil tanker spill in the history of United States as the tanker Exxon Valdez spilled 11 million gallons of oil into Alaska’s Prince William Sound. This incident put Exxon into a crisis as it made the Alaskan region into a worldwide symbol of environmental chaos. The enormity of the ecological ruin and the phenomenal task of cleanup caught the attention of the many nations. Many workers and volunteers flooded the area for its restoration which required extensive labor and $2.1 billion of Exxon funding. The crisis is blamed to the following reasons: the faults were Exxon’s inadequate equipments on the ship and the insufficient number of trained members. Another thing is that a crew was unable to maneuver the ship properly due to exhaustion with work aboard. It was also traced that Captain Joseph Hazelwood was under the influence of alcohol which was the reason why he cannot give proper instructions to the staff. Hazelwood's activities in town and on the ship are the main focuses of the investigation. This also became the basis of widespread media sensation. Indeed, Exxon’s reputation suffered severely. Some Public Relation Practitioners said that Exxon seriously worsened the damage to the public due to its slow and insufficient responses. Exxon also failed to establish itself as a company concerned about the problems it had caused....
Words: 3506 - Pages: 15
...Exxon Valdez and Tylenol Case Study DE LA SALLE UNIVERSITY - DASMARIÑAS Communication Arts Department Lawrence G. Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there;...
Words: 3532 - Pages: 15
...Rawl, chairman and chief executive of the Exxon Corpoation was in his kitchen sipping coffee when the phone rang and received the news regarding the spilling of crude oil into the frigid waters of Prince William Sound, just outside the harbor of Valdez, Alaska. What was about to happen was the worst environmental disaster in the history of the United States. These were the documented facts that media had portrayed across the United States and to the world: Exxon Valdez, a 978-foot tanker piloted by a captain whom later revealed to be drank, ran aground on a reef 25 miles southwest of the port of Valdez. The results caused a spill of 250,000 barrels, the largest spill ever in North America. The devastating results affects, 1,300 square miles of water, damaging some 600 miles of coastline and murdering as many as 4,000 Alaskan sea otters. The disaster also enshrined the name of Exxon in the all-time Public Relations Hall of Shame. (Seitel, 2000). According to the book, Exxon’s dilemma broke down into five categories. First was the hesitation of Mr. Rawl if he is going directly and personally to Alaska. In an interview Mr. Rawl has said, “We had concluded that there was simply too much for me to coordinate from New York. It wouldn’t have made any difference if I showed up and made a speech in the town forum. I wasn’t going to spend the summer there; I had other things to do”. Secondly, Exxon failed to establish media control. Exxon, wanted to take charge of the news flow and...
Words: 3558 - Pages: 15
...INFORMATION A. Exxon ValdezThe tanker Exxon Valdez, carrying 10 million gallon ofcrude oil, was caught in an open reef Prince William Sound inAlaska, spilling the oil it carried. This happen, because one of thecrew members failed to correctly maneuver the ship for thereason that the crew member was tired of the workload.Moreover, the crew master was in the influence of alcohol andcannot give instruction accurately. It greatly affects almost dozeno animal species living in the surroundings of Prince WilliamSound. Because of this, Exxon Corporation must face this kind ofchaos and take charge of the responsibilities. But because oflack of preparations and hesitancy in dealing with news media,the CEO Lawrence Rawl stayed out of view causing doubts andmisunderstandings. Because of the low profile approach to ahigh profile bedlam, Exxon Corporations face d one of the world’s deadliest environmental mayhem. B. Johnson & Johnson: TYLENOLIn 1982, Tylenol controlled 37 percent of its market withrevenue of about $1.2 million 1 . In the last months of 1982Tylenol, a product of Mc Neil Consumer Products which is asubsidiary of Johnson & Johnson faced a remarkable crisis in theheight of its popularity as the leading pain-killer medicine in theUnited States at that time. Seven (7) deaths were reported aftertaking the extra-strength Tylenol which was mixed with 65milligrams of cyanide (10,000 times dangerous to a human body)by unknown suspects. Even though Johnson & Johnson did notidentified...
Words: 1055 - Pages: 5
...from the same cause were reported. All seven deaths occurred in the Chicago Area, but J & J recalled thirty-one million bottles of Tylenol from store shelves throughout the nation. The publicity surrounding this was unprecedented in American business history; in the print media alone, more than 125,000 stories appeared. Many business analysts said that no product could survive this, and they pronounced Tylenol dead as a product line. From the outset of crisis, J & J recognized the immediate and long-term stakes involved. Its strategy was based on maintaining high visibility and avoiding any appearance that the corporation was trying to duck responsibility. The incident involved four specific “publics” – the management at Johnson & Johnson, its employees, the consumers and the stores which were selling Tylenol. By communicating with the management and employees (internal publics), the company reinforced the mission statement and its dedication to serving the consumers as well as possible even when it was not an internal problem. This served to make these people willing partners in finding a solution as well as handling the recalls. Such communication brings the people involved “into the fold”, into a cohesive team. It...
Words: 706 - Pages: 3
...crises. He gives examples of the Johnson & Johnson Tylenol product tampering and the Exxon Valdez oil spill and then compares them with the BP Oil Spill. He points out well the inadequacies of the BP's public relations team and how scholars address the importance of understanding media relations, framing and the public emotional response. The author has presented many examples of scholars' thoughts but according to me falls short of discussions and the perception of the public, their emotions and the manner in which they (the public ) could be affected during such huge crises and thus the importance of public relationsof organizations from the normal public perspective. The public who invests in such organizations shouldn't feel that they are being fooled/cheated. Further during his research the author has presented the importance of pre-crisis phase and how to analyze each crisis situation. The Critique: In the point of 'Public perception, framing and media relations' the author focuses on audience-centered perspective in crisis situations. Here I personally acknowledge the point made by Jim and Pang which explains that understanding the publics' emotional reaction to a crisis, "will eventually determine the success or failure of any organization's crisis communication practice". The author has even highlighted the examples of "good" versus "bad" public relation efforts of the Johnson & Johnson Tylenol tampering incident and the Exxon Valdez oil spill. By reading the descriptions...
Words: 573 - Pages: 3
...213-255_Trevino_08p4.qxd 6/21/06 5:18 PM Page 213 PA R T IV ETHICS AND THE ORGANIZATION 213 213-255_Trevino_08p4.qxd 6/21/06 5:18 PM Page 214 CHAPTER 8 ETHICAL PROBLEMS OF ORGANIZATIONS INTRODUCTION In the third quarter of 2002, the Brookings Institution, a Washington, D.C., think tank, estimated that the corporate scandals that began with the Enron debacle in late 2000 would cost the U.S. economy $35 billion. That is the equivalent of a $10 increase per barrel of oil.1 It is, in a word, staggering. And we may not have seen the end of it. Long before Enron’s collapse, a number of business ethicists and business professionals watched with concern as Wall Street analysts demanded increasingly strong corporate financial performance to support rising corporate stock prices. At the same time, the gargantuan compensation packages (including stock options) of the top executives running these companies became inextricably linked to their companies’ stock prices. In 1990, average CEO pay at major corporations was 107 times the pay of the average worker. By 2004, CEO pay had risen to 431 times the pay of the average employee. (If the pay of average workers in the United States had risen as fast as CEO pay, the lowest paid workers would be earning $23.03 an hour, not $5.15 an hour.)2 It was an “accident” waiting to happen, although everyone was making so much money in the market that no one wanted to admit that something could be fundamentally...
Words: 20980 - Pages: 84
...Datrel Johnson Professor Peter Johnson Geography 101 25 August 2013 Describe Hurricane Katrina Beginning in the 1950s, the United States have witnessed two Category Five Storms and seven Category Four Storms naming Hurricane Katrina as one of the most deadly Category Four hurricanes to hit the Gulf Coast. On August 29, 2005, Hurricane Katrina dismantled several sections of the levee which caused it to collapse. The storm then breeched the New Orleans’ levee system allowing Lake Ponchartrain and the Mississippi River to flow in the heart of the city. Furthermore, a tremendous amount of damages occurred throughout the coast of Mississippi and Alabama. The state of Louisiana sustained most of the damages not just from Hurricane Katrina, “but also to a unique physiographic setting of New Orleans.” (Locke) The storm, Hurricane Katrina was identified as powerful and huge because of the well-formed eye of a typical category four hurricane. Throughout the duration, warm sea water was its fuel for continued momentum and power. The intensity had “closely matched the water temperature” which led the hurricane to reach its peak intensity; category five. (Locke) The storm predicted maximum “rainfall east of the storm-eye track.” (Locke) As Hurricane Katrina took her course, evidence provided “that the right front quadrant” was indeed the most powerful part of the hurricane. (Locke) “The powerful winds and rain occurred here because of rotational winds and steering winds (the prevailing...
Words: 788 - Pages: 4
