...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...
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...I - Background Study 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...
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...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...
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...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;...
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...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...
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...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...
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...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....
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...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...
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...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...
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...Faculty of Economics Seminar paper on the subject: English 4 Crisis management June, 2012 Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980. Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. Venette argues that "crisis is a process of transformation where the old system can no longer be maintained." Therefore the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident. In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. That is, crisis management is proactive, not merely reactive. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start. Introduction Crisis management consists of: * Methods used to respond...
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...SECRET LANGUAGE of • HOW LEADERS INSPIRE ACTION THROUGH NARRATIVE The LEADERSHIP STEPHEN DENNING John Wiley & Sons, Inc. More Praise for The Secret Language of Leadership “Out of the morass of strategies leaders are given to transform organizations, Denning plucks a powerful one—storytelling— and shows how and why it works.” —Dorothy Leonard, William J. Abernathy Professor of Business, Emerita, Harvard Business School, and author, Deep Smarts: How to Cultivate and Transfer Enduring Business Wisdom “The Secret Language of Leadership shows why narrative intelligence is central to transformational leadership and how to harness its power.” —Carol Pearson, director, James MacGregor Burns Academy of Leadership, University of Maryland, and coauthor, The Hero and the Outlaw “The Secret Language of Leadership is not only the best analysis I have seen of how and why leaders succeed or fail, it’s highly readable, as well as downright practical. It should be mandatory reading for anyone interested in engaging a company with big ideas who understands that leaders live and die by the quality of what they say.” —Richard Stone, story analytics master, i.d.e.a.s “A primary role of leaders is to create and maintain meaning for their organizations. Denning clearly demonstrates that meaningmaking comes from stories well told.” —Thomas Davenport, President’s Distinguished Professor of I.T. and Management, Babson College, and author, The Attention Economy “Steve...
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...relevance in Australia and New Zealand Natascha Pancic A thesis presented in partial fulfilment of the requirements for the degree Master of International Communication Unitec New Zealand, 2010 ABSTRACT This research project explores crisis communication in theory and practice in Australia and New Zealand with specific focus on cultural influence, strategy applicability, and stakeholder relevance. A mixed-method approach was used to evaluate crisis communication in its theoretical and practical constituents. The research project comprises of the two data collection methods of content analysis and in-depth interviews. The content analysis, the selected method to evaluate the theory, was conducted from published research studies in leading Australian and New Zealand Public Relations and Communication journals, the websites of the PRism journal, the Australian and New Zealand Communication Association (ANZCA), the Public Relations Institutes of Australia (PRIA) and New Zealand (PRINZ), and via the database search platform Ebsco. The content analysis provided information about the number of published articles, leading theoretical models, research methods, and research orientation. The in-depth interviews, the chosen method to investigate the crisis communication practices, were conducted with three Australian and three New Zealand practitioners and addressed the issues of cultural influence, strategy applicability, and stakeholder relevance in crisis communication...
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...This week's graded topics relate to the following Terminal Course Objectives (TCOs): A | Given an organizational requirement to conform business practices to both the law and best ethical practices, apply appropriate ethical theories to shape a business decision. | I | Given specified circumstances of a business decision to expand to international markets, determine what international legal requirements or regulatory controls apply. | Topics for This Week's Discussion * Introduce yourself to your professor and the rest of the class. (not graded) * Thread over TCO A/I (graded) * Ethics and Patent Rights Post 9/11 (graded) * Q & A Forum for your questions and comments (not graded) | | There is a drop down arrow next to the "Select a Topic" box. Click on this arrow to select topics for discussion. | ------------------------------------------------- Top of Form Select a Topic: Bottom of Form The World Bank Situation (graded) | Class, please read Chapter 2, problem 5 from the Jennings text, p. 72. This week, we will discuss the Wolfowitz situation at the World Bank. Consider the questions at the end of the problem as you make comments in the threads this week. What are the ethics here? Was Wolfowitz trying to do the right thing? Does that make a difference ethically? Throughout the week, I will bring in further questions. Be sure to read the lecture and the international ethics article stated in your reading for the week as well. | ...
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...Essentials of Cash Flow H. A. Schaeffer, Jr. John Wiley & Sons, Inc. Copyright © 2002 by Harold A. Schaeffer, Jr. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, e-mail: permcoordinator@wiley.com. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be...
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...Global and Transnational Business: Strategy and Management Second Edition Global and Transnational Business: Strategy and Management Second Edition George Stonehouse Northumbria University David Campbell University of Newcastle-upon-Tyne Jim Hamill University of Strathclyde Tony Purdie Northumbria University Copyright # 2004 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (þ44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wileyeurope.com or www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (þ44) 1243 770620. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services...
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