Gerry McCusker, author of Talespin: PR Disasters says that five of the top 10 PR conultancies in the world have been involved in supposed PR disasters.
He’s named seven principle reasons for causing a disaster:
1. Acts of God
Even when natural disasters – such as a Tsunami – cause unforeseeable real life crises (and even if no-one was directly responsible for the incident) pockets of the media frequently describe how it’s a PR disaster of some sort; for tourism or even for the governments of the countries involved.
2. Business operations
This is where corporate activity adversely impacts on stakeholder groups, such as when Coca Cola and Pepsi had to defend themselves in India against allegations that their soft drinks contained excess levels of toxins. From a PR disaster viewpoint, both companies managed to fan the flames or discontent, rather than calm matters down.
3. Corporate moves
Around the time of acquisitions, mergers or takeovers, there’s plenty of room for dissatisfaction and even scandal, such as when a London PR man found himself rumbled, tried and prosecuted after indulging in a bit of insider trading. This happened after a client had confidentially told him of its plan to take over a competitor organization.
4. Legalities
When contentious issues are debated in court, then reported in the media – such as in the notorious McDonald’s ‘McLibel’ case – the potential for PR disasters is massive. Media watchers labeled this case ‘the world’s biggest corporate PR disaster’.
5. Rumours
Gossip can be highly damaging for brand reputation, as Procter & Gamble found when malicious rumours of Satanism – in part propagated by a P&G competitor – dogged the company for decades, forcing a worldwide logo redesign and extensive counter PR efforts.
6. Staff
When New York’s Twin Towers collapsed on 9/11, staff at one of the city’s Starbucks charged rescue workers for bottled water they needed to treat victims of the attack. When word got out ‘virally’ about this incident, the PR fallout was highly damaging.
7. Scandal
Financial or sexual shenanigans generally capture the media’s attention, such as when basketball star Kobe Bryant faced allegations of sexual assault. ‘PR disaster’ the media screamed, as Bryant’s lucrative sponsorship deals and image as an all-round good guy were jeopardised.
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