Social Media and Crisis Management - Coursework Example

Table of Contents Introduction 3 2. Literature Overview 4 2 Crisis: 4 2.2 Social media: 4 3. Social media immediacy: challenges and opportunities 5 3.1 Using social media as an opportunity 5 3.2 Challenges associated with the use of social media 6 3.2.1 Trigger or facilitator 7 3.2.2 Power of social media communities 7 3.2.3 Negative word of mouth 7 4. Examples of social media crisis 8 4.1 German Wings 8 4.2 DKNY 9 4.3 Applebee’s Response 9 4.4Kitchenaid 10 4.5 Malaysia Airline 10 5. Best practice 11 6. Conclusion 13 7. References 14 1. Introduction Digital technology has undeniably changed an organization’s communications dynamics, particularly in times of crisis. Today, the Internet is often the first and only point of interaction between an organization and its stakeholders (Gartner, 2007). Furthermore, with more than 1.6 billion smartphone users, close to 1.7 billion active social media users, and with an average of more than 500 million tweets sent per day (Kemp, 2015), there is no doubt that social media has radically transformed the ways in which people produce, share and consume information. For communications professionals, social media has broken down traditional communication boundaries; it has offered a host of new platforms to share content, build relationships, foster engagement and better understand the needs of target audiences. However, while social media has helped create a sense of immediacy between companies and consumers, it has also brought new challenges that have made organisation more vulnerable to injurious situations. In spite of this increased vulnerability, social media can also be used as a vehicle to stop a crisis in its tracks. The role of social media in crisis management will form the basis of this report as it aims to examine the main means of using social media to manage a crisis. First, a short literature reviewaround crisis, crisis management and social media is presented. Second, a list of the challenges and opportunities generated by social media is presented. Finally, the report draws from recent case studies to identify best practices and paths when using social media in issue and crisis communication management. 2. Literature Overview 2.1 Crisis: No single definition has been universally accepted to meet the main definitions of the term crisis. In essence, the definition that one picks will depend on the literature. However, a common way of defining it is by terming it as an activity that describes a surprise, short response time and threatening event that affects a company. Crisis is an unstable state within which a decisive aspect of change is imminent and the change could be positive or negative (Fink 1986: 15). Further, a crisis mainly depends on the way the framing of issues and how this affects the stakeholders who interpret it. If the stakeholders will believe that the organization has a crisis, then the crisis will exist and vice versa (Combs & Holladay 2011: 118). 2.2 Social media: As a collection of web 2.0 technologies, social media is one of the fastest growing communication avenues characterized by participation, conversation, connectedness, openness, communities and conversations (Coombs & Holladay 2011: 121). This source of information connects millions of people from different parts of the world as they work on improving the content shared across different platforms. 3. Social media immediacy: challenges and opportunities The new media is a double-edged sword that could be harmful or full of opportunities for its users. If unchecked, it could threaten a company’s existence and lead to its bankruptcy. Making good use of the crisis period to gain support from investors is an idea that people ought to work with and ensure that they meet their core demands. This will only work if the company will work on meeting its goals as discussed below. 3.1 Using social media as an opportunity Although most organizations do not recognize the impact that social media has in the society, it is important to consider its opportunities in times of a crisis. This will depict the aptness in dealing with an issue and the progress expected to display the impact this has in meeting the common goals of the organization. The core idea is to make the best use of what is present to avoid any aspect of negative effect on an organization. Sellnow et al. state that making crisis an opportunity could be dangerous but it could further play out as the company wishes (2011: 3). The important thing is to generate the required positive impacts that will allow the management to work towards creating a better brand for the company. The creation of a better and effective management process to leverage the company’s reputation will be an important step in meeting its demands at all levels of interaction (Wigley& Zhang 2011: 8). Negativity will reduce the company’s worth to its investors and lose clients due to poor management aspects. Ott and Theuniseen argue the omnipresent strategy, a strategy that shows that the company is already having an interactive dialogic participation with its stakeholders on social media, is seen as the best when working towards dealing with a reputation scare (Ott&Theuniseen 2015: 98). This means that companies have to always be interactive on social media as they look for different ways of making their companies benefit from their presence in these platforms (Wigley& Zhang 2011: 8). This improves their chances of gaining clients that are more loyal and receive more investors who want companies that know how to handle crises. 3.2 Challenges associated with the use of social media Gruber, Smerek, Thomas-Hunt and James (2014: 164) note that the accelerated nature of sharing information has been good and bad for the many companies that have a global or even national presence. The sharing of information across the many stateless countries within the social platforms has made it very easy for the disparate individuals to come together and organise themselves in a way that appreciates their contributions to the rest of the world (Mukherjee 2014: 180). In many settings, the use of Twitter has been seen as a powerful way stakeholders talk to their organisations, and solutions, therefore, need to emanate from the same platform. 3.2.1 Trigger or facilitator In many instances, the internet can be a trigger or a facilitator of any crisis. Gonzale-Herrero and Smith note that the use of the social media can be a cause for new crises or a platform that will add more information to the stakeholders (2008: 152). It will also facilitate the same crises and send it to the mainstream media at a faster pace. This accelerated nature of spreading the news could be bad for the many companies that have a global or national presence (Gonzale-Herrero& Smith 2008: 145). The potential of the social media is higher than the traditional one as it can provoke a crisis and propagate it in several other areas without containment. It will involve the organization’s resources in meeting the needs that will provide the unfiltered sources of negative information as shared (Gonzale-Herrero and Smith 2010: 147). 3.2.2 Power of social media communities The sharing of information across the many stateless countries within the social media platforms has made it very easy for the disparate individuals to come together and organise themselves in a way that appreciates their contributions to the rest of the world (Mukherjee 2014: 180). Coombs argues that the power of social media is very strong and has a very huge potential, based on a company’s perception to create a crisis (2011: 15). 3.2.3 Negative word of mouth In certain areas, the impact has been critical in making the spread of the news in many parts of the world. In the world, it is very critical that the sharing of information should be disconnected from the rest of the society. In many settings, the stakeholders have to make better utility of their position to reduce the issues of dissatisfaction. The use of social media for revenge is common amongst many of the consumers who choose this as a way of getting back at a company for bad services (Gregoire, Salle and Tripp 2014: 174). 4. Examples of social media crisis Several examples are used to illustrate what can work well or not when using social media in issue and crisis management communication. 4.1 German Wings When handling any social media crisis, it is always important to understand the issues taking place and identify the essential attributes that will make the situation better and the response more precise. A look at how GermanWings dealt with its crisis will provide better understanding. An issue that led to the discrediting of the information from this company was based on the missing information that needed to be out in the public. Three hours after the crash, there was little information on their social media regarding the fatal accident, whereas they were offering condolences. The lack of information almost made this the worst way of responding to a crisis, and the lack of changes to the initial communication three hours later was arguably the wrong way of using real-time media and communication. The black and white gaffe was also confusing since the statement was saying the company knew nothing yet it was already in a sombre mood. Information is vital in dealing with crises. 4.2 DKNY A good show of how to handle the social media crisis can be seen in the way DKNY responded to a mobilization where a photographer was protesting against DKNY’s use of his photos on its window’s displays without permission. To respond to the Facebook post, DKNY explained that the photo had been used accidentally and that it would donate $25000 to the YMCA as a way of showing their sincere gratitude. The post received numerous comments, and the photographer was willing to accept the mistake and the donation. It was a quick and strong message that was successful in neutralizing a crisis that could have harmed the store’s reputation. 4.3 Applebee’s Response The major problem with the response given the management of AppleBee on facebook was the defensive nature of their statement. It was upsetting that the management did not read the mood of the angry followers and the postings that were emanating from the sacking of a waitress who had posted a picture of a receipt with a query from a pastor regarding the tips. The management went ahead to block users and delete comments, something that made people angrier. Arguing with people on social media is bad because people will use what is said to extend the row even longer. That will definitely lose more clients and chase away any loyal ones. It is important to be honest, accept criticism, and constructively use it to better the response. 4.4Kitchenaid When dealing with social media issues, it is always important to come up with explanations that will be straight to the point. Kitchenaid was faced with a dilemma when one of their staff sent an offensive tweet about the President using the company’s twitter handle in 2012. The head of the brand, Cynthia Soledad was very quick to handle the issue in an honest and heads-on manner. She did not shy away from the mistake done, and she took it as a responsibility that would be directly accounted for by the company. She was transparent, quick, sympathetic, compassionate, and handled the process well by humanizing the brand and stating how the situation was fixed. This helped in containing the damage (Agnes 2012). 4.5 Malaysia Airline After the disappearance of the MH370 flight, Malaysia Airlines knew it had to respond faster and actualize the needed information gap presented in the media. It set up a website and allowed people to view up-to-date information regarding the missing flight and assure everyone that things were on course in the search for the flight. Social media was flurry with messages and information, and the company took to its social media to provide similar information to its clients. This move allowed the company to stay on top of the process, though it did not allow people to give their views regarding the flight. This could have been based on the need to control the source of information. Further, it did allow the company to take considerable action towards dealing with the issues at hand (Agnes 2014). 5. Best practice Tinker, Dumlao and McLaughlin note that the expanding nature of the social media emergency communications especially in the American public has become one of the most important aspects of dealing with issues within the society (2009: 25). In dealing with crisis communication, the best way of handling it is by looking at the link between the organization and the public prior to the crisis and the way this will change the outlook after making better choices in the future as the society handles this communication process. The stakeholders must be assured that the response is going to minimize such cases in the future and consider a variety of issues that will maintain the company’s image and reputation at all times (Coombs & Holladay 2011: 117). Social media crisis needs to be part of what a company wants to deal with at all times. It must be a position that lessens the impact of the crisis to all involved stakeholders, and creates a strategy that will bring about a change in the society. It must be a proactive aspect that will involve the engagement of all the important aspects of the society while at the same time monitoring and scanning the internet to detect any warnings that could place the company’s reputation in danger. Response systems When working on dealing with the crisis, it is important to have a pre-crisis response system that allows the company to make the best choices. This will involve listening to what people are saying online and making changes based on what one hears. It allows the PR team to monitor and scan the messages given prior to the crisis and the initial source of the problem (Coombs & Holladay 2011: 117). This gives way to preparations that allow the PR team to update and integrate the concerns into future drills (Sellnow, Ulmer, & Seeger 2011: 197). Creating immediate source of information will be a good way of dealing with the stakeholders. They all want to be informed when dealing with the crisis, and hiding information will only escalate the issues. Being immediate and honest will save the company a lot of trouble. The company must humanize its response to be at par with the concerns of the clients, and openly work on answer that will boost the company’s position. Germanwings may have been fast to respond, but the response was short of giving the right information. These missing bits made the response a total disaster. KitchenAid was apt in telling the truth. The establishment of a divide between the business and the crisis was a good way of ensuring that things went on well (Coombs & Holladay 2011: 117). Another important thing to remember is the need to having a two-way communication aspect. This will harness all the energy that could negatively affect the company and turn it into some useful source of positive news. Openness and transparency is a good way of dealing with such communications as shown by KitchenAid (Coombs 2011: 196). The open communication will also allow the response to be directly linked to the source of the crises rather than deflecting the entire process while denying responsibility. This allows the management to learn to separate business and crisis, making it easier to continue providing the much-needed assistance and distraction using the better aspects of the company (Sellnow, Ulmer, & Seeger 2011: 199). The important thing is to sell the company’s ideals and show the world that they have created a humane relationship with all stakeholders (Sellnow, Ulmer, & Seeger 2011: 198). Restoring confidence after a defensive argument like the one put up by Applebee’s will be difficult, and it is important to work on generating better information from all stakeholders. Reposnse should always border on the realization of a standard operating procedure to deal with crises better in the future (Coombs & Holladay 2011: 116). 6. Conclusion It is important to realise that the immediacy necessitated by the growth of social media across the world has made it more complex to deal with crises. The impact that social media has during the handling of any crisis is hard to ignore and underestimate. However social media is a toolthat if used strategicallycan leverage the company’s ability to not only to survive any crisis but strengthen their stakeholders relationship as well. The concept of separate crisis management and social media handling is outdated. The important thing right now is to meet the core goals of the society while handling and dealing with all situations in the organization. It is a position that now requires all the energy to make things right. 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