Business Communication Theory And Application Pdf
Jennifer Kovachick
Crisis managers benefit from understanding how crisis communication can be used to protect reputational assets during a crisis. Situational Crisis Communication Theory (SCCT) offers a framework for understanding this dynamic. SCCT provides a mechanism for anticipating how stakeholders will react to a crisis in terms of the reputational threat posed by the crisis. Moreover, SCCT projects how people will react to the crisis response strategies used to manage the crisis. From its empirical research emerges a set of evidence-based crisis communication guidelines. The development of SCCT is discussed along with the presentation of its guidelines for crisis communication.
Crises are taken as a threat to the organizational reputation. Crises damage the reputation and such changes can affect how stakeholders interact with the organization (Barton, 2001; Dowling, 2002). Post-crisis communication can be used to repair the reputation and/or prevent reputational damage (Coombs and Holladay, 2005). The field of crisis communication is dominated by case studies. The end result is that we know precious little about how stakeholders react to crises or to the crisis response strategies used to manage crises (Ahluwalia et al., 2000; Dawar and Pillutla, 2000; Dean, 2004). Crisis management needs evidence-based crisis communication guidance. Evidence-based guidance for decision making in a crisis must be supported by scientific evidence from empirical research rather than personal preference and unscientific experience (Rousseau, 2006).
Situational Crisis Communication Theory (SCCT) provides an evidence-based framework for understanding how to maximize the reputational protection afforded by post-crisis communication. Research using SCCT relies on experimental methods rather than case studies. SCCT identifies how key facets of the crisis situation influence attributions about the crisis and the reputations held by stakeholders. In turn, understanding how stakeholders will respond to the crisis informs the post-crisis communication. The empirical research from SCCT provides a set of guidelines for how crisis managers can use crisis response strategies to protect a reputation from the ravages of a crisis. This paper is the initial detailed presentation of SCCT and its recommendations for crisis communication. The discussion of SCCT begins by unpacking the reputational threat of a crisis and then moves to the explication of SCCT and its application to reputation protection during a crisis.
A reputation develops through the information stakeholders receive about the organization (Fombrun and van Riel, 2004). Stakeholders receive information through interactions with an organization, mediated reports about an organization (including the news media and advertising) and second-hand information from other people (eg, word of mouth and weblogs). Most of the information stakeholders collect about organizations is derived from the news media. That is why media coverage is an important feature of reputation management (Carroll, 2004; Carroll and McCombs, 2003; Meijer, 2004). Second-hand information from social media on the internet, such as weblogs or blogs, is critical for some crises. Kryptonite, the bicycle lock makers and Edelman Public Relations' fake, supportive blogs for Wal-mart are examples of crises that transpired primarily online rather than in the news media.
Because reputations are evaluative, some point of comparison is required. Stakeholders compare what they know about an organization to some standard to determine whether or not an organization meets their expectations for how an organization should behave. A failure to meet expectations, an expectation gap, is problematic for organizations (Reichart, 2003). Reputations are based in large part on how stakeholders evaluate an organization's ability to meet their expectations for treating stakeholders.
A crisis is a sudden and unexpected event that threatens to disrupt an organization's operations and poses both a financial and a reputational threat. Crises can harm stakeholders physically, emotionally and/or financially. A wide array of stakeholders are adversely affected by a crisis including community members, employees, customers, suppliers and stockholders. Crises threaten to damage reputations because a crisis gives people reasons to think badly of the organization. Again, the news media and the internet play a critical role. Most stakeholders will learn about a crisis from news reports. In a smaller number of crises, stakeholders learn about crises through online social media. The exceptions would be victims or potential victims who are more likely to experience the crisis or to be informed directly by the organization about the crisis. If a reputation shifts from favorable to unfavorable, stakeholders can change how they interact with an organization. Clearly, the benefits of a favorable reputation noted earlier may be lost. Furthermore, stakeholders may sever ties to the organization and/or spread negative word of mouth about the organization.
The first priority in any crisis is to protect stakeholders from harm, not to protect the reputation. Instructing information tells stakeholders what they must do to protect themselves from the physical threat of a crisis. Examples would be telling consumers not to eat contaminated foods or warning sirens alerting people to a chemical release and the need to shelter in place. Instructing information can be delivered directly to stakeholders (eg, sirens) or through the news media (eg, recall alerts).
It would be irresponsible to begin crisis communication by focusing on the organization's reputation. To be ethical, crisis managers must begin their efforts by using communication to address the physical and psychological concerns of the victims. It is only after this foundation is established that crisis managers should turn their attentions to reputational assets. SCCT provides guidance when crisis managers have met their initial obligations and are prepared to address reputational assets.
To explain SCCT, a series of propositions are presented to identify the key variables and relationships in the theory. The discussion of the propositions is guided by Figure 1 and informed by research designed to test various aspects of SCCT. A short explanation of Attribution Theory is provided followed by an exploration of SCCT.
Attribution Theory posits that people search for the causes of events (make attributions), especially those that are negative and unexpected (Weiner, 1985; Weiner 1986, 2006). A person attributes responsibility for an event and will experience an emotional reaction to the event. Anger and sympathy are the core emotions in Attribution Theory. The attributions of responsibility and emotions can serve as motivations for action. Behavioral responses are negative when a person is judged responsible and anger is evoked. Behavioral responses are positive when a person is judged not to be responsible and sympathy is evoked (Weiner, 2006).
SCCT is informed by Attribution Theory. Attribution Theory provides the rationale for the relationship between many of the variables used in SCCT. SCCT extends upon this Attribution Theory base to predict the reputational threat presented by a crisis and to prescribe crisis response strategies designed to protect reputational assets. The crisis is the negative event that leads stakeholders to assess crisis responsibility. Was the crisis a result of situational factors or something the organization could control? Indeed, extant research forges a link between Attribution Theory and crises (eg, Bradford and Garrett, 1995; Coombs, 1995; Hrtel et al., 1998; Jorgensen, 1994, 1996; Mowen, 1980; Stockmyer, 1996). Stakeholder attributions of crisis responsibility have affective and behavioral consequences for an organization (Coombs and Holladay, 2005; McDonald and Hrtel, 2000). If the organization is deemed responsible, the reputation suffers and stakeholders become angry. In turn, stakeholders may sever connections to the organization and/or create negative word of mouth. Management has a vested interest in preventing either of these two negative outcomes.
SCCT posits that by understanding the crisis situation, the crisis manager can determine which crisis response strategy or strategies will maximize reputational protection. SCCT centers on the crisis manager examining the crisis situation in order to assess the level of the reputational threat level presented by a crisis. The threat is the amount of damage a crisis could inflict on the organization's reputation if no action is taken. Three factors in the crisis situation shape the reputational threat: (1) initial crisis responsibility, (2) crisis history and (3) prior relational reputation.
The framing effect occurs when a communicator selects certain factors to emphasize. The people who receive the message will focus their attentions on those factors when forming their opinions and making judgments (Druckman, 2001). Crisis types are a form of frame. Each crisis type features certain aspects of the crisis. These cues indicate how stakeholders should interpret a crisis (Coombs and Holladay, 2002). A crisis manager tries to establish or shape the crisis frame by emphasizing certain cues. The cues include whether or not some external agent or force caused the crisis, whether the crisis was a result of accidental or intentional actions by members of the organization and whether the cause of the crisis was technical or human error. It does matter if stakeholders view the event as an accident, sabotage or criminal negligence. The crisis types or frame determines how much stakeholders attribute responsibility for the crisis to the organization.
SCCT research has identified three crisis clusters based upon attributions of crisis responsibility by crisis type: (1) the victim cluster has very weak attributions of crisis responsibility (natural disasters, workplace violence, product tampering and rumor) and the organization is viewed as a victim of the event; (2) the accidental cluster has minimal attributions of crisis responsibility (technical-error accident, technical-error product harm and challenge) and the event is considered unintentional or uncontrollable by the organization and (3) the intentional cluster has very strong attributions of crisis responsibility (human-error accident, human-error product harm and organizational misdeed) and the event is considered purposeful (Coombs and Holladay, 2002). Table 1 provides a short definition of these crises. The definitions reflect the crisis cues that are made salient in the crisis frame (refer to Coombs and Holladay (2002) for a more detailed discussion of the crisis types).
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