| Examples abound of companies that have averted | | | | Indeed, many attacked the company with all the |
| public relations crises large and small through the deft | | | | theatrical, self righteous indignation they could muster. |
| and honest handling of information. But there's also no | | | | The critics' reaction reminded me of Police Captain |
| shortage of companies that have created their own | | | | Renault, played by Claude Rains in the classic movie |
| public relations disasters by mishandling or | | | | Casablanca, when he exclaimed, "I'm shocked, |
| misinterpreting a situation. | | | | shocked to find that gambling is going on in here!" |
| Whether due to their own ignorance, arrogance or | | | | Immediately after these remarks, the casino manager |
| inflated self image; or because they've underestimated | | | | gave Captain Renault a handful of money and said, |
| their critics' influence; or because their detractors are | | | | "Your winnings, sir." |
| obviously opportunistic blowhards and jerks, senior | | | | AIG and its public relations advisors should have |
| executives may dig in their heels and take a | | | | realized the company could not and should not try to |
| wrong-headed position on an issue. As a result, they | | | | convince the American public it was entitled to give |
| wind up corroding their company's reputation. | | | | away taxpayers' money to pay for executive |
| However, even when public opinion has turned against | | | | bonuses. Of course, if they'd grasped that fact in the |
| your company -- but before a situation spins | | | | first place, chances are they would not have taken the |
| completely out of hand -- you can still take this one | | | | route that caused them so much trouble. |
| critical step to deflate a growing public relations crisis: | | | | But, for a brief period before the situation spun out of |
| - Admit when you're wrong or have made a mistake. | | | | control, AIG had an opportunity to admit it was wrong |
| But you can't stop there. You also must take these | | | | and return the $165 million to the taxpayers. And |
| additional steps: | | | | before admitting the error of their ways, company |
| - Explain how you're going to make things right. | | | | executives even had a chance to explain why they'd |
| - Correct the situation as quickly as possible. | | | | believed rewarding certain executives was justified. |
| The folks at AIG who distributed $165-million in | | | | However, they didn't eat "humble pie," they didn't return |
| executive bonuses after the government gave the | | | | the money right away and they didn't clarify the |
| company $85 billion to save it from bankruptcy stand | | | | reasoning behind their actions. As a result, they were |
| out as the latest example of how a company can | | | | pilloried. |
| create and exacerbate its own public relations crisis. | | | | So if, for whatever reason, you make the wrong |
| At first, the company's leadership acted on its opinion | | | | decisions when it comes to averting a public relations |
| that giving the bonuses was their prerogative. I'm sure | | | | crisis, |
| they thought they were on solid ground when they did | | | | - Take your medicine. |
| it. And I'll bet they were comforted by assurances | | | | - Admit your mistake, |
| they'd received weeks earlier from legislators who | | | | - Correct the problem |
| said they'd go along with AIG's bonus plan. | | | | - Move on. |
| But when word leaked and public opinion turned | | | | Find strength in the words of philosopher Friedrich |
| against AIG, the same politicians who'd initially okayed | | | | Nietzsche: That which does not kill us makes us |
| the pay-outs either withdrew or denied their support. | | | | stronger. |