A Study of the Reputation Management Strategies in Corporate Crisis

A study of the reputation management strategies in corporate crisis 1
A STUDY OF THE REPUTATION MANAGEMENT STRATEGIES TAKEN BY KEY
STAKEHOLDERS, THE COMPANY, THE CELEBRITY ENDORSER AND THE PUBLIC,
IN RESPONSE TO A CORPORATE CRISIS EVENT MADE VISIBLE THROUGH THE
CONTEMPORARY SOCIAL MEDIA CONTEXT
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A study of the reputation management strategies in corporate crisis 2
Literature Review
In this section, it is evident that the use of social media remains as the best device for
management of reputation among key stakeholder, organization, celebrity endorser, and the
public in response to the crisis event. Before emergence of information together with
communication technology that leads to empowerment of people, stakeholders of different
companies, endorser of celebrity, and the public were more careful on management of strategies
due to insufficient knowledge of product, low service or product alternatives, or lack of trust on
data provided through social media.
Management of crisis
The occurrence of crisis in most cases can result in a devastating effect on operations of any
company globally. When such instances of crisis occur, there is the need to put appropriate
strategies of managing such reputations into reality (Siemiatycki, and Siemiatycki 2016, p.
1254). Failure to manage crisis within company management has to focus on creation of public
relations responses to fight the reputational crisis (Zipporah and Dr.Mberia 2014, p. 2279). It is
the responsibility of every manager of a company to ensure that its organization is capable of
responding to the crisis and in the process of response, it must maintain reputational strategy.
Using a distancing approach to solve the crisis
The company has to set legitimate arrangements of its operations and exact concentrate on
failure to which will make it fail in having the capacity of successful bargaining with the impacts
of the crisis as well as recouping to its past state. Regarding the rule, it indicates that "Preferable
counteract over treat," best way of adapting effectively to different operational crises by an
organization is through ideas of maintaining a strategic distance from their operations

A study of the reputation management strategies in corporate crisis 3
(Verhoeven, Van Hoof, Ter Keurs, and Van Vuuren 2012, p. 502). Most business in global
society has demonstrated that crises in management can truly be counteracted as well as
maintained a strategic distance during management process. However, establishment of
appropriate avoidance operations together with an appropriate hierarchical structure can allow
every organization to distinguish and oversee in due time any conceivable dangers that can result
to management crisis (Phan 2017, p. 27). It is evident that crisis management always approaches
different dangers that are made visible through the contemporary social media context from the
responsive manner. The management tends to depict various events that should be created while
maintaining the final target to decrease the disaster among key stakeholders of the company,
endorser of celebrity and the public (Shayb 2017, p. 31). With different approaches of
management of crisis set in place, there is some negativity that does arise in the process of
management in responding to the corporate crisis event that is made visible through the
contemporary social media context.
Some of the causes of corporate crisis
There are several causes of corporate crisis that key stakeholders of a company, celebrity
endorser, and public need to form reputation strategies to manage effectively. The causes of
corporate crisis event that are made visible through the contemporary social context can be
classified in different ways depending on the level from which they influence position of
organization and where they appear in operations (Chun 2005, p. 97). Some of these causes of
corporate crisis on event made visible through the contemporary social context consist of online
marketing along with online word of mouth firestorms (Helm and Tolsdorf 2013, p. 147). Other
causes of corporate crisis include insufficient funds for operations, drop in market share,

A study of the reputation management strategies in corporate crisis 4
advancement in technological usage, changes in the market, changes in marketing legislation,
and natural disasters among other elements.
Growing use to social media as a reason for creation and solution of crisis
It is one of the significant impacts of uses of social media that causes corporate crisis. There is a
changing focus on the use of social marketing for promotion on different sites such as Facebook,
WhatsApp, Twitter, LinkedIn, and Instagram among other societal media podiums. The use of
societal media has remained to be an essential approach of attracting consumer by offering ideal
platform to them in expressing their views concerning operations of organization (Nijkrake,
Gosselt, and Gutteling 2015, p. 83). Social media platforms on one side remain to be a highly
beneficial setting for propagation of word-of-mouth of advanced ideas and products. The use of
these platforms has constantly made them be the focus of communication for marketing (Feffer,
Zorbach, and Carley 2014, p. 123). Besides, different organizations, key stakeholders, and
celebrity endorsers have been countering effect of harmful online marketing together with online
word-of-mouth with complaint traits. The online firestorms pose advance challenges for
marketing communication leading to corporate crisis that is always made visible through the
contemporary social media context (van Dreven and Koolma 2012, p. 214). As reported by
Osaretin (2017, p. 25), feeling of shaping the progression of crisis management through web-
based networking media destinations are commanded by different variables. These variables
include speed and volume of correspondence, arrange groups, parallel decisions, unreasonable
data stream, and absence of assorted qualities, cross-media flow, and system activated choice
procedures. All these variables are very interrelated (Eriksson and Olsson 2016, p. 201). The
word of mouth firestorms should be handled appropriately through means of focusing on by the
marketing communicators, and tactfully the situation needs to be handled.

A study of the reputation management strategies in corporate crisis 5
Most common approaches to crisis management
Management of crisis in operations of corporate focuses on the process that organization deals
with the unexpected and disruptive event that threatens to harm the stakeholders or operations of
organization. The approaches of managing crisis consist of different consequent steps from the
acknowledging of impacts of disaster on company to preventing, overcoming, or alleviating the
different kinds of crisis (Eriksson and Olsson 2016, p. 203). Before striking of a crisis,
management of organization owners always thinks on different ways a disaster might impact
workers, clients, suppliers, the general public, celebrity endorsers, and their values of
organization. The crisis can strike any operations of the company at any time and any place.
Therefore, advanced planning of appropriate approaches of managing crisis is the key to survival
(Helm and Tolsdorf 2013, p. 149). Advanced planning to manage crisis is the key to survival of
operations of workers and other stakeholders in a corporation. Some of the approaches to use in
crisis management include ideas of having plan, identification of spokesperson, being honest and
open, as well as keep workers informed. Other approaches include need of communication with
suppliers and customers, update early and often, and improving operations through social media.
The other steps that can be used for crisis management i9nclude activities that the business uses
to respond or counter in the face of a major crisis (Mio and Fasan 2012, p. 276). These steps
consist of development of clear objectives, focusing on employing a dedicated team, keeping the
communication flowing, focusing on prevention model as an approach that is better than cure,
together with anticipating the crisis.
Clear objectives

A study of the reputation management strategies in corporate crisis 6
With clear objectives of operations, nothing will fall into place as the organization operates. If
management lacks a detailed and crystal clear objective, then the company can face crisis in
operations. For this reason, an individual in the management needs to have ideal focus of what
their business targets are together with how particular disaster will impact these targets of
operations (Zafer 199, p. 305). Hence, an individual comes up with aims of planning for disaster
management. There exist several predictions and thoughts that go into this specific approach of
managing catastrophes in operations. Therefore, by the use of this approach, a lot of foresight is
needed.
The process of management in predicting what their organization may stumbled upon is often not
simple, particularly if they fail to have large organization, or have been undergoing through
smooth nautical for extended period presently. These approaches always silence businesses into
fall intellect of security that has upsetting costs at duration of disaster (Podnar, Tuškej, and
Golob 2012, p. 913). Therefore, to avoid such corporate crisis, there is a need to plan out from
the start by planning every operation carefully. Besides, there is a need of being aware of the
details of every single individual, stakeholders, parties, celebrity endorsers, and key stakeholders
that will be impacted by this approach. Therefore, by setting a clear objective, management can
at that point set out the arrangement for how to conceal misfortunes with every one of the
gatherings parties that are involved in operations. All these parties in operations of corporation
must be kept on top of it. From that point on, in view of all these set clear goals during corporate
operations, management has point by point plan in composed frame and back it with all
important relevant legal actions together with proper documentation (Mitra 2011, p. 13).
Therefore, every activity that has to be done that relates to every section of business operation
need to have point by point out in this arrangement. The arrangement should then be in like