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Series IconHone your crisis management skills. [1]
Published Date: 2015/07/15

What is your company's response to unforeseen events? What does the media demand?

Omori Asahi

Omori Asahi

What if your company faced an accident, incident, natural disaster, or other unforeseen crisis? The skill of crisis management can determine a company's very survival.
To investigate the reality of corporate crisis management, the Corporate Communications Strategy Research Institute at Dentsu Inc. Public Relations conducted a "Survey on Corporate Crisis Management" in collaboration with the Center for Disaster Management and Information Studies at the University of Tokyo's Graduate School of Information Science and Technology from February to March this year, collecting data from 392 companies.

This series analyzes corporate crisis management capabilities based on these survey results, presenting issues and providing information for corporate key personnel and crisis management stakeholders.

■Media Prioritizes Social Responsibility, Companies Prioritize Compliance

A key feature of this survey was conducting two separate studies: one primarily targeting companies (392 valid responses, including foreign-affiliated firms) and another targeting media professionals (177 respondents) from web media, newspapers, television, and magazines. This allowed us to obtain quantitative data on the gap in perceptions between companies facing crises and the media covering them.

When asked to identify, for 28 potential corporate crises, which they perceived as "items likely to draw strong public criticism" and which the media would consider "items of high interest," the results highlighted significant differences in how each group prioritized crises.

Among these gaps, the items where media interest was notably higher than corporate concern included: "Employees contracting a serious infectious disease" (22.0%, 18.4-point difference), "Business suspension/customer crisis during a major domestic disaster" (27.5%, 14.2-point difference), and "Business suspension/customer crisis during overseas terrorist attacks or riots" (21.9%, 13.1-point gap). These issues impact society as a whole rather than being isolated corporate events, clearly showing a gap in perspective on how crises are perceived.

Indeed, regarding issues like the novel influenza pandemic, the Great East Japan Earthquake, and conflicts in the Middle East and North Africa, extensive media coverage has focused not only on impacts to individual companies but also on the countermeasures they implemented. For such societal problems, companies need to proactively consider and prepare for information disclosure.

Conversely, items that garnered greater corporate concern than media attention included "collusion with antisocial forces" (35.7%, 16.1-point gap), "inappropriate financial reporting" (32.7%, 13.5-point gap), and "bid-rigging/antitrust violations" (27.8%, 13.5-point gap). All of these relate to compliance (adherence to laws and regulations) and represent serious issues where companies face scrutiny over their social responsibility.

■The Paradox of Demanding Both Speed and Accuracy

So, what do journalists from various media outlets demand from companies during a crisis? What had previously been discussed among PR professionals as rule of thumb has now been reaffirmed by data.

Among the items listed, "prompt response" (89.8%) ranked highest, followed by "accuracy of information disclosure" (71.8%). The fact that these seemingly contradictory priorities—difficult to achieve simultaneously—took the top two spots underscores the demanding media expectations during crises. To meet these demands, it is essential to establish crisis management systems, develop PR manuals, and conduct simulation training well in advance, even during normal operations.

■Should a Press Conference Be Held?

Deciding whether to hold a press conference during a crisis is an extremely difficult issue for companies. However, the top three points—"involves human casualties" (88.7%), "has the potential to recur or escalate" (85.9%), and "involves illegality" (74.0%)—appear to be useful reference points for future decision-making. Furthermore, "Social Impact" (68.4%) ranked fourth. This indicates that when issues of high public concern arise, companies may be pressured to hold a press conference, requiring decisions based on media and public opinion trends.

Thus, by quantifying the gap in perceptions between media and companies in this survey, we believe it provides material for companies to reconsider their approach to information disclosure during crises.


 
The Corporate Communication Strategic Studies Institute (CSI) is a research organization within Dentsu Inc. Public Relations that collaborates with experts in corporate management and public relations (such as university professors and researchers) to conduct surveys, analysis, and research on corporate communication strategies and systems.

 

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Author

Omori Asahi

Omori Asahi

Worked for approximately 14 years as a reporter primarily covering economics at Jiji Press and Kyodo News. Joined Dentsu Inc. Public Relations in 2007. Engaged in media training and crisis management public relations consulting, in addition to analyzing industry group media coverage, corporate product issues, and financial institution management problems. Served as Head of Crisis Communications within the Corporate Communications Strategy Office, Communication Design Bureau, before assuming the current position in October 2014.

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