IMC Final Exam Articles Review (All Three Articles)

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Management and Organizational Studies
Management and Organizational Studies 3322F/G
Beth Lee

IMC Final Exam Articles Review 12/10/2012 12:56:00 PM Greenberg & Elliot/ The Politics of Apology Situation: 20 people died from Listeria contamination from Maple Leafs, costing ML over $50 million. Strategy: CEO Michael Cain was highly visible, immediately apologized and took full responsibility. Eliminating any doubts for a political policy/regulation problem Consumers side: Concerns about food safety has emerged as a major social and public policy issue over the past decade as awareness about health hazards relating to food production and processing  There’s a bias, a perception that gov’t and firms are evil  So if firms try to deny smthg, no matter how accurate it is, they will go against it Company side: Grievances happen after bad things happen  At risk here is the performance gap when bosses fail to meet expectations  Legitimacy gap emerges when consumers value diverge from corporate goals  Company scrambles to find what’s wrong, who’s to blame, who should be accountable (ownership) Main points of the article 1. Communication fixes problems when companies are in a period of uncertainty 2. Concept of “conspicuous apologetics” as a way of theorizing about the importance of visibility to an organization that has been accursed of serious wrongdoings 3. Apology is a broader strategy that looks at both past and future What is Crisis Communications?  Involves the attempt to control info and allay negative public reaction when sudden and dramatic change occurs in an organization’s environment  Rebuilding trust to realign organization values with consumers’ Trust- is a type of confidence that necessitates two kinds of committemnts  Facework commitments  Faceless commmittments (ex: we trust that bananas we buy are not poisoned because of the food system) o When a crisis arises, there’s heightened anxiety and faceless commitments are no longer useful. At this point, even the slightest facework is considered a solution to build a personal connection between the company and the anxious public Luhmann’s (1985) theories says that there’s a difference between  normative -> always attempts to gloss over, judging others, exposing where blame lies, denouncing and demanding justice (MUCH MORE USEFUL TO REACH OUT TO CONSUMERS THIS WAY)  cognitive expectations  based on logical reasoning, which can be dropped I the reality turns out to be different from what was initially anticipated Back to McCain’s plea, his apology was completely based on accepting accountability. He did not take the time to blame any other companies, just accepted the blame with no games. This is the ultimate show of “lords of power bowing their heads” may shatter consumer’s attitude towards corporations Consciptious Apologetics  No hiding behind walls/lawyesr, just calming  Apology is highly visible across all platforms and over time, be open to answer any questions, be proative. Who else is to blame? Cuz Aww McCain is the good guy here  McCain also made life easier by saying none of this is lob Tobacco Sponsorship of Formula One 12/10/2012 12:56:00 PM Sponsorships objectives: increases brand awareness, reinforcing or enancing brand image, and improving sales or market share Current trend: Since cigarette advertising isn’t permitted on TV in some countries, to compensate for lost of exposure, tobacco companies are sponsoring auto racing sponsorships 
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