Friday, September 30, 2016

Challenging the communications establishment with Tilikum

Ever since the release of the American documentary Blackfish, the company SeaWorld Parks & Entertainment has been under a tremendous amount of public scrutiny.  Blackfish initially screened at the Sundance film festival in January 2013 and described the killing of orca trainer Dawn Brancheau by Tilikum, one of SeaWorld’s most popular orcas. That incident was used in the documentary to describe the treatment of orcas in the parks of SeaWorld, and the consequences of keeping these animals in captivity such as additional attacks.

When broadcaster CNN aired Blackfish in October 2013, the documentary led to an international outcry. Continuous negative headlines and celebrities calling upon their fans to no longer visit the theme park turned out to have severe financial consequences.  Over the course of 2014, the enterprise’s shares dropped by more than 40%, which subsequently led to its CEO resigning at the end of the year. In the summer of 2015, the company’s financial report showed an 84% decrease in net income in comparison with the year before, due to a massive decline in attendance. Unsurprisingly, by the end of 2015 the companies’ new CEO announced to phase out the theatrical orca shows in 2016 and 2017.


One of the many answers as to how all of this could have possibly spiralled so enormously out of control is that one should never presume that communications could be controlled, either practically or theoretically.  For starters, the case very effectively shakes up Timothy Coombs’ well-known Situational Crisis Communications Theory (2007). According to Coombs, SeaWorld’s’ PR team should have had an easy job as the crisis would theoretically fall within the accidental cluster (‘some stakeholders claim an organization is operating in an inappropriate manner’), and thus this sort of crisis should have been much easier and less expensive to deal with theoretically speaking than what it turned out to be.

On the other hand, the crisis does support the views of scholars that rather critically reflect upon traditions in communications science. For example, this case supports Davis’ (2000) statement that contrary to popular belief, it is no longer just corporations with financial resources that are able to dominate effective public relations.  Blackfish showed how a non-official source such as a documentary maker was able to upset an opposition dramatically. 

Furthermore, the case supports Valentini’s thesis (2015) that even though the dominant discourse states that social media is an amazing technological development, there is a lack of critical reflection on the implications of social media for organizations and their PR professionals. The disastrous social media campaign that SeaWorld eventually engaged in affected 311 employees severely as they were laid off (most of them supposedly working in the PR department of the company).

In the end, what this case shows is that a crisis did not only turn an entire company upside down – but even a field of science. Blackfish manages to contradict a crisis communications’ scholars’ most popular theory and fully supports those authors that have argued against popular beliefs in the field.


 Jeanette van Eijk studied Public Administration and International Public Policy at the Erasmus University in Rotterdam. She worked for several years as a Public Affairs professional in The Hague and Brussels, and enrolled in the University of Amsterdam’s Corporate Communications Master programme in February 2016.

To be or not to be (transparent)? That’s the question



"H&M supports child labour!". That is what the British newspaper The Guardian communicated in response to the revelations of the book written by two Swedish journalists. They described how H&M in Myanmar employed 14-year-old workers and let them work for more than twelve hours a day.

After the collapse in 2013 of the Rana Plaza, a building full of textile factories in Bangladesh, also H&M is more under investigation since they produce in low-wage countries.
We can argue that fashion chain H&M is suspect anyway, because the brand is so big and sells its products very cheap. On the other hand, H&M is one of the few major fashion chains which communicate transparently about all their activities, which makes it easy to visit the factory and fashion retailers, while this is not possible for other major fashion chains because of the lack of information.

One could ask oneself if it is really necessary to be that transparent if you run the risk of being punished for it? The negative publicity about H&M supposedly supporting child labour can cause serious reputation damage. According to Verhoeven (2015), who used the corporate framing mediated-moderation model (CFMM), to describe the relationship between the organization and media frames is mediated by the relationship between PR professionals and journalists. With the collapse of Rana Plaza, H&M received support from several Dutch newspapers. Dutch newspaper Trouw complimented H&M for being so transparent in their communication and ssuggested that they deserve a commendation for it.



On the other hand, H&M is also an easy victim when new discoveries are made as journalists claim the fashion chain is operating in an inappropriate manner. Coombs (2007) created the Situational Crisis Communication Theory (SCCT) by categorizing several crisis response strategies (denial, diminish, rebuild) to manage a crisis and to protect reputations. H&M did not deny they employed 14-year-old workers in Myanmar, but they immediately tried to diminish the crisis by explaining they are not operating in an inappropriate manner within the context of the local customs and habits. According to conventions of the International Labour Organization (ILO) in developing countries like Myanmar H&M is not doing something wrong. When 14– to 18-year-olds are working it is therefore not a case of child labour, according to international labour laws. On the other hand, the length of the working day is contrary to both international agreements and the laws of Myanmar. Therefore H&M apologized and took action.


Bhaduriand Ha-Brookshire (2015) suggest that one way to foster positive attitude towards a brand might be by providing transparent information about brands’ social responsibility practices as information transparency was found to positively influence people’s attitude. In the case of H&M, I am inclined to question whether the organization actually benefits from its choice to be as transparent as they are.  It seems like transparency can also lead to negative associations when journalists decide to openly disapprove the activities of H&M in low-wage countries. Especially if there is no referral to local circumstances and habits which can lead to a one-sided approach to the issue. One could even say that possibly, companies that do not disclose any information about where they manufacture and produce their product, have a lower risk of reputation loss, simply by not being transparent at all. It makes me wonder which way is better, being transparent or simply not saying anything?


Author

Daisy de Jong, currently studying the Master track Corporate Communication at the University of Amsterdam.

The Max Verstappen endorsement case

Today I'll write something about another celebrity 'athlete'.

The case

The Netherlands' young F1 racer Max Verstappen has been increasingly successful, racing for team Red Bull. He now has become a much demanded media presence, attending talk shows and other events regularly. Apart from his endorsement with Red Bull, he recently starred in a commercial (bad quality) for a Dutch supermarket chain called Jumbo. This commercial shows Verstappen shopping at Jumbo (and of course buying a pack of Red Bull). In an additional Jumbo commercial Verstappen acts as a grocery delivery guy, driving a F1 race car.   
Verstappen driving a Red Bull race car (source: Flick, by Mr Rowlie)



This week, delivery service (and in that segment a competitor of Jumbo) Picnic, released an online commercial, starring a Verstappen lookalike, walking past a Jumbo delivery truck and hopping onto the smaller Picnic truck to start a very relaxed delivery round (as opposed to Max racing around in the Jumbo commercial).  The commercial was subbed "Sometimes you do something for your job, sometimes you do something for fun".  Here you can watch the Picnic commercial and read more about the case (in Dutch only).
Yesterday Picnic took down the video, as you can read in this news article (in Dutch). They stated having meant the commercial as a fun joke, yet the Verstappen management couldn't really laugh about it.

Why didn't team Verstappen want this commercial to remain visible?

Osborne et al. (2016) mentions that a strategic approach to manage celebrity and visibility is recommended, in order to avoid damage to the (celebrity) brand, sponsor relationships and fan loyalty, in which organizations (like Red Bull and Jumbo) invested and expect returns to. The authors further focus on transgressive behavior by male athletes, which wasn't the case for Verstappen. Ten points for Max!

What about Picnic?

Overall you could apply Gidden's structuration theory (Falkheimer, 2007). Picnic did not act according to structure in the sense that it would be socially acceptable to ask for Verstappen's permission and not to use Jumbo's ideas. Rather they acted out of free will (agency) and just made the commercial because they wanted and they could. Yet there were consequences: Verstappen wasn't pleased and announced that he would take legal actions if the commercial wasn't taken down. Picnic as a reaction had to take down the video.
Picnic in this sense lost, because the commercial unfortunately didn't last. Yet they received a lot of media attention due to the release of this video. Therefore I would still call it a PR success for Picnic in the end.

So how can Picnic's PR success be explained?

Davis (2000) stated this has to do with four aspects of the organization:  its economic capital, cultural capital (institutional legitimacy), human recourses and strategic application (PR strategies). In this case Picnic surely invested in the production of this commercial, which in turn can boost their legitimacy. Additionally, they definitely applied a smart PR strategy in order to gain media attention. This strategy which will boost the other three factors for Picnic as well.

About the author:

Frédérique van Gijn enjoys sports,  travelling, and good food. Being a BSc in Communication science, she has been working in corporate communication and marketing. She is currently a Master student Corporate Communication at the University of Amsterdam.


Failing PR line-up

Just Win

The Dutch Royal Football Association is having a hard time. The performances of Dutch teams in Europe are terrible and the national team isn’t doing any better. Next to that the external communication with their stakeholders and the media about the current situation shows some major flaws. For example there was the issue on the recent declining performances of the Dutch national team and missing the 2016 Euro cup. One member of the board of directors stated that the solution to the declining performances was easy:  ‘‘we just have to win every game from now on’’
This comment was the start of some serious critique from the media and stakeholders via social media.

We’re Sorry?




However the Association never made any comments on the statements of member of the board of directors. According to Coombs’ Situational Crisis Response Theory (2007) this is a huge mistake. In situations of a crisis, and the amateur statements of a member of the board of directors certainly qualify as a crisis, an organization should take responsibility for their actions in order to gain control over the situation. Because of the fact that the stakeholders think the association is responsible for the current state of performance in football as well as the recent comments made by the board of directors, the association should aim at rebuilding trust by apologizing. Unfortunately the Dutch Association led this opportunity slip.

Influencers


Without it being known by all stakeholders though, the association was taking internal responsibility for the crisis within Dutch football performances. They found out that the decline in performances was due to the different way in which young kids play football in comparison to earlier years. So the association stated that they are going to implement a new way of education young football players. However they made a flaw in the distribution of the information once again. Instead of using the power of social media and key influencers on that platform, they opted for a simple press release. Recent literature on the use of social media (Valentini, 2015., Moreno et al.,2015) state that social media offers benefits as well as some flaws for public relations. Walden et al. (2015) state that influential bloggers have the ‘power’ to shape the public opinion. The association should have used these people, which certainly exist, to gain support for there cause.

Framing the plans




By just releasing a press release the association gave the opportunity to the already critical media to influence the public opinion on the new plans. The Dutch Media, and especially the Telegraaf framed the news in such a way that only the negative voices about the new plans were heard. Why did they do that? Framing issues is somewhat cultural determined (Van Gorp, 2007). The media framed in such a way that it was appealing to the already critical stakeholders of the association. And of course negative consequences of a release are more newsworthy (Schafraad et al.,2015). Is this fair? Probably not, but the association should have played the PR game more professional.

About


Diederik studies persuasive communication at the Uva. Next to being a student he also coaches the under-19 team of a Rotterdam based football club.