ICTM518 EHO - Ch7: Managing Crises & Creating Ethical Corporate Cultures

Outline: Issue & Risk Management / Crisis Management / Contingency Management / Creating Corporate Cultures


Issue management is a bridge to Crisis Management

Definitions:

• A crisis is any situation that has the potential to affect long-term confidence

Issue & Risk Management
> there is a difference between issue/risk management AND crisis management

Crisis Management Strategy Development
> has to be set up before crises emerge

[1] Prevention & Mitigation: 

        > minimum of SOPs (Standard Operating Procedures) are needed by tourism facilities to safeguard guests.

[2] Preparedness:
        > strategy or preparedness includes:

                  - developing plans for dealing with threats

                  - identifying executives who can work well under stress

                  - simulating crisis drills

        > ... to ensure when crises occur:

                  - personnel & equipment mobilized + deployed

                  - effects of the crisis reduced

                  - return to normal operations as soon as possible

        > Establishment of networks: an integrated multi-agency approach, which provides advice & assistance during the crisis!

[3] Response:

[4] Recovery:

[5] Media & Communication:


Contingency Management
Regular planing on focus' on the normal routine; ie., growth & expansion.
Contingency Management is planning for the downturns; i.e., preparing for the eventuality.
        - difficulty to predict events of crisis
        - knowing that they will happen
        - somehow regulate
=> Using times during normal routine to prepare for crises!

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Case Study: Grand Hyatt Erawan Hotel at Ratchaprasong Intersection
'You are the GM of the Grand Hyatt Erawan Hotel at Ratchaprasong intersection, when the Red-shirt demonstration makes it impossible for you to run normal operations of your hotel.'

=> What are the five most important steps you would choose to deal with this crisis

1. Collect & locate data on each guest
2. Where are the employees?
3. Evacuate guests
4. Office relocation
5. Offered compensation

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Criticism lead to improved CSR

8 Traits of a Healthy Organizational Culture

Enabling & Monitoring Corporate Ethical Cultures