Crisis Management: Exxon Corporation

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Crisis Management: Exxon Corporation
A crisis from a management perspective refers to an incident, either anticipated or unpredicted, that is likely to disrupt the normal functioning of an organization and its operations. On the other hand, crisis management refers to the processes and measures put in place by an organization in preparation and response to the occurrence of an unfortunate incident. A crisis in itself often comes with negative implications for the organization. However, how the organization responds to it determines to a great extent its success or failure going into the future. In this sense, the principles of crisis management are vital in guiding how an organization approaches a crisis. Failure to adhere to the principles of crisis management can cause long-term damage to the reputation of the company and portray a failed public relation. Exxon Corporation is a typical example of a company that got it all wrong in Alaska.
Exxon Valdez, the company tanker with a crude oil capacity of over 250,000 barrels, had run aground, spilling crude oil into Prince William Sound waters. This was a big disaster to Exxon Corporation that was never anticipated, bearing in mind the reputation that the company had earned as one of the largest oil companies in North America at the time. The oil spill did not only become an environmental and economic crisis but also led to a series of events that marked the epitome of public relations catastrophe within Exxon Corporation.
Exxon Corporation failed even the most basic principle of crisis management of being as quick as possible in responding to a crisis. The general public got the news regarding the oil spill in Alaska from the media rather than from the company itself. Surprisingly, the company's executives were not swift in addressing the public regarding the crisis, leaving the press to run different sorts of stories regarding the oil spill. To make matters worse, Exxon Corporation was quick to blame others rather than take responsibility for the mess that the general public had prior knowledge of the root cause. Exxon Corporation acted in a rather reactive manner instead of proactive, which is certain to derail crisis management. It took up to ten days for the company's CEO to comment on the crisis.
The media plays a key role in crisis manageme...