Exxon Case

Here's another one about bad corporate apologies:

Summary
· March 24, 1989 – Exxon Valdez struck Bligh Reef and dumped 11 million gallons of crude oil into the sea
· The mission was to clean 1,300 miles of shoreline, ~15% of the area’s 9,000 miles of shoreline
· They had to restore the area to original condition


Perceptions
· Environmentalists see it as limitless in damage even though there were few remaining signs of the spill
· Alaskan food chain has survived
· Tourism has rebounded strongly and so have Exxon’s profits
· Exxon’s reputation was severely damaged


How the perceptions developed:
· Exxon focused on cleaning up but didn’t address the public concern that they didn’t do enough, soon enough
· CEO Rawl was characterized as opposed to serving as spokesperson or showing public interest bc he stayed in NY for 2 days after the spill
· He presented himself as rigged and aggressive once there
· He was inflexible
· Exxon created another situation that conflicted with its goals by designating a location for a crisis center
· Info was slow in coming, info lines were jammed, and it was hard for management in NY to get info
· Exxon didn’t address how the public perceived the spill and its effects
· It let impressions about long term effects form on their own
· Public found no reassurance that Alaska would recover
· Legal reasons made it difficult for Exxon to show remorse or admit to anything
· Media images were displayed of animals in distress
· April 3, 1989 - Exxon placed a full page apology ad and was badly timed and plagued with conflicting messages


How to prevent:
· CEO Rawl served as prime example of stereotypical negative perceptions of the corp executive
· Media portrayed Exxon as being money focused and inhuman
· Exxon should have kept in mind before and after:
o Develop a plan that will construct positive images
o Exxon could spent more time emphasizing personal commitment
o Conduct media research to discover the realities of opinions conveyed to the public
o Attempted to establish credibility by being honest and personable

· Exxon needed to make sure all info was accurate, consistent, and complete.
· Reveal what is being done and why
· Make sure spokesperson is qualified





From Public Relations Practices: Managerial Case Studies and Problems 7th Edition