Crisis Managment

By: Benjamin Tateoka


How can the 13^th most powerful person in the world fall from grace?  According to 2010 Forbes’ Most powerful people list, Rupert Murdoch was the number 13^th on that list.  What made the 117^th wealthiest person fall?  It came down to ethics.

He inherited his family’s newspapers business at the age of 21.  From there, he acquired and started other publication in his native Australia.  He then expanded News Corp into the U.K., U.S.A., and Asian markets.  In 1986 he created the Fox Broadcasting Company.  In the 2000’s he purchased The Wall Street Journal. 

He also has investments in Satellite television, the film industry, the Internet and book publishing industry.

After his company was accused of intruding into people’s privacy by illegally tapping into person phone accounts, Murdock called upon Edelman PR to help navigate through this crisis.

Part of what Public Relations firms do is to manage the crisis.  Agencies handle the organizations crisis by working with the media and the organization to solve the problem.  Transparency is important.

Edelman PR should take a Defensive Response Strategy.  They should give the public what they want.  Make concessions with the public.  Have Murdock step down and change some of his organizations policies when collecting information.

Rupert Murdock needs to distance himself from the editor of the magazine who approved the illegal wiretaps.  He needs to investigate his company and fire some CEO’s and make sure that they are being ethical.  He should seek to punish the condemned and take them to court.  The public need to know that it was not Murdock’s decision to do it and that the editor acted alone.

He does not need to admit that he is guilty because the courts have not made a verdict yet.  He is still innocent until proven guilty.  Show some remorse for your actions and then apologize. 

Take Responsibility and fix the problem and then determine blame later.  Be accessible!  Web sites seek constant updates.  News media will go elsewhere for the story.  Depending on the intensity of the crisis including situation with ongoing threats to human safety the organizations top leadership should meet frequently with reporters through news conferences. Websites should include video or transcripts of its news conferences as well as the news releases and other available background material.

Whether your company is publically traded or is a small family business, whenever you have a crisis look for a PR professional that can help you focus your energy and maintain your positive image.