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The impact of personality on corporate reputation: recovery from crises as a function of the degree of overlap between corporate and individual personalities
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The impact of personality on corporate reputation: recovery from crises as a function of the degree of overlap between corporate and individual personalities
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Content
THE IMPACT OF PERSONALITY ON CORPORATE REPUTATION:
RECOVERY FROM CRISES AS A FUNCTION OF THE DEGREE OF
OVERLAP BETWEEN CORPORATE AND INDIVIDUAL PERSONALITIES
by
Karen June Freberg
A thesis presented to the
FACULTY OF THE GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements of the Degree
MASTER OF ARTS
(STRATEGIC PUBLIC RELATIONS)
May 2007
Copyright 2007 Karen Freberg
ii
DEDICATION
I would like to dedicate this thesis to my committee members, Dr. Tom Hollihan
and Mr. Michael Parks, for sharing generously their time, support, and insights, and
especially to Dr. Jennifer Floto, my thesis chair, for her unwavering support and
high expectations. I would also like to thank my family for their support and
understanding throughout this process. I appreciate the Coors family for providing
an interesting opportunity for exploring issues in corporate reputation and crisis
management.
iii
TABLE OF CONTENTS
Dedication ii
List of Figures iv
Abstract v
Chapter One: Introduction 1
Statement of the Problem 1
Personality 4
Crisis 6
Reputation 6
Branding 8
Crisis Management 9
Internal Communications 16
External Communications 18
Chapter Two: Literature Review 21
Corporate Identity 21
Table 1. “Corporate identity, corporate branding and corporate marketing:
Seeing through the fog.” 22
Corporate Branding 23
Chapter Three: Method 26
Chapter Four: Coors Family & Coors Beer Case Study 34
Background 34
Competitors 39
Crisis 40
Early Warning Signs 44
During the Crisis 47
Messages 48
Chapter Five: What went wrong / right for Case Study 54
Right Strategies 54
Wrong Strategies 55
Chapter Six: Model for Personality Corporations in Crisis Management 57
Chapter Seven: Discussion 67
Chapter Eight: Conclusion 70
Glossary 72
References 75
iv
LIST OF FIGURES
Figure 1. The Corporate Personality Continuum 2
Figure 2. Convergence of Academic Thinking Towards Corporate 12
Branding
Figure 3. The Six Conventions of Corporate Brand Management 14
Figure 4. The Evolving Relationships Between Corporate Identity 15
and Other Concepts/Disciplines
Figure 5. The Context of Corporate Brand Management 39
Figure 6. The D.I.V.A. Model 58
v
ABSTRACT
Corporations are influenced both by their own general personalities and by the
personalities of the individuals who may represent the organization. This thesis
explores the interactions between the personalities of businesses and individuals
representing businesses throughout the processes and outcomes of a crisis.
Although the impact of a crisis on corporations with general personalities has been
chronicled in many cases, relatively less is known about crisis situations involving
corporations associated with both general and individual personalities. In this
thesis, the author will examine a case study that represents a situation in which
general and individual corporate personalities interact during a crisis: the Coors
Brewing Company Boycott in the 1970s.
How does the degree of overlap between a corporate and individual
personality aids or hinders an organization’s ability to survive and recover from a
crisis? Key points in this discussion that require definition and literature review
include the following: personality, crisis, reputation, branding, and crisis
management. The author analyzes the positive and negative aspects of the
responses to crises in each case, and draws conclusions regarding the primary
question posed by the thesis.
CHAPTER ONE: INTRODUCTION
How does the degree of overlap between a corporate and individual
personality aid or hinder an organization’s ability to survive and recover from a
crisis? To understand how the personalities of companies or individuals impact a
crisis situation, we must explore examples of these interactions and agree on
several key definitions: personality, crisis, reputation, branding, and crisis
management.
Statement of the Problem
This thesis explores the relationship between different types of business
personalities and their challenges in a time of crisis. The extent to which a
corporate personality overlaps associated individual personalities will influence the
range of coping strategies that can be used to cope with a crisis.
As shown in Figure 1, business corporations fall on a continuum in regards
to their association with individual personalities. On the end of the continuum
representing corporate personality, we might place a corporation such as IBM. IBM
has a strong corporate personality, but no single individual or small group of
individuals currently represent IBM in the minds of the public. On the opposite of
the continuum, representing individual personality, we have corporations that are
synonymous with a single individual or small group of individuals. For example,
the personality of Donald Trump as a business entity overlaps greatly with the
personality of Donald Trump the individual. Lying somewhere between these
2
extremes at the midpoint of the corporate personality continuum, we find a mixture
of these characteristics, such as the case of the Ford Motor Company. The Ford
Motor Company is influenced by a combination of its general corporate personality
and the personality of the founding Ford family.
Figure 1: The Corporate Personalities Continuum
Corporations can be influenced both by their own general personalities and
by the personalities of the individuals who may represent the organization.
Corporations like IBM enjoy an interesting advantage when faced with a crisis.
They have a general personality without a close identification with particular
individual personalities. Subsequently, there are several strategies that they can
implement in a crisis. One strategy that they can consider is the development of a
“new face” or reputation by replacing their “personality” with a new and different
one. On the other hand, if well-known individual personalities define a
corporation, a crisis affecting either the corporation or the individual personalities
3
will impact all parties. The ability of the corporation to solve a crisis by distancing
itself from these defining individual personalities is limited. Conversely, the
individuals associated with the corporation will find themselves affected by any
crisis experienced by the corporation. These effects will be disclosed more in the
Coors Company case study of this thesis.
Although the impact of a crisis on corporations with general personalities
has been chronicled in many cases, relatively less is known about crisis situations
involving corporations associated with both general and individual personalities. A
question that is facing corporations that fall into this category is: what can public
relations practitioners do to help them through a crisis in the absence of previously
researched cases? Also, if there are no documented case studies on these types of
corporations, does that mean that all corporations fall into one extreme or the other?
Realistically, corporations do not fall into “cookie-cutter” categories, and each
corporation has its own unique characteristics that define it within the industry. In a
business society, not all corporations are going to fall into the two extremes of the
corporate personality continuum. Many of these corporations will have a mixture
of corporate and individual personality characteristics.
The strategies that may work for an individual who represents a corporation
may not work for a corporation that falls in the middle of the corporate personality
continuum. Researching and developing case studies on these corporations will
provide valuable insights and statistics for use by other corporations that share both
corporate and individual personalities.
4
In this thesis, the author will examine one case study that represents a
situation in which general and individual corporate personalities interact during a
crisis. The case illustrates the middle of our corporate-individual continuum by
exploring the experiences and outcomes of a family-owned business, the Coors
Brewing Company, during a time of crisis. This case was selected from a number
of similar cases for several reasons. First, both the Coors Corporation and the Coors
family have strong, well-known personalities. Second, these personalities interacted
at a clear, challenging time of crisis. Third, given the wealth of detailed information
available on the Internet, personalities may be expected to influence corporate
reputation more frequently in the future. Finally, although we know a great deal
about the performance of large corporations with strong corporate personalities in
times of crisis, relatively less is known about instances representing other points on
our continuum of corporate personality. From the examination of this case, the
author hopes to draw conclusions regarding the interaction of individual and
corporate personalities during a crisis situation.
Personality
What is personality? Whether the context is business or psychology, a
personality defines what an individual or an organization represents based on a set
of stable and defining characteristics. These characteristics allow others to predict
the future performance of an individual or organization. A corporate or brand
personality is what the company is known for among its publics, and as we will see
5
in a later section, this variable makes an important contribution to corporate
reputation. A business can obtain a competitive edge by projecting a positive
corporate or brand personality in the market place and by supporting that image
with consistent performance.
1
For an organization to benefit from its personality, it
must “combine its patent and pertinent values and traits into creative forms of
persuasion, and project them prominently to attract different target audiences.”
2
Chauntelle Folds, a writer for the Ohio newspaper Columbus Post,
distinguishes between two personality types found within organizations, the self-
control personality and the passionate personality. The self-control personality is
characterized as individuals who realize that sacrifice and delayed gratification may
be necessary to reach their ultimate goals.
3
According to Folds, individuals or
companies that have a self-control personality will look at the larger picture and
towards the future rather than focusing on the present, which may not guarantee the
best outcome for the company or the individual. The passionate personality could
be considered as the opposite of the self-control personality. Passionate
personality individuals are zealous, creative, and innovative.
4
These individuals
do think of the present and what will happen to their company or themselves during
a crisis. It is important to understand the implications of both types of personalities
in the workforce, because each type may respond differently in a crisis situation.
1
(Devarajan, R. (April 11, 2006). "Corporate Personality" [Electronic Version]. Global News Wire -
Asia Africa Intelligence Wire.)
2
(Devarajan, 2006)
3
(Folds, C. (September 2006). Balancing Passion and Self Control [Electronic Version].
Powerplay: Making Connections, 61.)
4
(Folds, 2006).
6
Crisis
A crisis can be described in several ways. When people think of a crisis,
they assume a negative event has occurred. Crises are not only negative; they also
can represent a critical junction or turning point. Even though a crisis can cause
hard times for an individual or company, positive outcomes may also occur. Crises
might stimulate changes that have been needed for quite some time, resulting in
improved behavior on the part of an individual, a department, or even an
organization. An important aspect in evaluating the impact of a crisis is the
examination of how the crisis has affected the reputation of an individual or
organization among key audiences.
What a crisis does for both parties is to provide an opportunity to show their
“true selves.” The way that individuals or organizations handle negative publicity,
questions from the public and media, and meetings with stakeholders will
illuminate the parties’ genuine personality. A corporation with a personality will
show its “true colors” when it finds itself under pressure due to an unexpected
event. For both individuals and organizations, a crisis provides an opportunity to
show audiences that the image presented when times are good is the same or
perhaps better. A crisis can serve as the key to defining a corporate personality—
and may allow us to determine which corporation or person is being truthful to
stakeholders and other audiences.
Reputation
7
What is a reputation? Reputation may be defined many ways, but since this
thesis is focused on corporations, the author will be discussing corporate reputation
specifically.
According to Grahame R. Dowling, an associate professor in Management
at the University of New South Wales, corporate reputations “reflect the extent to
which people see the firm as substantially ‘good’ or ‘bad.’”
5
Reputations provide
an inside look into what the person or company represents in their key
demographics. Corporate reputation is considered as “a snapshot that reconciles
the multiple images of a company held by all its constituencies.''
6
Guido Berens
and Cees B.M. van Riel of the Rotterdam School of Management state that
corporate reputation consists of three aspects: social expectations, corporate
personality, and trust.
7
Social expectations include the actions that audiences of the
company or person anticipate in their respective contexts. As discussed previously,
corporate personality includes the stable and defining characteristics of an
organization. Finally, the level of trust and loyalty gained by an organization
through its interactions with stakeholders and the general public will contribute to
the overall reputation of the entity. Stakeholders can be classified as employers,
investors, customers, distributors, legislators, and analysts to name a few.
5
(Dowling, G. R. (2004). “Journalists’ Evaluation of Corporate Reputations.” Corporate
Reputation Review, 7(2), 196-205.)
6
(Fombrun, 1996, pg. 72, as cited by Manto & Wilson, 2001)
7
(Berens, G., & van Riel, C.B.M. . (2004). Corporate Associations in the Academic Literature:
Three Main Streams of Thought in the Reputation Measurement Literature. Corporate Reputation
Review, 7(2), 161-178.)
8
Corporate reputation may also be defined as the collective opinion of
stakeholders toward an organization based on its past record. In this case a good
reputation is "awarded" to organizations that are seen by stakeholders to be
fulfilling their personal definition of "good corporate behaviour [sic]" or with
whom they have had positive experiences in the past.
8
A good corporate or personal reputation typically does not develop by
accident. In order to ensure that a person or company has a good reputation, that
reputation needs to be managed effectively. Reputation management provides
methods for “ensuring that an organization's values are reflected in its operations.
Every function needs to be involved in the management of brand and reputation. If
values are generated in different functions, there will be conflict when they are
embedded into an organization's operations.”
9
In addition to understanding the
characteristics of a corporate reputation and methods for its management, it is also
important to evaluate how a corporation measures its own reputation.
Branding
Branding is defined as:
…a process for distinguishing one product from another (brand positioning)
and the features that enable stakeholders to choose one product over another
(brand personality). At a corporate level, features that enable a customer (or
employee or investor) to choose one organization over another include a
8
(Frost, A.R. (Feb-March, 1999). Brand vs. reputation: managing an intangible asset.
Communication World. Retrieved September 22, 2006 from
http://findarticles.com/p/articles/mi_m4422/is_3_16/ai_54116091
9
(Frost, 1999).
9
wide range of factors, from product value and quality to financial security,
customer care and an organization's ethics record.
10
A brand is important for individual or corporate personalities, because it represents
what others outside the organization view or perceive the person or company to be.
Brand quality may determine the success or failure of a person or company in their
particular field.
Crisis Management
Crisis management could be described as “a process in which a company
responds to negative events by identifying key targets (publics) for which to
provide publicity, developing a well rehearsed contingency plan, reporting facts
quickly and providing access for journalists.”
11
In effective crisis management, public relations professionals as well as
members of the senior management of the corporation will have a crisis
communication plan on hand in a moment of crisis. In order to survive a crisis, a
corporation must implement its strategies effectively and in a timely manner for all
audiences. An individual or corporation facing a crisis may become either a
manager or technician when conducting public relations tactics. According to
University of Hawaii public relations professor Tom Kelleher, as stated in his book
“Public Relations Online,” a manager will be expected to be “responsible for
10
(Frost, 1999)
11
(Glossary: Chapter 16: Advertising, Public Relations and Sponsorship." Retrieved October 6,
2006, from http://users.wbs.warwick.ac.uk/dibb_simkin/student/glossary/ch16.html.)
10
outcomes” and a technician will be in charge of “generating communication
products that implement policy decisions by others.”
12
Ideally, individuals or corporations faced with a crisis will be able to
implement roles of both manager and technician. In a corporation faced with a
crisis, it is important to have employees who serve as either managers or
technicians to work together. In the case of an individual facing a crisis, the
characteristics of a manager and technician will have to be present in one person.
The individual needs to develop key strategies and tactics for evaluating different
perspectives and finding the best solution.
BRANDING AND CORPORATIONS
An important element that defines a corporate personality and reputation is
the company brand. A company brand can be implemented on a corporate
personality as well as an individual personality. The impact of an individual
personality on a corporation is important to recognize due to fact that the future
success or failure for a corporation will rely heavily on this one individual.
Branding is “a process for distinguishing one product from another (brand
positioning) and the features that enable stakeholders to choose one product over
another (brand personality). At a corporate level, features that enable a customer (or
employee or investor) to choose one organization over another include a wide range
of factors, from product value and quality to financial security, customer care and
12
(Kelleher, T. (2006). Public Relations Online: Lasting Concepts for Changing Media: Sage
Publications. Pg. 21)
11
an organization's ethics record.”
13
Basically, a corporate brand is what defines the
product or corporate image for the company among its key audiences. A brand can
also be “a unique and identifiable symbol, association, name or trademark which
serves to differentiate competing products or services. Both a physical and
emotional trigger to create a relationship between consumers and the
product/service.”
14
The use of term “branding” has evolved over the years in both the business
and communication fields. British analysts Simon Knox and David Bickerton’s
Figure 2, “Convergence of academic thinking towards corporate branding,” shows
the evolution of the terms branding and corporate image, and how both relate to
contemporary views of corporate branding.
15
According to this figure, branding is more focused on an individual’s
perspective of a brand, whereas corporate image is focused on the organization’s
perspective.
16
Branding evolved from brand positioning to corporate association,
while corporate image ranged over the years from corporate personality to
corporate reputation to finally corporate branding. This figure shows that even
those in the business and public relations field have different interpretations of
what a corporate brand is specifically, and will continue to change their definitions
as the business field changes.
13
(Frost, 1999)
14
("AllAboutBranding.com Glossary." Retrieved October 4, 2006, from
http://www.allaboutbranding.com/index.lasso?page=11,54,0.)
15
( Knox, S., & Bickerton, a. D. (2003). The six conventions of corporate branding. European
Journal of Marketing, 37(7/8), pg. 1002)
16
(Knox & Bickerton, 2003, pg. 1002)
12
Figure 2: Convergence of Academic Thinking Towards Corporate Branding
Brands do not have to be a product or service. A brand could also refer to
the company itself:
The brand value reflects how a product's name, or company name, is
perceived by the marketplace, whether that is a target audience for a product
or the marketplace in general (clearly these can have different meanings and
therefore different values). It is important to understand the meaning and
the value of the brand (for each target audience) in order to develop an
effective marketing mix, for each target audience.
17
Several characteristics to keep in mind when looking at a corporate brand.
Some of the characteristics determine the reputation and perception for the brand
among other products and also among the key audiences for the corporation.
Brands can become more like the company than the companies that they are known
for on their own – “a devastating transformation that compromises the very
viability of an organization. Because when a Brand becomes a company, it loses
17
(Marketing Glossary. Retrieved October 6, 2006, from
http://capcomarketing.com/mediakit/Marketing_Glossary/)
13
qualities both tangible and intangible, often permanently.”
18
Some brands that are
particularly powerful and influential are considered to be strong brands. Strong
brands “have the luxury of being viewed through a different lens by consumers,
prospects, suppliers, analysts, media and employees.”
19
Strong brands also are
“more heavily evaluated by subjective measures, such as their promise, innovation,
personality, history and creativity, all of which are conveyed through product
development and commercialization, marketing, communications and the overall
interaction between the Brand and its constituents.”
20
Some examples of strong
brands that are present today would include Nike and Tide.
According to Knox and Bickerton’s Figure 3, “The six conventions of
corporate brand management,” there are six characteristics that can define a
corporate brand.
21
The figure lists the following: brand context, brand
conditioning, brand construction, brand consistency, brand continuity, and brand
confirmation.
22
Out of the points listed, brand consistency and brand continuity are
the most important. In order to have a stable corporate image, corporations have to
have a clear and recognizable personality. This will allow them to maintain their
publics’ awareness of them among their competitors. Also, brand continuity will
serve well for corporations that wish to stay in their specific industries, although
18
(2006 ). " Strategic Intent: A leadership perspective on today’s issues and tomorrow’s trends for
business success." Edelman Change and Employment Engagement Group 1(2).
19
(“Strategic Intent: A leadership perspective on today’s issues and tomorrow’s trends for business
success.” 2006)
20
(“Strategic Intent: A leadership perspective on today’s issues and tomorrow’s trends for business
success.” 2006)
21
(Knox & Bickerton, 2003), pg. 1012
22
(Knox & Bickerton, 2003), pg. 1012
14
corporations must be aware that they may have to change their brand in order to
adapt to their audience’s perspectives and society’s technological advances. Each
corporation and individual will have their own characteristics of corporate
branding, and they will decide what elements are important or not in their particular
situations.
Figure 3: The Six Conventions of Corporate Brand Management
According to lecturer Rosa Chun of the Manchester Business School at the
University of Manchester in the United Kingdom, corporate image could be
described as being a “retail store image and corporate (brand) image in the
marketing discipline.”
23
Corporate image can be linked to advertising, corporate
logo, brand preference, or the interaction among the company’s employees.
24
Joseph Fernandez, corporate communicator and author of “Corporate
23
( Chun, R. (2005). "Corporate reputation: Meaning and measurement." International Journal of
Management Reviews 7(2): 91–109.)
, pg. 95
24
(Chun, 2005) , pg. 95
15
Communications: a 21
st
Century Primer,” states that corporate image can be
described as “the institution’s image, reputation, financial assets, performance, and
people.”
25
Aspects of corporate image typically fall into four categories: product
class image, brand image, user image and corporate image.
26
Product brand can be
defined as “the spread of products and services a corporation offers in the
market.”
27
Bradford University’s John M.T. Balmer presents Figure 4, “The evolving
relationships between corporate identity and other concepts/ disciplines,” to show
the importance of a corporate brand and how it is linked to corporate identity,
corporate communication, and corporate reputation.
28
Figure 4: The Evolving Relationships Between Corporate Identity and Other
Concepts/Disciplines
25
(Fernandez, J. (2004). Corporate Communications: A 21st Century Primer. Thousand Oaks,
Response Books. Pg. 49)
26
(Chun, 2005) , Pg. 95
27
(Fernandez, 2004), pg. 50
28
(Balmer, J. M. T. Corporate identity, corporate branding and corporate marketing: Seeing
through the fog. European Journal of Marketing, 35(3/4), pg. 260
16
Without one of these elements, the others will suffer and not be as
productive for the organization and its future. Corporate brands are equally
important as the reputation and communication strategies of the organization.
Internal Communications
Communication is an important aspect of a corporate personality’s and
individual personality’s tasks. Corporate and individual personalities have to reach
out to all audiences of the company (both external and internal).
29
Corporate
personalities and individual personalities not only communicate with their external
audiences about their corporate brand and images, but they also communicate with
their internal audiences. Different types of internal communication include
company newsletters, meetings with management, and maintaining an Intranet for
employees to use to communicate with others within the corporation.
Internal publics for a corporate or individual personality can include many
groups of individuals, including employees, managers, suppliers, and senior
management. Also, those employees that fall into the group of “Internals” are in
charge of “counseling an organization’s management, making communication
policy decisions, and coordinating internal public relations efforts.”
30
All
communication from senior management to employees needs to be “clear, concise,
29
(Fernandez, 2004), pg. 50
30
(Kelleher, T., 2006) Pg. 22
17
and strategically executed. A key understanding of corporate and product brand is
essential to success of any brand strategy.”
31
In a company that is represented by a person, this individual acts
essentially as the “corporation.” It is useful to consider the impact of these
individuals on the businesses that they represent, how their influence might differ
from the typical corporate leaders, and how they are viewed by their target
audiences. In these cases, internal audiences would be smaller in size, but they are
still an important part of representing the person’s brand. Individuals in this group
could include those who are hired by the person, such as publicists, accountants,
fashion designers, and other support personnel. These individuals may be direct
employees. However, if they work as independent contractors with lists of clients,
their relationship with any one client will differ from the relationships between
direct employees and a corporation.
Employees form a group that not only is influenced by internal
communication by the individual, but also by external groups. External groups'
images of the organization can influence employees' images through the feedback
they receive during the service encounter or any other communication with
customers.
32
Those that are in the external audiences for a corporation or person
may be influenced by images that are coming from the employees as well as other
31
(Fernandez, J., 2004), pg. 50
32
(Manto, G., & Wilson, A. (2001). Corporate reputation management: ``living the brand''.
Management Decision, 39(2), 99-104.)
18
means of communication, such as the media.
33
This is one reason why there needs
to be strong internal communication channels with the employees of the
“corporation.”
Gotsi Manto and Alan Wilson argued that employees are different from
other audiences for a corporation.
34
According to these researchers, employees are
viewed as “brand ambassadors” to the corporation, and this only works if they
believe in the company, or “live the brand.”
35
In the study that Manto and Wilson
conducted, one participant said that “the public increasingly wants to know about
the companies that stand behind the brands and products presented to them.”
36
The
correspondents in their study further agreed that “people and their talent are
increasingly being recognized [sic] by organisations [sic] as their most important
assets towards building a favourable [sic] corporate reputation.”
37
If employees do not like the leadership or the image that is being presented
to the public, they will be less likely to believe in the corporation. These changes
in the view of the company among employees could happen in a time of crisis.
External Communications
The other type of communication that a company or individual with a
corporate personality would use is external communication. External
communication occurs when a person or company is conveying key messages to
33
(Manto & Wilson, 2001)
34
(Manto & Wilson, 2001)
35
(Manto & Wilson, 2001)
36
(Manto & Wilson, 2001)
37
(Manto & Wilson, 2001)
19
others outside the organization. Some of the strategies that can be used in external
communication include conducting interviews with the media, holding press
conferences open to the public, and providing information to newspapers.
Individuals or entities may “represent their organizations to external publics,
advocate for the organization, conduct research, and generally play an active role as
the ‘public face’ of their organization.”
38
Individuals who are part of the
immediate external audience group, such as newspaper reporters, have a large
amount of influence over other key audiences of the corporation or individual in a
crisis situation, so it is important to recognize the impact and perception that this
group can create.
The person who communicates with these entities would be a spokesperson.
This person would be the “image” or “public face” of the company, and should
ensure that he or she represents the organization in a professional and positive
manner. The spokesperson needs to have crisis management and communication
training, along with training for working with the media. The duties for the
spokesperson include being present at special events and press conferences, serving
as the representative at gatherings that the corporation is sponsoring, and possibly
maintaining a corporate blog to communicate to stakeholders, customers, and
employees. A spokesperson could be someone from the communications
department, or even the CEO of the corporation.
38
(Kelleher, T. , 2006), pg. 22
20
Another key party for a corporation is a third party endorser. These
individuals are similar to a spokesperson, but they do not have any formal
affiliation with the company. Although these individuals have no formal
connection or ties to a corporation, they want to get the message across to other
target audiences that they like the corporation or the products and services that they
offer. Some examples of third-party endorsers would be customers who like a
product or members of an interest group who support a particular cause.
A strong relationship with both internal and external audience members can
help ensure success in a negative situation like a crisis. These good relationships
are characterized by “the transactions that involve the exchange of resources
between organizations.”
39
In order for the corporate personality to survive a crisis,
strong relationships with both external and internal publics must be maintained.
Good channels of communication will provide information and sources internal and
external publics may need.
39
(Kelleher, T., 2006) pg. 60
21
CHAPTER TWO: LITERATURE REVIEW
Corporate Identity
Corporate identity has been defined in different ways. What John M.T.
Balmer calls corporate identity will be compared to what David A. Whetten and
Paul Godfey refer to as “organizational identity.”
40
On the other hand, University
of Maryland’s James E. Grunig defined corporate identity as corporate image,
while Fombrun and Van Riel defined it more as corporate communications.
41
Grunig states that corporate image is more of the visual component of what makes
an organization stand out, including its logo and trademarks.
42
In terms of Public
Relations practitioners, Grunig also states that their job is based on “image making”
and developing the corporate image to communicate to various audiences of the
corporation.
43
All of these authors defined corporate identity or gave it a different term,
but the characteristics of all of these terms are similar to each other. The “identity
mix” developed by Klaus Birkigt and Marinus M. Stadler in 1986 included four
elements used to discuss an identity for a corporation: personality, behavior,
communication, and symbolism.
44
These are just some of the characteristics of
what these individuals in the field of public relations and communications feel
40
(Balmer, J. M. T. "Corporate identity, corporate branding and corporate marketing: Seeing
through the fog." European Journal of Marketing 35(3/4). Pg. 252)
41
(Balmer, pg. 252)
42
(Grunig, J. E. (1993). "Image and Substance: From Symbolic to Behavioral Relationships." Public
Relations Review 19(2): 121-139., p. 127)
43
(Grunig, 1993) pg. 125
44
(Balmer), pg. 261
22
defines the term of corporate identity. Corporate identity raises a lot of questions
from members of the business and public relations field. In Table I, Balmer
investigates how a particular business’s actions and strategies relate to their
relationships with other groups.
45
Corporate identity also is determined by the
perceptions of others and how the corporation’s reputation compares to their
competitors in their respective industries.
Table 1. Table III from John M.T. Balmer (2001), “Corporate identity, corporate
branding and corporate marketing: Seeing through the fog,” European Journal of
Marketing, 35 (3/4), pg. 257.
45
(Balmer), pg. 257
23
More than anything, a corporate identity is comprised of many different
elements, and there are some elements that are more valuable to a particular
audience than another. For example, in a crisis situation, there might be some who
view a corporation’s culture to be more valuable in determining whether they will
be a success or failure. Final conclusions will depend on the person or group that is
analyzing the corporation and what characteristics of the corporate identity they
deem to be the most valuable to them.
Corporate Branding
One of the key aspects of having a corporate brand is consistency, and to
maintain the same image over a period of time among key target audiences.
“Consistency has been widely acknowledged as a core principle of successful brand
development.”
46
Colin Jevons states that a brand “distinguishes a product from its
unbranded counterpart through the sum total of consumers’ perceptions and
feelings about the product’s attributes and how they perform.”
47
David Bernstein argues that a brand name “associates the physical product
with the values of something else.”
48
For Bernstein, a brand should stand for more
than just the product, and must represent more than just the surface of the
corporation. Bernstein also states that for effective brands, the “link between the
46
(Knox, S. and a. D. Bickerton (2003). "The six conventions of corporate branding." European
Journal of Marketing 37(7/8). Pg. 1009)
47
(Jevons, C. (2005). "Beyond products brand management: Names, brands, branding: beyond the
signs, symbols, products and services." Journal of Product & Brand Management 14(2). Pg. 118)
48
(Bernstein, D. (2003). "Executive Perspective: 2 Corporate branding – back to Basics." European
Journal of Marketing 37(7/8)., pg. 1139)
24
product or corporation and the association should not be arbitrary. The brand must
be rooted – and seen to be rooted – in the product.”
49
The brand identity for the
brand “should be about truth: the truth of the product (i.e. physical) and truth-to-
oneself (i.e. psychological).”
50
Compared to product branding, corporate branding is considered to be
“more complex by managers conducting these practices at the level of the
organization [sic], rather than the individual product or service, and the requirement
to manage interactions with multiple stakeholder audiences.”
51
Knox and
Bickerton identify six conventions of corporate branding: brand context, brand
consistency, brand conditioning, brand continuity, brand construction, and brand
confirmation.
52
To better understand corporate branding, it is important to carefully discuss
brand personality. Brand personality has been defined as “a brand’s image and
identity communicated through its personality....”
53
A brand that has a personality
can be “a product or service, which a customer perceives to have distinctive
benefits beyond price and functional performance.”
54
All of the branding elements
need to be consistent over a period of time to establish the personality for the
brand. Effective branding results in a number of advantages. “Consistency between
49
(Bernstein, 2003), pg. 1139
50
(Bernstein, 2003), pg. 1140
51
( Knox, S. and a. D. Bickerton, 2003) pg. 999
52
(Knox, S. and a.D. Bickerton, 2003), pg. 1012
53
(David O. James, M. Lyman, et al. (2006). "Does the tail wag the dog? Brand personality in brand
alliance evaluation." Journal of Product & Brand Management 15(3).)
54
(Knox, S. and a. D. Bickerton, 2003) pg. 999
25
attitudes, beliefs and product category images enhance the potential for brands to
transfer these images and personality to a new product.”
55
Brand personality for a
corporation is also an “important measure to include as consumers form
relationships and attachments with brands that can be communicated through
human personality descriptors.”
56
Consistency for a corporation can often
determine if it will weather a crisis or not.
55
(David O. James, M. Lyman, et al. (2006). "Does the tail wag the dog? Brand personality in brand
alliance evaluation." Journal of Product & Brand Management 15(3). Pg. 175)
56
(David. O, James, M. Lyman, et al. (2006), pg. 175
26
CHAPTER THREE: METHOD
Overview of Corporations with Personalities
In this thesis, the author will investigate a case that that illustrates one of the
different degrees of overlap among individual and corporate personalities, and
explore how these entities fared during a crisis. The Coors Boycott Case provides
an example of a family name that is closely linked to a corporation. The author will
examine the corporation’s response to the 1970s boycott issue and explore how
most of the perceptions of the corporation were linked to external perceptions of
the Coors family. The author interviewed Brenda Lynch, Senior Vice President of
The Rogers Group, about the case. Lynch is considered to be one of the leading
experts in the field of global brand image.
Before determining what Coors did in responding to their respective crises
that was successful or not, it is helpful to look at other companies with distinct
personalities. Ben & Jerry’s is an example of a company that displays a clear
corporate personality through its donations and commitment to corporate
responsibility.
57
One of the main characteristics of Ben & Jerry’s before it was
sold was “we are a great product and we give back a lot.”
58
This was based upon
the values that were set by the founders of the Ben & Jerry’s company, Ben Cohen
and Jerry Greenfield.
59
Brenda Lynch says that Ben & Jerry’s is very marketable
57
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
58
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
59
("Ben and Jerry Company History Timeline." Retrieved January 18, 2007, from
http://www.benjerry.com/our_company/about_us/our_history/timeline/)
27
to its audiences because the company “makes decadent products (cost and calories),
but consumers feel less guilty because they are helping the organization further
their cause.”
60
Red Bull
An example of a corporation that has been known for its image and reputation
as a “bad boy” company is Red Bull. Red Bull deliberately sold this attitude to
push itself on the edge with their sports while having fun. Red Bull’s audiences,
according to Brenda Lynch, “like the lifestyle that the product represents, and
consumers want to buy their product to try to get into the inside group.”
61
Another
key group for Red Bull is the older generation, who want to feel younger and live
on the edge. This bold image does raise some challenges for Red Bull executives if
they experience a crisis situation. For example, what would happen if an athlete
was killed during an athletic competition, and he was sponsored by Red Bull?
Even though Red Bull would not be responsible for the accident, individuals may
believe that the company had some part in it due to their reputation as living hard
and fast. At this point, Red Bull can’t stand up and say that they are a “Family
Product.” What they can do is state that their logo is on the athlete and that they
pushed their culture too hard and encouraged the “live-on-the-edge” attitude among
its audiences.
62
60
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
61
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
62
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
28
In the cases of Ben & Jerry’s and Red Bull, the corporate personality is the
main “self” available to public view. Crises could occur for these organizations, as
in the suggestion that a Red Bull-sponsored athlete could be killed or injured, but
the organization’s response and outcomes to such a crisis would be fairly
predictable. The focus of this thesis is to explore crisis situations in which more
than the general corporate personality is involved.
Walt Disney Company
Another firm that has dealt with challenges to its reputation and personality
is the Disney Company. Disney projects a strong image of being the “happiest
place on Earth,” but what happens when something goes wrong?
63
Their image is
severely damaged when an accident occurs, contradicting their “safe” environment
image.
64
Disney’s target audiences will have difficulty accepting the fact that the
organization is having “problems” when they are supposed to be this perfect and
heavenly place where nothing negative happens.
This is an example of a corporation with a very strong reputation and
personality. When they have a crisis that could significantly impact both elements,
the company will have to deal with it immediately and have strong communication
strategies in place. Although Disney historically has been tightly linked to Walt
Disney and other Disney family members, the influence of these individual
63
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
64
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
29
personalities are not as strong in today’s corporate community. Disney’s
contemporary corporate personality is much more general than in the past.
Michael Milken and Milken Foundation
According to Brenda Lynch, an example of an organization that has had
challenges in dealing with associated individual personalities is the Milken Family
Foundation.
65
The founder, Michael Milken, is a well-known convicted felon, and
this aspect of his reputation will follow him wherever he goes. With the power of
the Internet and access to information today, it is very easy for anyone to find out
information about a person or corporation, and it is even easier to find out what a
well-known person has done that could damage their reputation and personality. It
would be hard for the Milken Foundation to separate itself from Mike Milken,
since “he is one of the founders and the foundation’s values and mission statement
are based on the Milken Family.”
66
In essence, the Milken Foundation will have a
difficult time communicating to its key audiences that the foundation does not
share its founder’s criminal values. This is a clear example of how “a person
tightly associated with an organization might affect the corporate personality
negatively, to the point where the corporation might never recover.”
67
Only time
will tell whether or not the Milken Foundation will survive this particular crisis and
resurrect its reputation among its publics. However, some corporations have
65
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
66
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
67
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
30
managed to maintain a reputation that differs from their significant individual
personalities. For example, J.D. Rockefeller had a negative personal reputation due
to some of his questionable business practices, yet his foundation has managed to
distance itself from that reputation.
Sean “P. Diddy” Combs
In 2006, Sean Combs discovered that he was not the only person in the music
entertainment field with the nickname “P. Diddy.” Richard Dearlove, a music
producer in Great Britain, had used the nickname “Diddy” since 1992.
68
Dearlove
is a well-known London-based music producer, and he is best known for producing
hits such as “Atomic” and “Give me Love” in Great Britain, with both songs
reaching the top 25 on Britain’s music charts.
69
Combs agreed to drop the Diddy
name as part of an out-of court legal settlement with Dearlove.
70
Combs agreed to
"rebrand his commercial activities" in Britain and would "no longer be able to trade
in the U.K. as 'Diddy”' as part of the agreement.
71
Combs has other names that he
has used since he first began as a rapper, including “Puff Daddy,” Sean “Puffy”
Combs, “Puffy Combs,” and “Diddy.” Fortunately, Combs named his successful
fashion line after his real name “Sean John.”
The Sean “P. Diddy” Combs case illustrates the extreme end of our
individual-corporate personality continuum in which Combs and the corporation
68
(September 10, 2006). "Sean Combs to drop Diddy nickname in UK." Retrieved December 21,
2006, from http://www.cbc.ca/arts/story/2006/09/10/diddy-combs-britain.html.
69
("Sean Combs to drop Diddy nickname in UK,” 2006)
70
(2006). "Sean Combs Forced To Drop 'Diddy' Name In Britain." Retrieved September 23, 2006,
from http://abclocal.go.com/kgo/story?section=entertainment&id=4550001.
71
(“Sean Combs Forced to Drop ‘Diddy’ Name In Britain,” 2006)
31
are one and the same. In contrast to corporations in crisis, Combs is at greater risk.
On the other hand, as a single entity, Combs has much more personal control over
his brand and reputation than most leaders of large corporations. In this crisis,
Combs had to deal with several messages that made him appear to be a person who
was trying to take away someone else’s financial gains by taking over his name.
Dearlove said that Combs was doing this when he decided to change his marketing
name from “P. Diddy” to just “Diddy.”
Dearlove stated the following on his view of the lawsuit and Diddy
controversy:
It doesn't matter how big people become. This is my name. I've been
successful too. I'm not a global megastar, but what I do is valid. I'm really
happy and relieved. I didn't want to go to court. It was me versus something
enormous and I had a year of stress with legal proceedings hanging over
me.
72
With this message, Dearlove is trying to make it appear that he is the victim in this
situation caused by Combs. Combs not only had to address this message from
Dearlove, but the reaction that this would have among his audiences in Great
Britain and the United States.
As part of the settlement with Dearlove, Combs not only had to pay for the
legal fees of the lawsuit, but he also had to pay damages to Dearlove. Combs had
to pay Dearlove about $21,000, and the cost of the legal fees of 100,000 pounds
72
(Butt, R. (September 9, 2006). "Rap superstar to pay £100,000 after DJ 'Diddy' Dearlove says:
hands off my name." Retrieved December 21, 2006, from
http://arts.guardian.co.uk/news/story/0,,1868448,00.html.)
32
(about $200,000).
73
Although he is not able to use this particular nickname, it has
not stopped Combs from using “Diddy” on his newly released CD outside of Great
Britain.
This was a crisis for Combs in many respects, but especially in the sense
that an individual personality that is entirely representing a corporation has
everything at stake. If a crisis goes wrong for the one person organization, then it
is harder for him or her to recover from it. Fortunately for Combs, he does not
appear to have suffered much due to this crisis. However, this case illuminates
some of the challenges that may occur when a name represents not only a person,
but a corporate personality as well. For example, if the well-known juice product
Minute Maid suddenly overnight became Minute Made, would the company lose
all of its brand equity, and would their customers be confused? No entity, large or
small, should overlook the name ownership issue.
However, Combs has faced major image and credibility crises throughout
his career. In 2001, Combs had to appear in court on a charge of gun possession,
but he was eventually cleared.
74
It took a negative event for Combs to change his
nickname from “Puff Daddy” to just “P.Diddy,” a strategic move to distance
himself from the gun possession charge and negative publicity that it generated.
75
Combs has not only had to deal with business crises, but personal and family crises
73
(September 10, 2006). "Sean Combs to drop Diddy nickname in UK." Retrieved December 21,
2006, from http://www.cbc.ca/arts/story/2006/09/10/diddy-combs-britain.html.
74
(Morra, B. (March 31, 2005 ). The busy life of Sean 'P. Diddy' Combs. Toronto Star E04.)
75
(Morra, B. March 31, 2005)
33
as well. In 2004, Combs was sued by his ex-wife for child support of his son,
Justin.
76
Even with these two negative public crises, Combs seems to overcome all
obstacles and re-invent his personality and brand to all of his audiences.
In reality, it is impossible for any corporation or person to go through life
without dealing with crises and negative events. Corporations and individuals need
to keep in mind that their positive characteristics and perceptions are obviously
desirable, but these same characteristics might result in unrealistic expectations
among their key audiences. In those organizations that are closely tied to individual
personalities, the individuals are likely to find themselves affected by the
corporation’s personality and reputation. In a reciprocal fashion, the corporation’s
personality and reputation are equally likely to be affected by the actions of
associated individual personalities.
76
(Morra, B. March 31, 2005)
34
CHAPTER FOUR: COORS FAMILY & COORS BEER CASE STUDY
This case study represents an example of a large corporation whose name
and brand are tightly connected to individual personalities. The Coors Company
was founded by Adolph Coors in 1873, and there has been a family member of the
Coors Family in a leadership position ever since. The Coors name is intimately
associated with the reputation of the company as a whole.
The Coors family and its company have dealt with several crises during
their corporate lifetime. A clear example of where the Coors family personality
fueled a particular crisis was in the late 1970s when there was a boycott of Coors
products. The Coors boycott case study shows that the characteristics and traits
that were attributed to the company during the crisis and were the main concerns of
their target audiences originated from the Coors family itself. The author will also
examine and evaluate the strategies and key messages Coors implemented during
the crisis, and come to conclusions about how the company dealt with its
personality in the crisis and the impact of their actions.
Background
The Coors Company is the third largest beer brewer in the United States and
sells 15 brands.
77
The company is traded publicly on the New York Stock
Exchange and the TSX.
78
The Coors symbol that is traded on the New York Stock
77
("Coors Company Information / About Us." Retrieved October 2, 2006, from
http://www.coors.com/about_facts.asp.)
78
. ("Coors Company Information / About Us.")
35
Exchange is TAP.
79
The founder of the Coors Brewing Company was Adolph
Coors, who was born in 1847.
80
In 1873, three years before Colorado became the
38th state, Coors joined Jacob Schueler to open "The Golden Brewery” in
Colorado.
81
Seven years later in 1880, Adolph Coors became sole owner.
82
From
1916 to 1934, Adolph and his three sons found ways to keep the brewery open and
their operations profitable during the 18 years in which Prohibition prevailed in the
United States.
83
Coors was more fortunate than most U.S. brewers during the time period in
the early 1900s. Many of the brewing companies were dramatically affected when
Prohibition occurred in the United States in 1916, but Coors was one of the
companies that survived this particular industry crisis. Of the 1,568 breweries
operating in 1910, only 750 reopened after Prohibition was repealed in 1933.
84
In
1945, the year that World War II ended, Coors produced 300,000 barrels of beer,
double the prewar level.
85
During the next decade, sales continued to climb,
topping 1 million barrels in 1955.
86
In 1978, Coors introduced the popular Coors
79
.("Coors Company Information / About Us.")
80
"Coors Historical Timeline." Retrieved September 22, 2006, from
http://www.coors.com/news_fact.asp.
81
("Coors Historical Timeline")
82
. ("Coors Historical Timeline")
83
("Coors Historical Timeline")
84
("Coors Historical Timeline")
85
("Coors Historical Timeline")
86
("Coors Historical Timeline")
36
Light brand, which was released during the Coors Boycott crisis.
87
The author will
discuss this situation in greater detail later in this thesis.
A few years later in 1991, Coors made a breakthrough by making its
alcohol products available in all 50 states.
88
Coors took another dramatic step
nearly a decade later, when they participated in a very large merger with another
brewing company. On February 9, 2005, Coors merged with Molson Brewing
Company in a merger of equals that created a new company, Molson Coors
Brewing Company
89
Today, the Molson Coors sales amount to 41.2 million
barrels from continuing operations in 2005 alone.
90
There are approximately
10,200 employees working for the Molson Coors Company and since the merger
with Coors, the Molson Coors Company has increased the number of breweries to
eleven
91
.
The organizational culture at Molson Coors states that they are a better
company because of the merger, and that the merger represents the “combination of
two of the oldest family breweries in North America, bringing the best of both
together in one organization.”
92
Molson Coors wants to maintain the values of
both Coors and Molson with this merger. Some of their stated standards include
87
("Coors Historical Timeline")
88
("Coors Historical Timeline")
89
("Coors Historical Timeline")
90
("Molson Coors Fact Sheet." Retrieved October 2, 2006, from
http://www.molsoncoors.com/fact/index.html.)
91
(“Molson Coors Fact Sheet”)
92
(“Molson Coors Fact Sheet”)
37
the following: High standards of ethical behavior, individual accountability and
transparent disclosure ingrained in every employee, officer and director.
93
Coors ensures that part of its organizational culture is taking responsibility
in their marketing. Coors attempts to reach at least 70 percent of adults who are
over the age of 21.
94
Coors also “develops responsibility advertising and public
service announcements aimed at preventing underage drinking, drunk driving and
other misuse and abuse of alcohol beverages.”
95
According to their web site, Coors
was “the first brewer to incorporate alcohol awareness messages into its national
product advertising.”
96
If customers have a complaint about the advertising of
Coors in any way, they can contact the corporation’s Consumer Information
Center. This shows transparency and openness to two-way communication
between the corporation and its audiences.
Employees at Coors have an important role in determining the personality
of the corporation. Not only do these individuals help develop the products at
Coors, but they also can be ambassadors for the company among other audiences.
In its mission statement to employees, Coors states that:
Coors Brewing Company has come to be defined as much by our people as
our products. In order to be the best in the beer business, we have to start
with the best team. We also know that in order for us to continuously
improve our performance we have to invest in our people and create a great
93
(“Molson Coors Fact Sheet”)
94
. "Coors Responsibility in Marketing Web Page." Retrieved October 6, 2006, from
http://www.coors.com/part_resp_marketing.asp.
95
(“Coors Responsibility in Marketing Web Page.”)
96
(“Coors Responsibility in Marketing Web Page.”)
38
place to work…. The ability to attract, develop, retain and reward the right
people is a primary force influencing our business strategy.”
97
Coors has had an unusually high-profile image in the worlds of politics and
entertainment. According to a case study prepared by Paul Agenti at the Tuck
School of Business at Dartmouth, Coors has enjoyed a “mystique” resulting from
being viewed as “America’s cult beer.”
98
Coors beer was the only one available on
movie sets with famous film stars such as Clint Eastwood and Paul Newman,
which helped Coors create an image of being unique and elite.
99
Coors is not only
a staple of the entertainment industry, but the name also appears in politics as well.
Coors the corporation was involved with political issues, and one of its founding
family members ran for government office. Coors family members were also
regular visitors to Washington D.C., where they visited Presidents Ford and
Eisenhower over the years.
100
One of Coors’ corporate and individual personality
traits is conservative politics. Peter Coors, former CEO of the Coors Company,
also ran for the Colorado Senate seat in 2004 as a Republican candidate. The
corporation is perceived as having taken conservative positions, such as a distrust
of organized labor. In each of these domains, the overlap between the Coors family
individual personalities and the personality of the Coors Company is quite evident.
97
("Coors People Fact Sheet." Retrieved September 22, 2006, from
http://www.coors.com/news_fact.asp.)
98
(Argenti, P. A. (2001). "Tuck School of Business School at Darmouth: Adolph Coors Company
(A)." Retrieved January 15, 2007, from
http://www.tuck.dartmouth.edu/faculty/publications/cases.html. Pg. 3)
99
(Argenti, P.A., 2001), pg. 3
100
(Argenti, P.A., 2001), pg. 3
39
Competitors
In Figure 5,“The context of corporate brand management” from Simon
Knox and David Bickerton (2003), “The six conventions of corporate branding,”
European Journal of Marketing, 37 (7/8), pg. 1007, one of the elements that makes
corporate brand management is a competitive landscape.
Figure 5: The Context of Corporate Brand Management
Each corporation in their respective industry has one or more other
companies that are targeting the same audience members for their particular
product or services. Coors is unique because it has competitors in the beer
industry, and among other corporations whose names come from a family. For
example, in the case of the corporations in the beer industry, the competitors for
Coors would be companies like Anheuser-Busch, Samuel Adams, and Miller. All
of these corporations are in the same industry and targeting a specific demographic
of people. One of these companies, Anheuser-Busch, was also an important
40
competitor during the Coors Boycott crisis, which will be later discussed in this
case study.
Coors is not only competing with others in their industry, but with other
corporations that are represented and have a corporate personality that is based on a
particular person. For example, the other corporations that Coors would be
competing with would be the Ford Company and Hilton Hotels to name a few.
Even though these companies are in different industries, Coors in a way competes
with them by how their reputation as a family-owned corporation is viewed by the
public at large. Each of these companies have had their respective crises among
their associated family members, but these organizations have survived and the
family name continues to be viewed as part of the corporation’s personality.
Crisis
This case study shows that the treatment of the Coors employees was one of
the reasons why there was a boycott of all Coors products in the 1970s. Beginning
in the 1930s, Coors had jousted with the United Breweries Workers Nationals, or
the UBW.
101
The workers who belonged to this labor union had experienced
negative encounters with Coors long before the 1977 boycott. In 1953, UBW held
a strike against Coors, which ended when management at Coors quickly settled
with the union.
102
101
(Argenti, P.A., 2001), pg. 4
102
(Argenti, P.A., 2001), pg. 4
41
A boycott of Coors products occurred between 1977 and 1978. This crisis
began on April 5, 1977, when 1,472 members of Brewery, Bottling, Can and Allied
Industrial Union Local No. 366 walked out of the Coors Brewery in Golden,
Colorado.
103
The members walked out because of the issue of human rights: all
employees at Coors had to participate in a mandatory polygraph test.
104
Coors
management claimed that the polygraph tests were used because they felt that it
“was necessary to detect applicant's health problems or malicious intent against the
company or the family.”
105
The Equal Rights Association (ERA) joined the boycott for several reasons.
They claimed that Coors had “unfair polygraph tests” conducted on their
employees.
106
Another reason for the dispute was the fact that the employees of
UBW 366 wanted “a 10 % wage increase and better retirement benefits.”
107
The
labor union was pushing the senior management at Coors to meet their demands,
and all of the employees at Coors who were part of the UBW union voted for the
strike.
108
The AFL-CIO decided that they wanted to campaign to not only help the
labor union strike, but they decided that they wanted a nationwide ban of all Coors
products.
109
The AFL-CIO also had an advantage in this crisis by having someone
103
("Coors Boycott and Strike Support Coalition of Colorado Records Collection." Retrieved
October 6, 2006, from http://carbon.cudenver.edu/public/library/archives/coors/main.htm l)
104
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
105
("Coors Boycott and Strike Support Coalition of Colorado Records Collection." Retrieved
October 6, 2006, from http://carbon.cudenver.edu/public/library/archives/coors/main.html.)
106
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
107
(Argenti, P.A., 2001), pg. 5
108
( Argenti, P.A., 2001), pg. 5
109
(Argenti, P.A., 2001), pg. 6
42
who knew a lot of inside information about the Coors Company. The person in
charge of implementing the Coors product boycott for the AFL-CIO was a man
named David Sickler, who had worked for the Coors Company for 10 years and left
just before the crisis.
110
Coors management said that it did not support the union,
and that unions had “outlived their usefulness and that the Coors Brewery should
not be a union shop.”
111
In addition to labor unions, other interest groups joined the boycott
movement. There were several issues that these interest groups had with the Coors
Company and the Coors family. They accused Coors and members of the Coors
Family of race and sex discrimination.
112
In 1975, Coors owners were faced with a
lawsuit that stated that they participated in “discrimination of hiring” by the Equal
Employment Opportunities Commission.
113
Coors was accused of being anti-labor and anti-women as a corporation.
114
This charge was part of the hiring discrimination accusations which Coors was
facing during this crisis. Other interest groups that were against the company also
accused the Coors Company of being a polluter and being “anti-Earth.”
115
Most of
these “problems” that people raised were not necessarily based on actions of the
corporation specifically, but on the leadership of the corporation. When these
110
(Argenti, P.A., 2001), pg. 7
111
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
112
."Coors, the RIGHT beer now." Retrieved October 4, 2006, from
http://www.corporations.org/coors/index.html.
113
(Argenti, P.A., 2001), pg. 6
114
(“Coors, the RIGHT beer now.”)
115
(“Coors, the RIGHT beer now.”)
43
groups said that they have a problem with Coors the Company, they really meant
that they had an issue with the Coors family and who they are as people. In this
case, the individual personalities were equated with the corporate personality.
Interest groups also accused the Coors family separately from the company
for other reasons. They stated that the Coors Family members support Nazi-
sympathizers.
116
The groups specifically stated that Bill Coors was “a racist,” and
said that he “paid employees to attend a mandatory meeting where he urged
employees of the Adolph Coors Company to write their congressman opposing the
Civil Rights Act.”
117
The ERA stated that in 1983, Readers Digest identified Joe
Coors as "one of the country's leading anti-environmentalists.”
118
With the family’s name as part of the corporation, not only was the future of
the company at stake, but the Coors family’s reputation was also at risk. This crisis
was directed primarily towards the Coors family itself, but the result actually
impacted the entire Coors Company negatively. Coors shares decreased by 12
percent and the amount of shipping went down 5 percent during the time period of
the crisis.
119
Coors said that the boycott was not the reason that their shares
decreased, but it was because they were implementing new marketing strategies
and introduced Coors Light in 1978.
120
116
(“Coors, the RIGHT beer now.”)
117
(“Coors, the RIGHT beer now.”)
118
(“Coors, the RIGHT beer now.”)
119
("Coors Boycott and Strike Support Coalition of Colorado Records Collection." Retrieved
October 6, 2006, from http://carbon.cudenver.edu/public/library/archives/coors/main.html.)
120
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
44
After the Coors Boycott case, another Coors family member received media
attention that impacted the reputation and image of the Coors Company. This was
not the first time that a member of the Coors family was involved in a crisis. Peter
Coors was charged with a DUI on May 28, 2006.
121
Coors at this time was the
Vice Chairman for Molson-Coors Brewing Company and he pleaded not guilty to
charges of driving while under the influence.
122
This situation constitutes a serious crisis for Coors because Peter Coors had
appeared in “Drink Responsible” advertisements for Coors which appeared on
television and in other types of media. Coors is also a well known person in
Colorado, not only as a high profile person at the Coors Company, but in the
political arena as well. In 2004, Coors ran for the U.S. Senate for the Republican
Party in Colorado. The personality of the Coors Company may have been
impacted dramatically by this incident. The Coors Company states that they want
their customers to drink responsibly, but if the head of Coors at the time is under
arrest for a DUI, the image and reputation of the family and the company are at
risk.
Early Warning Signs
There were several warning signs in this crisis for the Coors family and the
company. The 1977 Boycott was not the first time that Coors had issues with labor
121
(July 7, 2006). "Beer executive Pete Coors pleads not guilty to DUI." USA Today, from
http://www.usatoday.com/news/nation/2006-07-19-coors-plea_x.htm.
122
(“Beer executive Peter Coors pleads not guilty to DUI,” 2006)
45
unions and their employees. Since the 1950s, the Coors Company has dealt with
several confrontations with their labor unions. Coors should have been aware that
this would be a relationship to monitor and it would be necessary to prepare a
strategic plan to address union concerns. Another key early warning sign that
Coors should have noticed is the fact that it took a nationwide boycott for them to
implement a marketing campaign for the first time in their corporate history.
123
Coors leaders were confident that they were well known and that their personality
would help them survive through any type of situation. When companies believe
that they are on top, then they are not looking at potential events that could harm
them financially and image wise. Coors should have developed strategic crisis
communication plans to deal with negative perceptions and prepared key messages
to have ready for the media and public.
It seems to have been common knowledge that the Coors family did have
some association with some of the groups that were identified in the boycott crisis
by interest groups. The Coors family should have realized the impact that they
would have on the corporation if people began to think that everyone at the Coors
Company was associated with these groups. Also, the Coors family should have
known that their views of unions would have been an issue for their employees as
123
(Argenti, P. A. (2001). "Tuck School of Business School at Darmouth: Adolph Coors Company
(A)." Retrieved January 15, 2007, from
http://www.tuck.dartmouth.edu/faculty/publications/cases.html.)
46
well as with labor unions. Because of the tight association between the family and
the corporation, people believed that the Coors Company was also anti-union.
Another issue that should have been anticipated was the impact of attitudes
about the environment, although environmental concerns represented a fairly new
trend in the 1970s. There was evidence that showed that the Coors Company was
causing pollution, which brought in the environmentalists to the boycott case. In
addition, Coors management campaigned against the Equal Rights Amendment
during this same time period. Jennifer Floto, associate professor at USC
Annenberg School for Communication and longtime Public Relations practitioner,
said “It was like the final nail in the crisis coffin. At rallies and debates on the
amendment, advocates like Maureen Reagan (oldest daughter of the soon-to-be
president) openly chastised Coors and called for consumers to stop buying all
Coors products.”
124
Floto also stated, “Headlines all over the country said things
like ‘Joe Coors Forgets His Name Appears on the Beer Can.’”
125
During the crisis,
the Coors family seemed unaware of the impact of their actions on not only their
company, but also on their own family identity.
A more proactive approach for Coors would have been to evaluate their
weaknesses. The corporation could have carefully evaluated the strengths and
weaknesses of their close integration with the Coors family and their values. The
issues associated with politics, the environment, and employment issues could be
124
(February 1, 2007). Personal Communication with Jennifer Floto. Los Angeles.
125
(February 1, 2007). Personal Communication with Jennifer Floto. Los Angeles.
47
traced back to the Coors family. Coors family members had strong public views on
certain issues of concern to interest groups and others. Adding to the perception of
this tight association was the fact that leadership positions at the Coors Company
were restricted to family members.
During the Crisis
Coors attempted several strategies to deal with the boycott crisis. Coors felt
that they had to get their story across to not only their usual audiences, but also to
the general public. Bill Coors, CEO of the Coors Company during the Coors
Boycott, stated “There was no lie they wouldn't tell. No one knew about Coors,
and we had no choice but to tell the story.”
126
Coors tried to make customers think more about the release of their new
Coors Light product than about the boycott from interest groups. Coors tried to
justify the polygraph tests by saying that they were necessary to make sure that
employees were healthy and that they were not in a mental state to do harm to the
company.
Coors also had to deal with negative marketing and advertisement
campaigns from their competitors in the beer industry. In 1979, the Coors
Company launched a campaign to target negative messages that were coming from
Miller Brewing Company and Anheuser-Busch.
127
Coors was in a serious crisis,
and had to do something that they never had to do in their entire corporate history.
126
(Argenti, P.A., 2001), pg. 8
127
(Argenti, P.A., 2001), pg. 3
48
This was the first time that Coors had to develop and implement a marketing
campaign to address accusations from Miller and Anheuser-Busch.
128
Coors also addressed the issues among its employees. Coors wanted to
make sure that all their employees are both physically and mentally healthy to
perform their jobs at Coors. Bill Coors reminded employees that Adolph III was
kidnapped and killed in 1960, so the company and the family wanted to be
proactive about avoiding such tragedies in the future.
129
Coors and the Coors
family wanted to protect and maintain the family name and family image. Coors at
the time also addressed issues that interest groups brought up including sex and
race discrimination and issues of harassment.
During this time, Coors wisely introduced new marketing strategies to
regain a positive image among their stakeholders. As mentioned before, they
introduced Coors Light at the height of the boycott. The product also featured
revolutionary new environmental tap caps for beer cans. This introduction
benefited Coors owners on two fronts. They wanted to have a new product for their
customers and at the same time, present themselves as being an environmentally-
conscious company.
Messages
128
(Argenti, P.A., 2001), pg. 3
129
("Coors Boycott and Strike Support Coalition of Colorado Records Collection." Retrieved
October 6, 2006, from http://carbon.cudenver.edu/public/library/archives/coors/main.html.)
49
The Coors family and Coors wanted to communicate two key messages to
their target audiences: that the polygraph tests were aimed at safety concerns and
protection of the Coors family. The Coors family members are well known people
in the brewing community as well as in Golden, Colorado, so there was some
concern on their part that they would be targets and in harm’s way if they dealt
with unstable employees. Coors officials stated that these polygraph tests were
“necessary to detect applicant's health problems or malicious intent against the
company or the family.”
130
Coors might have been more successful in dealing with this issue if they
clearly communicated the details of the hiring process, noting what each element of
the process meant to the corporation. People interpreted the polygraph tests as
being invasive and against labor union policies, and Coors needed to make it clear
that this was only one way that they were screening their employees.
Another key message that Coors was trying to address in this crisis was the
perception that they were a company that was “anti-union” and “anti-environment.”
There were several statements made by Coors family members that said that they
were against unions. Interest groups such as the ERA generalized these statements
to the entire corporation, claiming that the Coors Corporation shared the family’s
anti-union beliefs as well.
In this case, the Coors family did not address the issue directly, but instead
focused on the fact that they were for the environment, as evidenced by the design
130
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
50
of the newly released Coors Light product. This was one of the strategies that
Coors implemented in this crisis to try to distract its target audiences from the
boycott and focus on their new product. Hopefully, the packaging of Coors Light
would make Coors appear environmentally conscious and draw attention away
from the crisis. The Coors Light product featured a new tab that was good for the
environment, and was one of the key characteristics that Coors wanted to feature.
After the Crisis
The Coors Boycott lasted several years, eventually leading to a resolution
between the ERA and Coors. The boycott continued until 1987, when an
agreement was finally reached between the A.F.L.-C.I.O. and Peter Coors.
131
The
union called off the boycott and Coors agreed not to campaign against the union in
future elections at the plant.
132
This was the resolution that both the interest groups
and Coors agreed upon to end the crisis that was damaging one of the leaders in the
beer industry.
As described by internal documentation, Coors leadership believed that a
1982 “60 Minutes” interview was a turning point in the crisis. Shirley Richards,
who was the director of corporate communications at Coors, was responsible for
preparing Coors representatives for the interview with “60 Minutes” anchor Mike
131
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
132
("Coors Boycott and Strike Support Coalition of Colorado Records Collection.")
51
Wallace.
133
The key spokespeople from the Coors Company for the interview
would be Bill and Joe Coors.
Some of the key messages and points that they wanted to include in this
interview were the following: “Coors has fair hiring practices and is a good place
to work; The boycott is unfair and is carried on by a few rejected union officials;
Coors cares about its employees, its products, its community, and its country;
Coors is not anti-union; Coors makes a unique quality beer.”
134
By stating that
Coors has fair hiring practices, they also addressed the history of their labor union
strikes as well as their policies regarding their employee polygraph tests.
Another key message that they suggested, talking about the “few rejected
union officials,” is direct and factual. Coors would need to have some evidence
and data to prove to “60 Minutes” that this was the case. On the other hand, Coors
wanted to present its side of the boycott story, and the leaders felt that the more
information they gave, the more trusting the public would be. Coors officials also
stated that they cared about their employees and their other audiences, and this was
appropriate to say because there would be a few employees who might not have
participated in the boycott and are still loyal to the Coors Company. Suggesting
that Coors is not “anti-union” may raise some more questions as well like the fair
hiring practice message. The Coors family was definitely on record as being anti-
133
(1983). "Adolph Coors Company (B)." Retrieved January 15, 2007, from
http://www.tuck.dartmouth.edu/faculty/publications/cases.html.
134
(“Adolph Coors Company (B),” 1983)
52
union, and this aspect of the family personality leaked over to the corporate
personality as well.
As a result of the Shirley Richard’s preparation for the Coors family for this
interview, the Coors Interview on “60 Minutes” was the number 2 show for the
week for CBS.
135
Coors received 800 letters from viewers writing about what they
felt after viewing the show, and there were only six with negative statements about
Coors.
136
The interview also changed how other organizations such as Hispanic
groups and college students viewed the Coors Company, and as a result, they lifted
their bans on Coors products.
137
This interview marked a change in the public’s
perceptions of the Coors corporate personality and it changed its personality from a
negative one towards a more positive and receptive personality.
The impact of this boycott on Coors raised several different obstacles that
they will have to continue to address. Since the company was formed and was run
by the Coors family until recently, it will take some time for people to tell the
difference between the company’s values and the Coors family values. The Coors
Company can’t easily separate themselves from the family—their tag line is about
it being a family business. They have to understand the implications of the
association and take the lumps that come with it.
138
The corporation has a record
135
( “Adolph Coors Company (B),” 1983), pg. 7
136
( “Adolph Coors Company (B),” 1983), pg. 7
137
( “Adolph Coors Company (B),” 1983), pg. 8
138
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
53
of not taking in outsiders or anyone who doesn’t have the Coors name into the top
leadership position at the company.
139
The situation that Coors faced is similar to that faced by the Ford Company.
Ford brought in Bill Ford to become the new CEO a few years ago. Bill Ford, who
is the great-grandson of Henry Ford, was brought back in after trouble at Ford. The
Ford Company wanted to bring back the “Ford Family Values,” leading to a
perception of a dynasty that will rise again. In the wake of financial trouble and job
cuts, Bill Ford couldn’t deliver the desired results and was shuffled out of the
corner office.
The conclusion and key message that Coors will have to realize is that in a
crisis situation, no matter what your personality is in the public’s mind, “a last
name doesn’t guarantee anything.”
140
Consistent messages and a clear definition of
the personality of a corporation will go a long way to being proactive in a crisis
situation. Coors learned that perceptions of the company personality and the
personality of the family that started Coors appeared to be one and the same,
making it very difficult to determine what Coors the company really represents.
139
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
140
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
54
CHAPTER FIVE: WHAT WENT WRONG / RIGHT FOR CASE STUDY
Right Strategies
There were many things that Coors did right during its crisis situation. The
audiences that they were targeting with their key messages knew of the company
and who was representing the company. Corporations with distinct personalities
need to make sure that the individuals in their audience group know what their
crisis communication messages are, and have access to that information if needed.
At present, Coors has had a lot of success in its industry, and appears to
have survived its crisis. Coors merged recently with one of the largest brewing
companies in the beer industry, and is still one of the leaders among alcohol
beverage suppliers. Coors remains successful in its markets and is recognizable in
the media as well as among its publics. Coors sponsors many highly publicized
events such as NASCAR and the Super Bowl to gain even more recognition.
Coors showed its true corporate personality in its boycott crisis. Coors
wanted to present to all audience groups the particular reasons why it holds certain
values. At the same time, Coors tried to educate individuals and interest groups
who were raising concerns. The interview that Coors did with “60 Minutes”
presented personal insights into the little-known Coors family, and had positive
results in Coors’ favor. When Coors abandoned its old tactic of “no comment” to
work with the media, the interview presented a more positive picture of the Coors
family as well as the company. Coors officials acted proactively by conducting
55
research and preparing themselves ahead for the interview, and this paid off well
for them.
Even at a moment of crisis while facing possible financial and reputation
consequences, Coors showed what the organization stood for and what its true
corporate personalities were.
Wrong Strategies
The Coors Company had trouble distinguishing the company from the
Coors family in the crisis. Most of the key values raised by interest groups were
targeted at the Coors family, not necessarily the corporation, and that distinction
needed to be made more clearly. The merger with Molson Brewing has allowed
someone other than a family member of Coors to be in charge of the company.
Although this change may be a challenge for the Coors family to accept, it helps
make a distinction between Coors the people and Coors the organization.
The Coors family has dealt with subsequent crises, and their personal and
corporate personalities have been significantly affected. Peter Coors was charged
with a DUI recently. Not only was he the leader of Coors at the time, but he had
also served as a prime spokesperson for Coors regarding responsible drinking. This
type of contradiction looks hypocritical, and can damage both the family and
organizational images among target audiences. Coors is known for being a “family-
based” company, an image it has relied on for 140 years. Coors needs review its
past and realize that today, it is easier than ever to damage a reputation thanks to
56
the Internet and YouTube. The same strategies that may have worked in the past
for them will not be as effective in current times. Coors had to deal with the
traditional media such as newspapers, television, and radio to control the perception
of their corporate personality.
57
CHAPTER SIX: MODEL FOR PERSONALITY CORPORATIONS IN CRISIS
MANAGEMENT
Based on the analysis of this case study, it is apparent that an important step
in crisis management is an awareness of corporate personality. Corporations and
individuals with well-defined personalities sometimes think that since they are so
well known and recognized, they are invincible. These personalities may feel that
they can survive any crisis that may occur. In the case study, Coors assumed that
their name and personality was the key to success and the means to overcome their
respective crises. Unfortunately, a name will only get a corporation so far, and for
an individual—it can determine their entire future.
In order to prepare for a crisis, the “DIVA” model allows corporations and
individuals with strong personalities to think ahead about who they are and what
they need to do before a crisis even happens. Coors has dealt with several crises in
their corporate history, but there will always be other crises in the future. With
today’s technological advancements and the free access to information on the
Internet, both types of personalities need to think ahead and be proactive. A
flowchart of the DIVA model can be examined in Figure 6.
58
Figure 6: The D.I.V.A. Model
The DIVA model focuses primarily on the pre-crisis stage, where a person
or organization will not only determine what type of personality they have, but
what this personality means to target audiences as well as to the corporation or
person. Also, the DIVA model goes a step further by verifying the personality
itself before acting on it. The next step in the DIVA model is action, which would
occur during the crisis. Actions in the DIVA model are based upon conclusions
about the personality arising in previous steps, and they are crafted for each media
outlet as well as for target audiences. The last step of the DIVA model is feedback,
where a personality will evaluate how successful or not the DIVA model was in the
particular crises. Feedback can be conducted through post-crisis research and
internal evaluation of the staff and their duties.
The DIVA model can be used not only for a corporation, but for an
individual with a well-defined personality as well. The risk for the individual is
that they are more dependent on their personality than a corporation is. If a
59
corporation is represented by a single person within the company, and that person
becomes a liability, all that would be needed is a replacement. The key lesson that
can be taken from the DIVA model is that no matter how recognizable or
established a corporate or individual personality might be, taking the time to be
ahead of the game might determine whether or not a personality survives in a crisis
situation.
The author believes that Coors acted like “divas” in their case studies
because they felt invincible in their crisis situation, and were not as prepared as
they should have been. In essence, “divas” are like all other corporations and
individuals, but just held to a higher but different standard. These “diva”
personalities are held to such a high standard that when they fall in a crisis, they are
criticized more harshly and the effects are more dramatic. Although in some cases
it is unfair, if these personalities are aware about the effects of their actions, they
might be more proactive in protecting their brand image.
This section of the thesis will outline the steps and present the different
ways corporations and individuals with personalities can use the DIVA model in a
crisis situation. This section will conclude with suggestions for improving the
DIVA model with future additions.
• D: Define and Determine the Personality
It is important to know the characteristics and perceptions that form the
corporate personality. It is also important to determine if the personality of the
corporation is based on the leadership or senior management of the corporation, or
60
based upon the perceptions that it has among its target audiences. This can be done
if a person or company conducts primary research among their key audiences to
find out what the perceptions and views are about them as a company.
The different types of primary research that can be done include the following:
interviews, surveys, and media impressions. Another way to determine the type of
personality a corporation or person may have is to view their actions during a crisis.
The public and others can come to a lot of decisions about a company or person
depending on how they deal with a crisis situation, and can be labeled with certain
characteristics from these actions.
• I: Interpret what this personality means for corporation
For both a corporation and an individual, it is important to interpret what their
personality means for the corporation or themselves. For example, if the
personality is negative, what are the financial implications for the corporation?
Corporations and individuals need to conduct research among target audiences and
measure perceptions and views of the corporation. This can be done by creating a
Strengths, Weaknesses, Opportunities, and Weaknesses analysis, or a SWOT, for
having this particular personality. The SWOT analysis measures a person’s or
company’s strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses exist within the corporation, and these elements can
be controlled through internal communication and strategies as well as being
controlled by the corporation itself. Examples of strengths and weaknesses include
employee communication, strong loyalty base among employees and good internal
61
communication strategies. Opportunities and threats on the other hand are
elements that occur outside of the corporation or out of the control of the person or
company. Examples of opportunities and threats to a corporation or individual
include negative media attention, interest groups, and other external factors
(weather, natural disaster) which are out of the control of the corporation or
individual involved.
. In the Coors case, the company should have realized that the name of the
company will be viewed the same as the Coors family. It should have not been a
surprise to them that they were going to be targeted by interest groups that were
labeling the company with the same negative labels that they were being applied to
the Coors family. The interest groups were doing this because they felt that the
Coors family and the Coors company were one and the same.
In both cases for an individual and a company, it is important to interpret what
their personality means, how it influences their audiences, and how it will affect
them in a crisis situation.
• V: Verify Personality among Target Audiences
The next step in the DIVA model is verifying the corporate personality among
the respective target audiences. It is important to make sure that you do verify
what personality is being associated with the corporation or individuals involved
among target audiences. In order to make sure that the right messages are getting
across, it is vital that a corporation or person understands that they are projecting
their true personality towards their target audiences.
62
This step is illustrated in Figure 3, “The six conventions of corporate brand
management.”
141
One of the characteristics shown in this figure was brand
confirmation. For a corporate personality, verifying and confirming how the public
and others view them is an important proactive step to take to avoid future crises.
The individuals or groups that could be categorized as those in a target audience
include the following: employees, media, interest groups, government regulators,
etc. It is important to consider both external and internal audiences, which most
individuals and companies do not do. Internal audiences may be considered to be
more important in a crisis situation since they can be used as ambassadors to the
companies’ external audiences. The way that a corporation or individual could
verify their personality among their target audiences is that they could monitor the
media trends and coverage they receive. This can be done by viewing what
industry analysts and other third party endorsers say about the particular company
and measure to see how much that correlates with what others view as the corporate
personality.
To verify an individual’s or a company’s personality, it is important to do
primary research. To do this, it is important for both entities to conduct interviews
and surveys to measure what the perceptions and characteristics of their target
audiences. The resulting data should show what people see in both the company
and person, and this will allow them to change their messages and strategies to
adapt to these characteristics or perceptions. It will also allow both a company and
141
(Knox & Bickerton, 2003), pg. 1012
63
an individual to be proactive and be better prepared for a crisis, since they will
know how they are viewed among both their external and internal audiences.
An important aspect also for a corporation or person to recognize in dealing
with a crisis is to have two-way communication or an open dialogue with their
audience members. In the case study, Coors distributed information among its
publics, but they did not have any dialogue with these audience groups. Coors
leaders may have thought during their crisis that they were communicating
effectively and being open to their audiences, but dialogue is more than
communication—it is a process.
142
Coors wanted to make sure that it was dealing with their particular crises, but
what happened after the crisis? Were they communicating with these publics
before the crisis? What both of these personalities learned from their crises is that
communication among their audience members has to be a continuous process, and
not just implemented to survive a negative crisis. There has to be an open channel
of dialogue between the corporate personality and the individuals who have a
vested interest in the success of the personality of the corporation or individual.
• A: Action
Action on crisis management strategies and tactics will take place with
messages that keep the personality of the corporation or individual in mind. In a
crisis situation, it is best to be proactive instead of being reactive in a situation. In
142
(Kelleher, T., 2006), pg. 49
64
the Coors Case Study, both the company and the Coors family were proactive on
some of the issues that were being raised, but reactive in others. The Coors family
reacted when accusations and statements were made specifically about the family,
but were not as proactive when negative statements were made about the company.
It is also important to address key audiences and create transparency. A person
or corporation that has a defining personality needs to be open and honest to its
publics, especially in a crisis situation. Several strategies that a corporation or
individual can use to create transparency among their audiences include having a
web site, a corporate or personal blog, or being available for questions. Although
having these new media strategies can create transparency, if they are not clearly
presented and have the correct information, then the corporation or person may
have even more problems than they started out with.
143
Create key messages that
address personality.
In a crisis, corporations and individuals will need to work with journalists and
other public entities. Corporations and individuals that are high-profile will not be
able to control what journalists may write about them, so it is important to work
with journalists to make sure that they receive and report key messages that the
corporate personality wishes to communicate to the public.
144
• Evaluation and Feedback
143
(Kelleher, T., 2006), pg. 37
144
(Kelleher, T., 2006), pg. 81
65
The fifth step would be evaluation and feedback. In every model, there has to
be a step where a corporation or individual has to evaluate and find out what
strategies worked and which ones need to be adjusted. Once these strategies have
been changed for the better, it is important to have a feedback step to the audience
groups.
After the crisis, it is important to evaluate success or failure of crisis
management strategies and tactics. This can be done through post-crisis research,
in which a person or corporation can conduct surveys, measure media impressions
from the press, measure the overall impression among key audiences, and/or
measure the impact of the person’s or corporation’s finances before and after the
crisis. Surveys will be able to ascertain the overall impressions and perceptions of
the corporate personality, and evaluate how they have changed through this crisis
situation. Media impressions will give an insight of what the press and other media
organizations feel about the corporation and individual from their actions after the
crisis. Media impressions will also provide the corporate personality an idea of
what other audiences to target as well, and how much damage control needs to be
done.
Also during the time of evaluation, a corporation should consider how a crisis
has impacted their finances. In most cases, crises do affect a corporation or person
negatively and it takes time to get back to the position it was in before the crisis.
What this step does for corporate personalities is that it allows them to adjust and
reformat their strategies for the future. This also provides them an opportunity to
66
communicate with their audiences to gain valuable feedback about their strategies.
A corporation can change their personality with the change of new leadership, but it
is more difficult to change an individual’s personality.
67
CHAPTER SEVEN: DISCUSSION
Where do corporations and individuals go from here? There are many
strategies and tactics that can be used for these entities that can help them survive a
crisis.
Preparing ahead of time for potential crises can be a very useful strategy.
Conducting thorough and comprehensive research is the key to discovering the
nature of a corporate personality and how it is perceived among key audiences.
Many corporations and individuals seem to not have the time or finances for
research, but it is a step that must be taken to be prepared for a crisis.
Corporations and individuals with personalities can use proactive strategies
through technology and public relations tactics. Instead of neglecting what blogs
and web sites say about the personality in a crisis, it is important for the personality
to address these entities since they can be considered to be influencers as well as a
member of a key audience. More individuals are getting online and producing
blogs, so these will be one of the other mediums that these personalities will have
to embrace. Some public relations tactics that can be used for corporate
personalities include setting up their own blog to address the public as well as
having a newsletter, and an open channel of communication.
Corporations should also have other case studies on hand to view in a
moment of crisis. These case studies can be learning tools to show what went right
for these personalities, and what went wrong. With the information gathered, the
personality both as a corporation or individual can adapt their tactics and strategies
68
to fit the ones that worked in the case study. Also, viewing the case studies will
present a clear image of what to expect in the future and see how these personalities
have survived their crisis. The personalities on the other hand that did not survive
gracefully from their case study crisis will also show how important it is to be
proactive and informed about the impact a personality has on the corporation or
individual.
Corporations have several options. If an individual personality in the
corporation is a main source of the crisis, he or she can be replaced and a new face
can be brought in. This person would take control and the corporation could say
“that this is a historical event for the company.”
145
If the organization is comprised
by a single person, he or she serves as the face of the company. Because this
person is irreplaceable, it is harder to recover reputation in a crisis.
146
The Coors
Company has not been historically as receptive towards the media. The Coors
family did not approach the media until the 1977 boycott. The Coors family was
known for saying “no comment” whenever they were dealing the media, which
generalized negatively to the corporate personality of Coors the company.
Coors has had many different leaders in their corporation, but they always
seem to be targeted negatively by certain interest groups and labor unions. Coors
now has a CEO and leader who is not part of the Coors family. The current CEO
of the Molson Coors company is W. Leo Kiely III, who was the Coors Chief
145
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
146
(October 13, 2006). Personal Communication with Brenda Lynch. Los Angeles.
69
Executive Officer from 2002-2005 and Chief Operating Officer at Coors from
1993-2000.
147
Before working for Coors senior management, Kiely also had other
leadership positions at Frito-Lay, Inc.
148
It will take time to see how Coors the company operates under new
leadership. This will also be the first time in the Coors corporate history that they
will not have a member of the Coors family operating and overseeing the company.
Part of the corporate personality of Coors is the fact that the values and
characteristics of the company were shaped from the Coors family. The Coors
Company may change their corporate culture with new leadership, and eventually
their corporate personality.
147
("Molson Coors Management Bio Web Site." Retrieved February 3, 2007, from
http://www.molsoncoors.com/bios/index.html.)
148
("Molson Coors Management Bio Web site.")
70
CHAPTER EIGHT: CONCLUSION
The corporate personality in the case study examined by the author appears
to have survived its crisis. Coors is still one of the leaders in the beer industry,
even though it has suffered through a product boycott and having its CEO involved
in a high profile DUI charge. This case illustrates the complications during a crisis
that may occur when a corporate personality is tightly connected with individual
personalities. A corporation that does not have these associations with individual
personalities can resolve crises by changing leadership. That option is not easily
available to organizations defined to some degree by individual personalities.
Among the corporations that are intertwined with individual personalities,
several variables contribute to their successes and failures in times of crisis.
Corporations that fall halfway in the corporate-individual personality continuum
like Coors have reduced risk relative, but they have less control over the situation
due to the larger numbers of people involved (Figure 1).
In order to understand fully the impact of these case studies on similar
corporations, future research is needed to explain certain elements. Future research
into the relationships between corporate and individual personality could help
identify other variables that predict the outcomes for these organizations in a time
of crisis. Another advantage that further research could do is to explain the impact
of a crisis in an organization on individuals and how it affects their relationship
with the organization.
71
Corporate personalities will be present always in the business industry, but
until we understand that all corporations are not the same and need tailored crisis
communication plans, these corporations will not have the resources that they need
in order to survive.
72
GLOSSARY
Corporation
• A form of organization that provides its owners and shareholders with
certain rights and privileges, including protection from personal liability, if
proper steps are followed. Corporations may take a number of forms,
depending on the goals and objectives of the founders.
149
• Types include C, S and nonprofit corporations. Corporations are regarded as
"persons" in the eyes of the law and may thus sue and be sued, own
property, borrow money and hire employees.
150
Brand
• Brand could also be viewed as someone’s personal reputation, or personal
brand.
• “Personal brand will determine whether you conquer the market place or
your competitors or you are defeated by it.”
151
Corporate Identity
• A corporate identity is “the reality of the corporation.”
152
149
("All Business Glossary Definitions." Retrieved September 22, 2006, from
http://www.allbusiness.com/3470944-1.html.)
150
("All Business Glossary Definitions.")
151
(D'Alessandro, D. F. (2004). Career Warfare: 10 rules for building a successful personal brand
and fighting to keep it, McGraw-Hill.)
152
(Gray, E. R., & Balmer, John M.T. (October 1998). “Managing Corporate Image and Corporate
Reputation.” Long Range Planning, 31.)
73
• A corporate identity “involves negotiations between the company’s
business strategy, its corporate culture, the philosophy of its senior
management, and its organizational design.”
153
Image
• Corporate image “exists in the minds of individuals and may be different
across individuals.”
154
Business Plan
• “A written document that describes a business, its objectives, strategies,
market and financial forecast.”
155
Demographic
• “A descriptive classification for consumers, such as age, sex, income,
education, household size, home ownership or other defining
characteristics.”
156
Target Market
• “A specified audience or demographic group that an ad, product or service
is intended to reach.”
157
153
(Gray, E. R., & Balmer, John M.T. (October 1998). " “Managing Corporate Image and
Corporate Reputation.”" Long Range Planning , 31.)
154
(Brown, T. J. (1998). "“Corporate Associations in Marketing: Antecendents and
Consequences.”" Corporate Reputation Review 1(3): 215-233.)
155
( "Glossary: Terms Relevant to Starting a Business." Retrieved October 6, 2006, from
http://print.smallbusiness.findlaw.com/starting-business/starting-business-
overview/starting-business-overview-glossary.html.)
156
( "All Business Glossary Definitions." Retrieved September 22, 2006, from
http://www.allbusiness.com/3470944-1.html.)
157
(“All Business Glossary Definitions.”)
74
• Target groups are collections of individuals to whom the corporation or
company may want to target their key messages in a crisis or in their
everyday activities.
Stakeholders
• Definition: “Individuals, groups or organisations [sic] that are affected by
and/or have an interest in a particular issue.”
158
• Individuals who could be considered as stakeholders: investors, financial
analysts, industry advisors, and others.
158
("Glossary: Parliamentary Commissionare for the Environment." Retrieved October 14, 2006,
from http://www.pce.govt.nz/reports/pce_reports_glossary.shtml.)
75
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Asset Metadata
Creator
Freberg, Karen June
(author)
Core Title
The impact of personality on corporate reputation: recovery from crises as a function of the degree of overlap between corporate and individual personalities
School
Annenberg School for Communication
Degree
Master of Arts
Degree Program
Public Relations
Degree Conferral Date
2007-05
Publication Date
04/18/2007
Defense Date
04/02/2007
Publisher
University of Southern California
(original),
University of Southern California. Libraries
(digital)
Tag
corporate personalities,crisis management,OAI-PMH Harvest,Public Relations,reputation management
Language
English
Advisor
Floto, Jennifer D. (
committee chair
), Hollihan, Thomas (
committee member
), Parks, Michael (
committee member
)
Creator Email
kfreberg@usc.edu
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Tags
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