Running head: CRISIS COMMUNICATION STRATEGIES Leonard
Effective Corporate Crisis Communication Strategies:
Johnson & Johnson and Odwalla vs. Exxon and BP Case Studies
Alison Leonard
Professor Wright
Corporate Public Affairs CM709
April 10, 2015
Boston University College of Communication

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Effective Corporate Crisis Communication Strategies:
Johnson & Johnson and Odwalla vs. Exxon and BP Case Studies
Five years later, and the name BP is still often synonymous with the 2010 Deepwater
Horizon explosion and resulting oil spill, which killed 11 workers and leaked 4.9 million barrels of oil into the Gulf of Mexico (Kleinnijenhuis, Schultz, Utz, & Oegema, 2015). The same may be said regarding the 1989 Exxon Valdez oil spill, which dumped millions of gallons of oil off the coast of Alaska, killing sea life and damaging local fishermen’s source of income (Pauly &
Hutchison, 2005). Yet, while BP and Exxon continue to combat poor corporate reputation years later, other companies who faced deadly and damaging crises, like Johnson & Johnson and
Odwalla, recovered their images relatively quickly. Why do some corporations recover from crises more successfully than others in this way? According to the public relations literature, a large predicting factor in a company’s success following a crisis is the use of effective crisis communication strategies (e.g. Regester & Larkin, 2005; Benoit, 1997; Jacques, 2009). By examining crisis communication strategies and taking an in-depth look at how BP, Exxon,
Johnson & Johnson, and Odwalla navigated their respective crises, it is clear that a corporation’s public relations efforts prior to and during a crisis can have a large impact on the public perception and future success of a business.
Understanding and Anticipating Crises
In order to properly identify an emerging crisis, corporate public relations professionals must understand of the nature of crises, and must also engage in pre-crisis preparation. Fishman
(1999) provides a comprehensive definition of a crisis, arguing that it must be an unpredictable, time-sensitive event that threatens the either the company or the public’s values. In addition, he

CRISIS COMMUNICATION STRATEGIES Leonard 3 explains that a crisis will always have someone to blame, be it the implicated company or a third party, and that the company will have to address different audiences affected by the crisis in a constantly evolving environment. Further, because individual company crises are often linked to larger global or industry issues, it is important to understand the ways in which ‘issues management’ ties into pre and mid-crisis public relations (Regester & Larkin, 2005). For example, positioning a crisis into a larger context regarding an industry issue can be effective in shifting negative attention away from a particular company, as will be seen in the examination of the Johnson & Johnson and Odwalla cases.
In addition to understanding the definition of crises and issues, the corporate PR professional should also understand the ways in which crises can impact corporate reputation.
Regester and Larkin (2005) explain, “Threats to reputation- whether real or perceived- can destroy, literally in hours or days, an image or brand developed and invested in over decades.
These threats need to be anticipated, understood and planned for” (p. 2). Fishman (1999) takes this idea even further, explaining that crises often affect more than just the reputation of the implicated company. He writes, “The crisis communication situation includes the disruption of normal business operations, financial harm, intense media scrutiny, and frequently governmental scrutiny” (Fishman, 1999, p. 355-356). Thus, a crisis can do a variety of damage to a corporation, from hurting its reputation and lowering its profits to potentially even putting it out of business.
Due to the serious risks associated with crises and damaged reputations, it is important for companies to have crisis communication plans developed well in advance of a crisis.
Regester and Larkin (2005) advocate for “early identification and monitoring of information” as well as a “clearly defined policy and associated communication strategy” for emerging issues (p.

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21-22). Part of this pre-crisis preparation should involve scenario planning, where the company determines which strategies it will employ in the event of various crises (e.g. Fishman, 1999).
Fishman (1999) suggests that getting input from top managers in various divisions of the company when compiling such plans can improve successful post-crisis outcomes. According to
Benoit (1997), crises can take different forms, but most of them can and should be anticipated.
Because of the variety of crises, “contingency plans should be reviewed periodically and implemented thoughtfully,” and should be updated or changed as needed (Benoit, 1997, p. 182).
While developing pre-crisis communication plans and monitoring for potential issues are significant, engaging in responsible business practices and establishing a positive reputation early on can also help save a company once a crisis hits. Regester and Larkin (2005) lay out a list of maxims for navigating risk management, including “Work as if everything you say and do is public,” and “Create your own code of good behavior and assure your license to operate” (p. 3-
4). A good reputation provides a company with an intangible, but invaluable advantage. Sohn and Lariscy (2012) specifically looked at the impact of the reputation of a company’s CEO. They found that a CEO with a positive reputation can be a “strategic resource during and after a corporate crisis,” especially in terms of stakeholders’ perceptions (Sohn & Lariscy, 2012, p.
318). Regester and Larkin (2005) also explain that in today’s economy, “intangible assets of reputation, knowledge, competencies, innovation, leadership, culture and loyalty” are especially important (p. 2). Thus, establishing a positive reputation for the brand and the CEO early on by engaging in responsible business practices can be a useful asset to the company in the event of a crisis.
Effective Crisis Communication and Management Strategies

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While establishing a positive reputation and engaging in pre-crisis preparation can increase a company’s chance at success, what the company does and says during the crisis is especially important, and will likely get the most attention. Heath (2006) argues especially for honesty and transparency in the midst of a crisis. As he points out, referencing the Nixon
Watergate scandal as evidence, “Facts will emerge. The harder the organization tries to hide them, the more explosive they are once they surface” (Heath, 2006, p. 246). In particular, Heath
(2006) argues that corporations should avoid the ‘no comment’ strategy, because a lack of information from the company will only lead to reporters and other publics seeking out their information elsewhere. Conversely, establishing the company as a trusted source of information can help eliminate rumors and give the company more control over its image.
As far as who to establish as the source of this information within the company, it is typically advised to select a single spokesperson, again in an effort of keeping control and consistent messaging (e.g. Roach, 2010). According to Roach (2010), “An old rule for crisis communication is to name a spokesman who is not the CEO; then if things go bad, the CEO can step in and repair the damage” (p. 20). As discussed previously, if the CEO is the one to speak out regarding a crisis, this can either work for or against the company, depending on his or her reputation. Sohn and Lariscy (2012) describe positive CEO reputation as an “asset-type resource” that differs from “short-term, rhetoric-based message strategies,” (p. 33). They explain,
“In our study, an asset-type resource (i.e., CEO’s reputation) is suggested as the potential strategic resource to be communicated to mitigate a negative impact of a crisis” (Sohn & Lariscy,
2012, p. 333). Conversely, as will be seen in the discussion of the BP and Exxon Valdez oil spills, poor CEO communication skills or behavior can worsen a crisis.

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Aside from transparency and appointing a single spokesperson, there are a variety of specific image restoration strategies that may be used in the event of a crisis. These strategies are outlined by Benoit (1997) and fall under the major headings of: Denial, Evasion of
Responsibility, Reducing Offensiveness of Event, Corrective Action, and Mortification. If a company engages in denial, it may unequivocally deny taking any part in the action, or it may shift the blame onto a third party. Evasion of responsibility has four subsets, according to Benoit
(1997). The company may say it was provoked into the situation, called provocation; alternatively, the company may argue that it didn’t have enough information or control regarding the situation, termed defeasibility. Other ways to evade responsibility include claiming the crisis was accidental or that the company tried to act with good intentions. There are six versions of the next strategy, reducing offensiveness: bolstering, minimization, differentiation, transcendence, attacking the accuser, and compensation. Using these tactics, a company may try to shift the focus onto its good qualities or minimize the severity of the crisis. The company may also try to explain the reasons behind the crisis and place it in a different or larger context. Attacking the accuser, such as a competitor, or offering publics affected by the crisis a form of financial or other compensation are other tactics. The final strategies Benoit (1997) describes are corrective action, in which the company tries to solve the crisis, and mortification, in which the company takes full responsibility and apologizes.
Determining which of these strategies to use in the event of a crisis will depend on a host of factors, and certain strategies will be stronger or weaker than others in a given circumstance. In addition, multiple of these strategies may be used together during the course of a crisis (Benoit, 1997). For example, if a company isn’t actually guilty of whatever action led to the crisis, then it would make sense to shift the blame versus engaging in mortification. This

CRISIS COMMUNICATION STRATEGIES Leonard 7 company may also try to minimize the problem or attack its accuser. However, regarding minimization, Benoit (1997) points out that this strategy can often backfire if a company tries to make a serious problem appear insignificant. If the company actually is guilty, then Benoit
(1997) suggests taking ownership of the crisis, but he does also acknowledge the legal considerations that many companies have to account for. He writes, “A company that is at fault should probably admit this immediately (image restoration concerns may, admittedly, conflict with a desire to avoid lawsuits, and the firm must decide whether it is more important to restore its image or avoid litigation” (Benoit, 1997, p.183-184). However, as Benoit (1997) points out, untruthfully denying responsibility to avoid litigation, apart from being immoral, can also damage the company’s credibility and reputation in the future when the truth emerges.
While Benoit (1997) discusses this variety of pre and mid-crisis communication strategies, Jacques (2009) brings up the importance of effective communication after the crisis has seemingly ended. He explains, “Failure to identify and manage the distinct category of issues which arise in the wake of a crisis can lead to prolonged reputational damage or even corporate demise” (Jacques, 2009, p. 35). However, Jacques (2009) also implies that there really isn’t ever a true end to crisis management. He explains that crises often come in a cyclical fashion, with some being ongoing and long term or leading to new ones. Thus, public relations professionals must constantly anticipate and prepare for new crises, and effectively handle them as they materialize.
Effective Crisis PR Case Studies: Johnson & Johnson and Odwalla
Two companies who exemplified many of these effective crisis communication strategies are Johnson & Johnson and Odwalla. The Johnson & Johnson Tylenol crisis especially has been continually referenced as one of the most successful examples of crisis management (e.g.

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Regester & Larkin, 2005; Benoit, 1997; Pauly & Hutchison, 2005). In September 1982, Johnson
& Johnson learned that several people had died after ingesting Tylenol capsules laced with cyanide. According to Pauly and Hutchison (2005), the company immediately issued a full nationwide product recall, even though the deaths had been confined to the Chicago area, costing them roughly $100 million. In addition, the company swiftly warned various key audiences, including the public, pharmacies, doctors and hospitals, which cost them an additional half a million dollars (Regester & Larkin, 2005). In addition, upon learning that someone had tampered with the bottles, Johnson & Johnson “offered a $100,000 reward to find the killer, distancing itself from the idea that the tampering occurred internally; and it reintroduced the product in safer, tamper-resistant packaging to much fanfare and attention” (Pauly & Hutchison, 2005, p.235).
As Regester & Larkin (2005) explain, much of Johnson & Johnson’s success came from assuming the worst. They write, “Ironically, the closest thing the company had to a crisis plan was its credo that its first concern must be for the public and its customers- a credo which ultimately saved its reputation” (Regester & Larkin, 2005, p. 148). Thus, because Johnson &
Johnson believed in putting the public first and acted accordingly through its recall and warnings, it was able to maintain its good reputation in spite of the crisis. Further, because it expanded the recall beyond Chicago to ensure the nation’s safety, despite the great cost, the company actually saved itself a lot of money moving forward. Regester and Larkin (2005) explain:
The company could have restricted the recall to the Chicago area and saved itself millions of dollars. Had it done so, however, its Tylenol sales would almost certainly have suffered more dramatic losses because of poison-tampering hysteria. Their losses would

CRISIS COMMUNICATION STRATEGIES Leonard 9 have been far more difficult to recover because of continued uncertainty and loss of public trust. (p. 148).
Johnson & Johnson’s quick action in putting the public interest first by recalling the product, warning the public and key audiences, and reintroducing the product in tamper-proof bottles to prevent similar future crises allowed them to maintain a positive reputation despite the crisis.
Many of Johnson & Johnson’s strategies can be explained by Benoit’s (1997) image restoration strategies. For example, Benoit (1997) points out that the company took responsibility, but also “successfully shifted the blame for the poisonings to an unknown person, someone insane” (p. 3). They also employed corrective action by introducing the new tamperresistant bottles and by recalling the product. Further, in accordance with Sohn and Lariscy’s
(2012) findings regarding positive CEO reputation as an asset to crisis management, Johnson &
Johnson’s CEO, James Burke, also effectively helped manage his corporation’s reputation. For example, he worked with the media to “show his customers he was committed to solving the problem”, and he also “established a crisis team that included the top public relations person in the organization, Lawrence Foster” (Pauly & Hutchison, 2005, p. 235).
Odwalla also exemplified many of these effective crisis management strategies when some of its juice products became linked to more than 60 illnesses and one death as a result of e. coli (Thomsen & Rawson, 1998). Within less than 24 hours, the company issued a voluntary product recall. This blend of corrective action and bolstering as strategies helped save the company’s reputation (e.g. Benoit, 1997; Thomsen & Rawson, 1998). Thomsen and Rawson
(1998) write, “By emphasizing the ‘voluntary’ nature of the recall, Odwalla bolstered its image as a company that would put customers’ health and well-being ahead of profits—a company willing to do the right thing regardless of economic consequences” (p. 39). Therefore, much like

CRISIS COMMUNICATION STRATEGIES Leonard 10 in the Johnson & Johnson Tylenol recall, Odwalla chose to take corrective action quickly following the emergence of the crisis, an effective strategy.
Also significantly, Odwalla employed the transcendence strategy to place the e. coli issue within a larger context, suggesting that the threat was present throughout the entire industry
(Thomsen & Rawson, 1998). Thomsen & Rawson (1998) compare this action to the Johnson &
Johnson case, as well, writing, “Odwalla had pledged to lead the industry in solving the e. coli issue. Johnson & Johnson had responded to the Tylenol crisis by pioneering tamper-proof packaging. Odwalla wanted to do the equivalent for the fresh beverage industry” (41). Thus, both
Johnson & Johnson and Odwalla handled similar crises in similar fashions, employing many of
Benoit’s (1997) image repair strategies. Through their use of corrective action, blame shifting, bolstering, and transcendence, both companies were able to display goodwill toward the public while also preserving their reputations in light of serious crises.
Ineffective Crisis PR Case Studies: Exxon and BP
While Johnson & Johnson and Odwalla exemplify many effective crisis communication strategies, the 1989 Exxon Valdez oil spill, followed by the 2010 BP oil spill, both serve as case studies of ineffective crisis management. On March 24, 1989, an Exxon tanker ran aground in
Alaska, spilling millions of gallons of oil into the water. While no people were killed in the accident, thousands of fish and other sea life were lost, which disrupted the ecosystem and also gravely affected many fishermen’s livelihoods (Pauly & Hutchison, 2005). Exxon’s handling of this crisis has become a textbook example of ineffective crisis management. In contrast to
Johnson & Johnsons and Odwalla’s crisis strategies, Exxon did not respond quickly and avoided talking with the media and addressing the public. The company did not have a prior

CRISIS COMMUNICATION STRATEGIES Leonard 11 communication plan or team, and actually did not appoint a PR manager until four years after the oil spill (Pauly & Hutchison, 2005).
Pauly & Hutchison (2005) also explain that at the times Exxon did attempt to address the crisis, it did more harm than good. They write
Exxon established its media center in Valdez, a location too small and too remote to handle the onslaught of media attention; and the company acted defensively in it response to its publics, even laying blame, at times, on other groups such as the Coast Guard. (p.
236)
Further, unlike the positive role of Johnson & Johnson’s CEO in the Tylenol poisoning crisis,
Exxon’s CEO, Lawrence Rawl, “did not become an active part of the public relations effort and actually shunned public involvement” (Pauly & Hutchison, 2005, p. 235-236). Thus, Exxon did not have a prior communication plan, did not take quick corrective action, falsely denied responsibility, shifted the blame ineffectively, did not have good CEO involvement, and did not utilize effective communication strategies. As a result, the company did not recover from its crisis in the same positive way as Johnson & Johnson did. In fact, according to Pauly and
Hutchison (2005), “Discourse and memory have woven the 1982 product tampering and the
1989 Alaskan oil spill into a single parable in which Johnson & Johnson represents the public relations profession at its best, and Exxon the profession at its worst” (p. 231). While Pauly and
Hutchison (2005) take issue with polarizing the two cases in this way, the fact does remain that
Johnson & Johnson employed more effective strategies and recovered much more successfully than Exxon.
BP suffered a similar crisis situation to the 1989 Exxon Valdez oil spill in 2010, when the
Deepwater Horizon exploded in the Gulf of Mexico, killing 11 workers and leaking 4.9 million

CRISIS COMMUNICATION STRATEGIES Leonard 12 barrels of oil into the ocean (Kleinnijenhuis, Schultz, Utz, & Oegema, 2015). In addition to it being a similar crisis to the Exxon Valdez spill, BP also made many of the same crisis management mistakes as Exxon, damaging its reputation. Roach (2010) writes, “If any good can come from the Gulf oil disaster of 2010 it might be that it teaches that in addition to being very careful when drilling for oil one should also be extremely careful when speaking to the public”
(p. 18). Roach (2010) also argues that BP made 12 significant PR mistakes, including a lack of anticipation of the problem, lack of a crisis communication plan, the CEO being an ineffective communicator, dismissing the severity of the problem, and spending a significant amount of money on an ill-conceived television campaign.
Directly contradicting the earlier discussion regarding the importance of anticipating and preparing for crises (e.g. Regester & Larkin, 2005; Fishman, 1999), BP openly admitted to a lack of preparation. According to Roach (2010), Andrew Gowers, head of BP’s group media, told the
New York Times that preparing for a scenario like the oil spill was “not possible because the disaster was a ‘completely unanticipated event’” (p. 19). Of course, this excuse is not compelling, as all industries should try to anticipate everything that could go wrong. Benoit
(1997) exemplifies this, writing, “An airline should anticipate the possibility of a crash; a restaurant should prepare for cases of food-poisoning” (p. 182). Similarly, a company engaging in drilling for oil should anticipate the possibility of an oil spill; BP especially should’ve considered this possibility after the Exxon Valdez 21 years prior.
Another major issue regarding the handling of the BP oil spill was the communication coming from top-level management like CEO Tony Hayward and COO Doug Suttles. For example, according to Roach (2010), Hayward “told the people of Louisiana that BP is sorry, but then said that no one wants this over more than he does and that he would like his life back” (p.

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19). He is also quoted as asking, “What the hell did we do to deserve this?” (Roach, 2010, p. 19).
Further, contradicting the importance of CEO and company reputation argued by Sohn and
Lariscy (2012), Hayward also caused controversy when he was seen enjoying a yacht ride with his family shortly following the spill, once again appearing selfish and unconcerned in the eyes of much of the public.
Hayward also ineffectively tried to use minimization and blame shifting techniques (e.g.
Benoit, 1997; Roach, 2010). While he said BP would clean up the spill, he placed the blame on his subcontractors, refusing to take responsibility. In addition, he offended many when he minimized the problem. Roach (2010) explains
Hayward said the Gulf of Mexico is a big ocean and characterized the amount of oil pouring into it as tiny and insignificant. This is dismissive. It implies that the environmentalists and all those in industries devastated by the disaster are crybabies.
Instead of placating them, it challenges them to come back with more evidence, more arguments and more intensity .   (p. 19)
COO Doug Suttles was no better in his messaging when he predicted a significant reduction in the spill that did not materialize. According to Roach (2010), typically the CEO should be dismissed in such an event and be followed by another officer who can “restart the dialogue with the news media and the public on more ethical grounds” (p. 20). Not only was Hayward not dismissed, but Suttles “echoes Hayward’s unfounded and by now incendiary optimism” (Roach,
2010, p. 2010). Thus, the BP oil crisis was as ineffectively managed as the Exxon Valdez spill.
The company did not engage in pre-crisis planning and unsuccessfully communicated with its publics, appearing defensive and out of touch with the gravity of the situation.

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Conclusion
While the appropriate crisis communication and management strategies will differ depending on the corporation and the details of the situation, there are many steps a company can take to increase its chances of success at navigating a crisis. Pre-crisis activities including the development of a crisis contingency plan, scenario planning and environmental scanning for potential issues are all important (e.g. Regester & Larkin, 2005; Benoit, 1997; Fishman, 1999).
In addition, once a crisis does hit, there are a multitude of specific image restoration strategies a corporation can use, such as corrective action and reducing the offensiveness of the event
(Benoit, 1997). Basic rules of thumb, however, are to engage in open, honest communication with the media and with various key publics (e.g. Heath, 2006; Benoit, 1997). The CEO and the company’s existing reputation can also serve as either an asset or a detriment to the company’s success following a crisis (Sohn & Lariscy, 2012). Based on these guiding principles of crisis communication, it is easily seen why certain companies who generally adhered to them, like
Johnson & Johnson and Odwalla, were more successful in managing their crises than Exxon and
BP. While Johnson & Johnson and Odwalla engaged in quick corrective action and other strategies that fostered public goodwill and saved their reputations, Exxon and BP lacked crisis plans, ineffectively denied responsibility, and had either nonexistent or very poor CEO involvement, establishing them as classic textbook examples of ineffective public relations.

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