Chapter 4 Crisis Prevention & J&J Credo

Coombs (1999) explained issues management as “the idea is to have the issue resolved in a manner that is not a crisis” (p. 41). He emphasized the proactive role of issue managers, “Issue managers may decide that the best way to resolve an issue would be to correct or improve operating standards and plans” (p.41). Proactive issue management can be the corrective action before the crisis may occur. Coombs (1999) also explained staying close, organizational credibility, and meeting expectations as three central elements of a favorable organization-stakeholder relationship. I believe that among these three, organizational credibility is the most significant since credibility is the fundamental in every relationship. Coombs explained “Credibility can be divided into two components, expertise and trustworthiness. Expertise is the communicator’s knowledge about the subject. Trustworthiness is the communicator’s goodwill toward or concern for the receivers” (p. 46). Credibility is the trustworthiness based on expertise.
Credibility is not built in one day. Credibility is delivered with a track record of successes, of promises kept, and trust built over a long period. Most international companies have their own “code of conduct” or “code of ethics”. Johnson & Johnson’s credo is also company’s philosophy to demonstrate the corporation’s responsibility to customers, employees, the community and stockholders. I understand that J&J’s credo is the company’s efforts to build credibility with their publics not only in normal times but also in crisis. The code of conduct or code of ethics shown in corporations’ Websites usually seems just perfect and nice words to take responsibility of its customers. However, to make those words alive, the corporation should show their actual practice in real world. In case of J&J, Tylenol crisis of 1982 and 1986 proved that a corporation truly put customers’ safety prior to all other loss. J&J successfully managed the crisis and made the threat to be opportunity to regain successful reputation. If the corporation didn’t manage those crises successfully, it would have meant that the corporation didn’t keep their credo in reality. Also according to J&J’s explanation about the credo history, the company conducts a periodic survey and evaluation how well the company performs its Credo responsibility. These research and evaluation are fundamental two way communication processes and also the practical efforts to show the corporation’s Credo in real world.