Corporate repute defined as “ overall appraisal in which a company is held by its components. A corporate repute represents the net affective or emotional reaction – good bad, weak or strong- of clients, investors, employees and general populace to the company ‘s name ” . ( Fombrun,1996, p.9 )
Besides “ corporate repute is all across-the-board term for what employees think about their employer, what clients think about their supplier, what investors think about their shareholding and so on ” suggested by Varey ( 2002, p. 193 )
Doorley & A ; Garcia ( 2004, p. 4 ) executed the whole construct of corporate repute in to a little expression
Reputation = Sum of images = ( Performance and Behavior ) + Communication
World ‘s taking companies such as Coca Cola, Unilevers, Johnson & A ; Johnson, Disney, etc had genuinely created their corporate individualities that define their who they are and what they stand for. Those organisations have been gone through assorted phases and used scientific attacks to construct their corporate individuality.
The most of import pattern for any organisation is non merely to make their corporate repute, but to prolong and increase their repute to bring forth the assurance in the present every bit good as in the hereafter.
Repute can be either collapsed or increased in a micro 2nd due to a little incident made by any organisation. Once an organisation has destroyed their corporate repute it is million times harder to reconstruct that. Because there are uncountable parties are affecting & A ; act uponing corporate repute of organisations. The scientific attack is to react & amp ; esteem unmanageable parties who act uponing organisational repute such as cardinal authorities, international organisations such as UN, World Bank, Trade brotherhoods, Media, etc and besides effectual direction of governable parties who involved & As ; act uponing organisational repute.
Destroying British crude oil ‘s repute due to the oil spill is and besides the manner Chile has increase their repute by successfully reasoning mine operation are practical illustrations of the nature of corporate repute.
The most of import pattern is to pull off corporate repute efficaciously.
In this study it will discussed Managing corporate repute of Seylan Bank PLC.
Actively Managing Seylan Bank PLC ‘s corporate repute
Organizational Reputation is build with their direction attack of internal & A ; external activities. Based on company ‘s activities the terminal consequence of the above expression will be alteration. In other words companies could accomplish either positive or negative reputes.
Reputation = Sum of images = ( Performance and Behavior ) + Communication
Doorley & A ; Garcia ( 2004, p. 4 )
Actively pull offing corporate repute is pull offing corporate individuality within internal forces & A ; mange corporate image within external forces of the company.
Identity, Image, Performance, personality are the cardinal words that the organisations needs to concentrate on when pull offing corporate repute.
Organizations can be develop direction of corporate repute as a subject of the organisation over period of clip.
Developments via public dealingss
Media is the chief interface of corporate image towards the community. Therefore it is of import to utilize of assorted media relationships to better the perceptual experience of the organisation held by assorted cardinal interest holders such as authorities, force per unit area groups, etc.
Developments via incorporate corporate communications
Use of incorporate corporate communications methods to develop organisations corporate repute which is practiced by most of the organisations. Through integrating of corporate communications organisations are pass oning its corporate trade name values, corporate image.
Contribution of other subjects
There are figure of subjects which Fomburn & A ; Van Riel ( 1997 ) studies which have contributed to the constructs & A ; positions to the field of corporate repute such as Psychology, Economics, Strategic direction, organisational scientific discipline and accounting.
Seylan Bank as fiscal service organisation repute is the cardinal factor to distinguish in the market topographic point besides of import portion of the value bundle. Pull offing Corporate repute has to concentrate on employees, Investors, Customers & A ; other stakeholders
Arguments for actively pull offing Corporate Repute
Actively pull offing corporate repute brings positive value to organisation in different ways.
Reference – Appendix 2 -Corporate repute concatenation
As the study explained before Corporate repute is constructing with pulling internal & A ; external parties of the organisation. Employees, Customers, Shareholders and other interest holders are as parties who involves in organisational repute there are advantages of actively pull offing corporate repute of the organisation.
Employees are the major component of organisations corporate repute where they are stand as embassadors of the organisation.
Employees have to experience the behaviour of the organisation and as a major part of the organisational corporate individuality employee trueness is extremely of import in pull offing corporate repute.
Therefore actively pull offing corporate repute will assist to increase employee trueness & A ; as consequence all the other parties including clients & A ; investors will increase their trueness as good.
Reference Appendix 2 – Corporate repute concatenation
Existing clients can easy to retain with effectual corporate repute where clients will comprehend trust & A ; credibleness towards the organisation. As a consequence client trueness will increase. Customers will pass on good patterns of company behaviour and that will assist organisations to develop good trust towards the external forces.
Product extension can be easy done through increasing trueness.
Besides client base of the organisation can be increase by pull offing corporate repute in good manner.
Community & A ; other interest holders
Other than employees, clients, investors there are so many other stakeholders such as authorities, community organisations, media, force per unit area groups, full community, etc plays a immense function in keeping organisations corporate repute.
Therefore actively pull offing corporate repute will increases the corporate image of the organisation. As consequence organisation will benefited with favourable things such as positive public dealingss, positive word 0f oral cavity & A ; word of web, etc.
Pull offing corporate repute towards the external stakeholders is extremely critical because these parties are extremely active & A ; reactivity for organisational activities at any clip.
For an illustration at the beginning of the crisis period of seylan Bank Media is extremely active and made a immense impact on organisational activities.
Reference – Article 1 Daily mirror ( 2009 ) & A ; Article 2 Sunday Times ( 2008 )
As a consequence of actively pull offing corporate repute eventually stockholders are benefited by achiving higher stockholder value, sustainability of the industry.
Besides pull offing corporate repute towards stockholders organisations can retain their stockholders as good besides can increase the portion capital.
1.2.5 Actively pull offing corporate repute in world
Seylan Bank PLC was one of the extremely affected fiscal institutes in Sri Lanka during the planetary fiscal crisis period. In December 2008 there was a unexpected menace arise to the whole Ceylinco Group of Companies including Seylan Bank. Former Chairman ‘s association to the bank had a great image and individuality in the over a period of clip as he was socially recognized as a great icon every bit good as good reputed personality towards the community.
After few imperativeness release published on newspapers & A ; Breaking intelligence broadcasted on air sing the liquidness issue of Goldern Key Credit Card Company, another subordinate of the ceylinco Group of companies it was straight affected to Seylan Bank and Rs. 18 Billion backdowns in really shorter period of clip shows the repute of the bank is in a menace and the bank is about to shut down. However the Sri Lankan Government took over the bank under Central Bank Supervision and appointed a new presidents and board of managers by supplying a immense mission of prolonging Seylan Bank.
Seylan Bank has taken so many actions to prolong their repute to maintain the current sedimentations and to develop a positive perceptual experience on all the Sri Lanka ‘s head about new Seylan Bank.
However Seylan Bank PLC has satisfied most of the above advantages of actively pull offing corporate repute during the crisis period.
There are so many short falls will originate when companies practising Corporate repute in a world.
Arguments against actively pull offing corporate repute
To do positive repute organisations must develop four key properties such as credibleness, trustiness, dependability & A ; duty. ( Fombrun,1996. ) nevertheless if organisations can non full fill above cardinal properties those organisations will accomplish negative corporate reputes automatically.
Following factors will be affects when actively pull offing corporate repute in organisations.
Organizational civilization is the key of pull offing its corporate repute. It includes Founder, history, leading and direction manner, organisational environment etc. Mullins ( 1999 ) stated civilization as “ aggregation of traditions, values, policies, beliefs and attitudes that constitute a permeant context for everything we do and believe in an organisation ”
Therefore there can be mismatches between organisational behaviour & A ; corporate values & A ; personal values & A ; beliefs when organisations are pull offing corporate repute.
Besides negative personal reputes of the company laminitiss for an illustration Dr. Lalith Kothalawala ‘s association to Seylan Bank & A ; other Ceylinco subordinate companies in Sri Lanka.
Organizational construction & A ; hierarchy is besides involved in pull offing corporate reputes.
There are so many resource engagements in pull offing corporate repute depending on the organisation.
Negative Associations such as famous person Endorsements ‘ , Cooperative Strategies, etc may non be sutable for the organisational corporate repute.
Seylan Bank has gone through all the above troubles when actively pull offing their corporate repute during the crisis period every bit good as all the clip periods. For a illustration during the crisis period the biggest challenge to the bank was to retain their current employees and to pass on them the current state of affairs of the bank and to do certain that their employment is non in a menace. At a crisis period like this it is extremely of import to command the internal force per unit area from brotherhoods, force per unit area from clients & A ; portion holders, other stakeholders such as media, besides the external forces such as PESTEEL environment every bit good.
During the crisis period biggest challenge for Seylan Bank was to take out the whole image which associated with Dr. Lalith Kothalawala & A ; Ceylinco group for past 20 old ages from Seylan Bank.
Over a period of clip former president Dr. Lalith Kothalawala has endorse Seylan Bank as “ My Bank ” and as a consequence Seylan Bank has positioned as Dr. Lalith Kothalawala ‘ s Bank in clients mind.
2.0 Key forces impacting on the repute
There are so many forcers makes impact on company ‘s corporate repute. Nelson & A ; Kanso ( 2008 ) presented that there are assorted internal & A ; external factors are act uponing company ‘s corporate repute.
Reference – Appendix 1 Internal & A ; External influences on corporate repute
2.1 Internal Forces which creates impact on company ‘s repute
Internal forces are doing the impact on corporate repute is based on the images created on company ‘s corporate behaviour, Images based on company ‘s symbolism & A ; images based on company ‘s communications. These factors can be governable.
Activities of the undermentioned forces create impact on company ‘s repute in footings of behaviour, symbolism & A ; communications.
Internal forces include top direction, employees, Stockholders, Customers, Suppliers, Stake holders, etc.
2.1.1 There are three chief countries internally which makes impact on corporate repute of the company
Corporate resources are one of the key elements which include physical assets, human resources, web resources, strategic intelligence assets, nucleus competences. These resources doing impact on corporate individuality of the organisation.
Vision, Mission & A ; Strategy
In footings of the corporate personality of the organisation is based on their vision, mission & A ; schemes. Strategic aims of the organisation, corporate communications schemes, Business schemes, scheme preparation is doing a impact on organisational corporate behaviour every bit good as the individuality.
Organizational construction & A ; civilization
This is besides another of import component which makes impact on corporate repute. Reference – Appendix 5.
Geysey ( 1999 ) suggested following are the cardinal drivers of corporate repute.
2.1.2 Key drivers of corporate repute
Seylan Bank PLC has identified the fiscal demands of clients in early phases by being the first mover for assorted banking inventions in Sri Lanka. Eg – Island Wide ATM Network, Largest issuer of VISA cards in Sri Lanka, etc.
Impact to the corporate repute: In footings of Identity, Personality & A ; image of the organisation competitory effectivity is a cardinal factor to pull resources. ( Employees, Shareholders, clients & A ; other stakeholders ) , for a illustration competitory border of a company makes an impact on corporate reputation..
Market leading provides a narrative to every organisation when they deriving the market grounds with rivals.
Eg – Seylan Bank is the fifth Largest Bank & A ; the 3rd largest Financial Institute in Sri Lanka.
Customer focal point is a must in principals of selling, the manner organisations practising client focal point is the factor which brings a advantage in corporate reputes.
In the context of Seylan Bank, they are identified the importance of client at the beginning and they offered assorted advanced servicers to Sri Lankan Banking industry such as drawn-out banking hours, Night Banking, Week End Banking, offering assorted merchandises to different client sections, etc.
Impact to the corporate repute: Repute may develop with the amount of images of the organisation. HSBC could be the best illustration of developing corporate repute through client focal point.
Besides there are three degrees of information processing that makes impact on people ‘s feelings on an organisation.
Primary Level information proceeding- Direct personal experience of banking services. This is the most of import degree which the organisation proves the minute of truth.
Specially in Seylan bank all the bank subdivisions, client service hotline, Online Baking web site, ATM web has to guarantee the service degrees.
Secondary Level information proceeding- mention groups such as friends, colleges, etc has to state about the organisation. Specially in the crisis state of affairs of Seylan bank this degree was extremely of import to minimise the effects to Seylan Bank corporate repute.
Third Level of Information Proceeding – Information based on activities on mass media such as highlighted in intelligence, commercial advertisement, etc.
Suggested by Bromley ( 2000 )
However the forcers makes impact to corporate repute is non merely from the internal environment, there are external forces every bit good which make impact on company ‘s repute
2.2 External Forcers which creates impact on Company ‘s Repute
These are the factors which are outside the organisation besides these factors are hard to command by organisations.
Factors such as PESTEEL, Country of beginning, Industry wise factors, community based factors are impacting the company ‘s repute as external factors.
2.2.1 PESTEEL Factors.
Government Policy determinations
Central bank engagements
Different Percepts of the political parties
Eg – In 2009 Sri Lakan authorities has took over Seylan Bank under the direction of Central Bank due to the crisis state of affairs of the bank. However as a consequence of authorities protection it is positively effects to Seylan Bank ‘s repute.
Economic state of affairs of the economic system globally & A ; locally.
Economic systems, lifecycles, etc.
Economic factors are act uponing company ‘s repute by the company behaviour in relation to the planetary or local economical sitiation.
Eg -The planetary fiscal crisis has straight & A ; indirectly affected to the Sri Lankan fiscal industry and as a consequence all the illegal fiscal institutes such as “ Sakvithi ” has banned by the cardinal authorities. Besides “ Golden Key ” one of the entity of Ceylinco Group besides banded due to the issues risen on liquidness. Finally authorities took over Seylan Bank under the direction of Central Bank of Sri Lanka to safeguard the liquidness.
Socio cultural & A ; ethical factors
Peoples factors which includes clients,
Norms, values & A ; customes of the civilization
Life manners, tendencies, attitudes, etc
These factors are act uponing to administrations based on intigration of their beheviours, Image & A ; individuality towards employees, clients & A ; full community.
Corporate Scoial Responsibility plays a majore function in maintating the effects of societal cultural & A ; ethical factors.
Eg – Seylan Bank PLC has done varios CSR runs aiming the truly hapless people of the society over the period of clip to keep the corporate individuality of “ the bank with a bosom ” .
Developments in the technological environment such as
SMS banking, etc
Environmental factors such as green issues.
The above internal & A ; external forces are making a impact on organisation ‘s corporate repute in footings of organisations behaviour, image & A ; individuality.
Besides there are some other external factors such as Country of beginning, Industry broad factors, community based factors besides act uponing organisations repute in by and large.
2.2.3 Relational Influences on Corporate repute
Relational influences to the corporate repute in many ways.
There are factors such as organisation ‘s corporate repute within a relationship.
Percept and rating of other parties to the relationship based on their specific cognition & A ; experience of the organisation.
The manner that organisations convinced and conducts its relationships.
Organizational association with another party.
Competitive and collaborative schemes, amalgamations and acquisitions, Re placement, Brand placement, Strategic placement are few illustrations for rational influences to the corporate repute.
3.0 Development of a formal corporate repute direction procedure
Pull offing corporate repute as a continues procedure it is necessary to hold a formal procedure in order to guarantee pull offing corporate repute is making on right manner.
Seylan Bank has experienced the extreme of damaging corporate repute during the crisis period which affected non merely Seylan Bank most of the other subordinates of Ceylinco Group has affected their corporate repute during that period due to the bad fiscal methods of puting money.
However Seylan Bank to get the better of from the crisis & A ; to prolong their concern corporate repute procedure was played a large function.
Development of corporate repute procedure is of import due to assorted factors.
Identifying the repute spreads between corporate personality, corporate scheme, corporate individuality & A ; corporate civilization and to make relevant actions to minimise those spreads.
Reference – Appendix 3 Reputation as corporate ego look
3.1 Current Situation
3.1.1. After the Crisis state of affairs of Seylan Bank, the designation of spreads between Seylan Bank ‘s corporate individuality & A ; corporate image has brings a new vision & A ; mission to the organisation.
Be the most caring & A ; trusted bank
To be the taking fiscal service supplier that delivers exceeding value to stakeholders.
Be the best bank in client service
To transcend client outlooks by supplying competitively superior services through speedy & A ; multiple bringing channels, whilst honoring the staff through acknowledgment and authorization ; being a responsible corporate citizen ; following environmentally friendly patterns and adding superior value to stockholders.
With this dramatically alteration of its corporate vision & A ; mission Seylan Bank has set a whole new way with a subject of “ the bank with a bosom ”
3.1.2 Symbolism of Seylan Bank which includes their corporate logo, symbols, corporate colorss, etc.
3.1.3 Corporate communications is the other major portion of Seylan Bank ‘s current corporate repute procedure.
Corporate communicating is a umbrella term for all the ways in which the organisation negotiations itself & amp ; outside the organisation.
Corporate communications includes 3 degrees of communications.
Management communications which is communicating between the representatives between the direction degrees of the organisation & A ; stakeholders.
Organizational communications for certain activities such as communications bureau briefings for corporate runs, PR, Media Relations, CSR undertakings, Employee communications, etc there are representative from the organisation direction degrees will take part. ( Eg – General Manager, Brand Manager, etc )
Integrated corporate communications which includes regulations & A ; waies, sequencing & A ; process design, organisational modus operandis, Group job work outing suggested by grant ( 1996 )
3.1.4 Corporate behaviour of Seylan Bank is made up with assorted CSR activities they have done in the past & A ; the manner they behave during & As ; after the crisis.
Based on above 4 countries that discussed corporate individuality will be created. Corporate individuality is a judgement that the organisation itself has developed. And how organisations perceive their ego.
Besides there can be spreads created between internally. As a consequence organisation ‘s perceived individuality may be differs from the existent individuality. Balmer & A ; Soenen 1999 suggested AC2ID trial to happen out the spreads between individuality.
Developing the corporate individuality is the most of import thing in footings of developing the corporate repute.
Service quality is besides taking a portion in corporate behaviour.
3.1.4 Developing corporate image is based on organisational individuality, organisational scheme, personality.
Corporate image is where how organisation ‘s clients and other interest holders perceive the organisation.
To develop the corporate image organisation is required to make necessary activities such as corporate communications, engage with activities which are in line with organisational mission & A ; scheme.
Making CSR is one of the cardinal things to develop corporate image. But CSR has to turn to ternary bottom line in today ‘s competition.
Besides the imagination based on organisation ‘s corporate symbols, communicating stuffs ( emotions based on creativeness ) , turn toing the societal duologue is indispensable to increase the corporate image.
Corporate repute is based on corporate individuality, corporate image & A ; corporate personality of the organisation.
Therefore to develop the corporate repute direction procedure organisations have to pull off those countries efficaciously.
3.2 Developments in Seylan Bank ‘s corporate repute procedure
Developments of the formal corporate repute procedure focus the undermentioned countries in development.
Employees, Customers, Other stakeholders & A ; stockholders are the 4 countries which seylan bank demands to concentrate on doing developments to corporate repute procedure.
To develop employee satisfaction, involvement towards the bank it is of import to place the cultural iceberg of the organisation. Based on their involvement & A ; trueness towards the bank corporate individuality can be created.
3.2.1 Areas to be developed
There are 4 chief countries to be develop in Seylan Bank ‘s current corporate repute direction procedure which includes Employees, Customers, Shareholders & A ; other stakeholders.
Developing continues attack to keep employee repletion to construct a bond with organisation & A ; its employees. Besides placing spreads or mismatches of organisational civilization, constructions are indispensable to construct long listed relationships with employees.
4.1.1 Using corporate repute value concatenation as a construction to increase corporate repute of the organisation.
Reference Appendix 4
Reputation value concatenation is exemplifying four countries which the organisation ‘s repute can be increased through investing of corporate repute constructing activities such as Corporate communications, CSR, public relationships, sponsorships, etc.
Then as corporate repute is base for the full community there are supportive indorsements are anticipated from media, force per unit area groups, societal groups, word of web, etc.
Customer keeping may increase as a consequence of supportive indorsements from other interest holders. And client trueness will increased
Finally stockholder value will be increased due to the ethical, community, respectable activities which the organisation has invested.
4.1.2 Corporate repute as a self look theoretical account can be use as a procedure of developing repute through designation of spreads between corporate individuality & A ; corporate image
Reference – Appendix 3
Gaps between corporate individuality & A ; corporate image is originating based on organisation ‘s corporate personality, corporate scheme, corporate individuality & A ; corporate civilization.
It is required to keep KPIs to each of these elements and to make certain alteration at necessary periods.
Advantage of this theoretical account usage to increase the corporate repute of the organisation through this Seylan Bank can place the individuality that they perceived based on their personality, civilization, and corporate communications is the existent individuality.
22.214.171.124 Using AC2ID trial & A ; REDS2
AC2ID trial is invented by Balmar & A ; Soenen in 1999 as a theoretical account to happen out the relationship between deferent sort of individualities of the organisations corporate repute.
Actual individuality is the existent individuality of the organisation which is based on organisations public presentation, behaviour & A ; fiscal activities, etc.
Communication individuality is the individuality which organisations are communicated.
Besides there are other individualities such as conceived individuality, ideal individuality & A ; desired individuality every bit good.
Balmer & A ; Greyser in 2003 made advanced points to analyse individuality
Uncover the 5 individualities and compare the interface of each individuality, so name the state of affairs and so choose the interface for attending and eventually to make the strategic choose.
The following degree of repute ego look is to place the spreads between corporate individuality & A ; corporate image.
4.1.3 Employer stigmatization is recommended to construct superior client value.
Reference – Appendix 7
Employer stigmatization can be use as a system of increasing superior value to the clients by increasing trueness of employees & A ; stockholders.
Undertaking 4 – Journal Article
Justification of the targeted industry diary –
Sri Lankan Business Journal
How non to be threatened by a crisis
Any event or series of events that can imminently and significantly damage a company ‘s repute may be a crisis for any organisation.
Fink ( 1986, p.15 ) suggested that from a practical, concern oriented point of position a crisis is any state of affairs that runs the hazard of intensifying in strength, falling under close media or authorities examination, interfering with normal operations of concern, Endangering the positive public image soon enjoyed by a company or its officers, Damaging a company ‘s underside line in any manner.
When looking at the above definition and besides the common apprehension of a crisis is it can be happen at any given clip whether we forecast or non.
Crisis & A ; Communicationss
Communications plays a major function during crisis periods. The most important inter-relationship between communications and crisis is “ Communicationss can utilize to get the better of the crisis ” or “ crisis can be created through communicating ” therefore communicating may be the most of import map of a organisation during a crisis.
British crude oil is one of the organisations who faced the biggest crisis state of affairs of the universe in the close history. International media has made that state of affairs as their headline & A ; CNN explains the state of affairs on interrupting intelligence and so many unrecorded indorsements on media may impact BP ‘s corporate repute for certain degree. However BP ‘s crisis communications procedure has minimized the effects from international trade goods.
Phases of crisis communications
Hainsworth & A ; Meng ( 1996 ) identified following stages which a crisis is base on balls. Therefore the interface of crisis communications may differ from each phase.
First scanning the environment to happen out the signals of a catastrophe and doing eventuality programs, recovery programs & A ; communications programs for the identified hazard.
Second pre impact is where organisations prepares specific crisis direction programs, organizing crisis direction squad & A ; informed cardinal interest holders about the crisis.
Then the impact, crisis direction program is implemented, and close contact is maintained with the
media and cardinal stakeholder groups. The purpose is to neutralize and place ( contain ) the crisis,
without concealing or decreasing its significance to stakeholders
And eventually Readjustment the administration implements schemes for reputational fix, and remains
consistent, positive and concerned through probes, compensation claims ( where relevant )
and other post-crisis undertakings.
Features of crisis communications
There are assorted features of crisis communications which is common on most of the crisis communicating scenarios.
Well prepared for crisis communications where organisations has to guarantee what they communicates as crisis communications and the impact to the organisations repute after the crisis communicating.
Crisis communications are really consecutive forward and the focal point is merely on how to avoiding the crisis.
The most of import feature in crisis communications is its centralised.
Merely the allocated people can do statements or reference to media on crisis communications.
Most of the crisis communications are more into functional messages instead being originative.
Higher degree of credibleness is required in these type of communications.
Another feature of crisis communicating is speed to response for the issues arisen.
How to pull off crisis communications
Pull offing crisis communications is the of import component of crisis communications. Augustine ( 2000 ) has introduce a theoretical account six phases of crisis direction
Phase 1: Avoid the crisis
Avoiding crisis is the least dearly-won, simplistic manner to avoid the crisis.
Analyzing of the environment to happen out the hazard which can be attracted to the organisation and the effects & A ; analyze the cost of bar.
Searching for things which is beyond organisation ‘s control & A ; do eventuality planning for these things, besides it is of import to puting up clear regulations & A ; outlooks to employee behaviour in order to avoiding crisis.
Phase 2: Prepare to pull off the crisis
Preparation for crisis which includes making eventuality & A ; crisis direction program which needs to be update at least by yearly. Besides as a readying organizing transverse functional crisis direction squads and trial eventuality program & A ; squads by making activates such as outlining imperativeness releases, developing dark web sites, etc.
Phase 3: Acknowledge the crisis
At these phase organisations has to comprehend how others will comprehend an issue & A ; dispute organisations perceptual experience.
Monitor internal & A ; external stakeholders ‘ unfavorable judgments, concerns & A ; Questions.
Use independent research workers, every bit good as foreigners, to help in understanding the state of affairs.
Phase 4: Incorporate the crisis
This is the important state of affairs of crisis communications direction. At this phase Organizational has to take fast determinations and to apportion a squad which is actively working 24 hours for the crisis direction. And to apportion a individual individual as company spokesmen who makes all the remarks in populace. Besides it is of import non to go forth stakeholders to acquire information from media sing the issue.
Phase 5: Deciding the crisis
At this phase organisation has to move fast to acquire out from the crisis state of affairs, Organization has take the facts direct to public, and besides demonstrate duty, willingness and transparence in look intoing the job and seting it right, Promote declarations and betterments, and add inducements to retain or win back stakeholders.
Phase 6: Profiting from the crisis
This is the concluding phase of Augustines ‘ crisis direction theoretical account. At this phase organisations have to harvest the benefits of enhanced stakeholders trust as a consequence of positive, ethical, considerate handling of the crisis. Besides it is extremely of import to larn from the errors for enhanced crisis direction in the hereafter.
How Crisis communications make Impact on corporate repute
Organizational corporate repute is the first thing which will be impacting as a consequence of a crisis state of affairs. Therefore crisis communications is at that place for safeguard organisational repute every bit good as overcome the crisis.
As crisis communications straight act uponing organisational personality & A ; individuality besides the behaviour of the organisation there is closer nexus between crisis communications & A ; corporate repute.
Crisis communications are do a impact on organisational repute in assorted ways. Initially internal readying to the crisis, constructing up crisis direction squads, internal crisis communications will heighten the trust of the employees towards the organisation. And as a consequence employees will no leaves the organisation besides they will non do any negative statements about the company during crisis period.
Effective crisis communications will increase the clients trust towards the organisation & A ; its behaviour. And they will retain as loyal clients even at crisis state of affairs.
Through effectual crisis communicating to the full community, stakeholders such as media, authorities, force per unit area groups, etc organisations are doing a impact on their repute.
Seylan Bank anticipated & A ; planned a crisis
Crisis can be happen in any given clip erratically. But if organisations can scan the environment & A ; looking for signals about lifting issues, crisis can be identify easy.
Seylan Bank has already affected by a immense crisis in 2008/09 period and cured strongly due to the crisis direction procedure & A ; processs they practiced.
But if Seylan Bank identified the approaching crisis in early phases they had the chance to avoid the crisis.
As larning from the errors of the crisis period Seylan Bank has scanned the environment and figured out the approaching issues of the environment which may hold favourable potencies to pull by Seylan Bank.
One of the interesting & A ; unpredictable crisis is System frailer. in other words if there is a system frailer occurs for Seylan Bank what will go on to the corporate repute?
Concentrating on the above anticipated crisis state of affairs Seylan Bank has made initial stairss to avoid the crisis, but if the crisis has occurs they are now fixing to confront the crisis.