Crisis is defined as a major, unpredictable event that has potentially negative results. The event and its aftermath may significantly damage an organization and its employees, products, services, financial condition and reputation. There are many types of crises, for example, Economic crises, physical crises, personnel crises, criminal crises, information crises, reputation crises and natural crises. This incident has been grouped into physical crises, natural crises and economic crises. In order to prevent crises from adversely affecting the firm, organizations need effective plans and procedures in place to prevent crises if possible or to mitigate their effects when they do occur.
Physical crises include industrial accident, product failures, supply breakdown and many more. The miners were working for the San Esteban Mining Company, (Spanish: Compañía Minera San Esteban abbreviated to CMSE), a company notorious for operating unsafe mines. The collapse of the rock was considered as industrial accidents. The employer must provide a safe working environment, pre-cautions and r...
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...) recruit a credible spokesperson, (3) reply truthfully, (4) respect the opposition’s concern, (5) revisit the issue with follow-up. (6) retreat early if it’s a loser, (7) redouble efforts early if it’s a critical company issue, (8) reply with visible top management, (9) refuse to press for what is not good public policy and (10) repeat the prior statement regularly. Some of these steps may not necessarily apply in every crisis situation, but it may useful in crisis management plan.
The final phase is Learning. Organizations should examine what happened before, during, and after the crisis, and then identify what lessons have been learned. In this way, organizations can use the experience of a crisis to enhance the organizations’ capabilities to prevent and mitigate the effects of a similar crisis.
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