Reference no: EM133013386

Six-Step Procedure for handling a crisis Chapter 3:

There is a six-step procedure that can help in dealing with a crisis:

1. Admit you are in trouble - quickly.
2. Get to the scene as soon as possible. Show caring and accountability.
3. Communicate facts you know (and those you do not) to employees, customers, and suppliers.
4. Have one person serve as the firm's spokesperson. It is best if it is the owner.
5. Separate crisis management from the everyday management of the firm.
6. Deal with the crisis quickly. Take steps to solve the problem, and make the process of dealing with the problem as open as possible.

Scenario: Company X faced a large ethical scandal when hackers stole data from more than 148 million consumers. After the fact, the research found that the systems Company X was using were old, and their security systems were out-of-date and could have been updated to prevent the breach. This is an example of business ethics where small businesses and big companies alike have a duty to ensure they are following guidelines for a safe work environment and safe opportunities for consumers.

Go through each of the steps and identify what Company X should do. . For example, for #1 explain how Company X admits they are in trouble. What should they say and how? #2 is tricky because it is not a physical location, how would a company handle this for a non-tangible issue?