Chapter 3

Question 1

Crisis-sensing mechanism

Answer 1

A system designed to scan and monitor for crisis warning signals.

Question 2

Three management functions that scan for threats

Answer 2

Crisis prevention is facilitated by tapping into three management functions that actively scan the environment frot threats: issues management, reputation management, and risk management.

Question 3

Signal Detection

Answer 3

The search for warning signs. Signal detection begins with scanning, a systematic search for and analysis of events.

Question 4

Scanning

Answer 4

A form of radar; it identifies as many warning signs as possible.

Question 5

Monitoring

Answer 5

A form of tracking; it keeps a close watch on the warning signs that have the greatest potential to become crises.

Question 6

An Issue

Answer 6

Is “a trend or condition…that, if continued, would have a significant effect on how a company is operated.”

Question 7

Managing an Issue

Answer 7

Involves attempts to shape how the issue is resolved

Question 8

Communication

Answer 8

is used to influence an issue’s resolution

Question 9

Jones and Chase issues management model

Answer 9

Is the classic model in issues management and consists of the following stages:
Issue identification;
analysis;
change strategy option;
action program; and
evaluation

Question 10

Issues Management

Answer 10

Includes the identification of issues and actions taken to affect them. It can also involve changing the organization. Issues managers may decide that the best way to resolve an issue would be correct operating standards or plans.

Question 11

Issues Management vs Crisis Scanning

Answer 11

Some issues can develop into a crisis, making issues management relevant to crisis scanning. Issues management can be a form of crisis prevention when the issues management effort prevents an issue from developing into a crisis potential.

Question 12

Reputation Management

Answer 12

A reputation is an evaluation stakeholder make about an organization. Involves efforts designed to influence stakeholder evaluations of an organization.
Reputation Management is the management of the relationship between the organization and its various stakeholders and organization success is predicated on maintaining an effective balance in these relationships.

Question 13

Stakeholders

Answer 13

Any group that can affect or be affected by the behavior of an organization.
Any persons or groups that have an interest , right, claim, or ownership in an organization.
Separated into two distinct groups: primary and secondary.

Question 14

Reputations

Answer 14

Formed as stakeholders evaluate organizations based on direct and indirect interactions. Being evaluative, reputations are based in large part on how stakeholders assess an organization’s ability to meet their expectations.

Question 15

Direct Interactions

Answer 15

Form the basics of the organization - stakeholder relationship. (Predominately, how the organization has treated the stakeholder in the past.)

Question 16

Indirect Interactions

Answer 16

Mediated reports of how the organization treats its stakeholders. News reports, comments from friends and family, online comments, and messages sent by the organization. Stakeholders are more likely to draw on indirect than direct experiences when crafting their personal views of an organization’s reputation

Question 17

Relationship

Answer 17

The interdependence of two or more people or groups.
Each of the stakeholders has a connection with the organization that links them in some way. Links include economic, social, and political concerns.

Question 18

Primary Stakeholders

Answer 18

Those people or groups whose actions can be harmful or beneficial to an organization. Typically include employees, investors, customers, suppliers, and the government. Primary stakeholders can stop organizational operations and trigger a crisis.

Question 19

Secondary Stakeholders

Answer 19

Also referred to as influencers, are those people or groups who can affect or be affected by the actions of the organization. Typically include the media, activist groups, and competitors. Influencers cannot stop an organization from functioning, but they can damage it.

Question 20

Corporate Social Responsibility

Answer 20

The broadening array of stakeholders that are important to organizations has promoted the integration of corporate social responsibility (CSR) into the conceptualization and management of reputations. CSR can be defined as “the management of actions designed to affect an organization’s impact on society.”

Question 21

RepTrak Seven Dimensions

Answer 21

Reputation Institute’s RepTrak has seven dimensions: Leadership, Performance, Products and Services, Innovation, Citizenship, Workplace, and Governance.