Page 147 - DMGT304_EVENT_MANAGEMENT

Event Management

Notes Natural Crises

Natural crises, typically natural disasters considered as ‘acts of God,’ are such environmental
phenomena as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides,
tsunamis, storms, and droughts that threaten life, property, and the environment itself.

Technological Crises

Technological crises are caused by human application of science and technology. Technological
accidents inevitably occur when technology becomes complex and coupled and something goes
wrong in the system as a whole.

Crises of Malevolence

An organization faces a crisis of malevolence when opponents or miscreant individuals use
criminal means or other extreme tactics for the purpose of expressing hostility or anger toward,
or seeking gain from, a company, country, or economic system, perhaps with the aim of
destabilizing or destroying it. Sample crises include product tampering, kidnapping, malicious
rumors, terrorism, and espionage.

Crises of Organizational Misdeeds

Crises occur when management takes actions it knows will harm or place stakeholders at risk
for harm without adequate precautions. Lerbinger specified three different types of crises of
organizational misdeeds: crises of skewed management values, crises of deception, and crises of
management misconduct:
Crises of skewed management values are caused when managers favor short-term economic
gain and neglect broader social values and stakeholders other than investors. This state of
lopsided values is rooted in the classical business creed that focuses on the interests of stockholders
and tends to view the interests of its other stakeholders such as customers, employees, and the
community.

Crisis of management misconduct: Some crises are caused not only by skewed values and
deception but deliberate amorality and illegality.
Crises of deception occur when management conceals or misrepresents information about itself
and its products in its dealing with consumers and others.

Workplace Violence

Crises occur when an employee or former employee commits violence against other employees
on organizational grounds.

Rumors

False information about an organization or its products creates crises hurting the organization’s
reputation.

Self Assessment

State whether the following statements are true or false:
11. A risk treatment and action plan documents the management controls to be adopted.

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