This technical note examines types of organizational crisis and five phases through which nearly all crises pass. Students are encouraged to move from a mindset that manages crisis to one that generates crisis leadership. Between corporate fraud, scandals, ethical dilemmas, mismanagement, national disasters, and workplace violence, organizational crises have become all too common in recent years. The corporation’s reputation with stakeholders, financial well-being, and survival are all at stake. While the actual crisis situation itself is troublesome for the firm (e.g., faulty product leading to a product recall), often the real potential damage to an organization’s reputation results from the (mis)/management of the crisis issue.
Darden Business Publishing – University of Virginia