Role Of Public Relations In Crisis Management
(A Case study of Union Bank Plc)
Public relations plays a crucial role in crisis management, serving as a linchpin in navigating and mitigating challenges during tumultuous times. It serves as the strategic conduit for organizations to communicate effectively with various stakeholders, including the media, employees, customers, and the public at large, during crises such as natural disasters, scandals, or pandemics. Public relations professionals adeptly craft messages that maintain transparency, build trust, and safeguard the reputation of the organization amidst turmoil. They leverage various communication channels, including social media, press releases, and direct engagement, to disseminate timely and accurate information, address concerns, and manage perceptions. By fostering open dialogue and providing updates, public relations not only helps contain the crisis but also cultivates resilience and fosters goodwill, laying the groundwork for long-term trust and credibility in the organization’s relationships with its stakeholders.
This Project examines Role of public relations in crisis management, a study of Union Bank Plc. Garden Avenue Enugu. To achieve this, the survey research method was adopted. The researcher uses the number of the population as the sample size; this is because the population is already small to reduce as we know that the purpose of sample size is to reduce the large number of population. Three research questions guided the study. Research findings showed that public relations play a vital role in crisis management. In view of these findings, the researcher recommended that every good organization must have public relations department, with well qualified staff and provide them with basic facilities to work with like security camera etc. The researcher suggested that Union Bank Plc. should imbibe public relations as a philosophy of management and all organization should be made to appreciate the place of public relations in the organization.
1.0 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Research Problem
1.3 Objective of the Study
1.4 Research
1.5 Hypotheses
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Operational Definition of Significant Terms
CHAPTER TWO
2.0 REVIEW OF LITERATURE
2.1 Sources of Literature
2.2 Review of Concepts
2.2.1: The Concept of Public Relations
2.2.2 Model of Public Relations Management
2.2.3 Concept of the Nature of Crisis
2.3 Review of Related Study
2.4 Theoretical
2.5 Summary of Literature Review
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Research Method
3.2 Research Design
3.3 Area of the Study
3.4 Population of Study
3.5 Sample Size
3.6 Instrument for data collection
3.7 Validity of data gathering instrument
3.8 Reliability of Instrument
3.9 Method of Data Collection
3.10 Method of Data Analysis
CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
Testing of Hypothesis
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
Questionnaire
INTRODUCTION
1.1 Background of the Study:
Public relations play a vital role between an organization and its public. Its practice aims at establishing a two-way communication, seeking common ground or areas of mutual interest and establishing understanding based on truth, knowledge and full information. It is that indispensable bridge that fosters co-operation and understanding. With increasing intensity, the civil society is rather active than passive in the affairs that concern them. Similarly, organizations are more socially responsible in their business undertaking in reference to public opinion. The reason is not far fetched. Today’s organizations, no matter how pretentious they are, are aware that they need to build dependable relationship with their publics. However, it is obvious that no matter how hard an organization attempts to project her image, occasions arise when crisis develops and threatens the very foundation of the organization concerned.
Public relations have myriad of definitions. The British Institute of Public Relations (1994) defines it as deliberate, planned and sustained effort to establish mutual understanding between an organization and the public. The Mexican definition which was as a result of International conference held in Mexico City in 1978, says, Public relations practice is the art and social science of analyzing trend, predicting their consequences, counseling organization leader, and implementing planned programmer of action which will serve both the organization and the public interest. Harlow(1976) defines it as distinctive management function which helps establish and maintain mutual lines of
communication, understanding, acceptance and cooperation between an organization and its public; involves the
management of problems or issues; helps management to keep informed and responsive to public opinions, defines and emphasizes the responsibility of management keeps abreast of and effectively utilize change; serving as an early warning system to help anticipate trends and uses research and ethical communication techniques as its principal tools. Indeed, Public Relations have long been discovered as not only a management function but the basis of philosophy of management. According to Oxford Advanced Learner’s Dictionary (7th edition) crisis entails a time of great danger, difficulty or confusion when problems must be solved or important decisions must be made. ‘Crisis can be said to be an unsettling situation with disquieting disposition needing a return from the status quo. In view of the situation in Nigeria currently, crisis can be in different forms, example political crisis, financial crisis, fuel crisis, labour crisis, civil disturbance engendered by a perceived wrong doing by a corporate organization, management, shareholder and management related crisis and so on. These are to mention but a few instances because there are so many dimension of crisis. Crisis can occur as a recall of an action of omission or negligence; even a natural disaster can trigger off crisis in an organization. Crisis can either be violent or non-violent in nature Solu; 1994, p. [383]. However, in as much as crisis is an inevitable situation, there is always the need to develop pre- emptive strategic method to prevent its occurrence. But in case crisis occurs and poses great danger, difficulty or uncertainly, the big questions for public relations experts or managers is: what do they do? How best do they utilize their training and knowledge to resolve a situation that is unstable and capable of a highly undesirable outcome?
A brief history is necessary because several structural changes and innovation have taken place in the bank to make it what it is today. Union Bank is a large commercial bank, serving individuals, small and medium –sized companies, as well as large corporations and Organizations. A brief history is necessary because several structural changes and innovation have taken place in the bank to make it what it is today. The first branch of the Union Bank opened for business in Lagos in 1917 and almost immediately, the Jos and Port-Harcourt branches followed. Then the bank was known as colonial Bank to reflect the signs to time. Nigeria was under the British rule and who of course, introduced the bank. The bank opened twelve more branches in different parts of the country and later became known as Barclays Bank.
In 1971, the shares of the bank stock were listed on the Nigerian stock Exchange. In the same year, 8.33% of the bank’s shares were offered to Nigerians. The following year, the federal Government of Nigeria acquired 51.67% ownership of the bank, leaving Barclays Bank Plc of London with 40% ownership. In 1979, that 40% was sold to Nigeria individuals and business to comply with the recently enacted banking and investment laws. The bank changed its name to Union Bank of Nigeria Plc., to reflect its new ownership structure. In 1993, the federal Government of Nigeria completely divested its ownership in the bank. Subsequently, Union Bank of Nigeria Plc. acquired the former Universal Trust Bank Plc. and Broad Bank Limited. It also absorbed its former subsidiary Union Merchant Bank Limited.
Union bank has grown enormously since 1979.Beween 1981 and 1984, the bank made the highest level of profits in the banking sector. While In 1986, it became the first Nigerian to hit 1 billion naira mark in the savings deposits. Its total assets which stood at 5,
29.550 billion naira in 1986 has risen to about 329.6 billion naira in 2003. In July 2009, it was rated the 556th largest bank in the whole world and the 14th largest world in Africa. As of June 2012, the bank’s asset base was estimated at US$6.784 billion (NGN:1.049 trillion).The shareholders equity at that time was estimated at US$1.22 billion (NGN:188.4 billion). The bank has a branch in London which commenced operations in September 1983 with five million pounds and 12 members of staff, now it has grown to more than 30 million pounds with staff strength of 42.
Union Bank of Nigeria Plc with its mission statement of “To be the foremost financial institution with the satisfied customer” is one of the largest companies listed on the Nigerian Stock Exchange and ranked among the most successful in the whole of African.
1.2 Statement of the Research Problem:
There is a saying that goes thus:”Change is the only constant things in life”. In as much as change is desirable, not all change brings good fortunes, some bring about positive effects while some simply are destructive and devastating. The problem is that with each passing year many organizations find themselves enveloped in crises which decelerate growth and brings instability in the polity, unhealthy competition, destruction of life and property as well as loss of life. What factors could be responsible for these? Does it mean that Public Relations departments are overtly ignored or underrated in organizations? A corporate
organization like Union Bank Plc which has grown to such a magnitude has had its crisis periods. Of course no business can operate in troubled waters. Therefore the question this study seeks to answer is: how has Public relations expertise and experience been used to effectively manage a crises situation in Union Bank Plc Garden Avenue Enugu.
1.3 Objective of the Study
The study had the following objectives
i. To determine the role public relations play in crises management at
Union Bank Plc
ii. To determine what Public relations tools were used to resolve the crises
at Union Bank Plc.
iii. To ascertain how effective the Public relations tools were used in
resolving the crises.
1.4 Research Questions
The study answered the following research questions.
1. What roles does public relation play in crises management at Union Bank
Plc?
2. What Public relations tools were used to resolve the crises?
3. How effective were the Public relations tool used in resolving the crises?
1.5 Hypotheses
Ho: Public relations does not plays any role in crises management at
Union Bank Plc.
Hi: Public relations play a role in crises management at Union Bank
Plc.
Ho: A good public relations unit cannot help prevent crisis in Union
Bank Plc.
Hi: A good public relations unit can help prevent crisis in Union Bank
Plc.
Ho: Public relations unit can not maintain peace in Union Bank Plc
Hi: Public relations unit can maintain peace in Union Bank Plc.
1.6 Scope of the Study
The study is limited to Union Bank Head Quarters Enugu, Garden Avenue. This branch is large and representative enough to provide all the information necessary to do justice to the study within the period.
1.7 Significance of the Study
The study will go a long way to benefit many co-operate Organization, the
academics and Government Officials in Crisis as few work have been done on the subject.
The foundation of modern society lies in its economic and industrial capacity for business and governance to grow and progress. There is the over whelming need to ensure stable social, political and economic environment. This show the vital position public relations has come to occupy in the scheme of things. Public Relations application in administration and Management can help in achieving the desired expectations when properly harnessed.
In other words, business and industries will find the study important and used as it attempts to mirror the various Crisis, it also proffers solutions. The society will benefit from this research especially in this time of stress on the national economy and the high level of corruption pervading all sectors of our national life.
1.8 Operational Definition of Significant Terms
The definitions of the vital terms used in the research are given thus:
Public: Customers and staff of Union Bank Plc. Garden Avenue Enugu from Jan. to July 2014.
Public Relations: It is the practice of managing the spread of information between the staff of Union Bank Plc. Garden Avenue and their customers.
Crisis: Violence created by the retrenchment of Union Bank Plc. Garden Avenue Enugu in 2008.
Crisis Management: It is the process by which Union Bank Plc. Garden Avenue Enugu deals with a major event that threatens to harm their staff and customer.
Role Of Public Relations In Crisis Management:
Public relations (PR) plays a crucial role in crisis management for organizations. A well-executed public relations strategy can help mitigate the damage caused by a crisis and protect an organization’s reputation. Here are some key roles of public relations in crisis management:
- Communication: Public relations professionals are responsible for developing and implementing communication strategies during a crisis. They ensure that accurate and timely information is disseminated to the public, employees, stakeholders, and the media. Clear and transparent communication helps maintain trust and credibility.
- Media Relations: Public relations teams interact with the media to provide accurate and consistent information. They can also help manage the media’s expectations and prevent the spread of misinformation or sensationalism. Building and maintaining good relationships with the media is essential in crisis situations.
- Stakeholder Engagement: Public relations professionals identify key stakeholders, including customers, employees, investors, and community members, and develop strategies to engage with them effectively. This can involve addressing their concerns, providing updates, and maintaining open lines of communication.
- Reputation Management: Preserving and restoring an organization’s reputation is a primary goal of crisis management. Public relations teams work to minimize the damage to the organization’s image and brand by carefully crafting messages, responding to criticism, and demonstrating accountability.
- Social Media Management: In the digital age, social media can amplify the impact of a crisis. Public relations professionals monitor social media platforms, respond to comments and questions, and use these channels to share updates and information. Managing the online narrative is crucial.
- Crisis Planning and Training: Public relations teams often play a role in developing crisis communication plans and conducting crisis management training for employees. This ensures that the organization is prepared to respond effectively when a crisis occurs.
- Legal and Regulatory Compliance: Public relations professionals work closely with legal teams to ensure that all communications are in compliance with laws and regulations. This is particularly important when addressing issues that may have legal implications.
- Internal Communication: Effective internal communication is essential during a crisis. Public relations teams help organizations communicate with employees, providing them with guidance, support, and updates. Engaging and informed employees can be valuable advocates for the organization.
- Monitoring and Analysis: Public relations teams continuously monitor media coverage, social media sentiment, and public perception during and after a crisis. This data helps in assessing the effectiveness of the crisis response and adjusting strategies as needed.
- Post-Crisis Recovery: Once the crisis has passed, Public relations professionals work on the organization’s recovery phase. This involves rebuilding trust, addressing any lingering issues, and ensuring that the organization learns from the crisis to prevent similar incidents in the future.
In summary, public relations is an integral part of crisis management, helping organizations navigate and recover from challenging situations while protecting their reputation and maintaining stakeholder trust. An effective public relations strategy ensures that the organization’s response to a crisis is coordinated, transparent, and aligned with its values and goals.