Crisis Communication Plan Essay Example

has been entangled in a prolonged disagreement with Ethiopia lasting over five years.

Starbucks initially hesitated to acknowledge Ethiopia's specialty coffees - Harar, Sidamo, and Yirgacheffe. Ethiopia had made efforts to connect with Starbucks, seeking trademark rights for these specialty coffees to support the country's goal of providing more benefits to the farmers who cultivate them. Despite Starbucks' commitment to assisting Ethiopian farmers, the company repeatedly rejected requests to resolve the trademark issue and declined to sign a royalty-free licensing agreement that would validate Ethiopia's authority in regulating the usage of its coffee names. In 2005, OXFAM launched a campaign urging Starbucks to enter into a licensing agreement with Ethiopia, ensuring that the country retained ownership of its specialty coffee names. As complaints from consumers and concerned individuals multiplied, tension heightened for Starbucks during this time.

(OXFAM International, 2006) Starbucks did not sign the agreement for a long time because protecting the value of Ethiopia's coffee was crucial to its economy. Coffee farming supports nearly 15 million Ethiopians and makes up 40 to 60 percent of the country's exports. (Spiegel Online International, 2006).

It was clear that when Starbucks signed the agreement with Ethiopia, it would have a significant impact on the country's economy. The conflict between Starbucks and Ethiopia caused anger and confusion among Ethiopian farmers, as well as organizations like OXFAM that supported them. These groups believed that Starbucks was a socially responsible company, but its actions were contradicting this belief. By not adhering to one of the company's principles, "Contribute positively to our communities and our environment" (Starbucks and Conservation International, 2004), Starbucks was being seen as hypocritical. This dispute was resolved in June

2007.

Starbucks and Ethiopia reached a resolution on their trademark dispute and joined forces to support Ethiopian coffee farmers. This allowed Starbucks to realign with its values and continue making a positive impact in the communities it serves, particularly the Ethiopian community. OXFAM expressed satisfaction with the agreement as it had the potential to ensure that farmers receive a more equitable portion of the profits from their globally recognized coffee brands, Sidamo, Harar, and Yirgacheffe. Consequently, OXFAM ended its campaign against Starbucks (OXFAM International, 2007).

Starbucks made various positive efforts to support Ethiopia's economy and farmers as a means of conflict resolution. These efforts included sourcing aprons from Ethiopian textile factories, establishing a Farmer Support Center in Addis Ababa, and promoting Ethiopian coffee brands in its stores. Moreover, the company generously donated $500,000 to CARE for a program aimed at improving the economic and educational prospects of over 6,000 individuals residing in rural Ethiopian coffee growing regions. Nonetheless, despite Starbucks' commitment and proactive approach towards contributing to Ethiopia's economy, the conflict between Starbucks and Ethiopia persists. Presently, most Starbucks stores do not offer the disputed Ethiopian coffee brands, the implementation of the Farmer Support Center remains unrealized, and progress on the trademark project has come to a halt.

Many other positive initiatives, such as those mentioned above, proved to be ineffective in producing tangible results for Ethiopian farmers. The Starbucks-Ethiopia Affair saga of 2010 highlighted that workers who pick high quality coffee beans still receive only half a dollar a day. Additionally, farmers have replaced many coffee fields with illegal but more profitable narcotic crops like Chat. The region in Ethiopia that supplies Starbucks coffee continues to face

severe famine, and Ethiopia is becoming increasingly reliant on emergency aid. Given the history of conflict between Starbucks and Ethiopia and the absence of positive outcomes for the economy and farmers, Ethiopia has recently suspended its agreement with Starbucks. This inefficiency by Starbucks in fulfilling their commitment to support Ethiopia's economy and farmers has upset many Ethiopians. Despite efforts that have been made, there has not been any notable improvement in the situation.

The current situation displays Starbucks' failure in supporting one of its crucial coffee production areas. Initially, Starbucks made a significant impact in promoting its specialty brands within the country. However, they have subsequently been unsuccessful in establishing effective solutions for Ethiopian farmers and the economy. This failure now poses a threat to Starbucks' credibility as a socially responsible company. Without careful management, this conflict has the potential to escalate into a genuine crisis. It is crucial to evaluate the ongoing situation and determine whether it is a problem, an issue, or a crisis. Due to the prolonged and unpleasant nature of the situation between Starbucks and Ethiopia, it can be inferred that it has transitioned from being a mere problem into a more serious state.

Currently, the issue at hand is a shared concern for Starbucks, Ethiopia, and OXFAM. This unresolved problem is negatively impacting Starbucks's reputation as a socially responsible company. If left unresolved, this issue has the potential to develop into a crisis that undermines Starbucks's image of genuine sensitivity towards strategic problems. To address this issue, Starbucks will prioritize crisis prevention by conducting a vulnerability audit. This audit will assess the severity of the issue and determine strategies to prevent it

from escalating into a full-blown crisis.

The vulnerability audit will be conducted by a crisis communications team that has been carefully chosen. The company will follow a series of steps, including: collecting data from individuals in key information flow roles. Starbucks's crisis communications team will conduct numerous interviews with employees from areas where the problem originated.

The team plans to conduct interviews with employees in the Farmer Support Center in Addis Ababa to gather insights on their opinions regarding the issue and identify any potential challenges that may have impacted their efforts. The primary question posed will be, "Why has the center not been successful?" In addition, the team will inquire about any valuable recommendations for enhanced efficiency. Furthermore, interviews will also be conducted with employees from CARE to discuss how Starbucks' donation of $500,000 did not have a positive impact on Ethiopian farmers and why noticeable improvements were not observed. The suggestions put forth by CARE will be duly considered.

- The team will conduct interviews with employees in Starbucks stores to discuss the promotion of Ethiopian coffee. They will inquire about the reasons behind the inadequate promotion of Ethiopian coffee in Starbucks stores and identify any potential issues.
- The team will also interview individuals involved in the trademark project, addressing questions such as the reasons for the project's delay and strategies to enhance Starbucks' effectiveness in the project.
- Additionally, the team intends to interview all members of Starbucks' Corporate Social Responsibility team to gain insights into their initiatives concerning Ethiopia.

During these interviews, there will be an examination of possible intercultural conflicts between Starbucks and Ethiopia. In an international company like Starbucks, cultural conflicts

are unavoidable. Therefore, it is essential to closely analyze these conflicts in order to find effective resolutions. (Trompenaars. F, Turner. H.)

C, 2011) The interviews will be conducted confidentially to ensure openness from interviewees and the gathered information will solely be used for conflict resolution. 2. The objective is to identify operational and communication weaknesses that may lead to or result in a crisis. Starbucks might be experiencing inefficiency in communicating with Ethiopia.

A thorough investigation will be conducted to determine the cause of the current conflict, which could potentially be attributed to a senior communication manager or officer. This research will involve examining the actions of the EMEA region director as well as Carole Pucik, the senior communications official for EMEA. It will encompass all levels of positions within the company, from higher-ranking roles to less significant positions. It is also important to consider that the issue may not solely be human-related but could potentially be a technical problem as well.

Attention will be given to examining all communication tools used to communicate with Ethiopia in order to identify any errors. This includes analyzing potential crisis situations and predicting worst-case scenarios, which is a proactive approach to being prepared for unexpected events. The crisis communications team engages in brainstorming sessions to anticipate possible outcomes.

This step is crucial as it allows Starbucks to proactively take preventive measures based on identified possible future scenarios. Once all research findings are consolidated, the team will generate recommendations for system revisions and a list of the most probable scenarios. Any technical errors that have played a role in the problem will also be documented. The management team will then collaborate to

brainstorm effective solutions for these potential scenarios and select the optimal response strategy to address the crisis situations.

During a crisis, Starbucks will opt for an "accommodative strategy" (Goldiamond. J, 2011), demonstrating sensitivity towards Ethiopia's situation and offering apologies if the issue escalates into a crisis. Through brainstorming, the company will generate "key messages" aimed at informing and reassuring affected stakeholders (Bernstein Crisis Communication INC, 1996). These key messages will emphasize Starbucks' commitment to supporting Ethiopian farmers and combating poverty with effective solutions. Additionally, Starbucks is prepared to take necessary actions for Ethiopia. To mitigate crises, it is crucial to strategically select a spokesperson who will communicate these key messages to the media.

According to MeriTalk (2008), it is recommended to have one primary spokesperson and two backup options in case of a crisis. The designated spokespeople should receive regular media training throughout the year, provided by experienced professionals. This will ensure their readiness to deliver speeches and handle stressful interviews with the media. Starbucks understands the significance of immediate communication during a crisis and emphasizes the importance of having a prepared spokesperson who can quickly respond.

In order to effectively communicate important messages to the appropriate audience, it is necessary to analyze key stakeholders. The position-importance matrix is a tool that will be utilized to comprehensively identify relevant stakeholders. (Goldiamond, J, 2011) These stakeholders can include problematic groups such as activists and other non-governmental organizations (NGOs) who are fighting against hunger. These stakeholders may attempt to create controversy by criticizing Starbucks for perceived lack of support for Ethiopia in times of famine and not providing farmers with fair income.

Antagonistic stakeholders in this issue include Ethiopian farmers,

the Ethiopian government, and OXFAM. They have the potential to negatively impact the company as they are the ones responsible for the problem that has now become an issue. Ethiopia has suspended the agreement, and OXFAM has previously organized a campaign against Starbucks to sign the agreement. Therefore, it is important to handle these stakeholders carefully.
Low priority stakeholders are organizations Starbucks has worked with in the past, such as Conservation International (related to CSR activities), and business partners like Pepsi. While they support Starbucks, they are not directly relevant to this issue and are only minimally affected.

Starbucks employees and customers, as well as the Max Havelaar foundation, are important supporter stakeholders for the company. They will play a vital role in addressing the issue at hand. During his visit to Costa Rica, the director of Max Havelaar, Peter D’Angremond, was already informed about this issue and raised questions about Starbucks's commitment to selling only Fair Trade coffee due to their problematic relationship with Ethiopia. Additionally, CARE, a significant supporter group that has received donations from Starbucks to aid Ethiopia, needs to be informed and engaged transparently to foster trust and collaboration during this potential crisis.

Starbucks plans to communicate its key messages to relevant stakeholders. However, before doing so, the company must determine the appropriate response strategy for the issue at hand. Throughout its history, Starbucks has consistently opted for cooperation and contributions to society. As a result, given that the current situation is not a crisis but rather an issue, the company will employ a "bridging strategy" to effectively address concerns. It is evident that Ethiopia is hopeful for concrete, beneficial outcomes for its

coffee farmers and economy, desiring reassurance that Starbucks prioritizes their well-being.

After identifying problems in achieving positive results, necessary solutions will be implemented to eliminate poverty, ensure sufficient income for coffee farmers, and have a positive impact on Ethiopia’s economy. Starbucks will address the ongoing Ethiopian issue proactively and prioritize actions that are necessary. Business interests will not take precedence in dealing with this matter. Implementing a crisis prevention plan will help take measures to prevent the issue from escalating into a crisis. Simultaneously, the communication team must effectively communicate and continuously update stakeholders with new information regarding the issue. In today's digital world, it is not a choice but an obligation to consider digital communication in both pre-crisis and crisis phases.

The most effective way for a company to communicate with important stakeholders in this issue is through the company website. It is crucial to have a continuous flow of information about how Starbucks is handling the situation in order to maintain control. Another significant digital strategy in managing pre-crisis and crisis situations would involve the crisis communications team taking measures to influence the information that stakeholders can easily find and access. This can be achieved by increasing the number of press releases and social media releases. Providing frequent updates on how Starbucks is effectively addressing the issue through press and media releases will be essential for minimizing negative consequences.

The team will use paid search to control the information exposed on the internet. Starbucks can manipulate internet findings by using paid search related to the issue and ensure stakeholders see positive developments in how Starbucks handles the issue. To maximize benefit, Starbucks must also

learn where related stakeholders communicate digitally with each other (Argenti and Barnes, 2009). Before 1996, dealing with crisis situations was easier for Starbucks as a national American company with less at stake. However, since opening its first international store in Tokyo, Japan in 1996, Starbucks has been growing worldwide.

With thousands of stores opened worldwide on all continents, Starbucks now faces the responsibility and challenge of managing international stakeholders. The advent of the internet in the late 1990s has provided both opportunities for growth and new problems. It is crucial for international companies, including Starbucks, to handle disputes before they escalate online and negatively impact important stakeholders. Crisis communication strategies have evolved in the face of a dangerous yet opportunistic digital world, and Starbucks must take these factors into consideration and implement an effective plan to address potential crisis situations. (Argenti, 2009)