1- Read both texts 2- Do your research on each case 3- Both crises affect the two companies 4- Do your analysis on both cases by giving: – similarities – the differences 5- Your position as Int PR on how to resolve the two cases 6- 650 words 1. Huawei’s CFO Gets Arrested That two of our top five crises including corporate leaders being arrested might point to a trend, but the situation concerning Huawei CFO Meng Wanzhou is sufficiently removed from Carlos’ Ghosn’s fate at Nissan as to constitute a totally separate crisis scenario. One that is, furthermore, considerably complicated by the geopolitical opposition and security concerns that have bedevilled Huawei’s rapid rise over the past decade. US authorities allege that Meng and Huawei violated Iran sanctions and may have made illegal transactions with HSBC. It is, says Signal Leadership Communication principal Bob Pickard, just the latest step in a “continuing saga” that has seen Huawei attempt to reassure the world that it is not a proxy for the Chinese government. At the same time, notes Pickard, Huawei has built a “world-class communications platform” in a short space of time, including a new corporate PR roster that includes BCW and Edelman. “The profile of the company’s brand has been growing fast, fuelled by cybersecurity fears concomitant with a massive marketing spend powering increasingly popular products which are driving the company’s unrelenting commercial success.” Meng’s arrest, though, takes Huawei into “unchartered territory,” says Pickard, where it simply finds itself unable to shape the narrative to its advantage. “Regardless of its world-class issues’ management and crisis communications capability, it’s not calling the comms shots in the news as the Chinese and North American governments on the other side duke it out through the state-supported media and information platforms at their disposal. “As China’s national champion multinational, Huawei is now a red flag of warning in most of the Anglosphere countries of China’s rise as a technologically advanced superpower that many are afraid could surpass and dominate a divided and declining West, where governments may be reaching the conclusion that if they don’t stop Huawei now — stop Chinese encroachment into the Western telecoms infrastructure — they never will.” Huawei’s response to the arrest has been fairly tepid, punctuated by a rare appearance from CEO Ren Zhengfei. “Probably the best public relations and marketing communications can’t overcome the realpolitik situation Huawei finds itself in,” says Pickard. “Even rolling out their biggest PR gun — the reclusive Huawei founder Ren Zhengfei who almost never speaks to the media — smacked of desperation as he heaped praise on Donald Trump and thanked Canada’s justice system for the kind treatment of his daughter who remains under house arrest.” 2. Nissan’s Boss Gets Arrested Even by Japan’s storied standards of corporate malfeasance, the scandal at Nissan Motor deserves special mention — combining, as it does, financial wrongdoing, political intrigue and hubris to almost unparalleled effect. Now relegated to a tiny cell in Tokyo, former Nissan chairman Carlos Ghosn sits at the heart of the affair, arrested more than three months ago and charged this month with understating his compensation by more than $80m over eight years, and causing Nissan to make payments to the company of a Saudi Arabian friend. Unlike recent crises in Japan, says H+K Strategies crisis comms practice leader Tim Luckett, “this was personal rather than corporate misconduct – political as well as financial.” As Luckett notes, the scandal cames after the imperious Ghosn oversaw Nissan’s turnaround and the creation of its high-profile alliance with Renault and, more recently, Mitsubishi. “The first problem was the vagueness in the initial response [from Nissan] — while this was clearly a corporate governance issue, Nissan only belatedly approved setting up an advisory committee of independent directors well after the scandal broke,” explained Luckett. “But perhaps we don’t know the real back story.” That was compounded by several media scoops that put Nissan further onto the back foot, with the company also taking a cautious approach because of the legal dimension. All of which, says Luckett, created the impression that Nissan may have had “something to hide.” Among the lessons are this: corporates clearly need to be prepared for dealing with inappropriate or illegal behaviour even at the most senior leadership level: “It begs the (somewhat rhetorical) question — what questions were actually asked?” Ultimately, concludes Luckett, “corporates who fail to adopt basic governance structures will endear little sympathy when alleged persistent wrongdoing is finally called out. “There is no doubt that further questions will arise not just about Nissan’s corporate culture, but about the country’s corporate governance standards in general. However, as he awaits his fate behind bars, the ultimate judge in all of this, the share price, remains pretty much intact (as does Nissan’s global comms strategy) — so perhaps the real truth is that Nissan actually knows far more than they’ve bothered to communicate. I suspect this one will run and run.” — AS – check these two references which I studied: http://www.voteforus.com/publicrelationstheories.html https://thenextweb.com/podium/2019/11/17/bill-v-bowie-how-not-to-sell-a-tech-idea/
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