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Case suggests that CEO and the firm has basically failed to come up with right strategy to deal with the public anger in the wake of disaster which happened with one of company’s cruise ships on the coast of Italy.
Micky Arison’s management philosophy is largely based upon delegating most of the tasks and allowing regional teams to manage at the regional level. The crisis which happened were regionally handled by the team overseeing Italian operations and as such parent company Carnival Corp practically distanced itself so that bad PR may not hamper other businesses of the firm.
Carnival Corp, as a parent Company, completely avoided to being part of the crisis thus suggesting a relatively unethical business behavior. Despite the loss of lives, firm continued to lie about its efforts and publically never came to present its official response to the event and what it has done so far to ensure that no such events happen in future. The overall problem lies in how the leadership of the firm failed to face the challenge and rather avoided the crisis situation by misleading public.
1. Come up openly in public and properly built a rapport with its customers to inform them about the steps taken by the firm so far. (Werder and Holtzhausen). This step may be necessary in order to ensure that the firm is actively engaging all stakeholders in sorting out the issue and publically show that it has taken proper and active rescue efforts.
In order to successfully deal with the problem, it is important that Carnival Corp must come up with a viable PR strategy and openly accept the responsibility for the disaster. To avert further reputation damage, firm’s CEO should actively engage with the public and take on-board all stakeholders in order to ensure that everything is done in fair and transparent manner. By actively coordinating with its Italian subsidiary, it should focus on ensuring that every organizational
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