Australia Council for the Arts

Purpose The purpose of this paper is to highlight the circumstances in which a crisis response strategy can compound a crisis, especially a corporate scandal, as evidenced by the case of AWB Limited, where the organisational damage of the “cover‐up” escalated the scandal further and caused additional damage to the company. Design/methodology/approach The AWB case study provides a unique insight into the application of theories and research on crisis and reputation management and the specific challenges and risks of corporate scandals. Findings As a specific form of crisis, corporate scandals can easily descend into a secondary or “double crisis” if incorrectly managed, or even mismanaged. Research limitations/implications The paper shows that the information provided to the Australian Government's Royal Commission and other documents relating to the management of the scandal by the company further embarrassed AWB and exposed the inappropriateness of the original defensive apologia crisis response strategy pursued by the company. Practical implications The AWB case study provides an opportunity for alignment with the crisis response theories of Coombs and De Maria, based on the evaluation of the initial failed response strategy and the more appropriate response eventually undertaken by the company. Originality/value The paper offers the additional insights of the author (as a former member of the management team at the company) into the documents tendered to the Royal Commission, which have not been evaluated and studied for their contribution to crisis communication and crisis management.

This paper draws on the unique insights offered by the documents tendered to the Royal Commission into the Australian Wheat Board (AWB Limited) to examine the process for drafting an apology within a scandalized organization suffering reputational damage. The Royal Commission received an almost complete set of documents specifying the process by which AWB prepared a public apology, as well as details of the efforts of the company to suppress those documents and the testimony of key personnel not only on the scandal itself but also on how the company responded to the crisis it had caused. The documents tendered to the Australian Government's Royal Commission included the working notes, drafting edits and expert advice from an international crisis communication consultant. AWB initially sought to try and manage the impact of the United Nations Oil‐for‐Food scandal, rather than address the causes of the transgression that would then allow the company to begin the process of restoring trust and rebuilding the damaged reputation. This disingenuous response exacerbated the problems for the company and caused additional damage to its corporate reputation. The insights from the AWB case study provide invaluable guidance for organizations on how to respond effectively to a corporate scandal. Copyright © 2012 John Wiley & Sons, Ltd.

This paper discusses the integrated public affairs model most common in Australian companies, and its rationale. It describes some key characteristics of the function, drawing on a comprehensive survey of public affairs departments in late 2003. The function has become more senior and strategic, more closely aligned to business imperatives and with stable or growing budgets. It identifies areas of increased attention for practitioners, including support for organization transformation and culture change, stakeholder relations as a line, as well as staff function, reputation management and sustainability reporting. Copyright © 2005 John Wiley & Sons, Ltd.

In 2010, the Australian Government was caught by surprise at the high level of public support for the mining industry over the proposed introduction of a mining industry 'super profits tax'. While the industry's exports helped the economy through the global financial crisis, this support was only possible because of a major turnaround in its community license to operate. After many years of poor reputation, consequent on practices that fell short of changing community expectations and strident advocacy strategies, a major turnaround in public affairs strategies and operational practice in Australia and internationally has led to a new level of community acceptance. Copyright © 2011 John Wiley & Sons, Ltd.

This article is an attempt to provide a helicopter view of the influences and responses that have shaped the corporate public affairs function over four decades from non‐existence to an important and settled profession in Australia's major companies. It reflects the perceptions and experiences of an observer with a background in public administration, politics, academia, industry association leadership, and consulting to companies and industry organisations over that period. They are further informed by surveys and other studies conducted by the organisation supporting public affairs departments, the Australian Centre for Corporate Public Affairs (the Centre) since its inception in 1990. The article charts the emergence from two distinct, low level management silos—one supporting communications and the other, government affairs—to create an integrated strategic management function. The central story is of waves of innovation in concepts and practices, developed mainly overseas, being embraced with enthusiasm and becoming a dominant focus, before settling into the broad toolbox of public affairs. This occurred particularly in the period 1990–2005 during which the function took its shape. With such a broad and ambitious sweep, it is inevitable that bold generalisations begging exceptions must be made.

Development of the corporate public affairs management function in Asia over the past three decades has occurred in three waves, from one with a focus on basic public relations, market access and product regulation, to a sophisticated management function that is central to how the corporation interacts with and seeks to influence the socio‐political environment in which it operates. If this new millennium is indeed the ‘Asian Century’, the public affairs function will become more valuable to companies trading in Asia. Copyright © 2011 John Wiley & Sons, Ltd.