Monday, March 29, 2010

CSR Goes a Long Way

One of the areas heavily discussed with regards to public relations is Corporate Social Responsibility (CSR). CSR has to do with economic profitability for the corporation as well as social actions that benefit society as a whole. Chapter 10 in our book discusses four components of CSR: Economic profitability, legality, ethics, and philanthropy (Crandall 196). Here we'll look at the last component and see what the Joe Gibbs Racing Team drivers do to "give back".

CSR can go a long way, and can mean a lot to consumers who might purchase or support a particular brand or product. For example, if an environmentally-conscious consumer was trying to choose between brands and found out that one brand planted over one million trees, they might choose that brand simply because of that action.

With NASCAR, many of the drivers do charity work. I personally think that this helps fans like the drivers because they feel good about giving them their support. For example, Tony Stewart has been in trouble in the past for showing unsportsmanlike behavior. However, he makes frequent large charitable donations, which sometimes can actually make up for the bad behavior in a way.

On the other hand, the Joe Gibbs Racing Team is usually positively reflected, except for actual racing techniques on the track, which will always be criticized by some. However, each of the three drivers participates in activities that help improve and maintain an image of 'caring' about others.

The website joegibbsracing.com highlights some of the recent philanthropic work that the drivers have done. For example, Joey Logano is involved with the U.S. Paralympic Hockey Team, who recently won the gold at Vancouver. Joey Logano partnered with the Extreme Ice Center to provide the sleds for the players. He has hopes that winning will help spread more awareness and support for the team members. For the full article, check this out.


Denny Hamlin is involved with the March of Dimes, which raises money so that babies can be born healthy. According to Denny, "I want to do everything I can to help raise awareness for the amazing work the March of Dimes does so that more babies are born healthy." For the past three years at Phoenix, he has raced a special March of Dimes race car that helps to raise awareness on a national level. For the full article, check this out!


Kyle Busch, who is often said to be too aggressive on the race track, actually has his own foundation! Formed in 2006, The Kyle Busch Foundation provides money and assets to organizations that foster children, providing them with what they need to successfully give children a safe and nurturing place to live. To see the website for his foundation, check this out!

Different Strategies for Different Crises

Chapter 8 of our textbook is dedicated to crisis communication or the actions and messages organizations should convey during the actual crisis.

The magnitude of the crisis can help to determine how much communication is needed and who it needs to be directed to. For example, a larger problem could require more communication to most or all of the publics while smaller problems might only require communication to some of the publics.

So, the crisis management team must continually assess the situation in order to determine how much is enough. According to our book, “ Setting a [communications] strategy can determine the difference between a quickly resolved crisis and one that remains a management problem for a number of days-or longer (Crandell 157).

W. Coombs outlined four potential strategies for communicating to publics during a crisis in 2006, which can be applied to any organization. We will look at two that a NASCAR team might utilize at one point.

The first is called the denial posture, where the organization will not accept blame for the situation. To apply this to the Joe Gibbs Racing Team (or really any NASCAR team), we will act as if they had just received notice that another team told officials and the media that they were breaking the rules by using an illegal part. As mentioned earlier in this blog, this would create a crisis for JGR because it attacks the credibility and reputation of the organization as a whole.

To use the denial posture, Joe Gibbs and his team could take three different actions. First they could attack the accuser back and claim that in fact they are the ones cheating. Second, they could simply state that it is untrue. Third, they could use a scapegoat tactic and shift the blame to a manufacturer or supplier.

Second is called the diminishing posture, where the organization will give others the impression that it had little or no control over the situation at all. This strategy works better if the organization has a positive reputation and no past crisis history. For this strategy, we will act as if a crew member was injured during a race. Since JGR has not had a history of big accidents, it would be appropriate to use this strategy.

To use the diminishing posture, they could take an excusing action, where the blame for the injury would fall on the circumstances happening at that moment in the race. They could also use justification, which tries to make the situation seem less serious.

Again, these are both examples of crises that could be prevented, as outlined in previous blogs.

Thursday, March 11, 2010

Who's Talking Now?

Chapter 7 of our book in class briefly mentions one very important point to consider when making all crisis management plans and crisis prevention tactics: The assignment of one spokesperson. For Joe Gibbs Racing, the main spokesperson would be Joe Gibbs himself, because he is the owner of the team and has the final say in all decisions. However, one of the drivers, Denny Hamlin, Kyle Busch, or Joey Logano, may also have to speak if the situation clearly involves them.

To prepare for a crisis, all four team members should have crisis management training, if they do not already. Although they all speak to and deal with many different media outlets on a regular basis, it is important that they can handle the pressure of a crisis when in the public eye.



Another consideration to go along with the speaker is the audiences that he will be speaking to. Internal audiences for Joe Gibbs Racing will include their own team members. So, owners, mechanics, drivers, crew chiefs, crew members, assistants, sales personnel, marketing personnel, etc. It is imperative that the team maintains one voice during a crisis, no secrets are kept and that all team members have all of the imformation they need.



External audiences include fans, NASCAR officials, spectators, sponsors, investors and retailers who might purchase merchandise with the Joe Gibbs Racing Team name on it. All of these publics, both external and internal, are of great importance and need to be addressed correctly and promply in the event of a major crisis.

Tuesday, March 2, 2010

SWOT for Joe Gibbs Race Team

In the beginning of all communications plans, much internal and external research needs to be done. One idea that is common (in some form) in advertising, marketing and public relations is a type of analysis, often called a SWOT analysis.

These analyses look at strengths and weaknesses of the organization, which are internal. The organization has more strategic control over these two factors.

They also look at two external factors, opportunities and threats, which are external. The organization does not have much control over these two factors.

STRENGTHS
  • Experienced personnel
    • Now that Joey Logano is no longer a rookie, all three JGR drivers in the Sprint Cup Series have experience and are ready to take serious strides forward in order to be top contenders for the cup.
    • Team members are also experienced
  • Winning records
  • High awareness of teams
    • Most fans have heard of all 3 drivers, as well as JGR as a whole.

WEAKNESSES
  • Busy schedule
    • With three different drivers both racing and owning other teams, and different series running simultaneously, it can be a lot to keep up with!
      • Luckily for Joe Gibbs and his team, they are all very dedicated and would not have their schedules any other way




OPPORTUNITIES
  • Much opportunity for media attention
    • JGR is constantly making headlines! With 3 talented drivers, they receive much media attention.
    • Media attention is important for fans because it helps to keep their loyalty if they are constantly reminded of their favorite team or driver(s).

THREATS
  • NASCAR's Rules
    • Although it is mostly out of each race team's control, every time the rules change, it affects them. Teams need to anticipate changes and be prepare to adapt to them.
  • Recession
    • In times of economic recession, it is more difficult for fans to spend money on race tickets and merchandise. Also, sponsors may not have as much to give.