Thursday, March 24, 2016

Blog #2



Disney and Marvel vow boycott if Georgia enacts ‘religious freedom’ bill: http://www.prdaily.com/Main/Articles/20419.aspx

            The Walt Disney Company recently took a preemptive measure to protect its reputation as an inclusive company. A spokesperson for the company issued a statement saying that, if the state of Georgia passed a bill that would allow discrimination against the LGBT community, Disney subsidiary Marvel would pull its movie production from the state.
The statement said: “Disney and Marvel are inclusive companies, and although we have had great experiences filming in Georgia, we will plan to take our business elsewhere should any legislation allowing discriminatory practices be signed into state law” (Winchel, 2016, para. 9). The bill, in a nutshell, would allow organizations to refuse services and employment to individuals whose religious views or life practices do not match what the organization believes or practices (Winchel, 2016, para. 4). This bill has been called discriminatory and anti-LGBT.
While the bill has not been signed into law as of March 24, 2016, Disney and other media companies have already stated that they will discontinue filming in the state if discriminatory actions are made law. This statement is a preemptive measure to show that Disney supports inclusive practices, and will not tolerate discrimination. Though Coombs (2007) states that the most important aspect of handling a crisis is stakeholder protection, another important aspect is reputational protection (p. 165). In a time of crisis, an organization needs to work to protect itself. If the aforementioned bill gets signed into law, it could cause a crisis situation within the state of Georgia. By making the statement it did, Disney removed itself from a potential crisis by stating that it will remove its filming from the state, thus cutting business ties with the state.
Coombs (2007) stated that “the words used and action taken by management affect how people perceive the organization and/or the crisis” (p. 171). Disney built up its reputational capital by positioning itself as an inclusive company that will not support discriminatory practices. In the case that Georgia does sign this discriminatory bill into law, Disney and the other brands who have stated that they will pull business from the state have protected themselves from the effects of this potential crisis.
As a global organization, Disney is often in the spotlight, so by taking this preemptive measure to distance itself from potential crisis, the company is able to build reputational capital by proving its dedication to inclusive practices, and protect itself from any reputational damage that could potentially occur from the situation.

References

Coombs, W.T. (2007). Protecting organization reputations during a crisis: The development and            application of situational crisis communication theory. Corporate Reputation Review, 10       (3), 163-176.

Winchel, B. (2016). Disney and Marvel vow boycott if Georgia enacts ‘religious freedom’ bill.  Retrieved from http://www.prdaily.com/Main/Articles/20419.aspx