Ibuan, Romarie M.

BMC IV 3 Issues Management and Crisis PR

HONDA CIVIC PHILIPINES BACKGROUND INFORMATION Dreams are what drive us. Powered by an ongoing pursuit to spread joy, we create and innovate to enhance lives of individuals and society - turning dreams of today into realities of tomorrow. This is the company s message to its constituents. Honda s entry into the Philippine Automotive Industry paved the way for the establishment of several auto parts suppliers in the country. To date, a total of 18 investors have brought in capital investments close to P4.9B and provide income to more than 6,000 Filipinos. Under its participation in the Motor Vehicle Development Program, Honda Cars Philippines has invested P1.1B in local manufacturing operations and a state-of-the-art production plant. To carry out its undertaking, Honda provides direct employment to some 700 personnel. Honda utilizes state-of-the-art facilities in its manufacturing operations that have set new standards in the automotive

industry. One of these is a leading-edge painting facility, which involves a full-dip paint system that consists of a Cationic Electro Deposition (CED) bath, to ensure seamless coating, proper paint adhesion and total anticorrosion. Honda recognizes the importance of giving its contribution to society. As a corporate citizen, it is committed to pursue harmonious coexistence with the environment and the community.

Ever persevering in maintaining harmony with society, Honda has been a catalyst in addressing environmental and social concerns, protecting valuable resources and nurturing the dreams of the young generation. (www.hondacivic.com)

Possible issues company could face Safety issue Most new cars are equipped with supplemental inflatable restraints, known as airbags. Honda Civic new model cars were no exception. Their cars especially the new models are equipped with airbags. When airbags function

properly, it could save people from a severe injury; thus, making it a lifesaver when accidents come. But unfortunately, there has been an alarming increase of cases wherein airbags failed to deploy; making a person suffers from injury or worse die. This could be top issue the Honda Civic Philippines Company might face just like any other automotive companies do. What if one of their new models failed to deploy airbags in a midst of accidents? Possible solutions to the crisis: Stage 1: If it the issue hasn t reached the public yet The company could negotiate with the affected family. They could bargain for what the family wants in change of not reaching the issue to the media and to other people. Stage 2: If the media knows about it already The company could resort to publicizing what they are doing for the family of the accident victim to give the people the idea they are responsible enough to help.

Stage 3: If the issue already reached the public domain and already criticizing the quality of the cars of the company. It worst comes to worst, if playing the good one wouldn t change the situation, the company could play the best one ; voluntary recall of cars to let the people know they are really concern for their customers. Customer service issue Slow customer service requirement could be one f the issues of automotive company. The slow customer service might be a result of unexpected event. Problem with the production for instance; they could not supply parts if there s a problem with their main production area. It actually happened already when powerful earthquake in Japan , the company s production region. Production volume of Honda s regional network has been affected and has yet to normalize that time. Numbers of clients were already complaining for slow customer service requirement. This kind of issue could happen again in the company.

Possible solution to the issue: In this kind of crisis, the public should not be avoided. The company should answer all customer inquiries for them not to be upset. The company should humble itself to apologize for supply delaysand other inconvenience. In this issue they need the help of the media to spread press releases and to conduct press conference. Environment issue Cars are one of the most pollutants of environment so for automotive companies like Honda Civic, environment issues are inevitable. Possible solution to the issue: Let the pubic know their environment-friendly works. Like, the company has invested in a multi-million peso Wastewater Treatment Facility that subjects waste water to thorough and redundant recycling and decontamination, ensuring no harmful elements are released to the environment. Geared towards protecting the community dependent on the waters of Laguna Bay, this investment has earned Honda the Macli-ing Dulag Environmental

Achievement Award. To complement its Wastewater Treatment facility, a Universal Carbonizer thermal treatment system was adopted to properly treat hazardous and non-hazardous wastes before discharge. Owing to these and other measures, Honda Cars Philippines was granted an ISO 14001 certification for responsible environmental management. Employee issue In all companies, employees should have a good relationship with the company in order for them to be more productive. Employee gaps can be one of the reasons of slow production thus, affecting the company and its customers. And so, employee issue should be resolved immediately. Possible solution to the issue: Don t just live the issue behind and take action for it immediately. Company and employees should really have a harmonious relationship in order to meet the company s goal. An employee relations program might e conducted for the employees to create bond and be more attached to the company.

Stock market issue The major factors in this issue are the investors, stakeholders, employees and people inside the organization. When this issue reached the media and the pubic domain, it would be a pressure for the people in the company. Investors and stakeholders worst might pull out their investments when this kind of issues arrives. Possible solution to the issue: The company should really keep it within itself since it would really be a pressure for their investors and their stakeholders. The company could reassure their investors and stockholders the issue is not true by showing documents that would prove the companies stable status.

References: www.hondapcivic.com/philippines www.wikepilipinas.com/environment-issues