JP Morgan Chase disclosed a $2 billion dollar loss as a result from a risky stock trade. The PR practitioners for the organization need to convey an optimistic outlook on the situation by focusing on the positive aspects at the present time to ensure continued growth. It is important to note that JP Morgan Chase is not in jeopardy and did not loose any taxpayer money. The organization made reckless decisions that ultimately caused billions, but recognizes it’s mistakes and is amending the condition. The bank contains more assets than any other bank in the country and has the means to repair itself.
Several publics have undergone side effects from the risky stock trade. One very important public affected by the $2 billion dollar loss is the stockholders of JP Morgan Chase. Stockholders are experiencing the effects since stocks have decreased drastically because of the bad stock trade. The organizations stocks are shrinking in value and causing stockholders to loose money. Another significant public that is questioning JP Morgan Chase’s deficit is customers. A sizeable loss of money because of chancy stock trading does not encourage current or potential clients to put confidence into the organization. If JP Morgan Chase begins losing clients because of this incident, the organization may severely suffer. Other publics disturbed by the loss are congress and the FBI. Congress needs to assess the regulations and decide whether or not stricter laws could prevent this from occurring in the future. The FBI might begin researching previous trades to prove the lawfulness of the organizations actions.
Each public moved by JP Morgan Chase’s actions warrants customized explanations from the organization. Providing specific explanations to the different publics can ensure the personal communication between the two and can lessen concerns about the organization. Also, not every public is involved in the same way; at times, different explanations will be necessary. For example everyday customers will either not understand or care about the inner workings that affect congress. Instead of devising one explanation that can be easily understood by the masses, each audience deserves customized reasoning. Comprising several specific responses developed to the individual public needs increases comprehension and gives personal touches that soothe those affected.
In crisis situations PR is the best way to solve the issue. However, PR should attempt to work with advertising and marketing to fully get the organizations message to its publics. PR needs to explain the situation, which publics are affected directly and how JP Morgan Chase is mending the situation. Advertising and marketing can act as the extra insurance that the problem is being handled effectively.
What do you think? Should JP Morgan Chase’s PR practitioners focus on its positive attributes? Are there more important publics than stockholders and customers? Is PR truly the best resolution for the problem?