YouTube

I created my first youtube video! My video discusses a potential crisis UMG can go through if an artist needs to cancel a concert and how consumers react. Let me know what you think :)

Legal Ethical Corporate Issues

Universal Music Group needs to follow all the ethical and legal standards the community holds just like every other company. There are four main responsibilities a Corporate Social Responsibility framework suggests to follow in order to stand as a positive company in the industry and local community. The first is to be economic. This means that the company’s main goal is to be profitable and maximize revenues. The second is to be legal. A company should obey the laws in which it operates. Third, the company should be ethical. It is important for a company to not participate in questionable business and regulate the company standards around what the community finds to be ethical and unethical. The final responsibility in the framework is to be philanthropic. It is important to be seen as a positive member of the community. It will keep relations with investors, media, and other companies positive if your company is seen as good corporate citizens.
A main problem that Universal Music Group comes across is the public’s desire to attain music from signed artists for free. It is neither legal nor ethical to download music from an unlicensed source. Illegally downloading music has been a major concern among the music industry and companies have suffered great economic loss due to the decrease in CD sales. It would be unethical for UMG to not allow anyone to use their songs but can a barrier be placed to determine who can and cannot lease the rights to a song? The barrier would limit who can have the rights to license music. The main question would be then, who would determine if a requesters reason is legitimate enough to believe they won’t copy it or offer it to the public? There is a gray line between legal and ethical issues but this legal issue music labels are facing needs to place new regulations on the matter to stop the public from taking advantage of the company’s ability to lease out the rights to their music.

Crisis Management Plan

In our last class we discussed all aspects of a crisis management plan. The first step is assembling a crisis management team. This team includes members of your company such as the company CEO, public relations specialist, lawyer, and human resources. The second test is to activate the crisis management team and make all of your employees aware of them. This can be through an e-mail, poster, flyer, or even to just run around and tell everyone. In your notice you should include instructions for your employees to follow should a crisis take place, and a backup plan. This leads to the crisis policies established. If it is a private crisis your employees need to know to keep quiet and not discuss these issues with the press. At no point should a random employee address the press on a company issue, it should always be a person determined by the crisis management team. After the policies are formed and distributed the crisis management team should create a crisis decision tree. This tree will include detailed steps on what individuals and the company will do if a crisis should happen. After the tree is made a spokesperson should be elected to address the media. This person should be aware of all the insides and out of the company crisis, and outside news so they can be knowledgeable and expect the unexpected when being asked questions from the press. A final aspect of a crisis management plan is to create a crisis communications checklist. This will help the team make sure they are not missing anything to the plan when a crisis takes place and it can be handled in the best possible way.
Universal Music Group can prevent any crisis from taking place by following these steps and implementing a crisis management plan. If a crisis were to take place then it can be handled right away to the best of UMGs ability. The checklist will make sure that nothing is missed and everything has been done in their power. An example of a potential crisis that can take place is artist budgets slowly decreasing and finally coming to a standstill. Because less people are purchasing CDs artists are relying more and more on other sources to generate revenue such as advertising. This would be a good time to implement a crisis management plan in case they no longer have a budget for artists. The crisis management plan will outline the actions they will take in order to keep their artists signed to their label and keep them happy making money.

Lowered CD Prices

Universal Music has been in high competition with iTunes and their amazingly low prices for CDs and songs. UMG has recently decided to lower their price of CDs in the attempt to increase sales. There is a good chance you can now get your favorite artists CDs at a price as low as $6!

Chapter 9 of Crisis Management discusses different levels of learning, behavioral learning and a deeper level of learning. Behavioral learning seeks to change the external controls of the organization so that crises are less likely to occur and are less serious if they do occur. This level of learning changes aspect of the company such as standard operating procedures, rules, regulations, and technological systems. The deeper level of learning challenges the values and assumptions of the organization. It involves changing the organizational culture and the cognitive arrangement of the company.

The case of UMG lowing CD prices would be considered Behavioral learning. They are attempting to prevent a crisis of low sales and loss of money by attempting to encourage more people to buy their CDs at their newly offered lower price!

I have created my first podcast! This podcast is a discussion on a crisis Universal Music Group is currently facing in the court rooms. Do you think a music label should be held responsible for artists actions? Feel free to share your thoughts on the situation!

Levels of Communication During a Crisis

In Crisis Management last class we learned about three levels of communication when dealing with a crisis. The first is denial posture. This is when a company attacks the accuser, denies, or uses a scapegoat to get out of a crisis. Universal Music would use this tactic if they are less involved in a crisis. As an example, Universal Music Group’s has a partnership with Bally Total Fitness. If Bally Total Fitness were to under-go a crisis such as being accused overcharging it’s users for music, which is sponsored from UMG, Universal Music Group can deny having any knowledge of this action and avoid being a main target in the crisis.

A second level of communication during a crisis is the diminishing posture. This is when a company makes excuses or try’s to justify an action. This communication tactic takes place when a company is more directly involved in a crisis. As an example, if Universal Music Group served meat in their cafeteria and it got many of their employees sick, this would lead to an internal crisis. UMG would then use the diminishing posture and instead of taking responsibility blame the distribution company who their received their meat from. It is not UMG’s fault that a company they have always used to provide their cafeteria food all of a sudden supplied unsafe food products.

The third and final level of communication is the rebuilding posture. This is when a company is highly involved in a crisis and they need to compensate or apologize for an incident which took place. As an example, if one of UMG’s artists were to lash out against a certain religion on national television this would place the artist as well as UMG in a bad light and enter crisis management mode. UMG as well as the artist would have to begin to rebuild relationships by issuing a public apology for the artist’s actions. Compensation may also take place as UMG can offer free CDs and merchandise to keep their main publics at ease of the crisis.

It is important to keep positive and strong relationships with the media so when a crisis hits they will help you get out a desired message to help you get through your crisis. It is also important to train a spokesperson so they know how to address the media during a crisis. One of the worst things a spokesperson can say to the media is “no comment.” This shows lack of knowledge of the situation and makes the media, as well as your publics, think you are hiding or unable to handle the situation. Your spokesperson should be aware of every comment and concern the media has to say about your organization. It is smart to have employees monitor the internet to stay on top of the gossip. The internet is an open airway for anyone and everyone to speak their mind. A spokesperson should be aware of everything being said to be prepared for the worst when addressing the media.

After the crisis is handled an evaluation of the crisis should take place to help the company learn from their mistakes and be prepared for if this crisis should ever happen again.

Winter Games Star

Universal Music Group has a presence in 77 countries around the world. It is the world’s leading music industry with hundred of artists across the globe signed to the label. As an international business with so many artists representing it, it is easy to have positive and negative light shown on your company. I have discussed in my last post something negative and this time I want to share something positive I found.
Canadian teen signer Nikki Yanofksy’s song “I Believe” was chosen to be the official Winter Olympics theme song used in broadcaster coverage. First off, having your song to be chosen to represent the 2010 Winter Olympics is HUGE!!! Universal Music Group was placed into soaring spotlight alongside young Nikki and has worked wonders! After some time the song rose to Billboard Canadian Hot 100’s #1 spot! Because of all the great publicity and soaring chat of Universal Music Group’s fantastic artist, sales for her record as well as many others on the Universal Music label went up higher then seen in a very long time.
Having this type of publicity for your company is incredible. Nikki Yanofksy, as a young 16-year old girl, will always be remembered with the 2010 Olympic Winter Games. Her career is on the rise and I wouldn’t be surprised if we started hearing more of her songs here in the United State on our radio stations.