Answer to Question 1
Crisis management is becoming more formalized in companies, with specially assigned task forces ready to step in if problems arise. In general, companies must adopt policies that will allow them to effectively respond to pressure and criticism, which will continue to surface. Crisis management policies should have the following traits: (1) openness about corporate activities, with a focus on how these activities enhance social and economic performance; (2) preparedness to utilize the tremendous power of the multinational corporation in a responsible manner and, in the case of pressure, to counter criticisms swiftly; (3) integrity, which often means that the marketer must avoid not only actual wrongdoing but also the mere appearance of it; and (4) clarity, which will help ameliorate hostility if a common language is used with those pressuring the corporation.
Answer to Question 2
D