“When a Smoldering Crisis Catches Fire” - Sept. 17, 2003 at the Junior League
Has your organization sustained a crisis with flying colors? Or, like Solutia, has your organized learned crisis management the hard way? Glenn Ruskin and Liesl Livingston, public affairs officers of Solutia, shared their experiences with the St. Louis chapter as well as the lessons they learned during a recent crisis that nearly bankrupted the company.

Monsanto spun off Solutia, a $2.2 billion chemistry company, in September 1997. The company employees 6,500 people worldwide while maintaining its world headquarters in St. Louis. Solutia makes products that are used everyday like laminated glass used in cars and electronics, nylon and acrylic in our carpet, and pharmaceuticals.

However, what they are known most for is making polychlorinated biphenyls (PCBs). These chemicals are used largely in electrical equipment and as fire resistant materials in buildings. The production was banned in 1979 but the public perception never caught up with the science that says that there is no credible, consistent evidence of long-term human health effects of PCBs. Solutia spent $54 million to clean up PCBs in Anniston, Ala., alone. In addition, they were involved in many economic development and philanthropic programs in the community to demonstrate their commitment.

Despite those efforts, two major PCB cases were filed against the company. These high-profile cases (3,500 plaintiffs claiming property damage and personal injury but most claiming only “fear of future illness”) exploded in the media. The highly-sensationalized stories were strategically placed in The Washington Post, the St. Louis Post-Dispatch and the Birmingham (Ala.) News by information from the trail lawyers and activists. Famous lawyer Johnnie Cochran threw his hat in the ring claiming 17,000 plaintiffs.

Anniston: Cleanup in Anniston, Ala. by Solutia.
Solutia cleans up in Alabama

What was the result?
* Skepticism by Wall Street and investors sending the stock on a downward spiral.
* Negative publicity.
* Loss in sales revenue.
* Credit ratings downgraded making financing more difficult and expensive.
* Settlement payments to lawyers and plaintiffs.

What did the public affairs team at Solutia learn?
* The Power of Perception
* Emotion rules and cookie-cutter journalism prevails
* The Power of Relationships
* Your attorneys, key reports and third-party allies
* The Power of Outside Influences
* Professional activists, the judicial system and Wall Street

Bottom line … know your worst-case scenario and be prepared!

See how Solutia stock changed with positive/negative media response (PDF). Solutia PCBs

For more information:
www.solutia.com
www.solutia.com/anniston

Our September program was sponsored by Common Ground Public Relations, Inc.