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CRISIS MANAGEMENT - THE CHALLENGE OF EXECUTIVE KIDNAPING AND EXTORTION AGAINST CORPORATIONS

NCJ Number
57236
Journal
FBI Law Enforcement Bulletin Volume: 48 Issue: 5 Dated: (MAY 1979) Pages: 12-17
Author(s)
D E SHAFFER
Date Published
1979
Length
6 pages
Annotation
MANAGING SITUATIONS ARISING FROM KIDNAPING AND EXTORTION AGAINST CORPORATIONS IS DISCUSSED, WITH EMPHASIS ON THE NEED FOR PREPLANNING AND THE ROLE OF A CRISIS MANAGEMENT TEAM CONSISTING OF SELECT COMPANY OFFICIALS.
Abstract
TO PREVENT AND MINIMIZE HARM WHICH MIGHT RESULT FROM EXECUTIVE KIDNAPINGS AND OTHER FORMS OF CORPORATE EXTORTION, THE AMERICAN BUSINESS COMMUNITY SHOULD RECOGNIZE THE NEED FOR AND TAKE NECESSARY STEPS TO DEVELOP CRISIS MANAGEMENT PLANS. THE RESPONSIBILITY FOR DEVELOPING SUCH A PLAN LIES WITH THE CORPORATIONS THEMSELVES AND IT IS ONLY THROUGH ADVANCE CRISIS PLANNING, BOTH INTERNALLY AND IN CONSULTATION WITH EXPERTS, THAT THE TRAGEDIES INHERENT IN SUCH CRISIS CAN BE AVOIDED OR MINIMIZED. CRISIS MANAGEMENT CAN BE ADDRESSED BY A CRISIS MANAGEMENT TEAM (CMT) MADE OF SENIOR MANAGEMENT PERSONNEL WHO HAVE THE AUTHORITY TO MAKE DECISIONS FOR THE CORPORATION. CMT'S ARE NOT A SUBSTITUTE FOR LAW ENFORCEMENT OR THE ORGANIZATION'S OWN SECURITY DEPARTMENT; RATHER, A CMT WOULD WORK DIRECTLY WITH THE POLICE, PROFESSIONAL NEGOTIATORS, AND OTHERS (E.G., THE PHONE COMPANY) IN HANDLING THE INITIAL CONTACT WITH KIDNAPERS AND DECIDING HOW BEST TO REACT TO DEMANDS OF EXTORTION. RANSOM CONSIDERATIONS ARE ULTIMATELY THE RESPONSIBILITY FOR THE CMT AND A VICTIM'S FAMILY; DECISIONS TO PAY RANSOM DEMAND EXTENSIVE PREPLANNING, PARTICULARLY TO SAFEGUARD COMPANY OFFICIALS FROM CIVIL LIABILITY SHOULD STOCKHOLDERS QUESTION THE DIVERSION OF COMPANY FUNDS TO SECURE THE RELEASE OF AN EXECUTIVE. A SIDE BENEFIT OF A CMT MAY BE ITS DETERRENT EFFECT--A COMPANY'S DEMONSTRATED CAPABILITY AND AN AWARENESS BY EXECUTIVES OF PERSONAL AND CORPORATE SECURITY PRACTICES WILL LIKELY DECREASE THE CHANCES OF A CORPORATION OR ITS EXECUTIVES BECOMING VICTIMS OF KIDNAP ATTEMPTS. (KBL)