The "Nut Rage Incident" - Corporate Culture in Crisis

This case describes the events that triggered a corporate crisis at Korean Air in December 2014. The case provides the time line of events while also identifying the company's shortcomings in conflict management, as well as the communication missteps it took and how these blunders weakened the relationship between the company and its various stakeholders. The case illustrates, step by step, how the company's mistakes kept snowballing until a top executive's tantrum ended up with her in jail and the company in the midst of a months-long storm. The case ends with a general assessment of the resolutive approach that the organization adopted, and it proposes that choosing the most ethical approach is the best strategy.
Collection: IESE (España)
Ref: DPO-468-E
Format: PDF
Number of pages: 11
Publication Date: Feb 10, 2020
Language: English, Spanish

Description

This case describes the events that triggered a corporate crisis at Korean Air in December 2014. The case provides the time line of events while also identifying the company's shortcomings in conflict management, as well as the communication missteps it took and how these blunders weakened the relationship between the company and its various stakeholders. The case illustrates, step by step, how the company's mistakes kept snowballing until a top executive's tantrum ended up with her in jail and the company in the midst of a months-long storm. The case ends with a general assessment of the resolutive approach that the organization adopted, and it proposes that choosing the most ethical approach is the best strategy.
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Geographic Setting: Corea del Sur

Learning Objective

This case allows students to contrast Korean Air's corporate response to the internal and external crisis with crisis management and communications best practices. It is useful for students to see the consequences of a poor corporate culture and how ignorance of social trends can affect companies.

The "Nut Rage Incident" - Corporate Culture in Crisis

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"The "Nut Rage Incident" - Corporate Culture in Crisis"