4 pages public relations.docx - Running Head Managing...

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Running Head: Managing Negative Publicity 1 Managing Negative Publicity Name Institutional Affiliation Date
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Managing Negative Publicity 2 Managing Negative Publicity Organization and Purpose Wounded Warrior Project (WWP) is a charity organization based in the United States, and is dedicated to offering a variety of programs to wounded veterans. It provides these services for free to the benefits of wounded veterans, and hence helps to fill the gaps left by government initiatives. Event that Generated Negative Publicity The Wounded Warrior Project (WWP) found itself having to battle negative publicity in 2015, when reports emerged that its finances were being misapplied. In particular, there were allegations that the nonprofit did spent millions of donor money on first-class airfare, employee retreats and extravagant salaries [Tsi16]. This was damaging for WWP because these reports essentially meant that their support for wounded veterans in the United States was only a showpiece used to hoodwink the donors. What made the situation even worse was the explanation given by its chief executive, Steve Nardizzi, who compared the situation to Starbucks. He observed that Starbucks has succeeded mainly because it takes good care of its employees [Ron16] . The problem is that Starbucks is a listed company while WWP is a nonprofit that depends on the generosity of its donors. The situation was likely going to create negative publicity because first, WWP depends on its donor funds to support its operations. Secondly, those who donate money to WWP do so with the intention that the money goes into supporting wounded veterans. Hence, when employees of WWP appear to be the main beneficiaries of these contributions, it leaves a bad taste in the mouth. Moreover, the statement by the CEO did not make matters any lighter because the Starbucks and WWP are very different organizations, operating under different
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