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You
receive word that a disaster has struck one of your firm's Far East facilities.
The news is fragmented, frightening, and tragic. Hundreds of lives have been
lost. That night you watch the television coverage. It is
horrific. The physical destruction is a sad counterpoint to the human
devastation. Residents have lost everything. . . and as a major employer in the
region, your firm has a responsibility to care for the people from your
company. But what can you do? Power, phone, and water lines are down. You can't
even get through to your plant. Do you start by contacting
one of the major relief organizations, like the Red Cross or Red Shield? Do you
go through the U.S. Government (the State Dept., the Commerce Dept., etc.) or
the local government on-site, which is coordinating emergency rescue teams. How
could you have been prepared for this? In a global economy,
many companies have faced these problems in the last few years. Just consider
recent earthquakes:
- Turkey endured two major temblors in 1999, and over 17,000
people died.
- A strong earthquake in Athens, Greece, killed more than 140 in
September 1999.
- Early Sept. 21, 1999, an earthquake measuring 7.6 on the
Richter Scale struck Taiwan. Over 2,250 people died, more than 8,700 were
injured, and approximately 100,000 were homeless.
After the Taiwan earthquake, many highly trained
international rescue teams (with sensitive acoustic equipment and sniffer dogs)
were frustrated in their efforts because transportation and communication
infrastructures had been destroyed. They simply could not get to the hardest
hit regions within the critical first day. Taiwan's government received a lot
of criticism during the crisis because they lacked both a central command
function to coordinate rescue efforts, and the equipment to locate survivors
who were trapped under the extensive wreckage. If your
company had a facility in Taiwan during the disaster, you probably heard of a
fast-moving relief organization called Tzu-Chi
Foundation. It was Tzu-Chi, a foundation led by the Buddhist nun, Cheng
Yen, that proved most effective in immediately getting to survivors. They
provided food, facemasks, aid to the injured, and the compassion that the
victims desperately needed. Dharma Master Cheng Yen was able to mobilize
hundreds of Tzu Chi volunteers immediately after the quake and establish a
local presence long before other relief efforts arrived -- because Tzu Chi
volunteers were part of each neighborhood. The stature of
Master Cheng Yen (and her 3 million members worldwide) was enhanced further
when Taiwanese officials realized they needed $30 million for the 5,000 housing
units that had to be built in two months. The officials turned to the
62-year-old Buddhist nun for assistance. Master Cheng Yen used her network to
contact corporations and individuals for the required donations, and continued
to offer support to the earthquake victims once they occupied the new homes.
Besides the toll in human lives, these disasters affected
economies all around the world. During and after such catastrophes, what can
multinational firms do to assist their own in decimated areas?
Good research of a plant site and planning for emergencies
is key. The Pacific's 'Ring of Fire' is a seismically volatile region, and many
geologists believe that Taiwan is ultimately doomed because of its position
above the juncture of the Philippine and Eurasian plates. Still, it is such an
economic powerhouse that the risks are far outweighed by the monetary rewards
of establishing facilities on the island. A similar environment exists in many
parts of the U.S.'s West Coast. In the states of California
and Washington, evacuation routes and emergency procedures have long existed
not just for some firms, but for towns and entire metropolitan areas. Having
standard emergency procedures, and rehearsing them, for everything from
earthquakes to volcanic eruptions is a vital aspect of protecting inhabitants
in high-risk zones. International facilities should receive at least the same
level of emergency preparedness as those at your domestic headquarters.
The preparation for disaster procedures should
include:
- Evaluating international site locations for the risk of
disasters -- whether they be tornadoes, terrorism, or tsunamis.
- Instituting emergency plans (evacuation routes, medical relief
operations, etc.) and assigning the responsibility for their implementation to
a senior staff member who would direct a corporate command center.
- Assigning a coordinator at each site who reports back to
corporate.
- Rehearsing the procedures company-wide.
- Developing relationships with rescue and relief organizations
at multiple levels:
- Global organizations like the Red Cross/Red Shield
- National Government Officials (Human Services, Embassies,
etc.)
- Local government (Fire, Police, etc.)
- Culturally networked organizations (Religious or Secular)
- Establish a Web site for emergency information.
During a Disaster:
- Respect the procedures and customs of the local populace. Be
highly sensitive at times of crisis -- bring interpreters with your rescue team
and work with local leaders.
- Provide extra support whenever possible to not only your
employees, but the region as a whole. Extended families and friends may have
been involved.
- Be aware of your local surroundings. Political developments
sometimes change swiftly in times of crisis. Follow basic security procedures.
- Make whatever data you have accessible to all your employees --
on your Web site, in person, through daily debriefings, etc. Disseminate any
helpful information to the public as well.
Remember that a crisis can bring out the worst,
or best attributes of anyone. Train your employees in safety measures and
crisis management. Hopefully, they won't need it, but if they personally
encounter a tragedy, they can then address it as the Tzu-Chi Foundation members
did in Taiwan -- with speed and compassion.
Reprinted from
IndustryWeek, July 4, 2000
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