1. An Ethical Triumph?
PR Ethics Case Study of the Carnival Triumph
Ashley Crockett-Lohr
PR 605
2. About the Carnival Triumph
O Carnival Triumph entered service for Carnival Cruise Lines in
1999.
O Carnival Triumph is registered as a Bahamian vessel. Though
Carnival Cruise Lines has its headquarters in Florida, many of
the cruise line’s vessels are registered in countries other than
the U.S. (like the Bahamas or Panama) because regulations
are less stringent and they don’t have to pay U.S. taxes.
O The vessel is 893 feet long, and it holds up to 3,143
passengers and 1,086 crew members.
O The ship’s home port is in Galveston, TX, and its voyages to
the western Caribbean are usually four or five days in duration.
3. Timeline of Events
O Thursday, Feb. 7 – Carnival Triumph departs Galveston, TX for four-day Caribbean
cruise.
O Sunday, Feb. 10 – Fire breaks out in Carnival Triumph’s engine room. Though the
fire is extinguished, it disables the ship’s propulsion system, knocks out some of the
power, and leaves the vessel adrift in the Gulf of Mexico. Carnival Cruise Line
dispatches tugboats to pull the stranded vessel to shore in Progreso, Mexico.
O Monday, Feb. 11 – Carnival Cruise Lines abandons original plan to tow Carnival
Triumph to Progreso, Mexico because the vessel has drifted north 90 miles due to
Gulf loop currents (see next slide). Officials tell tugboats to head toward Mobile, AL.
O Tuesday, Feb. 12 – Gerry Cahill, president and CEO of Carnival Cruise
Lines, issues a statement apologizing for the crisis, announces plans to arrange
travel for all passengers, and commits to compensating the individuals aboard the
ship.
O Thursday, Feb. 14 – Carnival Triumph arrives in Mobile, AL at 9:15 p.m. CT.
5. Carnival Corporation’s
Troublesome Past
Carnival Corporation and its cruise line
brands (particularly Carnival Cruise Lines
and Costa Cruises) have experienced
numerous disasters similar to the engine fire
on the Carnival Triumph in recent years.
Three of the most noteworthy incidents
(other than the Carnival Triumph’s) took
place on Carnival Splendor, Costa
Concordia, and Costa Allegra.
6. Carnival Corporation’s
Troublesome Past
2010 – Carnival Splendor
An engine fire left the Carnival Splendor stranded in the
Pacific Ocean without power. The Splendor was pulled by
tugboats to San Diego Bay after three days.
7. Carnival Corporation’s
Troublesome Past
2012 – Costa Concordia
In this recent tragedy, Captain Francesco Schettino ran his
Italian cruise ship into a reef off the coast of Tuscany, Italy,
toppled the ship onto its side, and caused 32 deaths.
8. Carnival Corporation’s
Troublesome Past
2012 – Costa Allegra
An engine fire knocked out power in this Costa Cruises
vessel, leaving it adrift in the pirate-infested Indian Ocean.
After three days of towing, the ship arrived safely in
Seychelles.
9. What is Ethics?
“Ethics is concerned with what constitutes
right and wrong human conduct, values,
beliefs, and attitudes in light of a specific set
of circumstances. The best time for
individuals to consider the ethics of their
behavior is while they are selecting a course
of action and before they actually take the
action.”
Warren Plunkett, Raymond Attner, and Gemmy Allen
Management: Meeting and Exceeding Customer Expectations
10. What is Ethics?
O Ethics is not one-size-fits-all. Each person’s individual moral
code is comprised of unique values and beliefs. Morality, in
turn, shapes a person’s belief of ethics, of what’s right and
wrong.
O Business is a team effort. Though people come with their own
backgrounds and moral codes, a business must level the field
by defining a single, unified ethical standard for its employees.
O This is where a code of ethics comes in. Many professions
establish codes of ethics to offer concrete guidance on tricky
situations and foster clear understanding of what is expected
of professionals in these situations.
11. PRSA Code of Ethics
The PRSA code of ethics shares values that guide behavior and decision-
making of public relations practitioners and individuals acting in a public
relations or crisis communications role. The code focuses on these six values:
O ADVOCACY – Acting as responsible advocates for those we represent and
providing a voice in the marketplace of ideas.
O HONESTY – Adhering to the highest standards of accuracy and truth.
O EXPERTISE – Acquiring and responsibly using specialized knowledge and
expertise. Advancing the profession and building mutual understanding
among a wide array of institutions and audiences.
O INDEPENDENCE – Providing objective counsel to those we represent and
being accountable for our actions.
O LOYALTY – Being faithful to those we represent while honoring our
obligation to serve the public interest.
O FAIRNESS – Dealing fairly with clients, employers, competitors, peers,
vendors, media, and the public. Respecting all opinions and supporting free
expression.
12. Carnival Corporation’s
Response to Past Disasters
In the case of the Carnival Splendor, Carnival Corp. reimbursed
passengers for the amount of the cruise and arranged (and paid
for) transportation home for every passenger. In addition,
passengers on Carnival Splendor received a voucher for a free
cruise of equal value.
This type of compensation (offering a voucher for a future cruise in
lieu of monetary compensation) was typical in a time where engine
fires were relatively common, when passengers were unharmed,
and before the Costa Concordia disaster. In it, PR practitioners
showed a great deal of loyalty to the cruise line (in minimizing
additional costs while also incentivizing future cruising) while also
demonstrating some fairness in reimbursing passengers and
paying for transportation.
13. Carnival Corporation’s
Response to Past Disasters
The Costa Concordia crash changed things for the cruise industry.
For the first time since 1915 (when the S.S. Eastland tipped over in
port and killed 800 people), a cruise accident resulted in deaths. It
became clear that these disasters were not just mere matters of
inconvenience; cruise line accidents could cost lives.
Carnival Corporation made several mistakes in the ethical handling
of the Costa Concordia crisis that have changed the way they
respond to future disasters, like that of the Carnival Triumph.
According to the guidelines set by Robert Solomon and Kristine
Hanson, Carnival Corporation’s mistakes were in not considering
other people’s well-being and not thinking of themselves and the
company as a part of the whole.
14. Carnival Corporation’s
Costa Concordia Missteps
O Before Carnival Corporation announced their compensation plans for
passengers of Costa Concordia, rumors circulated that the cruise line
would offer passengers 30 percent off future cruises. This sparked a
media firestorm that Carnival had to fight to contain. These rumors
made the cruise line appear like they were minimizing the damage
caused by the disaster and that they valued profits more than the well-
being of their passengers.
O Instead of apologizing for the fatal disaster, Carnival Corporation got
ensnared early on in a blame game with the captain. Though the captain
was clearly at fault for abandoning the ship, the cruise line should’ve
also taken more responsibility for the passengers’ well-being from the
outset instead of getting caught up in finger-pointing.
15. Carnival Corporation’s
Costa Concordia Missteps
O A few days after the Costa Concordia crash, Carnival Cruise Lines
announced they were taking a break from social media. While some
understood the sentiment, in this social-media-driven society, it actually
made Carnival look like they were avoiding and ignoring the public’s
response. In this action, Carnival Cruise Lines acted out of its own self-
interest instead of as a part of the greater society.
O Carnival Corporation’s CEO, Mickey Arison, also was hard to find
during this crisis, instead letting its Costa Cruises line be the public face.
Though the ship was a Costa Cruises vessel, the line was still owned by
Carnival Corporation, so the leader of the parent company should have
at least made a statement of condolence to the families who lost a loved
one. This hiding from the media made Carnival seem like they were only
looking out for themselves and not the greater good of the industry and
society.
16. Carnival Corporation’s
Response to Past Disasters
In the end, survivors of the Costa Concordia received the following:
O Refund of the entire cost of the cruise and of all on-board
purchases made during the cruise.
O Reimbursement of travel expenses home as well as medical
expenses incurred as a result of the crash.
O $14,500 in a lump sum to each uninjured passenger, including
nonpaying children.
O Program of psychological assistance for surviving passengers
who need it.
This compensation package was far more substantive than that of
past disasters like the Carnival Splendor, and it set the stage for
future crisis response from Carnival Corporation.
17. Carnival Corporation’s
Response to Past Disasters
In the case of the Costa Allegra, Carnival Corp. refunded
passengers the full amount of the cruise and arranged travel home
for every passenger. In addition, the company reimbursed
passengers for all on-board purchases made during the cruise and
offered indemnity equivalent to the cost of the cruise and
associated travel costs.
This was the first time Carnival Corporation offered monetary
compensation for an engine fire disaster in which there were no
injuries, and this approach was clearly impacted by the high-
visibility case of the Costa Concordia. It is also noteworthy that
Carnival Corporation did not offer a voucher for a free cruise. In
doing so, PR practitioners demonstrate more of an interest in
independence and fairness to the customers than loyalty to the
cruise line.
19. Carnival’s Response
O Quick to act. Carnival Cruise Lines dispatched a tugboat to the
Triumph before they knew for certain it would need to be towed
to shore. Carnival also contacted guests scheduled to depart on
the ship the following day to advise them of possible delays.
O Committed to safety. The very first thing Carnival announced
was that there were no crew or guest injuries. Passengers with
emergent medical conditions – such as Rachel Alderete, 54,
who needed emergency kidney dialysis – were transferred to
other Carnival ships that diverted their courses to help. Though
conditions were unpleasant, crew members ensured that every
guest on board was kept safe.
O Responsive. Unlike their response to the Costa Concordia
crash, Carnival was very active online through their website and
social media. They posted updates regularly, explained
decisions, and proactively communicated any and all changes
to existing plans.
20. Carnival’s Response
O Constantly evaluating. Carnival got a lot of heat early in the
week for deciding to tow the vessel to shore instead of transfer
each of the passengers to a working ship. They directly
addressed this question via their Facebook page, saying towing
was determined to be the safest and the quickest option. In
addition, Carnival abandoned their original plan to tow the ship
to Mexico on Monday because the ship had drifted north 90
miles while waiting for tugboats to arrive.
O Devoted to service. Carnival took care of contacting families
as well as future travelers, and they brought 200 employees to
Mobile, AL to help arrange travel accommodations for every
single passenger aboard the ship. In addition, the crew aboard
Carnival Triumph was praised for unwavering professionalism
and tireless service.
O Apologetic. Unlike with the Costa Concordia, Carnival
executives never got caught placing blame. They apologized
publicly in the very first press conference and continued until the
ship was home.
21. Compensation for Triumph
In the end, passengers aboard the Carnival Triumph will
receive the following:
O Refund of the entire cost of the cruise and of all on-board
purchases made during the cruise (apart from gift shop).
O Arranged travel home and complimentary hotel room in
Mobile, AL (if desired).
O Credit for a future cruise of equal value to the Triumph
cruise.
O $500 in a lump sum to each passenger.
Though the package is fairly standard, many believe the
compensation is a positive public relations move for
Carnival.
22. A Few Minor Missteps
Though Carnival did a lot of things right in this crisis, learning from
their past public relations mistakes, they did have a few PR
blunders in this instance as well. They were:
O One tweet that was in poor taste.
O The CEO of Carnival Corporation’s decision to attend a Miami
Heat game on Tuesday evening. This decision made it look like
the crisis was not a priority to Mickey Arison. Though Arison is a
managing general partner of the team, he probably should’ve
watched this game – which happened to be scheduled in the
middle of a crisis for his company – at home to demonstrate to
the public that the Triumph was his top priority until it was safely
home.
23. Did Carnival Act Ethically?
O Did they act as responsible advocates for their clients? By
maintaining an unwavering commitment to safety and by
working tirelessly to meet the basic needs of the passengers
(food and water was delivered when supplies ran low, for
example), Carnival was a responsible advocate for the
passengers aboard its ship.
O Were they honest? Carnival’s leaders were unfailingly honest
and open throughout this crisis. They updated the public
whenever they had information to share, and they were
forthright about the decisions they made.
O Did they reasonably use their knowledge and expertise?
Carnival relied on the expertise of its engineers to decide if the
ship was safe. Plus, Carnival enlisted the help of the U.S. Coast
Guard to make some decisions about getting passengers safely
home.
24. Did Carnival Act Ethically?
O Did they act with independence, and were they
accountable for their actions? Carnival employees never
blamed anyone for this accident, and they took ownership from
day one. They acted in the best interest of their passengers
regardless of pressures they faced from media or the public.
O Were they faithful and loyal to those they represent?
Carnival maintained its loyalty to the passengers and their
safety throughout this crisis.
O Did they treat everyone fairly and respect all opinions? In a
crisis, everyone has an opinion. Thousands of people called,
wrote, and tweeted about this disaster, and Carnival employees
worked long hours to ensure everyone was heard and treated
with respect. They let the passengers tell their stories without
becoming defensive.
25. An Ethical Triumph
Sure, the conditions aboard the Carnival Triumph were gruesome.
It was not the vacation any of those passengers would’ve chosen.
But Carnival did what they needed to do in light of intense scrutiny
to keep people safe, and that alone qualifies as ethical.
More than that, though, Carnival executives were
open, responsive, and apologetic about the crisis and the
conditions. They treated passengers and public alike with dignity
and respect, and in the battle between doing what’s right and
what’s wrong, I think most can agree Carnival did far more right
than wrong considering the circumstances.
And for that reason, I consider the Carnival Triumph to be an
example of an ethical triumph.
26. Sources
O PRSA Code of Ethics
O Carnival Cruise Lines Facebook page
O Management: Meeting and Exceeding Customer Expectations
O “Carnival Doesn’t Shy Away from Triumph Crisis – But Is
Damage Done?” (AdvertisingAge)
O “The 8 Worst Cruise Ship Disasters” (US News & World Report)
O “Carnival Fails Crisis 101 in Costa Response” (FOX Business)
O “Key moments in the voyage of the Carnival Triumph, which
lost all power after an engine fire” (The Republic)
O “Costa releases compensation plan for Allegra passengers”
(Travel Weekly)
O “A Glance at Carnival’s Decisions for Disabled Ship” (ABC
News)