The Case of the Embattled Employer

EXECUTIVE SUMMARY
Homestyle Foods is based in Everytown, Ohio. It employs 15,000 out of the citys 750,000, and of those employees, 30 percent are African American. The company has an active philanthropy program and offers support to local non-profit organizations in the form of volunteers and funding. Homestyle recently opened a plant in Taiwan. At the time of its opening, the economic crisis hit the American economy forcing the company to furlough 2,000 employees. Confidence in these employees return and in the company in general is waning. Union leaders a re spreading rumors about furloughs turned layoffs and further job loss due to offshoring to Taiwan. This campaign is centered around Homestyle Foods relations with current and furloughed employees, minority and non-profit organizations and union leaders. Each of these public will help Homestyle accomplish the goal of establishing a transparent relationship in order to instill trust, quell rumors and reassure stakeholders of the stability of their standing in the company. Our solution, if not employed, will push stakeholders further away and decimate the companys reputation, despite its excellent philanthropy program and the communitys dependence on it for employment.

RESEARCH
BACKGROUND
External Environment: The economic crisis began when the housing prices crashed, all securities linked to real estate fell, causing damage to numerous financial institutions around the world. The economic crisis proves to be especially brutal on employment throughout the United States. Although unemployment rates are similar to those of the downturn in the 1980s, the rate of job loss is much higher this time (16 percent versus less than 13 percent), according to the Bureau of Labor Statistics' Displaced Workers Surveys (Farber). As in the previous recessions, less educated workers are more vulnerable to layoffs than more educated ones, but even those with college degrees are under the risk of layoffs. Their job loss rate during 2007 to 2009, at 11 percent, was at the highest since the data was collected in the early 1980s. The average duration of unemployment also hit a new high in the Great Recession: 35 weeks versus about 20 weeks during the 80s (Job Loss in the Great Recession). For 2009, the United States lost 4.2 million jobs (U.S. December job losses rise, 2010). In late 2008, 13 percent of all American households experienced financial strain. By June 2009, this stress increased to 17 percent, where it has remained. Forty percent of households experienced some sort of distress during the 17-month period of the economic crisis (The Effect of the Economic Crisis on American Households). Figure 1 displays the unemployment rate of the United States, compared to Figure 2, which displays the unemployment rate of Ohio (Databases, Tables & Calculators by

Subject). Both charts follow the same pattern--a dip in 2005 to early 2008 before an incline in late 2008.

Figure 1 Figure 2 The economic crisis, though hard on the majority of middle class Americans, have been singularly harmful to middle-class blacks in terms of layoffs and unemployment (Williams, T., 2011). The unemployment rate rose from 8.5 percent before the recession to 13.6 this past January. In 2011, the average unemployment rate for Black Americans was 15.8 percent, for White Americans, 7.9 percent, and for Hispanic Americans, 11.5 percent. Black Americans, once unemployed, tend to remain unemployed for a longer period of time. In Figure 3, the Bureau of Labor Statistics compared the characteristics of employed and unemployed among Blacks, Whites and Hispanics. As seen from the figure, Black Americans have a median unemployment duration of 27 weeks.

Figure 3 In relation to Homestyle Foods, 30 percent of the employees are African Americans. The minority organizations are concerned for this demographic. The Industry: According to analysts, this crisis cannot be considered to introduce a model shift neither in long-term growth nor in big internal developments within the food industry. Gregg Warren, an analyst from Morningstar, says food industry is a safe haven in uncertain times. The impact is expected to be about 2% in the developed countries. It is expected that Homestyle Foods, while still having to face some challenges, in general will not be as strongly affected by the nations financial crisis as other industries. Analysts say that "branded companies are coming out quite well in the current environment. You have commodity costs starting to decline, and people are beginning to eat at home more. Im feeling more confident about how these companies look relatively speaking compared to the rest of the market."

Homestyle Foods of Everytown, Ohio, is an equal opportunity employer. All companies in the United States with more than 15 employees must abide by the laws of the Equal Employment Opportunity Commission. This states that employers cannot discriminate based on the following: race, color, sex (including pregnancy), national origin, age (40 years or older), disability and genetic information. Should any instance of discrimination be found, in hiring, firing or any other work procedures, employers may face lawsuit. Furloughing, in the case of Homestyle, cannot be done based on the factors above (Overview). The effect of the financial crisis on the food industry is one that is expected, as it is with any other industry linked to the economy. Overall, there is a decrease in investments because banks provide less credit to individual households and investors reduce their investments in the sector and the financial crisis is expected to lead to a decrease in demand for higher value agricultural products and a switch to basic products due to a decrease of the households disposable income (The African American Labor Force in the Recovery). These households are Homestyles customers. Thus, the financial crisis is hard on the company as well. The Client: Homestyle Foods is one of the larger employers in Everytown at 15,000 workers. The company has always been in good standing with the city as it became an advocate, and prides itself, of equality and diversity in the workplace. Currently, about 30 percent of Homestyle employees are African American and works with the communitys minority organizations. Homestyle also has a position for Hispanic community relations for communicating with Spanish speakers. The company has an active philanthropy program and offers support to local non-profit organizations in the form of volunteers and funding. The Everytown community, through monthly surveys and interviews, have reported positive perceptions of Homestyle, with an average of 87 percent company approval ratings. Bimonthly surveys of Homestyle Foods employees also show an 83 percent approval of the company. However, since the opening of the Taiwan plant, rumors have been spreading among Homestyle Foods employees and within Everytown. Public admiration has decreased significantly falling to 52 percent approval of the company, and among employees, down to 41 percent. These rumors state that the number of furloughs will increase, if furloughed employees are not already laid off. Rumors also say that there are no layoffs at the Taiwan plant, which fueled further talk about Homestyle Foods planning on offshoring the company. Management have neither confirmed nor denied these rumors, increasing employees fear of job loss. Current employees have been fo und searching for new jobs and company morale has been diminishing. Recently, a meeting was held in the Homestyles CEO office which involved the vice presidents of domestic and international operations, finance, legal, industrial relations, marketing and public relations. Discussion included the current situation and rumors, as well as newly revived rumors about increased outsourcing and offshoring affecting jobs in the Everytown plant. The decision was to ride out the storm since the company cannot control the economy, reach out to furloughed employees and to bring them back as soon as is feasible, maintain the current experienced workforce, help the community understand the issues and realities at play, increase product promotion to pep up sales, avoid doing anything to jeopardize the relationship with union leaders and to neutralize community rumors. At this meeting, management developed a plan to have one in 20 furloughed employees back on plant in two months.

Homestyle Foods employs 15,000 people in Everytown, 30 percent of whom are African American and 10 percent of whom are low- to mid-level managers. Over the years, Homestyles business has grown, leading to an opening of a plant in Taiwan. Homestyle Foods offshoring is predicted to benefit all stakeholders as it will help the company compete better and expand faster. The Taiwan plant will process some products closer to where they are grown and lower labor costs, as well as create more favorable taxes and room for expansion. However, the same time the Taiwan plant opened, the United States economy took a dive. This led to budget cuts at headquarters and they were forced to furlough 2,000 employees. The Product, Service, or Issue: The nations economic crisis has required cuts in the Everytown plant, and 2000 people were furloughed. There are rumors in Everytown about increasing outsourcing and offshoring jobs to Taiwan since there were no layoffs on Taiwan plant. Rumors are starting and spreading within the company even though the furloughing is not due to the opening of the Taiwan plant, but is in response to the national economic crisis. The fear of outsourcing and offshoring is void since the main reason for the furloughs is the economic crisis. Outsourcing refers to a company contracting work out to a third party. There were no instances of outsourcing on the Homestyle Foods plant. Offshoring refers to getting work done in another country, usually because of cheaper labor and transportation costs. Homestyle Foods opened a plant in Taiwan last year to process certain products closer to where they are grown. Other advantages of the Taiwan plant are lower labor costs, more favorable taxes and room for expansion. The management assured employees, Everytown people and union representatives that the Taiwan plant would have no adverse effect on the employment of Everytown. Currently, the company is under fire for forcing furloughs 2000 employees. The companys management have expressed belief that the furlough of empl oyees will be of short duration. Layoffs are not occurring anywhere at headquarters, the home plant and the Taiwan plant. Promotions: A furlough is when an employer places an employee into temporary non-duty, non-pay status because of budget issues, lack of work, or other non-disciplinary reasons. Furloughs can be implemented with non-exempt or exempt employees. It is easier to do with non-exempt employees because under federal and most state and wage laws non-exempt employees are paid only for the actual hours they work. It is harder to furlough exempt employees because they are entitled to full weekly salaries for any week they work. The employee has to perform absolutely no work during the week he is furloughed or he would have to get paid. Also, the exempt employees salary cannot fall below $455, the current minimum weekly salary requirement. There are advantages and disadvantages of furloughs and research shows that there are more disadvantages. Pros:

The employer avoids layoffs for a period of time so employees have jobs. The employer saves compensation costs. You are disadvantaging your best employees, the top performers you really need to rebuild your business, following the downturn.

Cons:

Employers save money, but not as much as they think they will, because so many of an employers costs for benefits continue during furloughs. The amount of work remains constant which makes returning workers feel overloaded and may affect the quality of their performance and products. Customers may be unhappy talking to a variety of people rather than their usual contact, or because they are waiting longer for service. The internal culture and relationships are often injured. Teamwork is affected by the loss of co-workers who are not at work. Projects take longer to move forward. Employees experience stress from work expectations and fear that the furloughs will not solve the problems and that layoffs will come next. Gossip increases and work productivity decreases. Given less time at work, more time catching up incomplete work, and workload increases because of missing coworkers, innovation and continuous improvement fall by the wayside. You best employees may start job searching. All employees think about updating their resumes (Heathfield, S.).

Many companies offshore jobs during the economic crisis. There were employee strikes (Davidson, P.) because of that. In general, offshoring is viewed negatively as taking away jobs from the Americans. Competition: Competing against the success of Homestyle Foods are the multiple rumors that have originated within the company itself. Employees are suspecting that there is more to the story than the company is informing them. Rumors that no layoffs have been made at the Taiwan plant has led to increased fear amongst Everytown employees. They are afraid that the furloughs will become more extensive and will ultimately lead to permanent job loss. In hopes to contain rumors and boost workers morale, management has expressed the belief that the layoff will be of short duration, and that the budget cuts have nothing to do with the Taiwan plant opening. Unfortunately, their efforts have only caused to increase the gossip among workers. Resources: Due to the unfortunate timing of the situation which has given rise to potentially damaging rumors, the current opinion of general public in regard to Homestyle Foods is doubtful and suspicious. At its disposal to change this opinion, Homestyle Foods has access to numerous local newspapers and is served by four local news stations, all of which provide sports news, as well as several radio stations with a range of genres. The facility itself could serve as a channel for newsletters and other company communication as employees spend a significant amount of time there. Mid- to low-level managers are influential to those over whom they have authority. Nonprofit and minority organizations will be inclined to help boost reputation because they depend on the success of Homestyle Foods.

SWOT Analysis:

Strengths
-The Taiwan plant allows for lower labor costs, more favorable taxes, and room for expansion -Community dependency: philanthropy and employment -Good standing with community

Weaknesses
-Effects from the economic downturn are indefinite; could take a long time for workers to get their jobs back -Rumors feed rumors -Quiet managment -Lack of communication and transparency -Budget restraints

Opportunities
-Solidify trust among employees, community, and partnering organizations -Help community understand issues and realities at play -Strengthen relationships with union leaders -neutralize community rumors

Threats
-Potential lawsuits over equal opportunity infringements -Valued employees may leave company -Damage to companys reputation and relationship with community -Union representatives fueling resentment in community -Loss of partnership with minority and nonprofit organizations -Financial instability

Public Profiles: Union Leaders Current Employees Furloughed Employees Minority Organizations Nonprofit Organizations Philanthropy Groups Families of Employees Minority population Management Community o middle class o citys workforce

SITUATION ANALYSIS
Homestyle Foods is a major employer in Everytown and employs 15,000 people. It has an extensive philanthropy program that supports many non-profit and minority organizations. Last year, Homestyle Foods opened a plant in Taiwan for the benefits of cheaper labor and production costs. The management reassured employees that the opening of the plant will not have an adverse effect on Everytowns employment. However, in the wake of the economic crisis and unrelated to the opening of the Taiwan plant, Homestyle Foods has been forced into furloughing 2,000 employees. The financial crisis is nation-wide and is affecting every industry. However, the permanent impact on Homestyle Foods company will be minimal (the predicted impact on the employment in the food industry is -0.03 percent), since there will always be a demand for food, especially for such a basic product as rice. About 30 percent of Homestyle Foods employees are African Americans (the largest minority in Ohio). Black Americans, once unemployed, tend to remain unemployed for a longer period of time, which puts them especially at risk for being negatively affected by furloughs. There were no layoffs at the Taiwan plant, and its opening unfortunately coincided with the start of the economic crisis. As a result, the pernicious rumors about offshoring and outsourcing, fueled by union representatives and unconfirmed by management, have been allowed to spread. Everytown citizens and employees view the plant in Taiwan as the main threat and cause of sudden furloughs and fear it will lead ultimately to termination of jobs. Public admiration, as shown through surveys and interviews, has decreased from 87 percent to 52 percent and among employees to 60 percent. Management made the decision to reach out to furloughed employees and to bring them back as soon as is feasible, maintain the current experienced workforce, help the community understand the issues and realities at play, avoid doing anything to jeopardize the relationship with union leaders and to neutralize community rumors. Lack of communication throughout the company has allowed fear and skepticism of the plants stability to develop among employees, as well as anger and resentment among union representatives. As a result, there is a risk of loss of work quality and focus, as employees might begin searching for better job security outside the company. If this insecurity among remaining active workers grows, it may diminish productivity, hindering Homestyles ability to be restored to its full employee capacity. Furthermore, prolonged aggravation of employee dissatisfaction and fear of job termination will increase the possibility of union strikes. Non-profit and minority organizations are concerned that Homestyle Foods financial struggles will result in withdrawing funding and volunteer service. If their concerns are not addressed, Homestyle Foods standing of cooperation and service within the community will be jeopardized.

CORE PROBLEM
The nations economic crisis has forced furloughs within Homestyle Foods, which has exacerbated lack of communication between the companys management and key publics, fueling rumors within the community about outsourcing and offshoring that, if left unaddressed, can damage relationships with said key publics, diminish productivity and support, cause employee strikes an d damage plants reputation.

GOAL
Establish a transparent relationship with key publics in order to instill trust, quell rumors, restore confidence and reassure stakeholders of the stability of their standing in the company. OBJECTIVES 1. Increase the awareness of the economic crisis to 75 percent in three months, 95 percent in six months. 2. Strengthen overall confidence in the company to 80 percent in six months, with 65 percent in four months. 3. Increase reported perception to 80 percent of the company as a major philanthropist and donor in six months. 4. Restore the companys positive image as a stable and reliable employer to 80 percent in six months, with 70 percent in four months. 5. Retain at least 90 percent of current workforce through six months.

Key Publics
Union leaders A union is a democratic organization of employees in a workplace who choose to join together to achieve common goals to improve working conditions and equality. In 2012 union membership rates were higher for men than for women. Among major race and ethnicity groups Black workers had a higher union membership rate than workers who were White, Asian or Hispanic. The highest working age amongst union members ranged from 55 to 64; the lowest age of membership ranged from 16 to 24. Ohio is one out of seven states whose salary workers were represented by a union. Relationship: The rumors have been fueled by union representatives. They think that the plant started offshoring jobs, taking them away from Everytown people. Union leaders remind union members that they have a voice in how their jobs get done and they create a more stable and productive workforce that provides better services and products. Self Interest: Stable jobs and better wages, fair and safe workplace, secure retirement and family-friendly policies and laws, fairness for all working people, creating better standards and a strong middle class across the country, better conditions for employees. Channels: Workplace, Union, Management, Social Media, Newspapers, Influentials: Peers, Managers, Union members, Family, Spouses Objectives: This public will help us achieve 1, 2, 4, 5 Primary Message One: America is experiencing an economic crisis. We are doing our best to minimize negative effects on employees. Secondary Message: o According to the economists, the expected impact of financial crisis on the food industry is only -0.3 percent o Homestyle Foods is a safe haven during the financially hard times. o Furloughing is a temporary, yet necessary response to the financial crisis. o We will bring back the furloughed employees as soon as possible.

Americas economy has put us in a tough situation but we are trying to do the best that we can to handle the situation

Primary Message Two For employees, furloughing is a better response to the economic crisis than layoffs. Secondary Messages: o Educate them of the actions that Homestyle Foods response was to economic crisis o Instead of laying off people our company decided to furlough them o The furloughs were necessary to maintain profitability for the company o Although furloughs are not our ideal situation, it is better for employees than being terminated o It was for the employees best interest that we furloughed employees so they still can have an income to provide for their families Primary Message Three: The Taiwan plant has not taken away from the Everytown plant, but rather is increasing productivity and growth. Secondary Messages: o Taiwan plant opening has not affected our main plant o Our main plant is being affected as a result of the American economy o Any savings in operating costs will contribute toward the company's sustenance and growth which in turn gives more jobs to people o Lower operating costs means they have more money to invest in innovation, resulting in a stabilized domestic workforce. Primary Message Four: We care about our employees as much as you do. Secondary Messages: o Rumors detract from the productivity and profitability of the company. o Help foster a better workplace environment and support the company by helping to quell rumors. o Discourage continued spread of rumors among union workers. o Misinformation leads to unnecessary insecurity. o Insecurity in the company jeopardizes company success and therefore jobs.

Primary Message Five: Neutralizing misinformation will help stabilize current jobs. Secondary Message: Even though there is an economic crisis throughout the nation, the plant is still in business and will continue to be. Our plant wont close anytime soon and we need employee morale to be high to insure that production rate stays efficient The better productivity maintained, the better Homestyle Foods can recover to restore jobs and ensure job security. Stay with us, we can do it together.
Strategy One: Motivate union leaders to quell rumors through meetings with management.

Tactics: Hold two meetings, at separate times, by management for the union leaders. One will be informative as to what the current situation is and our plan of action. The second will be what we have done since our last meeting and where we are going. At the first meeting, have a presentation introducing our theme THEME First meeting will include a two-way communication between union leaders management. o Get their feedback and ideas. Have them write down their ideas with the option of anonymity. For the presentation prepare a information packet including statistics of economic recession o Give statistics of the Nation, of Ohio, and then how it has affected Homestyle Foods Explain the plan that Homestyle Foods has for employees o This is our current situation and this is how we are dealing with it Follow up letter in the mail to union leaders with a recap of the meeting along with testimonials of the employees o Thank them for coming and thank them for giving their feedback Strategy Two: Inform Union Leaders through media that these furloughs have been brought about by the American economic downturn rather than the opening of the Taiwan plant. Tactics: Have an editorial in the newspaper about the economic crisis in the country and how its affected jobs in Ohio and Everytown. Have an expert talk about the response of the plant to the crisis on the news. Have an interview on the radio with the CEO about the crisis and the forced furloughs. Make a press release reporting on how the company has dealt with Americas economic downturn and the financial setbacks this company has faced because of the recession. CEO interview on talk show discussing economic situation. Strategy Three: Reassure union leaders through influentials that the plant will bring back the furloughed employees as soon as possible. Tactics: During the first meeting have management talk to the union leaders about the sincere intentions of bringing back the furloughed employees as soon as possible Inform the union leaders through management that we furloughed employees instead of terminating them Create a letter with testimonials from peers and union members advocating for Homestyle Foods and how they have helped them support their families. Invite union members to the company picnic so they can see that Homestyle foods is a company that is concerned about their union members. At the second meeting, invite specific peers and union members to come in and tell union leaders their Homestyle Foods Life Story Have one of the minority organizations leader attend one of the monthly union meetings where he/she will express his/her support of the plant and express his belief that the rumors have no solid ground and are detrimental to the plant and to the Everytown community

Current Employees Since the furloughs, Homestyle Foods currently employs 13,000 active workers. The workforce consists of 30 percent African Americans and 46 percent women. Ten percent of that workforce is low- to mid-level management. The majority of workers represent liberal political views. The average salary of Homestyle Foods employees is $38,000. The average age is 36, but varies from 20 to 60. Relationship: Employees at the plant are worried that they will also be furloughed or laid off. They are unsure if they should stay or start looking for a more stable job. In general, they are in favor of the plant, they like their jobs, but stability is more important for them. Self Interest: Financial stability, financial prosperity, safe and stable environment at work, providing for family, sense of fulfillment from work and feeling valued. Channels: Workplace, management, union leaders, internet and social media Influentials: Peers, Managers, Union leaders, Family, Spouses Objectives: This public will help us accomplish objectives 1, 2, 4, 5 Primary Message One:
America is experiencing an economic crisis. We are doing our best to minimize negative effects on employees.

Secondary messages: o Statistics for economic crisis o Instead of laying off people our company decided to furlough them o The furloughs were necessary to maintain profitability for the company o Americas economy has put us in a tough situation but we are trying to do the best that we can to handle the situation

Primary message two Homestyle Foods knows how to be grateful: thank you for being with us all these years. Secondary messages: The economic crisis has forced us to furlough some of our valuable employees but we are not going to lay off our people. We value you and we value what you do. We want to bring back all of our 2,000 furloughed employees as soon as possible because we value our employees and the work they do for us. We wouldnt be successful without you. Thank you for your hard work and continued support and dedication. Primary Message three: The stability of Homestyle Foods depends on your loyalty. Secondary messages: Even though there is an economic crisis throughout the nation, the plant is still in business and will continue to be. It wont close, we need employees. The better productivity is maintained, the better Homestyle Foods can recover to restore jobs and ensure job security. Stay with us, we can do it together. Primary Message four: We can only do it together. Secondary Messages: Although our situation is not ideal, we need you to continue working hard and efficiently for the success of our Everytown plant

Without you things will be hard Your hard work provides the means for us to bring back furloughed employees

Strategy One Assure employees about the stability of their jobs through a meeting. Tactics: Brief presentation describing current situation and how plant is dealing with the crisis. Have a keynote speaker from management giving an inspirational upbeat speech on unity and interdependence between the company and employees. At this meeting introduce the campaign theme Send follow-up email newsletter reiterating key points made in speech to all employees. Promote positive company image through posters throughout room and at entrances. Strategy Two: Build both employee strength and loyalty in company through a company picnic. Tactics: Have an influential employee deliver a keynote speech about his experience with the company and how he and his family have benefitted from working at Homestyle Foods. o He will have to be able to connect on a personal level with employees along with being respected by managers. o He will have to appeal to his peers as being someone like me. Banners o Welcoming employees to the event. o Thanking employees for sticking with us. o THEME o You are important to us. o We can only do it together. Anything that we give away for free will have THEME printed on it. Build company loyalty through booths run by managers that are carnival-styled. o Activity for employee families to show that managers are willing to serve employees too. Free attractions with THEME printed on them. Strategy Three: Inform how Homestyle Foods is handling this economic crisis through opinion leaders. Tactics: Broadcast management speech from about the economic crisis and its impact on Homestyle Foods throughout the facility. Send out a recap email to employees about the key points of the broadcast made by management. Have supervisors talk to their departments on how Homestyle Foods is handling economic crisis and how it tries to bring back the furloughed employees as soon as possible. Distribute a newsletter from management assuring employees that despite the economic crisis, they should continue carrying out their responsibilities efficiently A personalized letter from the CEO about sentimental aspect of the economic crisis and resulting loss of employees, how the CEO cares about the individual employees and will try to do everything to minimize its negative effects.

Furloughed Employees Furloughed employees are mandated to not perform any work and thus are not paid. However, they continue to receive benefits during furloughs. Furloughs can be implemented with non-exempt or exempt employees. It is easier to furlough non-exempt employees because under federal and most state and wage laws, non-exempt employees are paid only for the actual hours they work. It is harder to furlough exempt employees because they are entitled to full weekly salaries for any week they work. Therefore, most, if not all of Homestyle Foods furloughed employees, are non -exempt. Relationship: These employees fear that furlough will become extensive and will lead to layoffs. They do not feel secure and some of them are thinking of looking for another job. They are hostile towards the Taiwan plant and think that Homestyle Foods is taking jobs from America and outsourcing them to another country. Self Interest: Financial stability and prosperity, regaining stable employment, ability to provide for the family, being a full-time employee, good and stable wages, sense of fulfillment from work and feeling valued Channels: Workplace, management, union leaders, media, internet, local opinion leaders. Influentials: Peers, managers, union leaders, family, spouses. Objectives: This public will help us accomplish objectives 1, 2, 4, 5 Primary Message One: America is experiencing an economic crisis. Furloughing is a better response than layoffs. Secondary: o We made this decision with your best interest at heart. o Although you are on leave without pay, you still receive the benefits from Homestyle Foods o Management is confident in your return. o Homestyles furloughing will not result in layoffs. Primary Message Two: You are important to us. Secondary: Theres a difference between being furloughed and being laid off. We chose to furlough you because we still want you to be a part of our company. You matter to the company. Thank you for your continued service especially through this difficult time. Thank you for your patience. Our plan is to have one in 20 employees back on plant in 2 months. Primary Message Three: The Taiwan plant has not taken away from the Everytown plant, but rather is increasing productivity and growth. Secondary: o Taiwan plant opening has not affected our main plant o Our main plant is affected by the American economy o We are not planning to offshore more jobs to Taiwan o Any savings in operating costs will contribute toward the company's sustenance and growth which in turn gives more jobs to people o Lower operating costs means they have more money to invest in innovation, resulting in a stabilized domestic workforce.

Primary Message Three: False information detracts from job stability. Secondary: o Misinformation leads to unnecessary insecurity. o Insecurity in the company jeopardizes company success and therefore jobs. o Rumors detract from the productivity and profitability of the company. o Insecurity in the company jeopardizes company success and therefore jobs. Strategy One: To increase furloughed employees understanding of Homestyles response to the economic crisis and what furloughing means through management. Tactics: Distribute a newsletter from management reiterating confidence in ability to bring them back after a minimal period of time. Personalized letter from the CEO about sentimental aspect of the economic crisis and resulting loss of employees, how the CEO cares about the individual employees and will personally try to do everything to minimize its negative effects. Monthly email updates on the companys recovery (employees getting their jobs back, etc.) A personal call from trained company representatives Brochure attached with the letter about economic crisis Strategy Two: Assure furloughed employees of their value to the company through a company picnic. Tactics: Have an influential employee deliver a keynote speech about his experience with the company and how he and his family have benefitted from Homestyle Foods. o He will have to be able to connect on a personal level with employees along with being respected by managers. o He will have to appeal to his peers as being someone like me. Banners o Welcoming employees to the event. o Thanking employees for sticking with us. o THEME o You are important to us. o We can only do it together. Anything that we give away for free will have the tagline THEME printed on it. Build company loyalty through booths run by managers that are carnival-styled. o Activity for employee families to show that managers are willing to serve employees too. Free attractions with THEME printed on them. Strategy Three: To improve furloughed employees perception of the companys brand reputation through the media. Tactics: Create a press release explaining the economic crisis and how Homestyle Foods dealt within it in the best possible way, resulting in furloughs not termination. Create a news release explaining the economic crisis and how Homestyle Foods dealt within it in the best possible way, resulting in furloughs not termination.

Write a letter to the editor, targeting the furloughed employees recognizing the hard work that has been made by both current and furloughed employees. Have an interview on the radio with the CEO about the crisis and Homestyle Foods desire to help its benefactors through this hard time. Create press release bringing attention to Homestyle Foods company picnic as a means to give back to its stakeholders.

Minority Organizations The biggest minority group in Everytown is African American, representing 30 percent of the population. There are also many other minority organizations including: American Indian/Alaska Native Organizations, Asian and Pacific Islander American Organizations, Hispanic/Latino Organizations, Multicultural Organizations and Women Minority Organizations. The majority of participants in African American minority organizations hold Christian religious beliefs. Minority organization developed as a support and advocate for these minority groups. They are fervent about minority rights in the workplace, in schools, in the public sector and anywhere else that involves human interaction. Relationship: Thirty percent of Homestyle Foods employees are African American. Homestyle works with minority organizations as an advocate for equality and diversity in the workplace. Self Interest: Rights of minorities in all aspects of life, including home, work and school. Increase quality of life for
minorities to equate to that of their Caucasian counterparts. Fairness, Equality, Equal chances and opportunities, Defending rights of oppressed

Channels: Workplace, minority organization, media and internet. Influentials: Minority leaders, peers, family, friends, prominent minority figures Objectives: 1, 2, 3, 4 Non-Profit Organizations Non-profit organizations rely on local companies for donations and volunteers. Without such necessary funds and hands, these organizations cannot survive. Homestyle Foods has been one of the larger donors to such organizations and have been praised for their immense philanthropy program. However, since the economic downturn and the furloughing of employees, non-profit organizations are worried about their volunteer and financial resources. Non-profit leaders tend to be women and come from liberal backgrounds. Sixty-four percent of these organizations volunteers are female, 36 percent male. Twenty percent are young adults. Relationship: They are concerned that Homestyle Foods will stop donating and providing volunteers. Non-profit organizations are dependent on the plant and the plants stability concerns them Self Interest: Donations, volunteers, getting service and providing service Channels: Local media, management, political leaders, internet, local opinion leaders. Influentials: Donors, management of the plant, other non-profits, political leaders Objectives: This public will help us accomplish objectives 1, 2, 3 Primary Message One: Homestyle Foods is doing its best to minimize the negative effect of the national economic crisis on non-profit organizations. Secondary messages: o Because the housing market and banking industry has collapsed, the economic crisis has hit the country. Even though Homestyle Foods is doing everything to stay on top, the negative effects of the nations crisis are taking its toll.

Primary Message Two: Your confidence in Homestyle Foods can help us stay profitable and able to continue contributing. Secondary Messages: o Our contributions to you depend on our resources. o Increased confidence will boost employee morale and sales, enabling Homestyle Foods to maintain profits during the economic hardship. Primary Message Three: Homestyle Foods wants to continue to contribute to the non-profit organizations during this hard economic time because we share your values. Secondary Messages: Homestyle Foods cares about the community and wants it to thrive Homestyle Foods values service and philanthropy work. The economic downturn has resulted in budget constraints that cannot be ignored. Even though the plant was forced to furlough some of its employees, it will never stop serving its community Homestyle Foods wants to help those in need especially in those hard economic times Strategy One: Educate non-profit organizations about the impact of economic crisis on the Homestyle Foods operations through management interaction. o At the dinner, include a presentation to the non-profit organization leaders about the economic crisis and how it has nothing to do with the Taiwan plant. o Distribute thank you letters to those who attended the dinner reiterating managements confidence in their standing with Homestyle Foods. o Have one of the management member attend the events of non-profit organizations and give a speech about the economic crisis and reassure them o Mail brochures signed by CEO about the economic crisis and its impact on the plant o Have volunteers go to the non-profit organizations and talk about the economic crisis, its negative effects Strategy Two: Increase confidence in Homestyle Foods among nonprofit organizations through Internet. o Monthly email updates o Up-to-date website o Facebook updates o Twitter updates o Personal email correspondence Strategy Three: Promote support and enthusiasm among the non-profit organizations towards Homestyle Foods through local media. o Place a feature story about Homestyle Foods philanthropist efforts during the economic crisis. o Have a photo with a cutline showing Homestyle Foods volunteers helping the community. o Have a VNR about Homestyle Foods philanthropy programs, volunteers and service projects.

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Interview with one of the leaders of the non-profit organization in the news program who is in favor of the plant and is satisfied with its community service. Radio interview with CEO discussing future service project.

Strategy Four:
Reassure non-profit organizations of Homestyles ability to continue to donate through the company picnic.

Have organizations cater company picnic. o They make the food and sell it to the employees. They keep the profits. Banner thanking non-profit organizations for joining them. o Other banners o Welcoming employees to the event. o Thanking employees for sticking with us. o THEME o You are important to us. o We can only do it together. Anything that we give away for free will have the tagline THEME printed on it. Have booths run by Homestyle managers that are carnival-styled. o Activity for volunteers to show that managers are willing to communicate. Free attractions with THEME printed on them.

Minority Organizations Primary Message 1: Homestyle Foods has your back even during the financially hard times Secondary Messages: The financial crisis has hit the country and reached Everytown. Budget cuts is a temporary, yet necessary, answer to the crisis. Furloughed employees will be bring back very soon. Food industry is a safe haven in uncertain times. Homestyle Food will come out well in the current environment. Your jobs are safe with us. Homestyle Foods loves its employees and worries about them.We will not layoff our people and we will not leave you during the financial crisis. Homestyle Foods is not planning to offshore American jobs to another country. Taiwan plant cuts the unnecessary costs which gives us here, in Everytown, more room to grow and develop, giving more jobs to people. Primary Message 2: You are safe with Homestyle Foods Secondary Messages: The impact of the financial crisis on the food industry in the developed countries, the U.S. included, is expected to be about 2 percent. Taiwan plant helps minimize unnecessary costs and brings faster economic growth to Homestyle Foods We will still continue to grow and develop even during the financial crisis. Since the plant is safe, there is no reason for you to worry. The company plans to continue to contribute to minority communities You are important to us even during the hard times. We are committed to you and we will not leave you, especially now. We can make it, and we can make it together. Homestyle Foods depends on minorities. We will come out of the financial crisis with you. Primary Message 3: Homestyle Foods values fairness and equality

Secondary Messages: Fairness and equality are among our top priorities. During these hard times when people tend to be more self-centered, Homestyle Foods remembers you, shares your values and want to come out of this well with you. Our values will not be shaken by the financial crisis. Now is more important than ever to stand strong and defend values we stand for. Fairness and equality were, are and always will be among our priorities. Lets be fair here: we are all equal.
Strategy 1: Strengthen minority organizations confidence in Homestyle Foods to recover from the economic downturn and continue to make contributions through local media. Tactics: o Have an editorial in special publications, such as Black Press, for minorities. o Place an interview with the CEO in those publications about their relationship with the minorities and how they are trying to minimize the effect of the economic crisis on Homestyles donations. o Place a photo with a cutline from the dinner showing Homestyle Foods management interacting with minority organizations leaders o Have a press conference with a Q&A session, invite journalists from minority channels and have it broadcasted to specialized channels, such as Hispanic radio channel o Place an interview with a loyal minority employee in those publications. o Organize a contest among minority organizations on how Homestyle Foods has impacted their companies. The best answer will get a prize from the plant. Strategy 2: To inform minority organization leaders through management interaction at a dinner about the minimal risk of the Taiwan plant on jobs and contributions. Tactics: o Have a dinner with the Homestyle Foods management and the influentials among the minority and non-profit organizations where the CEO will give a speech about the plants plans on continued contributions to the community. o At the dinner, include a presentation to the minority organization leaders about the economic crisis and how it has nothing to do with the Taiwan plant. o Send out letters signed by CEO to minority organizations leaders about the financial crisis and the analysis of the food industry, assuring that HomestyleFoods is safe during the financially hard times. o Distribute thank you letters to those who attended the dinner reiterating managements confidence in their standing with Homestyle Foods. o Have one of the management member attend the minority organizations meeting and give a speech reassuring the minorities. o Mail brochures signed by CEO about the Taiwan plant and that it doesnt carry any risk to the minority organizations.

Strategy 3: To motivate minority organizations through the personal interaction to publicly support the Homestyle Food plant.

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Have minority employees of the plant voluntarily participate in minority organizations projects where at the end they will explain how important it is now to publicly support the plant to ensure its stable growth and development which will benefit everyone in the community Send out personal letters to minority organizations leaders asking them to support the plant and refute the rumors about the offshoring Send a personal invite from CEO to minority organizations leader to attend one of the union meetings and publicly support the plant and refute the rumors Organize a meeting between the minority leaders and a representative from the companys management where the management will explain how rumors are building suspicion in the plant among the employees, reducing productivity and slowing down the growth. Have the management side ask minority leaders to publicly support Homestyle Foods Have minority employees who are members of the minority organizations ask people in the organization to support the plant and have him/her explain how it is in the minorities best interest

Evaluation Criteria and Tools

Objective One: Criteria: Increase the awareness of the economic crisis to 75 percent in three months, 95 percent in six months. Tool: Replication benchmark survey of Homestyle Foods response to the economic crisis three months after campaign launch and again at six months. Objective Two: Criteria: Strengthen overall confidence in the company to 80 percent in six months, with 65 percent in four months. Tool: Replication benchmark survey of Homestyle Foods employees and stakeholders four months after campaign launch and again at six months. Objective Three: Criteria: Increase reported perception to 80 percent of the company as a major philanthropist and donor in six months. Tools: Replication benchmark survey of Homestyle Foods philanthropist efforts after six months of campaign launch. Objective Four: Criteria: Restore the companys positive image as a stable and reliable employer to 80 percent in six months, with 70 percent in four months. Tools: Replication benchmark survey of Homestyle Foods brand image and reputation four months after campaign launch and again at six months. Objective Five: Criteria: Retain at least 90 percent of current workforce through six months. Tools: View company employment records.