Crisis Communication
Companies, organisations and high-profile individuals can find themselves in a situation out of the blue that changes everything. That is when reputational damage becomes tangible. It becomes obvious how such damage can ruin lives, careers and companies.
Corruption, cartel agreements, money laundering or sanctions violations become public.
Irregularities in accounting, profit warnings or subsequent corrections shake confidence.
Customer data, trade secrets or internal communication are compromised.
New laws, official investigations or licence withdrawals hit the business model.
Mass layoffs, allegations of discrimination, criticism from unions.
Private misconduct, abuse of power or unprofessional behaviour by the CEO or board of directors.
Failed expansions, costly acquisitions or missed market shifts.
Insolvency, refinancing problems or loss of confidence among banks.
Crises rarely occur in isolation. The first problem that emerges may only be the tip of the iceberg. Crises tend to bring other problems to light. Therefore: be careful with overly optimistic statements at the beginning of a crisis.
Many legal premises clash with the principles of reputational protection. In an acute crisis, from a reputational perspective it is wise to communicate the facts as quickly as possible. Lawyers usually prefer to wait much longer before communicating. This makes a careful balancing of interests necessary.
In the corporate world, avoidable crises are common. If their consequences are serious, an apology suggests itself. There are many forms this can take, from expressing regret over what happened, to acknowledging any harm or suffering caused, to offering some form of compensation.
When the company’s reputation is at stake, an effective public appearance by the CEO is crucial. It needs to be well thought through and well prepared. Not only the right words matter - how the messages are delivered is equally decisive.
Every crisis has harsh critics. Perhaps they have a score to settle and are taking advantage of the moment. The temptation is great to devote substantial resources to blunting at least the sharpest edge of their criticism. A change of heart is usually unrealistic, however. That is why it is equally important to involve and mobilise supporters and natural allies.
