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What is Crisis Management?

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Crisis Management Examples: Learn from These 7 Brands

Adam Figueroa

September 27, 2022

We’d all like to think we respond well under pressure. That we rise to the occasion. That we handle criticism like the professionals we are. That we can respond appropriately when the $#!% hits the fan. Unfortunately, that’s not always the case for companies in crisis and the humans who run them. That’s why a crisis management strategy is so crucial.

Recent history has seen some of the world’s preeminent brands come under fire from the media, and even their most devoted followers. Crisis management examples are easy to find these days: We’ve seen Uber lose 200,000 users in the wake of #DeleteUber and United lose $800 million in value in just a few hours. That kind of consumer response is pretty remarkable, and it also says something about each brand’s crisis management strategies.

Crisis management is a corporate strategy that aims to help organizations deal with a negative event. A negative event can be anything from a small PR crisis on Twitter to an incident involving serious injury or death. Managing a crisis involves developing a plan and coordinating resources to address the needs of the affected parties while also repairing the brand’s reputation.

Crisis management is a process that prepares managers and employees to face unforeseen situations and circumstances in the organization. Having one in place allows them to manage their emotions, minimize risk, and respond effectively to the changes in the moment while under pressure. It’s also necessary to prevent the situation from getting worse for customers and for your business.

Well-known PR agency SHIFT Communications defines it as:

"… analogous to putting out a fire … A fire requires three things to burn – heat (energy), fuel, and oxygen or a catalyst like oxygen (speed). Take away any one of those elements and the fire goes out. In a crisis communications situation, something has gone wrong and your brand is on fire. There’s the something you did or something you’re responsible for – the fuel. There’s the tide of public opinion – the heat, the energy. There’s your speed of reaction to it – the catalyst. As with real fires, if you deny the fire from any one of these sources, you break the chain reaction that causes fire and it burns itself out."

And Brandfolder’s CEO, Steve Baker, explains crisis management as:

“Crisis management is like your Dad stockpiling MREs before Y2K (come on, we all knew someone’s parents who were doing it). It seemed like overkill, like preparation for an event that was never going to happen. But they had a strategy, supplies, even communication plans mapped out and documented so that if the worst happened, they were ready. As brands you hope that, like Y2K, a crisis never happens, but if it does, you want to have the mother of all crisis management plans ready so that your company and your brand are protected.”

Below, we’ll take a look at some crisis management examples and how these brands handled crisis communication. Does your brand have a strong crisis management strategy in place? If not, this list might give you the inspiration you need to get started.

Examples of Effective Crisis Management and Communication

We’ve gathered several crisis communication examples that illustrate basic yet essential principles of this process. Below you’ll find details on what each brand crisis was, how it was handled, and actionable lessons you can use to recreate their successes.

The crisis:

You never know what the internet is going to find and amplify, but for Cracker Barrel, it was Brad’s wife . In February 2017, Bradley Reid posted on Cracker Barrel’s corporate website asking why his wife Nanette had been fired from the retail-manager job she’d held in an Indiana Cracker Barrel for 11 years.

It wasn’t long before the hashtag #JusticeforBradsWife began trending. Someone even started a Change.org petition for answers that garnered over 17,000 signatures. People began adjusting Yelp and Google pages for the brand to feature photos of Brad’s wife. And other fast food chains began capitalizing on Cracker Barrel’s bad press, including a Chick-fil-A sign emblazoned with “Now Hiring Brad’s Wife!” There have even been satirical retellings of the story on YouTube, garnering over 7 million views.

The response:

The restaurant’s crisis management was, apparently, not to treat this like a crisis. They kept quiet on the issue, never publicly addressing the movement or Brad’s wife. While you’ll still find a few #NotMyCountryStore hashtags littering Cracker Barrel’s social media channels, the firestorm has mostly passed. And the crisis didn’t appear to have any negative effects on the brand’s financial performance .

Key takeaway:

Cracker Barrel shows us an example of how silence can sometimes be the best form of crisis communication. In fact, while some critics say silence was the worst response , the general consensus is that it wasn’t the disaster everyone thought it would be at the time. While staying silent may be a risk, it can really pay off. The majority of their consumers today are either unaware of the issue, have already forgotten about it, or know what happened but still enjoy eating and shopping there.

The joys of flying under the radar have probably never seemed so blissful and sweet to Pepsi execs. In April 2017, Pepsi kicked off a new ad campaign with a commercial starring Kendall Jenner. Over the next 48 hours, the “short film” received nearly 1.6 million views on YouTube.

That might seem harmless enough, but by this time we all know what followed. The world was treated to Jenner leaving a modeling gig to “join the conversation” which she and her fellow marchers seem to “win” after she hands a police officer a Pepsi. The backlash was immediate and fierce, but in Pepsi’s defense, so was their corporate crisis management.

The brand did initially release a statement defending their campaign by saying, “This is a global ad that reflects people from different walks of life coming together in a spirit of harmony, and we think that’s an important message to convey.”

However, less than 24 hours later the soda company had pulled the ad and paused the campaign entirely. A second statement followed: “Pepsi was trying to project a global message of unity, peace, and understanding. Clearly, we missed the mark, and we apologize.”

The response was heralded for its speed and straight-forward nature, but many predicted it would take a while for the brand to recover from this “ worst ad ever .” Now, in 2022, it seems that Kendall Jenner will never escape the backlash surrounding the incident, leaving Pepsi to continue on successfully post-crisis.

The response from Pepsi was immediate and effective. Like many successful crisis communication examples, the brand showed empathy and promised action. This was the first and most important step in their crisis management process and it paid off. Quick yet effective responses help minimize the risk of long-term effects from negative reactions and prevent them from permanently damaging a brand’s reputation.

In 1982, seven people in Chicago died after taking cyanide-laced capsules of Johnson & Johnson's over-the-counter medication Tylenol. The incident remains unsolved. The company's response has become a textbook example of how to manage a crisis.

Johnson & Johnson immediately launched a massive response to the incident, which included halting all product advertising and sending 450,000 messages to healthcare facilities and other stakeholder groups. It also issued safety warnings to consumers.

Despite the evidence indicating that the toxic substance was accidentally introduced through the store shelves and therefore not the company’s fault, the company did not try to hide the truth, and the brand eventually started making tamper-proof packaging. James Burke, the company’s CEO at the time, even went so far as to express regret later on that the company did not immediately switch to a more secure caplet immediately following the incident.

Tylenol’s response is regarded as one of the best crisis management strategies in history. In fact, according to RETRO REPORT on YouTube, it has created the script that corporations still use today. The media generally praised J&J for its actions in handling the situation and helping the Tylenol brand recover. One of the most important lessons in this example is that transparency and integrity will go a long way towards managing a crisis.

Examples of Poor Crisis Management and Communication

Many times, poor crisis management is caused by fundamental errors in planning and executing an emergency plan. These errors can compound and result in a massive disaster.

Unfortunately, in most cases, these errors could have been avoided if leaders were only aware of the potential consequences of their actions.

It’s easy to dismiss the possibility of one of these issues ever happening to your company. However, the consequences of these events can be severe, which makes preventative crisis management even more important. Prepare your team ahead of time by studying the following crisis management examples gone wrong.

Uber went from one of the most celebrated brands in the world to one of the most reviled in a matter of months. The ride-hailing company started 2017 off in hot water when it was revealed that CEO Travis Kalanick was serving on an advisory council to President Trump. The hashtag DeleteUber was born and Kalanick announced that he would be stepping down from the council shortly after.

The hashtag made a comeback two times the following February. First, when Uber continued operating at JFK International Airport during a taxi strike in protest of President Trump’s immigration ban, sparking a company crisis. And second, when ex-employee Susan Fowler Rigetti leveled claims of sexual harassment and gross HR misconduct at the company.

But it wasn’t until a few days later when the hashtag really gained momentum when a video surfaced of Kalanick arguing with an Uber driver about a drop in driver pay. February 2017 also saw Uber slapped with a lawsuit from Google. The technology giant claimed Uber stole technology from their self-driving vehicle division, Waymo. The suit was abruptly settled a year later when Uber paid Waymo $245 million .

The tech darling is also in hot water for using technology called Greyball to elude authorities worldwide, and has seen several executives, including their former CEO on the board of directors, step down .

Kalanick announced an immediate investigation into the issue, but early investors voiced concerns over the impartiality of the internal investigation and the company’s private arbitration clause. In regards to the video, Kalanick released a statement on Uber’s website saying, “I must fundamentally change as a leader and grow up.” But for many Uber customers, the damage was done and the video was viral.

While the business continued to release statements concerning each incident, it’s hard to ignore the fact that missteps keep piling up. A lack of transparency has been Uber’s biggest failing in handling much of the public interest which has impacted both their reputation and their bottom line.

A heartfelt letter from the CEO promising to be a better leader won’t get the company far unless the public sees steps and actions taken to get there. For this reason, Uber is a classic example of crisis management gone wrong.

In early 2017, social media erupted with the news that United barred two teenage passengers from boarding a flight because of the leggings they wore. The situation quickly escalated as a nearby traveler tweeted about the incident.

The leggings scandal was nothing compared to what happened a few weeks later, however, when video surfaced showing a United customer being brutally dragged and bloodied from a flight. While initial speculation was that the paying passenger had been asked to give up his seat because of overbooking, it was soon revealed that the seats were being repurposed for United’s own employees.

If you assumed that the response from United would be swift and sincere, you’re sadly mistaken. Instead, the airline’s CEO, Oscar Munoz, released a statement in which he defended the actions and protocol taken by the flight crew and expressed regret for having had to “re-accommodate these passengers.”

Far from apologizing, United then released a series of tweets defending the gate agent’s actions and claiming that this was standard procedure for passengers flying as “pass holders.” The “pass holder” reasoning seemed to mollify some, but all agreed that the situation had been poorly handled.

Within 24 hours of the incident, United Continental had lost $800 million in total value . By comparison, Pepsi’s value changed very little as a result of their controversial ad. What followed was too little too late. Munoz made several follow-up statements and apologies to attempt to make up for his original faux pas, but public sentiment only worsened, and the brand is still recovering.

It’s easy to see what a rapid and genuine response to situations like this can do to gain a brand back some semblance of control. It’s also easy to see the devastating impact of a lack of customer care and brand transparency. More time will tell what this roadback to customer and industry trust has in store for United, but many experts have said these events have caused irreparable brand damage for the airline .

In July 2015, E. coli outbreaks started at Chipotle and lasted through January 2016. It began in the Northwest and spread across dozens of states.

The result was an 82% decrease in profits over the course of a year and Chipotle stock down 15%. 2016 also saw an executive arrested for cocaine possession and 10,000 workers suing the company for unpaid compensation.

The burrito company’s crisis management strategy has been a long and often criticized one. In the midst of the 2015 outbreaks, co-CEO Monty Moran responded to the incident at an industry conference for investors. While truthful, as journalists at Fortune pointed out, “this is not how you win back the world’s confidence.”

“It’s been fueled by the sort of unusual and even unorthodox way the CDC has chosen to announce cases related to the original outbreak in the Northwest,” he responded. And: “Because the media likes to write sensational headlines, you’ll probably see, you know, when somebody sneezes … ‘Ah, it’s E. coli from Chipotle’ for a little bit of time.”

A few days later, Chipotle founder Steve Ellis appeared on the Today show apologizing to consumers and promising that “The procedures we’re putting in place today are so above industry norms that we are going to be the safest place to eat.” It was a bold promise, and one that made some PR professionals nervous for the already queasy company, but Chipotle’s stock made a 5% climb after Ellis’ speech.

In 2017, Moran stepped down as co-CEO, a move that was heralded by many. However, finger pointing, wishy-washy answers and apologies, plus a lack of company representation at the 125 food safety cases that were settled in 2016, already had some feeling that the brand could have done a better, more authentic job of recovering its image.

In 2019, the New York Times reported that “Four years after reports of E.coli and Norovirus sent customers fleeing, Chipotle has made a significant comeback. Last week, the chain’s stock price reached a high of $759, surpassing the mark it set in August 2015, not long before the crisis began.” However, this result only came after Chipotle brought on chief executive Brian Niccol who spent a full year dedicated to reviving the brand.

Save your company the trouble of hiring new executives and launching a multi-year rebrand. Chipotle is just one of many crisis management examples that prove taking the situation seriously and replacing rhetoric meant to appease shareholders with facts and actionable steps that solve the problem instead is the key.

In 2015, the EPA accused Volkswagen of intentionally violating the Clean Air Act by using software that allowed its cars to pass emissions tests. Not only did the company violate the law, it also damaged its customers' trust by making its cars look more eco-friendly.

The company's response made the situation go from bad to worse. Initially, executives claimed they didn't know about the cheating, but then later admitted they did . Meanwhile, the news came out that while the company worked to fix the vehicles, it also started to lay off 300,000 workers .

It appeared to many that Volkswagen was making up for the loss in profits from the scandal by firing employees who had nothing to do with it. The final nail in the coffin came when, during the investigation, consumers sounded off online by accusing the company of intentionally deceiving them.

The best crisis management responses create a winning combination of empathetic words and actions. Volkswagen’s had neither. Always lead with empathy and pay close attention to actions the brand takes in the following months post-crisis.

Crisis Management Best Practices

Now that you’ve seen crisis management examples of what to do and what not to do, let’s go over the basic principles of a solid crisis management plan. Make sure you check the boxes below when creating or updating your brand’s procedures.

Designate a chain of command that includes at least one executive. Include points of contact for both internal and external communications. Also, be sure to appoint a crisis management project manager to coordinate efforts companywide.

Ideally this will be your CEO or another top executive. Their job is to help draft and release a statement for those affected by the crisis. Respond swiftly

The longer a brand takes to respond to a crisis, the more manipulative they appear. Take action right away and don’t go more than 48 hours without public comment on the situation if a response is warranted.

The truth will always come out. Make sure that when it does your company’s response will align with the news.

As we saw in the Cracker Barrel example, sometimes silence is golden. In situations where there may be only one person affected, reaching out directly may be more effective than bringing more attention to the situation in a public setting.

Make sure your entire team knows about your action plan and has access to it at a moment’s notice. Host regular refresher training, make sure everyone knows their role, and alert relevant parties whenever changes are made to the plan.

Rebranding is an effective long term solution to resolving a crisis that got out of hand. This can look like a name change, new campaign, or simply a public rededication to company values.

Your company may get a lot of foot traffic and one way to properly manage your customers, consultants, employees or anyone visiting your property can be properly handled with a visitor management system . Not only does it create a good impression and help with safety and security, but it also helps build a strong reputation by creating a sense of trust and dependency between your organization and the vistor.

All brands hit bumps and PR nightmares in the road, but quick, transparent, and genuine crisis communication will likely lead to a far faster and more holistic recovery than trying to hide, defend, or ignore your missteps. By learning from the wins and losses of these real-life crisis management examples, your team will be one step ahead of the game.

Another way to be prepared for your brand’s bad days? Having a digital asset management (DAM) platform that’s populated with brand guidelines, PR strategies, and press kits to make swift responses possible when you need them most.

A business journal from the Wharton School of the University of Pennsylvania

Knowledge at Wharton Podcast

Brand crisis management: responding to the tide pod challenge, january 25, 2018 • 24 min listen.

Other brands can learn important lessons from Procter & Gamble's response to the trend of teenage YouTubers ingesting toxic detergent pods.

Wharton's Americus Reed, Drexel's Robert Field and the University of Maryland's Jen Golbeck discuss the marketing lessons from the Tide pod challenge.

When Tide and other detergent manufacturers developed colorful, convenient pods designed to be tossed into washing machines and dishwashers, they never expected teenagers would try to eat them. But what was dubbed the Tide pod challenge quickly went viral, with teens posting videos of themselves spewing soap across social media channels. The American Association of Poison Control Centers last year reported 220 teens were exposed to the toxic pods, and about 40 cases have been reported so far this year.

The dangerous debacle has created a different kind of challenge for Procter & Gamble, which makes Tide pods. The company’s swift, multipronged response offers a case study in brand crisis management. The Knowledge at Wharton show  on Wharton Business Radio on SiriusXM channel 111 invited Wharton marketing professor Americus Reed, Wharton lecturer and Drexel University professor Robert Field and Jen Golbeck, professor and director of the Social Intelligence Lab at the University of Maryland, to analyze P&G’s playbook.

The following are five key points from their conversation. (Listen to the full podcast using the player at the top of page.)

Yes, It’s Stupid

The professors each repeated a single word to describe the Tide pod challenge: stupid.

“It’s remarkable but not super shocking. Kids do dumb stuff,” Reed said. In fact, they always have — but only this generation has had the opportunity to showcase its behavior on social media.

“Everybody has a mobile phone, and it’s super easy to post stuff on social media, and suddenly this stupid stuff that kids may have been doing anyway becomes more visible,” Golbeck said.

Field agreed, saying the allure of social media is irresistible to most young people. “Look at skateboarders, look at drag racing, look at some of the other things [kids] do,” he said. With social media, “you can become an instant celebrity by showing how stupid you are, and celebrity is a big draw.”

There are a few positive examples of internet peer pressure, such as the 2014 ice bucket challenge that raised awareness about Lou Gehrig’s Disease (ALS). But the internet creates a different kind of peer pressure that doesn’t come from friends or classmates.

“It’s got to be intoxicating as a teenager to have 20,000 people look at you and the thing that you did,” Golbeck said. “There is this pressure and this responding desire to get positive feedback, to get attention — exactly the same mechanism that we see working in traditional, face-to-face peer pressure. But now you have this much bigger audience and the opportunity to get a lot more attention, and that makes it easy for these sorts of activities to spread.”

“From the perspective of brand crisis assessment, I think Tide did everything that you’re supposed to do.” –Americus Reed

The Right Message at the Right Time

Reed gives the company top marks for how it has handled the fallout from the Tide pod challenge. He said the brand has been proactive from the start. When the pods were first introduced, there were hundreds of cases of toddlers ingesting them. Tide coated the pods with a bitter taste and changed the packaging to make it harder for small hands to open. He said the company has been just as proactive with this latest problem.

“It’s terrible for the brand in some senses, but I think the protection that Tide is putting out there is that they’ve been very clear in their communications with consumers,” Reed said. “I think from a marketing perspective, it’s a little bit of the best of both worlds because you get to show that you’re responsible and a good citizen and that you care about your consumers, but that you also get some awareness from this as well. People are talking about it.”

Field recalled what happened in the early 1980s with Johnson & Johnson, which created tamper-resistant packaging for Tylenol after seven people in the Chicago area died from taking capsules that someone had laced with potassium cyanide.

“Johnson & Johnson, through no fault of its own, saw the product used as a murder weapon. They launched a massive public relations campaign to separate the company from that, to put tamper-proof containers out there and to try to educate the public and show that they were being good citizens, doing everything they could,” he said. “It was predicted to have serious, even lethal consequences for the company, and they were able to turn things around. So, this isn’t the first time a major company has faced something like this. There is a path they can follow to make it clear to the public they’re not the bad guys.”

The professors think P&G has taken the right path so far, especially on social media. Golbeck said the company worked quickly with YouTube to remove the challenge videos, and it has used social media to establish two-way communication with consumers.

“They have created really good-looking social media content for this, which is an important part,” Golbeck said. “You don’t just want a text-based tweet that’s like, ‘Hey, don’t do that.’  They have put together meme-looking, very attractive, kind of funny posts that they are able to share, that people can spread around. They are able to respond.”

“They have put together meme-looking, very attractive, kind of funny posts that they are able to share, that people can spread around. They are able to respond.” –Jen Golbeck

Turning the Tide

For proof that the company’s constant messaging is working, just look on social media. There are now plenty of memes, photos and GIFs about the dangers of attempting the Tide pod challenge. Golbeck recalled seeing a photo of a fresh pizza topped with Tide pods and the accompanying message that the recipient would eat that, too.

“We obviously know that [eating pods] is stupid, but what we’re starting to see in the social media space is that the meme is shifting a bit, especially as it’s harder to get attention for actually eating them,” she said.  “Now, a way for me to insult you is to suggest you might eat a Tide pod.”

Reed said P&G was “very smart” to recruit peer-level influencers to deliver the message, such as New England Patriots tight end Rob Gronkowski. He appears in a video on Tide’s Twitter feed, telling young people that the pods are not for eating.

“From the perspective of brand crisis assessment, I think Tide did everything that you’re supposed to do,” Reed said. “There are three things you’re supposed to do: You have to validate concerns. You have to show action. And you have to control the narrative.”

Field said P&G was also correct in not apologizing for the mistakes of consumers.

“They validated public concerns, yet made it clear they don’t consider themselves responsible,” he said. “It’s definitely the way to go, both in terms of public relations and legally.”

The Consumer’s Responsibility

If there are any legal implications for P&G, someone could claim that the company made the pods too attractive. But that brings the professors back to the burden that consumers, especially teens, bear for their own behavior.

“Absolutely, it’s up to the parents,” Field said. “We’ve been seeing since the birth of the internet the problem of kids doing things that they shouldn’t do online — contacting strangers, viewing pornography. I don’t think we imagined that they would be finding ways of harming themselves and almost killing themselves, so the need to monitor is taking on a more urgent tone now.”

Unlike product liability cases involving tobacco and asbestos, the company has not been trying to conceal the dangers of detergent. “And they don’t rely on teenagers eating the pods for a major source of revenue,” Field said, jokingly.

Added Reed: “At some point you just have to say, ‘People are stupid.’ What am I supposed to do if I’m Tide? I can’t control everything. You can’t say, ‘Don’t make a pretty product because people might eat them.’ I don’t think anyone would make the argument that Tide did something that was intentionally at fault here in terms of negligence.”

“[Tide] validated public concerns, yet made it clear they don’t consider themselves responsible.” –Robert Field

Social Media’s Changing Role

The Tide case brings up an interesting question about the role of social media companies in such issues. Golbeck said the quick response from YouTube and others likely would not have happened a few years ago, and she credits the hot-button issue of Russian election tampering via social media with bringing the problem to the forefront.

“I think this is a result of the last election, that there is a lot of awareness among these companies that they have some responsibility for the content that they’re seeing,” she said. “I would like to think some of it is feeling a moral responsibility, but also they are seeing the potential that there could be financial liability there.”

From a legal point of view, Field said, social media platforms are more at risk than companies like P&G because their business goal is “to get eyeballs, to get views.” He thinks if they don’t start behaving more responsibly, there is a greater chance for government scrutiny and regulation.

Golbeck noted that all sorts of illegal activities can be found on social media, including videos of people taking drugs. If social media channels are going to get better about blocking that kind of content, they are going to need better automation and more humans to help review it.

“That’s a huge challenge,” she said. “It’s going to be interesting to see how it develops.”

Image credit:  By Mike Mozart – https://www.flickr.com/photos/jeepersmedia/15030099647/in/album-72157647105380677/ , CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=65216693

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Crisis Communications

Crisis communications: What it is and examples brands can learn from

Reading time  6 minutes

Published on  March 27, 2023

Table of Contents

In today’s fast-moving market, it’s more critical than ever for brands to be agile and resilient in the face of unfavorable public opinion. To that end, we’ve rounded up a handful of successful crisis communication examples and synthesized them into a list of lessons marketers can learn from them.

Why is it important to learn from the work of others? Well, because the odds of something similar happening to your company are pretty high. And the majority of businesses are not prepared to respond effectively.

Responding to a survey conducted by Edelman , 80% of executives said they felt it has never been more important to build resilience in their organizations. Yet, fewer than half said their companies were prepared to respond quickly to a crisis.

Your brand’s best bet is to get ahead of any future problems by proactively creating and testing a comprehensive crisis management plan that includes robust guidance around communication.

What is crisis communication?

Before we go any further, let’s level set on what “crisis communication” actually means. Simply, crisis communication is a method of sharing information intended to improve public brand perception in the face of a scandal or other negative event.

It is one arm of an effective crisis management strategy , and typically involves multiple internal teams (corporate communications, public relations, social media, and legal to start) collaborating across various channels including the business’ social, web and email properties.

The importance of strong crisis communication

Few established businesses have escaped the unwanted attention that comes from a brand crisis. The real differentiator between brands that rebound from these events and those that don’t boils down to the effectiveness of their crisis communication and how well it is received by the public. In fact, 41% of consumers say they would return to a brand that makes an apology and admits its own wrongdoing.

If (and, more likely, when) a breach of customer trust occurs, it is critical to address it appropriately to stave off the worst possible consequences, which might include negative impacts to:

• Short- and long-term brand reputation
• Stock prices (for public companies)
• Customer loyalty and attrition
• Sales and revenue
• Employee satisfaction and turnover

The role of social media in crisis communication

Social media plays an important role in crisis communication, but it should not be the only channel in which businesses are sharing their messages. As is true in most cases, social media should be used to amplify key information, monitor brand sentiment and increase customer access to the company during times of crisis.

In fact, social media itself is a common source of brand crises, so it’s important to make sure that your business’ communications strategy includes details specific to handling these events and their aftermath.

Crisis communication examples

The last several years have seen brands grappling with a number of external crises outside of their control (the COVID-19 pandemic, social unrest, geopolitical tensions, etc.). Yet, a host of brands have also dealt with the ramifications of misconduct or negligence inside their own organizations—which, in many cases, can be even more detrimental.

We’ve all seen the headlines about brand scandals and businesses’ attempts to reclaim their reputations. In some cases, these stories even tell tales of ill-conceived crisis communication strategies that failed to improve the situation or even exacerbated it.

While there are certainly lessons to learn from these public relations debacles, there is perhaps even more to take away from successful responses. Below, we’re sharing some relevant crisis communication examples from the last five years and offering key takeaways for brands.

Prefer to listen to insight? Don't miss Get Baked's unique approach to managing a social media crisis on Sprout Social's own Podcast Social Creatures.

Slack’s response to an outage (2022)

In February 2022, a widespread outage occurred at Slack, an online messaging application, during which many users were unable to access the platform. The problem was eventually traced back to a configuration change, which caused a sudden increase in activity on the company’s database infrastructure.

On its status page, Slack posted regular updates throughout the five-hour event to keep users informed about their progress toward a solution and even calling out missteps they made in the process. These messages, posted about twice an hour, transparently detailed the company’s efforts to restore full access to all users. They also used Twitter to communicate with users in a tone that was authentic yet apologetic (see below).

Lesson for brands: Be as honest, transparent and accessible as possible.

Aldi’s hairy caterpillar predicament (2021)

Another faux pas was committed by Aldi, a German grocery store chain, when they allegedly infringed on a trademark owned by rival grocery store Marks & Spencer (M&S)—related to its Colin the Caterpillar Cake. It turns out Aldi had launched a suspiciously similar product, named Cuthbert, in the previous months.

Aldi launched a cadre of Tweets using the new hashtag #FreeCuthbert, which trended at number one on Twitter within hours. Fans of the brand (and of the snack) rallied around Aldi, retweeting its messages and voicing their support. Views of user-generated videos topped out at over 30 million. In the end, M&S and Aldi settled the conflict and Cuthbert remained on the shelves.

Lesson for brands: Engage your audience and use social to your advantage.

Carrefour Group responds to tragedy (2020)

In late 2020, a 40-year-old Black man, João Alberto Silveira Freitas, was killed by a group of white security guards outside one of Carrefour’s Brazilian supermarket locations. Bystanders on the scene took videos of the brutal attack and posted them to social media, sparking outrage among Brazilians and other concerned citizens across the globe.

In the aftermath of the event, the local unit of Carrefour made a statement saying they were terminating their contract with the security firm as well as taking immediate legal action against them. In addition, they also promised to review how employees and contractors were trained on security, diversity and tolerance, and also to close the store out of respect for the victim and his family.

The chairman and CEO of the company went further, saying in a Tweet “My values, and the values of Carrefour do not allow for racism and violence.”

Lesson for brands: Ensure leadership visibility and reflect your values in all crisis communications .

KFC’s UK chicken shortage (2018)

Isn’t it ironic that a fast food restaurant known almost exclusively for its fried chicken ran out of its namesake product? That’s exactly what happened in 2018 when the United Kingdom arm of the chain experienced supply chain issues that resulted in a shortage of many of its key ingredients and the closure of 900 locations.

In response, the company leaned on its irreverent brand voice to poke fun at its own misstep. KFC launched a print campaign in which their buckets were labeled “FCK” instead of “KFC” and took to Twitter to engage with fans who were upset about temporarily missing out on their favorite meal.

With ad headlines like “The chicken crossed the road, just not to our restaurants,” KFC helped customers find the humor in the situation and effectively turned the tide of public sentiment. KFC’s brand impression score, which dropped to -12 during the crisis, has now bounced back to a -1 (one point better than before the event).

Lesson for brands: Don’t lose sight of your brand voice during crises .

Tide navigates the Tide Pod challenge (2018)

It’s hard to imagine anyone would find a Tide laundry detergent pod appetizing, but when the Tide Pod challenge kicked off on YouTube, teenagers were being sent to the hospital left and right. In 2017, more than 200 adolescents ingested a pod, and about a quarter of those cases were not accidental.

In response, Tide launched a campaign in early 2018, in partnership with football star Rob Gronkowski, designed to deter this dangerous behavior. This is a textbook example of crisis communication done well. By leaning on the cache of a well-known and admired athlete, the company hoped to shift the narrative to make the Tide Pod challenge seem silly and uncool.

Lesson for brands: When it makes sense, partner with influencers and celebrities.

Mitigate brand crises with a robust crisis management plan

Each of the recent crisis communication examples listed above illustrates a particularly successful approach to crisis response that can be replicated when other brands find themselves in similar situations.

If your company does not have a crisis communication plan in place, you could be caught flat-footed the next time a brand scandal pops up. Sprout’s template for building a crisis management plan can help you get started. If you've experienced a recent brand crisis, reflect on the aftermath with our crisis retrospective worksheet so that you're better prepared next time it happens.

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International Journal of Pharmaceutical and Healthcare Marketing

ISSN : 1750-6123

Article publication date: 7 June 2019

Issue publication date: 17 June 2019

The purpose of this paper is to study whether the controversy because of brand crisis based on quality had any impact on consumer brand equity, brand image, brand reliability, brand perception of quality, perceived value, brand sentiments and purchase behavior.

Design/methodology/approach

The research methodology consisted of two types of data: primary and secondary data. The secondary research consisted of social media brand sentiments and financial analysis. The primary research focused on perception study of brand quality, consumer brand equity, brand reliability, brand image, purchase and brand switch behavior.

Maggi used social media extensively to address the issue and re-build the brand reliability and confidence among its users. Communication strategy adopted by focusing on the past experience of consumers and using them as a spokesperson generated a positive sentiment towards the brand under crisis.

Research limitations/implications

While Maggi suffered the backlash because of the controversy across the length and breadth of India and was banned in a number of states, the author could conduct the primary research only in one city of the state of Maharashtra, Mumbai. The effectiveness of the survey was impacted because of the geographic limitations the author faced while collecting the responses. The survey would have definitely been more effective, with responses collected from different states and with more number of respondents. Fishbein is very old, from the 1980s, even though this theory has met the test of time. Application of the effect of experiences on experiential perceptions and how this influences value through networking could have been used to explain the same.

Practical implications

An important implication of this paper’s findings for practice, therefore, is that brands should incessantly strive to maintain the consumers’ level of trust, as it is essential for the preservation of the brand equity after a crisis. Crisis-stricken brands should safeguard their reputations from the negative effects of crises. It is even more important for any brand to act appropriately when the cause of the crisis is attributed to its actions and processes. Managers have to address the quality of products in case of brand crisis for restoring trust, image and reliability in the brand. Right type of communication to right targeted consumers will help in the restoration of the image, trust on the brand and bring back loyal customers. Managers have to build brand equity on a regular basis, as a strong brand can recover faster as seen from this paper.

Originality/value

This paper helps to upgrade the knowledge and understanding of the impact of the controversy on brand equity and image and how the crisis management strategy can be adopted to regain the mind share and equity. This paper will help the brands in the future to know how a crisis can be managed efficiently by drawing a cue from the strategies implemented by Maggi.

• Brand image
• Brand equity
• Communication
• Word-of-mouth
• Brand perception
• Brand crisis
• Brand loyalty

Srivastava, R.K. (2019), "Rebuilding a global brand under crisis – case of a global brand Maggi", International Journal of Pharmaceutical and Healthcare Marketing , Vol. 13 No. 2, pp. 118-139. https://doi.org/10.1108/IJPHM-02-2018-0008

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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Three Recent Crisis Management Case Studies That We Can Learn From

It’s been a wild and fascinating period recently in the world of crisis management. Let’s take a look at three highly visible crisis management case studies from 2018, looking in particular at what we can learn from them:

United Airlines customer service failures

What Happened

It’s close to a year ago that videos shot by fellow passengers of Dr David Dao being forcibly removed from United flight 3411 blew up on social media and, very soon thereafter, the mainstream media.

It started when airline staff in Chicago asked passengers for four volunteers to give up their seats to make room for United employees headed to Louisville. No-one volunteered.

Four passengers were then directly asked to remove their luggage and vacate their seats. Three complied, one did not.

Staff insisted and Dr Dao continued to stay in his seat. Then airport police were called.

That’s when the events unfolded that have been seen millions of times on video .

A passenger with a bloodied face, who had paid for his seat, being forcibly dragged down the aisle as he yelled complaints.

Next morning, United CEO Oscar Munoz issued a statement justifying what happened, describing it as ‘re-accommodating the customers’. Munoz also sent an email to United staff commending the actions of the crew.

More recent mishaps with United Airlines’ treatment of traveling pets has both reminded people of the Dr Dao incident and focused yet more attention on United’s continued failure to build a customer-focused culture.

What We Learned

This was a perfect illustration of the need for speed .

It took United a day to respond, and even then their response was inadequate, betraying any understanding of the role of social media in reporting and magnifying failures in company customer services.

By Monday morning the story of what happened on flight 3411 had been told and viewed by millions. It took United several days to finally respond in a way that acknowledged the seriousness of what happened and how it made the airline look in the eyes of customers and regulators.

It was too late.

The damage to the reputation and business of United lingers to the present day – refreshed by the unfortunate incidents with the pets.

Equifax and the Data Breach

On July 29 2017 Equifax discovered a massive data breach which affected the personal information of up to 143 million Americans, including social security numbers and driver licenses. The company believed that the hack had taken place several weeks earlier, even as early as mid-May.

Equifax waited until September to make a public announcement of the problem.

The data thieves knew where to target. Equifax is one of three nationwide credit-reporting companies that track and rates the financial history of U.S. consumers. The companies are supplied with data about loans, loan payments and credit cards, as well as information on everything from child support payments, credit limits, missed rent and utilities payments, addresses and employer history, which all factor into credit scores.

Subsequent events only made the situation worse:

• The website and consumer telephone lines set up by Equifax so that people could get information and sign up for credit protection were overwhelmed and it took weeks to get them working effectively.
• It was reported that three executives sold nearly $2m in shares after the breach was discovered but before being publicly revealed.
• Equifax subsequently twice upped its estimate of the numbers of consumers impacted – by 2.5 million in October 2017 and by 2.4 million in February 2018.

This is why we build crisis preparedness plans .

A data breach must have been very high on the potential risks that Equifax faced. Given their business, any data loss is serious.

A plan would have had laid out the crisis team, how they should work together, the steps to take, the initial messaging and statements – and the process for escalating the response as it got worse.

Nothing in Equifax’s slow motion and bungled response suggested it had anticipated and planned for such an event.

KFC and the shortage of chicken

In February 2018, KFC had to close more than half of its 900 stores in the United Kingdom because of a shortage of…chicken.

The social and mainstream media enjoyed the irony of a chicken shop without any chicken and went to town on the story.

The cause was a delivery problem after the chain switched its contract to DHL which said that due to ‘administrative problems’ a number of deliveries were cancelled or delayed.

Loyal customers vented on Twitter and took their families to McDonalds. Some even complained to their local politicians.

Then KFC, even while struggling to get the restaurants re-opened, managed to switch the narrative entirely.

It ran an apology advertisement that was extremely funny (especially to the brand’s core younger consumers) while taking ownership of the problem.

The company was widely applauded by customers and the media for its deft handling of the situation and became the poster child for how well to handle a crisis.

Among the key elements in a best-in-class crisis response plan are:

• An understanding of the brand’s key stakeholder, particularly the core consumers. Who are they? Where are they? What are there key considerations? What’s likely to be on their minds when the brand is facing challenges.
• An understanding of the brand’s promise and ‘voice’. How is it positioned? What’s likely to support or break the trust in the brand in how it responds to a crisis.

KFC’s clever, authentic and borderline obscene response showed it deeply understood both these factors.

It knew its audience (young, hip and irreverent) and it followed through in exactly the kind of tone and language that was consistent with how the brand was positioned in other, more positive marketing.

The result was a swift abatement of the criticism for the closed stores – and the sound of widespread applause for a model crisis response.

Crisis Management Pillars: Building Alignment With Stakeholders

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Maggi Case study: The 2015 Maggi crisis

If you’re reading this, we’re sure in your lifetime you would’ve had a pleasure of sparing those controversial two minutes to cook a Maggi and another few to eat it. We’ll never know how those advertisements manage to cook their Maggi in two minutes. Anyway, we’re not here to question the two-minute proposition of our most loved Noodle brand and rather to discuss a controversy that happened in 2015. Which has become the famous Maggi case study, a case study that teaches you how to emotionally connect well with your consumer.

Before you learn about the controversy – here’s a quick intro to the brand: Maggi was introduced in India by a Global FMCG company called Nestlé in 1982 and over this time, until 2015 the brand captured 60% of the noodle market in India . Maggi was in every nook of the country, this was because of how affordable, portable and instant these noodles are.

However, as all good things come to an end. Maggi faced a temporary ban in 2015, here’s the entire story for you (This post has a lot of videos, we’d recommend you at least watch the last few ones).

FSSAI is not very well known for surprise food inspections, however, April 2015 was different.  FSSAI conducted a surprise Inspection for testing any possible food adulteration issue on Maggi’s manufacturing unit in the Barabanki district of Uttar Pradesh. The tested samples were sent to FSSAI labs and reports of higher than permissible levels of lead and the presence of Monosodium Glutamate(MSG) was released, these substances are banned to use for consumable products.

Naturally, Nestlé India Limited (NIL) appealed against the report and said MSG was a result of natural processes (it’s also mentioned on their website) and requested re-inspection of the products in the unit. Following this appeal, samples were sent to a government-authorized lab in Kolkata which only supported the findings of state FSSAI laboratory.

These reports led to several states banning sale and use of Maggi, obviously because of the health concerns. And unfortunately, on 9 th June, 2015, FSSAI (Food Safety and Standards Authority of India) i.e. the food regulator in India put a nationwide ban on sale on Maggi noodles for 5 months. Owing to this nationwide ban Nestlé recalled all the Maggi products from all the outlets and emotionally promised that they’ll be back in market as soon as the lab reports were clear. Almost 38,000 tonnes of Maggi was destroyed by Nestlé which worth Rs.320 crore.

Impacts of the ban:

The then brand Ambassadors of Maggi – Amitabh Bachchan, Preity Zinta, and Madhuri Dixit were slammed for endorsing the brand. Criminal cases were filed against them – yep, no joke. See here . Competitors: Top Ramen, Yippie, Patanjali Noodles started marketing their noodles healthy – we guess fats were not really unhealthy back then. Well, we can’t really blame them, 60% of the Market was now open for them to capture.

Things went south when the Government filed a case against Nestlé and charged Rs.640 crore for damages – Yikes! Nestlé posted its first loss in 17 years after the Maggi was banned. But worse, the consumers were now losing their trust in Maggi. Yep, FSSAI and the Government is all serious when it comes to your health – but the story wasn’t over yet.

And, the Return:

Surprisingly even when the Maggi was banned, it really wasn’t ready to give up on its consumers. The brand had an active social media page through which it stayed connected to its audience by the way of various social media posts and advertisements. Even on their Facebook page , they kept posting that their (consumers’) favorite food will be safe to consume very soon. There was a loyal set of customers that believed in Maggi and would occasionally post on their social media about how much they wanted their favorite noodles to return. Responding to them Maggi ran a campaign showcasing how they were missing their customers as well. They also created helpline numbers and FAQ pages for customers’ related queries.

In August 2015, the ban was lifted by the Bombay High court on the condition that it will be relaunched only after the reports are cleared by the FSSAI. And, in November 2015, when Nestlé got a nod from the food regulatory authority of India (FSSAI), it launched its WELCOME BACK campaign – an emotional campaign that won the heart of its consumers. They even launched 15 new variations of Maggi. They teamed up with e-commerce giants and started selling welcome kits which contained 12 Maggi packs. The response was great, the then e-commerce company Snapdeal sold 60,000 Maggi kits in just 5 minutes after the launch.

Learning from the Maggi case study:

All in all, this teaches at all that matters in end is the emotional connection you have with your customers. Unfortunately for Maggi’s competitors, they really did not achieve a lot during the ban. Maggi captured over 60% again in the next two years to come. And, this was the story of the crisis our favorite noodles faced – we hoped we killed it. You can write to us if you’d like any improvements.

Read more here . Stay safe, have a good one! Take a look at our page here for more case studies .

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4 thoughts on “ maggi case study: the 2015 maggi crisis ”.

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Very good and informative site thankyou for collecting valuable information…

I was really curious to know about what happened back in 2015, after my friend told me that Maggi was banned, the site helped me find the entire information about it.

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Business Continuity and Crisis Management Consultants

Reputation Management Case Studies: Big Brand Turnarounds

Discover reputation management case studies from leading brands. Learn how they successfully navigated crises to reshape their image!

December 14, 2023 By //  by  Bryan Strawser

Ever wondered why some businesses bounce back from crises stronger than before?

The secret lies in reputation management. In the ever-changing, highly visible business world of today, a company’s repute can be its most valuable possession or its greatest downside.

This piece will dive into real-world examples where big names like Starbucks and Johnson & Johnson faced significant challenges that threatened their standing. Yet, they managed to navigate these rough waters effectively. We’ll explore how Domino’s Pizza transformed negative customer feedback into an opportunity for improvement and rebranding.

Through these case studies, you’ll gain insights into successful strategies for managing your own company’s reputation amidst adversity. Ready to learn more?

The Imperative of Reputation Management

Reputation management has become an indispensable aspect of any successful business. It shapes public perception and fosters customer trust, two elements that directly influence a company’s bottom line. But it doesn’t stop there; reputation management extends beyond simply controlling the narrative.

This practice encompasses all activities aimed at maintaining a positive image in the public eye. Whether it’s promptly addressing negative reviews or effectively managing crises, every action contributes to how your brand is perceived.

A study on corporate reputation management revealed that companies with robust reputation strategies enjoyed better financial performance than those who neglected this area. This shows the compelling correlation between a good name and profitability.

Navigating the Complexities of Reputation Management

Tackling challenges head-on is vital for effective reputation control. Negative publicity can quickly spiral out of control if not addressed appropriately and timely – damaging both sales and consumer confidence in your brand.

To combat these issues, businesses must implement proactive measures to safeguard their reputations before problems arise. They should monitor online chatter about their brands constantly using tools like Google Alerts or social media listening software – ready to respond immediately when necessary.

Beyond damage control, enterprises need strategic plans focused on building strong relationships with customers through consistent high-quality service delivery coupled with transparent communication practices. Research has shown that these are key factors influencing consumers’ perceptions towards organizations hence affecting overall corporate reputations positively.

Unpacking the Reputation Management Challenge

Navigating reputation management can be a treacherous journey for businesses. It’s not just about combating negative reviews, but also handling crises effectively and proactively. Let’s break down some of these challenges.

Dealing with Negative Reviews

No company is immune to negative reviews. But it’s how you handle them that sets your business apart. The key? Address issues promptly, offer solutions, and make sure customers feel heard.

The Crisis Conundrum

A crisis situation can escalate quickly if not managed properly – from product recalls to public scandals – every minute counts in minimizing damage to your brand image. Remember the old saying “A stitch in time saves nine”? That applies here too.

Fostering Trust through Transparency

To manage reputation successfully, transparency should be at its core. Companies need more than ever to communicate openly during tough times or when things go wrong – this fosters trust among consumers and stakeholders alike.

Maintaining Consistency Across Channels

In today’s multi-channel world where opinions are formed within seconds on social media platforms, consistency across all channels is vital for effective reputation management. A unified voice gives credibility and reinforces brand values while preventing any potential miscommunication or confusion amongst audiences.

Case Study 1 – Starbucks Racial Bias Incident

In April of 2018, a racially charged occurrence occurred at a Starbucks in Philadelphia, causing the coffee chain to be thrust into the spotlight across the US. Two African-American men were arrested for allegedly trespassing while waiting for an associate.

This event triggered widespread backlash and calls to boycott Starbucks. The corporation’s standing was in jeopardy as it confronted serious inquiry concerning its approaches and procedures with respect to racial prejudice.

The Response: Transparency and Training

Understanding the gravity of this situation, Starbucks responded swiftly. CEO Kevin Johnson issued a public apology, expressing deep regret over what transpired and vowing to take steps to ensure such incidents wouldn’t happen again.

To demonstrate their commitment towards resolving these issues, Starbucks announced they would close more than 8,000 stores across the United States for an afternoon in order to conduct racial bias education training. This move affected approximately 175,000 employees—a clear signal that Starbucks took this matter seriously.

A Commitment Towards Long-Term Change

Beyond immediate response measures like employee training sessions or policy changes lies deeper systemic solutions—demonstrating ongoing commitment is key when managing reputational crises effectively. In this case study example with Starbucks’ journey towards addressing bias, we see how organizations can transform negative incidents into opportunities for positive change by committing resources, time, and leadership towards creating a more inclusive culture.

Starbucks’ reputation management strategy following this incident provides important insights for businesses. It shows the significance of timely response, transparent communication, and most importantly—action—that aligns with public expectations and corporate values.

Lessons from Starbucks’ Reputation Management Strategy

In the face of a reputation crisis, Starbucks showcased exemplary management skills. The incident at hand was an allegation of racial bias in 2018. This presented a massive challenge for the company’s image.

The first lesson to glean is the importance of swift and decisive action. Upon learning about this incident, Starbucks did not waste time in addressing it head-on.

Swift Action

This quick response demonstrated accountability and a strong commitment towards resolving issues that threaten their reputation. By acting swiftly, they managed to prevent further damage while also showing that they took such matters seriously.

Transparent Communication

Besides immediate action, another crucial element of Starbucks’ strategy was transparent communication. They openly acknowledged their mistake rather than trying to downplay or ignore it.

This honesty helped restore public trust because customers saw them admitting fault instead of shying away from responsibility – thus creating an environment conducive for rebuilding relationships with its patrons.

Action Plan Implementation

• Closure for Training: As part of their corrective measures, all Starbucks stores were temporarily closed for anti-bias training.
• New Policies: In addition, new policies were implemented aimed at preventing similar incidents in the future.

This multi-pronged approach used by Starbucks provides valuable lessons on how businesses can manage reputational crises effectively.

Case Study 2 – Johnson & Johnson’s Tylenol Crisis

In the realm of crisis management, few examples stand as prominently as Johnson & Johnson’s handling of the 1982 Tylenol crisis. When seven people in Chicago died after ingesting cyanide-laced capsules, it could have spelled disaster for both the product and company.

But instead of retreating into damage control mode, J&J decided to prioritize consumer safety over immediate financial concerns. They swiftly pulled approximately $100 million worth of products off shelves nationwide—a bold move that conveyed their commitment to customer wellbeing above all else.

The Role of Transparency in Reputation Management

J&J did not stop at recalling its products. The company also established a line for concerned consumers and communicated openly about each step they were taking to fix this issue. Their transparency throughout this ordeal helped them regain public trust even amidst such a major health scare.

Proactive Response: A Key Aspect Of Effective Crisis Management

Beyond being open with their customers, J&J took proactive steps towards resolving the situation effectively. This included designing tamper-resistant packaging—a first in pharmaceuticals—and re-launching Tylenol within two months from its withdrawal. Learn more about how J&J handled this incident here.

In retrospect, these actions marked a turning point not only for J&J but also for the industry at large, setting new standards in crisis management and demonstrating how a company’s response can shape its reputation. The Tylenol case is now considered an exemplar of effective reputation management, taught worldwide as a testament to the power of swift action, transparent communication, and prioritizing customer safety.

Insights from Johnson & Johnson’s Crisis Management Approach

The Tylenol crisis is a hallmark in reputation management, and the response by Johnson & Johnson still stands as an exemplar of effective action.

A Proactive Response to Protect Customers

In 1982, seven fatalities occurred following the consumption of Tylenol capsules containing cyanide. Rather than denying responsibility or downplaying the situation, Johnson & Johnson acted swiftly. They made sure to prioritize customer safety over profits and recalled 31 million bottles nationwide—an unprecedented move at that time.

This proactive step was costly but essential. It demonstrated a commitment to their customers’ wellbeing above all else—a critical factor in rebuilding trust following such a devastating event.

Transparent Communication as Key

Besides recalling products off shelves, they launched an aggressive public awareness campaign about the risks associated with consuming their product under these circumstances—once again prioritizing transparency over potential reputational damage. This included clear messaging through media outlets and establishing toll-free hotlines for consumer queries.

Their open communication allowed them to control the narrative surrounding this crisis effectively and provided assurance that every possible measure was being taken for consumers’ protection.

Laying Foundations For Future Trust

Facing one of its most significant challenges head-on led not only to safeguarding its current reputation but also setting up future success for Tylenol brand . Their handling became synonymous with responsible corporate behavior during crises—highlighting how important it is not just what you do when things go wrong but how you respond matters more in terms of long-term reputation management.

Case Study 3 – Domino’s Pizza Turnaround

In the late 2000s, Domino’s Pizza faced a significant reputation crisis. Customer complaints about product quality were rampant, and public perception was negative.

Facing the Music: Addressing Customer Complaints Head-On

Rather than shying away from these criticisms, Domino’s made a bold move. The company openly acknowledged its shortcomings in an ad campaign that surprised many. This demonstrated that they weren’t scared to confess their errors and take steps.

The transparency of this approach resonated with customers. But acknowledging problems isn’t enough; you need to fix them too.

A Recipe for Success: Revamping the Product

Determined to regain customer trust, Domino’s started working on improving their core offering – pizza itself. They reworked recipes based on feedback and introduced new ingredients while enhancing existing ones like cheese and sauce.

This wasn’t just marketing spin either; taste tests confirmed improvement in flavor compared to previous iterations.

Maintaining Momentum: Continuous Improvement

Reviving its image required more than one-off changes though; it needed a continuous improvement strategy as well. Environmental initiatives, pioneering technology , and enhanced customer service played a part.

This comprehensive approach to reputation management demonstrates the importance of listening, responding effectively to feedback, and continuously improving your offerings. Domino’s case study serves as an example for other businesses facing similar challenges.

Key Learnings from Domino’s Pizza’s Reputation Revamp

In 2009, Domino’s Pizza found itself grappling with a reputation crisis. The pizza chain was receiving significant backlash due to the poor quality of its products and service. Rather than ignore these complaints, Domino’s chose to confront them head-on.

The company embarked on an ambitious plan that started by acknowledging their shortcomings in a series of public communications. This included airing commercials where executives read out harsh customer criticisms and admitted that they had failed to meet expectations. It was this honesty and transparency that began paving the way for Domino’s comeback.

Revamping Product Quality

A key element of this strategy involved revamping their core product: the pizza itself. After conducting extensive taste tests and soliciting customer feedback, Domino’s introduced a new recipe which led to more positive reviews.

This shift towards prioritizing customer experience wasn’t just limited to their pizzas though; it extended across all touchpoints including delivery times, mobile app usability, and store cleanliness among others.

Leveraging Technology for Better Customer Experience

To further improve user experience, Domino’s invested heavily in technology. They developed features like real-time tracking for deliveries – providing customers not only with greater convenience but also building trust through transparency about order status.

Fostering Open Communication Channels

Last but certainly not least, communication played an essential role throughout this process. By keeping lines open via social media channels as well as traditional ones – such as phone calls or emails – they ensured customers felt heard and valued. This ongoing dialogue allowed Domino’s to make sure it was addressing genuine customer concerns.

The Domino’s saga is a reminder of the potency of paying attention to clients and making changes based on their opinions. It demonstrates that even in crisis, businesses can turn things around if they are willing to take bold steps towards change.

Key Takeaway: 

When Domino’s Pizza faced a reputation crisis in 2009, they didn’t turn away. Instead, they admitted their flaws publicly and started an overhaul. By improving product quality based on customer feedback, investing in technology for better user experience, and fostering open communication channels – both traditional and social media – Domino’s successfully turned its brand image around.

Managing your reputation isn’t a walk in the park. It demands swift action, transparent communication, and customer-centric thinking.

From these reputation management case studies, you’ve seen how Starbucks bounced back from a racial bias incident with sincere dialogue and company-wide training.

You learned about Johnson & Johnson’s exemplary handling of the Tylenol crisis by prioritizing customer safety over profits. This set a benchmark for others to follow during crises.

Dominos Pizza took their criticism head-on, revamped its product based on feedback, which led to an impressive turnaround story we can all learn from.

All these big brands show us that effective reputation management is possible when companies are ready to take responsibility and prioritize their customers’ interests above all else.

Want to work with us and learn more about reputation management?

• Our proprietary  Resiliency Diagnosis  process is the perfect way to advance your crisis management, business continuity, and crisis communications program. Our thorough standards-based review culminates in a full report, maturity model scoring, and a clear set of recommendations for improvement.
• Our  Exercise in a Box  product contains 15 simple tabletop exercise scenarios that your business leaders can utilize for  crisis microsimulations  with minimal involvement from your team.
• With our  Exercise in a Day ™️  product, you’ll get a comprehensive, ready-to-execute crisis tabletop exercise developed by our team of experts in just one day. Optionally, we’ll even facilitate the exercise and write an after-action report.
• Our  Crisis Communications services  help you rapidly implement and mature your program to ensure your organization is prepared for what lies ahead.
• Our Free  Crisis Communications 101 Introductory Course  can help you understand the basics of crisis communications and reputation management.
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About Bryan Strawser

Bryan Strawser is Founder, Principal, and Chief Executive at Bryghtpath LLC, a strategic advisory firm he founded in 2014. He has more than twenty-five years of experience in the areas of, business continuity, disaster recovery, crisis management, enterprise risk, intelligence, and crisis communications.

At Bryghtpath, Bryan leads a team of experts that offer strategic counsel and support to the world’s leading brands, public sector agencies, and nonprofit organizations to strategically navigate uncertainty and disruption.

Learn more about Bryan at this link .

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Sharing Behavior of Brand Crisis Information on Social Media

A Case Study of Chinese Weibo

• Changzheng Yang 0

School of Liberal Arts, Journalism and Communication, Ocean University of China, Qingdao, China

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• Provides the accurate analysis of the fluctuation characteristics of crisis information-sharing behavior
• Illustrates the dynamic mechanism and static mechanism of information-sharing behavior
• Constructs specific and targeted management strategy of crisis information-sharing behavior

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1 Citations

• Table of contents

About this book

Authors and affiliations, about the author, bibliographic information.

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Table of contents (8 chapters)

Front matter, introduction.

Changzheng Yang

Literature Review and Theoretical Foundation

Fluctuation features of brand crisis information sharing by weibo users, contextual factors affecting brand crisis information sharing by weibo users, static influencing mechanism of weibo users’ information sharing of brand crisis cases, dynamic influencing mechanism of weibo users’ information sharing of brand crisis cases, strategies for monitoring brand crisis information sharing by weibo users, conclusion and suggestions, back matter.

This book adopted 66 brand crisis events as research samples taking place from 2010 to 2016 on social media (Chinese Weibo), performs research on influence mechanism of brand-crisis information-sharing behavior on social media from contextual perspective. The book explores into the fluctuation characteristics of information-sharing behavior, the contextual influence factors, both the static and dynamic mechanism of information-sharing behavior, and regulation measures of crisis information sharing behavior.

The bookmainly focuses on the field of brand crisis management, and construct the formation and evolution mechanism of brand crisis information sharing behavior from both vertical and horizontal dimensions through a combination of theoretical exposition and case analysis, so that readers can got a clear understanding of brand crisis information  communication and management through dimension reduction. The book can be used as a textbook for undergraduates and postgraduates in economics and management in colleges and universities, can also be a reference for business managers, scientific researchers and others interested in the field of crisis management.

• Information Sharing
• Brand Crisis
• Social Media
• Internet Media
• Information Context
• Dynamic Analysis
• Static Mechanism
• Crisis Management
• Crisis Intervention
• Information Management

Changzheng Yang is a professor at the School of Literature, Journalism & Communication , Ocean University of China, and a doctoral supervisor at Ocean University of China. His main research interests are new media user, crisis communication, and brand communication.

In July 2017, he received a doctorate degree in media management from Shanghai Jiaotong University, and in 2015, he was awarded the National Scholarship for Doctoral Candidates from the Ministry of Education of the People's Republic of China. 

Book Title : Sharing Behavior of Brand Crisis Information on Social Media

Book Subtitle : A Case Study of Chinese Weibo

Authors : Changzheng Yang

Translated by : Feng Yue, Hanxiong Zhu, Li'e Liang

DOI : https://doi.org/10.1007/978-981-16-6667-4

Publisher : Springer Singapore

eBook Packages : Business and Management , Business and Management (R0)

Copyright Information : Xiamen University Press 2022

Hardcover ISBN : 978-981-16-6666-7 Published: 20 January 2022

Softcover ISBN : 978-981-16-6669-8 Published: 21 January 2023

eBook ISBN : 978-981-16-6667-4 Published: 19 January 2022

Edition Number : 1

Number of Pages : XI, 283

Number of Illustrations : 116 b/w illustrations, 22 illustrations in colour

Topics : Marketing , Online Marketing/Social Media , Consumer Behavior , Media Management , Social Media , Media and Communication

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Crisis Review: The Top 21 Crises Of 2022 (Part 1 Of 3)

This year's crisis review weighs in at 21 cases. provoke media editors kick things off with twitter, the fifa world cup, disney, starbucks, ticketmaster, ftx and brewdog..

PRovoke Media 16 Jan 2023 // 10:24AM GMT

1. Twitter, Tesla and Elon Musk It was a record-breaking year for Tesla co-founder and new Twitter owner Elon Musk — and not in a good way. Over the course of 12 months, Musk lost a  staggering $200 billion  (and the number one spot on the list of the world’s richest men) in a series of self-inflicted crises that appeared to be motivated primarily by a desperate desire to earn the friendship and approval of a person calling himself  @catturd2 . Musk’s tumultuous year began with a crisis at Tesla, the first of several inciting incidents that on their own would have been significant enough to earn a place on this list. In February,  news broke  of a lawsuit filed by California’s civil rights attorney alleging an overtly and disgustingly racist culture at Tesla. Among the charges: that Tesla segregated Black workers into separate areas employees referred to as “porch monkey stations,” “the slave ship” and “the plantation,” and that Black workers were forced to scrub floors on their hands and knees. The second Musk-related crisis of the year began in March when he  began using his personal Twitter account  to criticize the company for its targeting of Russian bots, anti-vaxx disinformation and election denialists. In April, he made an offer to purchase Twitter for $44 billion and take the company private. The offer was accepted by the company’s board, but within a month Musk was trying to back out of the deal, citing all manner of  spurious questions  about the number of bots on the platform. A prolonged court battle looked likely — as did an ultimate victory for Twitter as it sought to force Musk to honor the deal — before the billionaire  capitulated in October , announcing that he would complete the acquisition. Predictably, things went rapidly downhill from there. Twitter lurched from crisis to crisis, while Tesla began to suffer from its own issues and the erratic behavior of its seemingly distracted CEO. The crises came in such rapid succession that they blurred together and appeared to feed each other. As is often the case, internal problems surfaced first. On October 26, the deal completed, Musk arrived at Twitter headquarters carrying a kitchen sink. The symbolism was unclear, although it provides an eerie foreshadowing of the way the company immediately begins to circle the drain under his leadership. He fired most of the senior management team immediately and during his first few weeks as CEO he  laid off  some 3,700 workers. He did so without any formal communication with employees, which might have looked like a mistake until he actually did communicate, firing off what leadership experts  would describe  as the worst  opening email  from a CEO to employees in recent memory. A week or so later, Musk doubled down, issuing  an ultimatum to employees , demanding that employees either commit to his “hardcore” transformation or accept a severance package. That trigged  mass resignations , forcing the temporary closure of some offices. Lawsuits ensued when it appeared that the company  was not honoring  its severance commitments. At the same time, Musk’s personal use of Twitter became a separate issue. Early in his tenure, he  called for  a peace agreement that would force Ukraine to cede territory to Russian aggression. Later, he retweeted a  bizarre conspiracy  theory about the violent assault on Paul Pelosi. He  launched ugly attacks  on trans people and Covid czar  Dr Anthony Fauci . All of these tweets  damaged Musk’s personal brand  and his reputation as a leader. He also began  inviting right-wing accounts  banned for spreading election and vaccine misinformation — including former President Donald Trump — back onto the platform. Those moves appeared to contradict Musk’s promise that he would not turn Twitter into a “ free for all hellscape ,” and clearly made advertisers nervous. They became even more alarmed when, a day after claiming to be committed to “brand safety” on Twitter, he made dramatic cuts to the Twitter team  responsible for fighting child sexual abuse  on the platform. Within weeks of the takeover, Twitter had  lost 50  of its top 100 advertisers. A different kind of brand safety crisis hit the company in November, when Musk entered into a bizarre spat with author Stephen King over plans to charge users for the blue check-marks previously awarded to accounts that were confirmed as belonging to notable individuals. A few days later the plan goes ahead, allowing anyone to buy a checkmark. A day later  “verified” but fake  accounts for companies such as Eli Lilly, Chiquita and even Tesla post information that causes consternation and confusion including a 4.6% drop in the value of Lilly shares, according to exclusive analysis from SenateSHJ.  All of this was exacerbated by the fact that Musk had  fired the company’s entire communications  department (although he did bring on board former journalists Matt Taibbi and Bari Weiss to publicize what he called “the Twitter Files,” which were  supposed to prove  some sort of left-wing bias by the previous management team but ended up telling us much more about the new CEO’s confusion over what free speech means). And he further alienated the media by  banning a number of journalists  who had been critical of his management style,  claiming without evidence  that they had revealed personal information that placed him and his family in danger and making a nonsense of his earlier claims to be a “free speech absolutist.” He was forced to reverse the bans when threatened with  legal action by the EU . Finally, Musk turned to Twitter members to ask whether he should step down as CEO. The verdict was never really in doubt, with close to 60% (10 million members)  saying he should go . As of this writing, he remains at the helm. Meanwhile, Tesla was experiencing its own crises. There were numerous stories about  spontaneous combustion  problems with the company’s vehicles and video surfaced of a “self-driving” car  suddenly braking  in a tunnel, causing an eight-car pileup. Over the course of the year,  Tesla’s share price declined  from $360-plus in January to less than $120 in December — losing two-thirds of its value. As a result, Musk lost his position as the world’s richest man and set a — presumably unwanted — record for the  greatest financial loss  in history. At Yale University’s  annual CEO Summit , Professor Jeffrey Sonnenfeld and the Chief Executive Leadership Institute’s Steven Tien surveyed more than 100 CEOs and found that 79% believed Musk had become a detriment to the value of his businesses, and just 25% believe Twitter will be more valuable five years from now than it is today. Said Sonnenfeld, “Attention is generally good for Musk’s businesses — but attention of the kind he is getting right now is not beneficial. His investors are getting spooked and spurning his requests for additional funds across both Twitter and Tesla. Users are leaving Twitter in droves amidst hate speech and indiscriminate censoring of journalists.” Public relations professionals are pretty much unanimous in their verdict on Musk’s tenure as chief executive of Twitter. Says Alistair Kellie, head of the communications practice at SEC Newgate UK: “Sadly for Elon Musk, there’s a danger that Twitter could become a poster child for how to trash a brand in 30 days, perhaps even in 30 ways...time will tell. Musk acted with his instincts and emotion, damaging the brand almost instantly. Rather than take stock, he decided to keep swinging wildly, hoping something he did or said would stick. Failing to have any strategy, as Musk has shown, can make you a laughing stock but, more seriously, damage a brand beyond repair. It’s a long way back for Twitter.” Richard Levick, CEO of Washington, DC, strategic communications firm Levick,  adds : “It has become chaos. Who buys into chaos? It’s another example of something not very well thought out, and that’s what happens when you rush. Musk has been known as a trusted visionary and magician — he can’t lose that moniker and that’s what’s at risk right now.” Speaking to this publication, Levick suggested several lessons from the Twitter-Tesla-Musk crises of the past 12 months, including the danger of making the CEO the brand (“When it is someone as mercurial as Elon Musk, the risk is guaranteed. He is no Bill Gates, Steve Jobs or Indra Nooyi.”) and the danger of over-promising and under-delivering: “The reality is less captivating than the promise… Twitter is imploding, Tesla’s stock and brand value are dropping drastically…. Fairy dust has an expiration date.” Finally, he puts Musk’s travails in the context of other major crises from the last 12 months, suggesting a broader lesson for those who would place CEOs on a pedestal: “Sam Bankman-Fried, Elizabeth Anne Holmes, Adam Neumann and now Elon Musk. After a quarter-century of Silicon Valley worship it turns out that some of the “kid geniuses” are just kids. Black T-shirts, shorts, smoking marijuana on a broadcast and more are no longer a sign of unimpeachable brilliance but what they always were, just eccentricities. “Current tech executives should expect more scrutiny from Wall Street, private equity, journalists and the hoi polloi.” — Paul Holmes 2. The 2022 World Cup divides the world You might imagine that the world's most watched sporting event would help bring people together but, long before a ball was kicked, last year's FIFA World Cup had already proved to be the most divisive in the competition's 92-year history. Allegations of corruption regarding the FIFA bidding process began a decade ago, with numerous leaks suggesting that committee members were compromised in their decision to select Qatar. Several of these members, including FIFA president Sepp Blatter and secretary-general Jerome Valcke, were subsequently banned, while former UEFA president Michel Platini was arrested by France's anti-corruption unit. The US Department of Justice, furthermore, indicted more than 40 individuals — helping to underpin the entrenched view of FIFA as a deeply flawed organization where corporate governance is concerned.  But alleged corruption wasn't the only controversy to blight the 2022 World Cup. Qatar's poor human rights record attracted considerable attention, particularly in terms of its treatment of migrant workers, and its lack of LGBT+ rights. The Guardian reported that 6,500 migrant workers had died since Qatar won the right to stage the World Cup, and the issue rose to sustained prominence, when the football associations of 10 European countries, including England and Germany, wrote an open letter  to FIFA ahead of the World Cup calling for action to improve the rights of migrant workers in Qatar. In the run-up to the tournament, intense criticism of these issues, particularly in the Western media, helped trigger an extraordinary response from FIFA president Gianni Infantino. The first salvo was a letter that instructed participating nations to "focus on the football" rather than Qatar's poor human rights record. This was followed up by a remarkable press conference in which Infantino claimed to "feel" Qatari, Arabic, African, gay, disabled and like a migrant worker. To widespread bemusement , Infantino contended that he could understand the level of discrimination faced by these communities because of his upbringing as a red-headed Italian in Switzerland.  As the tournament got underway, it became clear that few teams were willing to risk player bans in return for highlighting their support of LGBT communities. Rainbow armbands were effectively prohibited, while rainbow flags and clothing were confiscated. Several incidents also saw Qatari security officials interrupt and stop broadcasters from filming. Qatar was further criticised for politicising the World Cup trophy ceremony when Qatari Emir Sheikh Tamim bin Hamad Al Thani presented the Arab bisht  cloak to Lionel Messi. As with much of the criticism of all of these issues, though, Western media were accused by Middle Eastern commentators, in particular, for bringing racist views to bear on their World Cup coverage.   With the tournament ultimately attracting substantial goodwill thanks to the progress of underdogs from the Middle East and North Africa, the crisis issues faced by FIFA were often reframed in terms of media polarisation, with 'Western concerns' pitted against the football culture of the rest of the world. "FIFA’s attack on ‘Western hypocrisy’ was a classic polarisation strategy — drawing a dividing line and creating a “them and us” narrative to shore up support." explains MHP Group deputy CEO Nick Barron, a former sports communications specialist. "The loudest criticisms came from some of football’s most developed markets, like England and Germany, but increasingly, FIFA’s legitimacy and money comes from emerging football markets, and the organisation believes it is on a mission to advance football’s frontiers. They will see the success of Morocco and Saudi’s historic win as vindication of their strategy, and they point to their human rights programmes, funded by proceeds from the World Cup." As Barron notes, "FIFA has always been relatively indifferent to criticism from Western journalists and campaigners", pointing to similar attacks during the 2018 World Cup in Russia, and their ability to rely on people forgetting politics once the tournament starts. "Even though Gianni Infantino’s bizarre 'Today, I feel…' press conference may not have given this impression, they were prepared. It’s not a crisis if you’re ready for it and have factored it into your cost-benefit analysis." But while FIFA's crisis strategy helped to placate most sponsors and stakeholders, it remains to be seen whether the World Cup's long term brand value will be impacted. "In this respect FIFA enjoyed a bit of luck," notes Barron. "People’s recall of any event is disproportionately influenced by its last moments. This is called the 'peak end rule' by behavioural scientists. The epic final, culminating in history’s greatest player being crowned world champion will be what defines the collective memory." Even so, Barron believes that LGBTQ+ rights campaigners can claim success. "This was arguably the most sustained and intense political campaign in sporting history and the world was watching." — Arun Sudhaman 3. Disney vs DeSantis Few crises exemplify the challenges facing modern chief executives—and corporate communicators—more vividly than the controversy in which Disney found itself embroiled during the first few months of 2022. It was, in fact, two crises in one: the first caused by the company’s craven silence on (and tacit support of) a despicable attack on LGBTQ youth; the second a response to the company’s belated decision to live up to its values. The starting point of the crisis was a new law, supported by Florida governor (and presumed presidential candidate) Ron DeSantis,  designed to limit discussion  of LGBTQ issues in the state’s schools. The so-called “Don’t Say Gay” allows parents to sue school districts if teachers engage in “inappropriate” discussion of LGBTQ issues. In March of 2022, the NGO AIDS Healthcare Foundation  launched a TV ad campaign   "imploring the Walt Disney Company to speak out publicly and loudly” against the law. On the same day, The Hollywood Reporter published  a piece  about Disney CEO Bob Chapek, quoting insiders who claimed he "is less willing than predecessor Bob Iger to take public political stands—including on LGBTQ issues.” As the protests grew, and critics pointed to the discrepancy between the company’s stated values and its financial support for many of the politicians responsible for the controversial law, Disney remained strangely silent. Much of the outrage  came from inside  the company as employees made it clear that they  expected better , with many participating in a walk-out. Abigail Disney, a grand-niece of the company’s founder, summed up the feelings of many: "The times for neutrality are long since over," she tweeted. " What is Disney for? Is it for pretending what America is about, or it is for defining a vision for a world in which fantasy, love, kindness, decency and loyalty are bedrock values.” Crisis expert Eric Yaverbaum, CEO of Ericho Communications,  captured the prevailing sentiment  at the time: “There was a simple solution for Disney, a company with vastly more of a reserve of goodwill and affection from the American public than it actually deserves, and it boils down to one thing: if you’re going to talk the talk, you have to start walking the walk, and if you can’t do that, expect to get called out for your hypocrisy. “Brands simply cannot drape themselves in a rainbow flag to the tune of their cash register in one moment, just to turn around and give money to politicians trying to harm the very people that flag represents. Being a hypocrite is never a good look, and it will always,  always  lead to PR crises. It truly is that straightforward.” On March 9, after the bill passed the Florida State Senate, Chapek reversed himself, with  a public statement  that Disney was opposed to the bill. The backlash from the right was swift and severe,  led by Fox television personality  Tucker Carlson and by DeSantis himself, who retaliated by  removing the company’s special tax district  (a move that probably cost Florida more than it cost Disney). Some protestors even  gathered outside the company’s theme parks , accusing Disney of “grooming” children. The response was remarkable both for the way in which a Republican governor was willing to take legal action to punish a company for failing to support his policies, and for the vile nature of some of the criticism—a clear signal that companies could be forced to pay a political price for meeting the expectations of their stakeholders. Says SEC Newgate’s Alistair Kellie, “A company like Disney must be sure to know who of its audience it is alienating and who it is gaining by wading into a political fight. Previously, the advice would be to stay quiet, but that can also imply that businesses don’t care about the moral issues of the day. Disney would need to have made sure they had weighed up the pros and cons from the decisions it took – both short term hits to revenues and long-term hits from staying silent. “Communicating and–more importantly–standing by your decision is key in creating the best outcomes and Disney was probably right to stand firm knowing it would help its reputation in the future.” The controversy hit Disney's share price, which according to data using the Senate SHJ Crisis Erosion model declined by 10% and has yet to fully recover (a fact that may have other causes, including the company's struggles with its streaming service). For other companies, meanwhile, the lesson was spelled out by Duke University professor Frank Bruni at our PRovoke Global conference in October: ““He [DeSantis] got so much applause from his base, so much national attention for fighting with Disney, any or all of the people thinking about challenging him for the Republican nomination are looking for their own fights to pick. They look at what he did with Disney as something to be emulated.” 4. Starbucks vs unionization It is somewhat jarring, after the headlines of the past year, to go back and read about the employee culture at Starbucks a decade ago, when the company was winning awards as one of  America’s best places to work  and CEO Howard Schultz was named Fortune magazine’s 2011 businessperson of the year. Schultz was being praised for “his consistency of effort to be a good person, amid all the distractions that come with wealth,” and the company was lauded for creating “good jobs, exceptional benefits, shared profits with partners… and changing people’s ideas about what a successful stable growing business could and should do to be a good community member.” Fast forward to 2022 and the prevailing narrative is quite different.  Writing at Slate , former New York Times labor and workplace reporter Steven Greenhouse says, “the company has long boasted that it’s a progressive, worker-friendly employer. But that claim now rings hollow thanks to the aggressive way it has sought to crush its employees’ efforts to win more of a voice at their workplace, with Starbucks using tactic after nasty tactic from the classic union busters’ playbook.” After a unionization push earned its first success in Buffalo in 2021, Schultz returned to the company and deployed a  wide range of illegal union-busting tactics , according to the National Labor Relations Board. The Board claims that the company has illegally fired workers for organizing and closing stores where unionization efforts were under way. According to SenateSHJ, Starbucks share price declined by more than 7% due to the crisis. Says Elizabeth Cholis, a partner at Dentons Global Advisors in Washington, DC: “Schultz’s aggressive anti-union posture and rhetoric have not served to hinder the unionization efforts but instead to alienate employees and invite the scrutiny of the NLRB and Congress.” The company’s actions have sparked a particularly negative reaction in Europe, says Simon Neville, director of media strategy at SEC Newgate UK:   “It was surprising to see that Starbucks didn’t take a closer look at some of the ways labor crises have played out in Europe and the UK. “Consumers don’t like to see low-paid staff treated badly and are more willing now than ever to vote with their feet. Trying to take a hard line and not at least appear conciliatory was always going to create conflict. When Starbucks got into trouble over its tax affairs in the UK a decade ago it buried its head in the sand and was eventually called out by the then Prime Minister. Getting on the front foot is always a better option and being willing to engage constructively will stave off any long term damage before it’s too late.” — PH 5. Bad blood between Taylor and Ticketmaster Taylor Swift might be the biggest music artist of the 21 st  century, but even the duchess of pop proved to be powerless against Ticketmaster, the anti-hero of event ticketing, in November last year, when chaos kicked off around the “verified fan” pre-sale for the singer’s 2023 Eras Tour. The scene was set for disaster in October, when Swift announced that fans ordering copies of her new album, Midnights, before the release date would be eligible to register for early access to tickets for her 52 tour dates across the US. As the date approached, excitement reached fever pitch, not least because Swift last toured pre-pandemic and in the interim has produced three critically-acclaimed albums, breaking multiple Spotify records every time. What followed however, was one of the most disastrous ticket sale rollouts of all time: loyal fans who had effectively been promised tickets for the tour came up against faulty access codes, and long delays on a website that couldn’t cope with overwhelming demand. The result was nothing less than outrage: although hundreds of thousands of tickets were sold, millions of people had attempted to get tickets, and many verified fans were left empty-handed when the site crashed. The pre-sale was eventually cancelled altogether. Ticketmaster said the verified fan tactic was supposed to deter bots and scalpers, so the tickets would only go to true fans – but tickets were immediately being resold on sites like Stubhub for up to $20,000. The ticket site’s PR team remained silent for hours as the crisis unfolded, finally issuing an 800-word statement three days later which started: “We strive to make ticket buying as easy as possible for fans, but that hasn’t been the case for many people trying to buy tickets for Taylor Swift The Eras Tour. First, we want to apologize to Taylor and all of her fans – especially those who had a terrible experience trying to purchase tickets.” The statement went on to “explain” what had happened – including a graph showing the extreme leap in site traffic – which essentially presented Ticketmaster as victims of unprecedented (if entirely predictable) mismatch of supply and demand. While Swift herself was empathetic in her response to fans and clearly deeply frustrated by the whole affair, she – like many performers before her whose fans have lost out on tickets or significantly overpaid – has not so far explicitly condemned Ticketmaster. In a statement posted on her Instagram stories, Swift said: “It’s truly amazing that 2.4 million people got tickets, but it really pisses me off that a lot of them feel like they went through several bear attacks to get them.” As American Prospect magazine said in a piece in December on the  dark history of Ticketmaster , the crisis highlighted the firm’s “vexing combination of apparent incompetence and totalitarian control.” Gavin Devine, founder of Park Street Partners says the debacle “illustrated just how integral Ticketmaster has become to the concert-going and the sports-attending experience and reminded everyone that the merger in 2010 of Live Nation and Ticketmaster had created a behemoth of an events promotor, venue operator and ticket seller with a dominant position in live entertainment.” Consumers have been complaining about Ticketmaster for years – a piece in Wired in 2010 was titled  ‘Everyone hates Ticketmaster – but no-one can take it down’  – and the Taylor Swift farrago wasn’t even the only negative headline of 2022, as in July its “dynamic pricing” model led to some Bruce Springsteen fans being asked to pay up to $5,000 per ticket. But do its most recent missteps finally mean that Ticketmaster’s reputation is irredeemably ruined? Devine doubts it: “Fans are inured to paying eye watering sums for concerts, and it is hardly a unique experience to struggle to get hold of tickets or for a ticketing website to crash (the sales process for Glastonbury 2023 wasn’t exactly smooth sailing either). And the Ticketmaster interface is convenient and easy to use; its marketing is slick. A few months without any major mistakes and we would largely forget, I’m sure.” However, Devine adds that the risks identified by campaigners ahead of integrating the two businesses have clearly played out in practice, and the disgruntled chorus of Swift’s particularly vocal fans has, finally, reached federal ears: “The dark cloud for the company is that it has put itself in the  crosshairs of legislators and regulators , particularly in the US. There are plenty of people in Washington DC who have an aversion to Ticketmaster bestriding its industry and might like to see it broken up. That would explain why the company is reported to have  ramped up its lobbying  in recent months. “So watch this space: 2023 could very easily see Ticketmaster regain public trust but nevertheless lose out to the political and regulatory trust-busters.” With this particular reputational crisis, it remains to be seen whether Ticketmaster will be able to shake it off. —  Maja Pawinska Sims 6. FTX files for bankruptcy FTX founder  Sam Bankman-Fried  garnered trust — and big money — by playing the role of crypto wunderkind worthy of  investors’  millions, splashy sports sponsorships, high-profile boosters like  Tom Brady  and the kind of Democratic party prestige reserved for megadonors. And for roughly three years after launching FTX in 2019, Bankman-Fried nailed it, building a cryptocurrency exchange that, at its peak, was valued at a whopping $32 billion, seemingly another step in legitimizing the cryptocurrencies JPMorgan CEO  Jamie Dimon  has likened to Ponzi schemes. But when Bahamas-based Bankman-Fried’s world, which he built on lies and fraud, imploded last year, his downfall was fast and merciless. At  $8 billion in the hole , FTX in November filed for bankruptcy and, after resigning as CEO,  Bankman-Fried was arrested  on charges of widespread fraud. Big supporters saw the value of their holdings tank (Brady reportedly lost up to $45 million), while there are more  humble investors out there who lost everything they had . The Miami Heat no longer calls its stadium the  FTX Arena . “Sam Bankman-Fried flew extremely close to the sun throughout his tenure as CEO,” said Bully Pulpit Interactive partner Ben LaBolt. “He portrayed himself as a virtuous boy genius who was building a business empire to earn enough wealth to solve big challenges facing society. So, it hit that much harder when it turned out that he presided over rampant mismanagement and the alleged misuse of customer funds.” Bankman-Fried blew any early chances he may have had to save face by eschewing the basic tenets of repenting for business gone bad, essentially hanging himself out to dry, LaBolt said. “As things unraveled, he gave a series of interviews where not only did he not take accountability or show the appropriate level of contrition, but he had no plan to announce to make things right for investors or customers. He is a case study in not all press is good press. You have to have a strategic reason to participate in interviews and to have thought through the tough questions you are likely to get.” A subsequent rash of pre-arrest public apologies he rolled out soon after was no more potent. “His overcooked apology tour probably connected with many crypto investors. However, he wasn’t able to deliver the other key parts of a crisis response: a reckoning about what happened and a roadmap about what would be done to fix it,” said Racepoint Global president Bob Osmond. “SBF’s openness and transparency in apology might have made him feel better, but he wasn’t able to help his customers — and it remains to be seen if he misled them entirely. That’s now up to the justice system,” he said. As deplorable as the FTX scam was, you do have to wonder how Bankman-Fried so successfully played us for fools, considering this is not our first rodeo.  Elizabeth Holmes , who expertly duped Silicon Valley elite to fund her fraudulent blood-testing startup Theranos, is still a fairly fresh story. In December, she was sentenced to 11 years in prison. “Truth here is that the media made SBF and FTX into a false prophet and market monster just like they did with Holmes,” said Aaron Kwittken, KWT Global founder/chairman and founder/CEO PRophet. "These companies and fraudster CEOs are responsible but mainstream media are also complicit.” The only good news about FTX at this point is  John Jay Ray III , a high-priced expert in restructuring companies who took over FTX after Bankman-Fried’s arrest. Earlier this month, he reported  recovering $5 billion in liquid assets , providing a glimmer of hope to customers hoping to recoup their losses. “In John Ray, FTX has found a credible voice with a history of success who has an opportunity to chart a way forward for a post-SBF future,” said John Rizzo, senior VP of public affairs at Clyde Group. “There’s no overstating the hole that FTX finds itself in, but John Ray’s straightforwardness and performance before Congress has been a bright spot for the company in recent weeks.” — Diana Marszalek 7. In the (Brew)dog house Even by controversy-courting British beer company Brewdog’s standards, falling off the reputation wagon not one but four times last year was exceptional. The trouble started at the back end of 2021, when the self-styled “punk” brewery apologised to 60 former employees who had written an open letter complaining of a “toxic” working environment and a “culture of fear”. The trouble didn’t stop there for BrewDog chief executive James Watt, however, as in January 2022 the story was covered in depth by a BBC documentary, ‘Disclosure: The Truth About BrewDog’. Watt  went on the attack , apparently intending to intimidate those who had spoken out by saying “All this is very, very likely to end up in court” and complaining to regulator Ofcom about the programme, saying it had included “false information.” Then in the run up to the Qatar World Cup, the brand announced it was an “anti-sponsor” of the football tournament, running adverts stating that homosexuality was illegal in Qatar and 6,500 migrant workers have died since the Middle Eastern country won the right to host the tournament. The brewer also slammed FIFA for corruption and bribery, and pledged profits from one of its lagers sold during the tournament would be donated to charities fighting human rights abuse in Qatar. So far, so laudable, but the warm glow of righteousness somewhat wore off when it emerged that Brewdog was still selling its Punk IPA in Qatar, leading to the Unite Hospitality union calling out the company – and making further reference to the “toxic culture” accusations – for “yet another disingenuous advertising campaign designed to distract customers from the fact BrewDog is one of the worst employers in the brewing industry when it comes to doing the right thing by its workers”. Watt responded by saying there were few businesses “who would be prepared to attract attention — positive or negative — for taking a stance.” The fallout from the BBC documentary continued in December, when Brewdog lost its hard-won B Corp status after an investigation by the organisation which runs the ethical business scheme. Finally, Brewdog ended the year with a rap over the paws from the Advertising Standards Authority, which banned a “tongue-in-cheek” ad claiming its fruit-flavoured beers constituted “one of your five a day ”and said Brewdog should not mislead consumers. In response, the company said it was “happy to confirm that beer is not a fruit or a vegetable.” George Hutchinson, former Teneo director and founder of reputation risk and crisis advisory River Effra, said “The challenge for lots of founder and owner led businesses – particularly one such as Brewdog that has styled itself in creating guerilla marketing campaigns and creative stunts, but founded on a values-based core – is that when those values are called into question the spotlight you have created can be readily turned on you, and that spotlight feels very personal." Of the company’s response to the documentary, Hutchinson said: “While the very early first reaction was emotional, the company very quickly became reflective, acknowledged its failings and put in place a plan to reassert control with their blueprint. All textbook, but further allegations emerged, tensions flared, active responses issued, and the news cycle was refreshed.” He added that however unfair the allegations about its culture must have felt, Brewdog’s response to them shouldn’t have been about achieving justice: “In my experience leaders confronted by this type of situation end up with a flight to fight response – they try to hold the line, not to engage, yet get to the point where they feel so wronged that they look to fight every fight. And, in doing so they find it extremely hard to separate the allegations of wrongdoing from the reality of what happened. Lines harden, nuance is lost and we end up creating camps of us versus them. “Unfortunately, in a world of social media, this is manna from heaven. And for companies like Brewdog that have traded on their values, they are held to higher standards and must ensure they maintain those standards, no matter what.” –  MPS 

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Lessons Learned from 06 PR Crisis Management Case Studies

In the world of business and public relations, crises are an unfortunate reality that organizations may face. 

These crises can pose significant threats to an organization’s reputation, customer trust, and bottom line. 

Effective crisis management is crucial in mitigating the damage and navigating through challenging situations. 

In this compilation of PR crisis management case studies, we examine notable incidents from various industries and explore how organizations responded to these crises. 

By delving into these real-world examples, valuable insights can be gained to better understand crisis management strategies and the impact they can have on an organization’s reputation and future success.

Let’s dive in six PR crisis management case studies to learn more about this 

Case Study 1: Nike’s Lance Armstrong Doping Scandal 

The Nike’s Lance Armstrong doping scandal is a significant PR crisis that unfolded in the sports industry. Lance Armstrong, a former professional cyclist sponsored by Nike, was accused of doping, which refers to the use of prohibited substances or methods to enhance athletic performance. This scandal had several implications for Nike as a sponsor and faced significant backlash.

The Lance Armstrong doping scandal was a PR crisis for Nike because it directly involved one of their high-profile sponsored athletes. As a result, Nike’s brand reputation and credibility were at stake, as the scandal raised questions about the integrity of both the athlete and the company.

The controversy also had the potential to alienate Nike’s customer base and damage its image as a promoter of fair play and ethical sportsmanship.

To address the crisis, Nike took several PR actions:

• Termination of Sponsorship: Nike made the decision to terminate its sponsorship contract with Lance Armstrong following the doping revelations. This action demonstrated a clear break from the athlete and his actions, signifying Nike’s commitment to maintaining a clean and ethical brand image.
• Public Statements: Nike issued public statements expressing disappointment and concern over the doping scandal. They condemned the use of performance-enhancing drugs and emphasized their commitment to integrity and fair competition. These statements aimed to distance the company from the controversy and reassure the public of Nike’s commitment to ethical practices.
• Collaboration with Anti-Doping Organizations: Nike collaborated with anti-doping organizations, such as the United States Anti-Doping Agency (USADA), to support their efforts in combating doping in sports. This collaboration served to align Nike with the fight against doping and to showcase their commitment to clean and fair competition.
• Transparency and Accountability: Nike took steps to promote transparency and accountability in their sponsorship deals. They revised their sponsorship contracts to include stricter clauses related to doping, emphasizing the importance of athletes’ adherence to anti-doping regulations. This action aimed to demonstrate Nike’s commitment to promoting clean sports and deterring unethical practices.

By terminating the sponsorship, issuing public statements, collaborating with anti-doping organizations, and promoting transparency, Nike aimed to manage the PR crisis caused by the Lance Armstrong doping scandal. These actions were intended to distance the company from the controversy, uphold its brand values, and restore trust among customers and the public.

Case Study 2: McDonald’s “Hot Coffee” Lawsuit

The second PR crisis management case study focuses on the infamous “Hot Coffee” lawsuit involving McDonald’s. In the early 1990s, a customer filed a lawsuit against McDonald’s after suffering severe burns from spilled hot coffee purchased from one of their drive-thru locations.

The incident gained substantial media attention , and McDonald’s initially faced criticism and negative public perception. The company was accused of serving excessively hot coffee and failing to take responsibility for the incident.

However, McDonald’s later adjusted its response strategy, settling the lawsuit and implementing changes to prevent similar incidents. They revised their coffee temperature policies, ensuring safer serving temperatures, and began placing warning labels on their cups.

Additionally, McDonald’s embarked on a public education campaign to clarify the facts of the case and dispel misconceptions. McDonald’s demonstrated a proactive approach to crisis management by taking responsibility, implementing changes, and engaging with the public through education campaigns and media relations

After the “Hot Coffee” lawsuit crisis, McDonald’s took several PR actions to address the situation and improve public perception. 

Here are some of the actions they implemented:

• Settlement: McDonald’s chose to settle the lawsuit rather than engaging in a lengthy legal battle. This decision helped demonstrate their willingness to take responsibility for the incident and mitigate any negative publicity associated with a prolonged legal process.
• Policy Revisions: McDonald’s revised its coffee temperature policies to ensure safer serving temperatures. By adjusting the temperature at which coffee was served, they aimed to prevent future incidents of burns and address concerns raised during the lawsuit.
• Warning Labels : McDonald’s began placing warning labels on their coffee cups to inform customers about the potential risks associated with hot beverages. This step aimed to improve consumer awareness and reduce the likelihood of accidents or lawsuits stemming from burns caused by hot coffee.
• Public Education Campaign: McDonald’s launched a public education campaign to provide accurate information about the “Hot Coffee” case and dispel misconceptions surrounding it. The campaign sought to address any misunderstandings and offer clarity on the facts of the incident, aiming to rebuild trust and restore public confidence in the company.
• Media Relations: McDonald’s engaged with media outlets to share their perspective, highlight the changes made in response to the incident, and emphasize their commitment to customer safety. By actively participating in media relations, McDonald’s sought to shape the narrative surrounding the crisis and convey a more positive image.

Case Study 3: Tesla’s Autopilot Accidents 

The second PR crisis management case study revolves around Tesla’s Autopilot feature and the accidents associated with its use. Tesla’s Autopilot is an advanced driver-assistance system designed to assist drivers with certain aspects of driving.

However, there have been incidents where Tesla vehicles using Autopilot have been involved in accidents, raising concerns about the safety and reliability of autonomous driving technology.

In response to these accidents, Tesla has implemented several PR actions to manage the crisis:

• Emphasizing Driver Responsibility: Tesla has consistently emphasized that Autopilot is not a fully autonomous driving system and that drivers must remain attentive and ready to take control of the vehicle at all times. They have stressed the importance of hands-on driving and have provided guidance to users on how to properly use the Autopilot feature.
• Software Updates: Tesla has made continuous software updates to improve the safety and functionality of Autopilot. These updates have included enhancements to the system’s capabilities, such as improved object detection, collision avoidance, and lane-keeping features. By actively addressing the technology’s limitations and making regular updates, Tesla aims to enhance the safety of Autopilot and prevent future accidents.
• Transparency and Data Sharing: Tesla has been transparent in sharing data related to Autopilot accidents and improvements in the technology. They have released quarterly safety reports detailing accident statistics and comparing the safety of Tesla vehicles with traditional vehicles. By providing data-driven information, Tesla seeks to demonstrate the safety benefits of Autopilot and address any misconceptions or concerns surrounding the technology.
• Public Education and Advocacy: Tesla has engaged in public education campaigns to raise awareness about the capabilities and limitations of Autopilot. They have conducted outreach programs, hosted events, and collaborated with organizations to educate drivers, regulators, and the general public about autonomous driving technology. By actively advocating for the safe and responsible use of Autopilot, Tesla aims to foster a better understanding of the system and promote its benefits.

Through these PR actions, Tesla is working to manage the crisis associated with Autopilot accidents. By emphasizing driver responsibility, making software updates, sharing data, and engaging in public education, Tesla aims to address concerns, enhance safety, and maintain public trust in their autonomous driving technology.

Case Study 4: Nestlé’s Baby Formula Controversy

In the 1970s and 1980s, Nestlé faced a significant crisis related to the promotion of its infant formula products in developing countries. The company was accused of aggressive marketing tactics that discouraged breastfeeding and led to infant health issues due to improper formula preparation. Nestlé faced widespread boycotts, protests, and international pressure. 

The company responded by adopting the WHO/UNICEF International Code of Marketing of Breast-Milk Substitutes, improving labeling, and investing in education programs to promote proper nutrition practices.

During the 1970s and 1980s, Nestlé encountered a severe PR crisis surrounding the promotion of its infant formula products in developing countries. The controversy arose due to allegations of aggressive marketing practices that undermined breastfeeding, resulting in infant health problems stemming from improper formula preparation. Nestlé faced extensive boycotts, protests, and international scrutiny for its actions. 

To address the crisis, Nestlé took several PR actions:

• Adoption of WHO/UNICEF Code: Nestlé responded by adopting the WHO/UNICEF International Code of Marketing of Breast-Milk Substitutes. This code established guidelines to regulate the marketing and promotion of infant formula, ensuring that companies refrain from misleading or aggressive tactics that could discourage breastfeeding.
• Labeling Improvements: Nestlé made efforts to improve the labeling of its infant formula products, providing clearer instructions on proper preparation and usage. By enhancing product labeling, Nestlé aimed to promote safe and appropriate feeding practices for infants.
• Education Programs: Nestlé invested in education programs to promote proper nutrition practices and raise awareness about the benefits of breastfeeding. These programs aimed to educate healthcare professionals and mothers in developing countries about the importance of breastfeeding and the appropriate use of infant formula when necessary.

By adopting the WHO/UNICEF Code, improving product labeling, and investing in education programs, Nestlé aimed to address the concerns raised during the crisis, promote responsible marketing practices, and support breastfeeding as the optimal infant nutrition method. These PR actions aimed to rebuild trust and mitigate the negative impact of the controversy on the company’s reputation.

Case Study 5: Facebook’s Cambridge Analytica Scandal. 

The Facebook Cambridge Analytica scandal was a significant PR crisis for the social media giant.

The scandal involved the unauthorized access and misuse of personal data of millions of Facebook users by the political consulting firm Cambridge Analytica.

This breach of trust and privacy had far-reaching implications and raised concerns about Facebook’s data handling practices, user privacy, and the potential influence on elections.

The Cambridge Analytica scandal was a PR crisis for Facebook due to the following reasons:

• Breach of Trust: The scandal undermined the trust that users had placed in Facebook to protect their personal data. The unauthorized access and misuse of user information violated the expectations and privacy of millions of users, leading to widespread outrage and concerns about data security.
• Negative Public Perception: The scandal received extensive media coverage, resulting in a tarnished public perception of Facebook. Users and the general public questioned the company’s commitment to user privacy, its handling of personal data, and its overall ethical standards.
• Regulatory Scrutiny: The Cambridge Analytica scandal triggered investigations by regulatory authorities worldwide, including the U.S. Federal Trade Commission (FTC) and the European Union. The regulatory scrutiny further escalated the crisis, potentially exposing Facebook to legal repercussions and hefty fines.

To manage the crisis, Facebook implemented several PR actions:

• Apologies and Acknowledgment: Facebook’s leadership, including CEO Mark Zuckerberg, publicly apologized and acknowledged the mishandling of user data. They took responsibility for the breach and expressed their commitment to addressing the issue and regaining public trust.
• Transparency and Communication: Facebook increased transparency by providing regular updates and sharing information about the steps taken to address the issue. They communicated openly about the changes made to data privacy policies, user controls, and third-party access to data.
• Stricter Data Controls: Facebook implemented stricter data controls and restrictions to enhance user privacy and data security. They made changes to the platform’s data access policies, limiting third-party developers’ access to user data and enhancing user consent mechanisms.
• Cooperation with Authorities : Facebook cooperated with regulatory authorities during investigations, providing information and engaging in discussions to address concerns related to data privacy and security. They worked to comply with regulatory requirements and implement necessary changes.
• Ad Campaigns and Educational Efforts: Facebook launched ad campaigns and educational efforts to raise awareness among users about data privacy, security settings, and the importance of informed consent. These initiatives aimed to empower users with knowledge and tools to control their privacy on the platform.

Through these PR actions, Facebook aimed to regain public trust, address privacy concerns, and demonstrate a commitment to user data security. The company recognized the severity of the crisis and took proactive measures to improve data practices, enhance transparency, and communicate openly with users and regulatory authorities.

Case Study 6: Chipotle’s Food Safety Crisis

The Chipotle food safety crisis was a significant PR crisis for the popular fast-casual restaurant chain. The crisis occurred in multiple instances between 2015 and 2018 when several outbreaks of foodborne illnesses, including E. coli, salmonella, and norovirus, were linked to Chipotle restaurants. This series of incidents resulted in numerous cases of customer illness, negative media coverage, a decline in sales, and a loss of customer trust.

The Chipotle food safety crisis was a PR crisis for several reasons:

• Public Health Impact: The outbreaks of foodborne illnesses associated with Chipotle restaurants posed a direct risk to public health. The safety and well-being of customers were compromised, leading to severe illnesses and potential long-term health consequences. The crisis heightened concerns about food safety practices within the company.
• Media Attention and Reputation Damage: The outbreaks received extensive media coverage, which amplified the negative impact on Chipotle’s reputation. The media reports highlighted the incidents, their scale, and the potential causes, contributing to a loss of customer confidence and damaging the company’s image as a provider of fresh and safe food.
• Legal and Financial Ramifications: The food safety crisis resulted in legal implications for Chipotle, including lawsuits from affected customers and investigations by regulatory authorities. The financial consequences were also significant, with a decline in sales, decreased stock value, and increased costs associated with implementing food safety measures.

To address the crisis, Chipotle took several actions:

• Crisis Management Team : Chipotle established a dedicated crisis management team to lead the company’s response efforts. This team coordinated communication, implemented food safety protocols, and collaborated with external experts and authorities to address the crisis effectively.
• Enhanced Food Safety Practices : Chipotle implemented comprehensive food safety measures and protocols to prevent future incidents. This included increased testing of ingredients, improved employee training on food handling and safety, and stricter adherence to hygiene standards throughout the supply chain.
• Communication and Transparency : Chipotle adopted a proactive approach to communication, providing regular updates and being transparent about the actions taken to address the crisis. They publicly acknowledged the issues, apologized to affected customers, and shared information about the enhanced food safety practices implemented.
• Rebuilding Trust: Chipotle launched marketing campaigns and initiatives aimed at rebuilding trust with customers. These efforts focused on emphasizing the company’s commitment to food safety, showcasing the steps taken to address the crisis, and reinforcing the brand’s core values of sourcing high-quality ingredients.
• Collaboration with Experts: Chipotle collaborated with food safety experts and external consultants to gain insights, conduct thorough audits, and receive guidance on best practices for food safety. This collaboration helped strengthen their efforts and demonstrate their commitment to continuous improvement.

Key Take Aways from PR Crisis Management Case Studies

Here are five key takeaways from the PR crisis management case studies mentioned earlier to effectively manage a PR crisis:

Swift and Transparent Response

It is crucial to respond quickly and transparently when a crisis occurs. Acknowledge the issue, take responsibility, and communicate openly with stakeholders, showing a commitment to addressing the problem. In the age of instant communication and social media, news and information spread rapidly. By responding swiftly, an organization can take control of the narrative surrounding the crisis. It allows them to provide accurate information, address concerns, and shape the perception of the crisis before it gets distorted or amplified by external sources.

Prioritize Stakeholder Trust

Rebuilding trust with stakeholders, including customers, employees, and the general public, should be a top priority. Focus on actions and initiatives that demonstrate accountability, transparency, and a commitment to resolving the crisis. When stakeholders trust an organization, they are more likely to continue supporting it, even during challenging times. Prioritizing stakeholder trust can help maintain customer loyalty, employee commitment, investor confidence, and the support of other key stakeholders.

Proactive Communication

Maintain open lines of communication with stakeholders throughout the crisis. Provide regular updates, share accurate information, and address concerns promptly. Proactive communication helps control the narrative and minimizes the spread of misinformation.During a crisis, stakeholders may feel anxious, confused, or fearful. Proactive communication allows organizations to reassure stakeholders by providing updates, clarifying the situation, and offering guidance. It helps alleviate concerns, dispel misconceptions, and provide necessary information to help stakeholders make informed decisions.

Public Education

Public education is an effective way to build trust and credibility with stakeholders. By providing educational resources and transparent information, organizations show their commitment to keeping stakeholders informed and empowered. This builds trust, strengthens the organization’s reputation, and fosters a positive perception among stakeholders. By investing in public education, organizations demonstrate their commitment to the well-being and interests of stakeholders. This helps foster loyalty and support even beyond the crisis, contributing to ongoing positive relationships.

A dedicated PR Team

A dedicated PR team brings specialized expertise in crisis communication. Their knowledge and experience ensure that the organization’s response is strategic, effective, and aligned with the overall PR goals. Consistent and coordinated messaging is crucial during a crisis. A dedicated PR team ensures that all communication, both internal and external, is aligned and consistent. They develop key messages, train spokespeople, and oversee communication channels to ensure that accurate and unified information is disseminated to stakeholders and the public.

Final words 

The case studies discussed provide valuable insights into the various challenges faced by organizations and the PR actions they took to manage their crises.

Learning from these PR crisis management case studies, organizations should develop robust PR strategies, establish crisis response teams, and regularly review and update their protocols. By being prepared and proactive, companies can minimize the impact of a crisis and emerge stronger on the other side.

Remember, managing a crisis is not just about damage control; it is an opportunity for growth, learning, and demonstrating resilience. With careful planning, decisive actions, and a commitment to transparency and improvement, organizations can navigate PR crises successfully and emerge with their reputation intact

About The Author

Tahir Abbas

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