How Corporate Reputation in Crisis can be an Opportunity to Build Long-term Value

“In the midst of every crisis lies great opportunity.” – Albert Einstein 

In Chinese, “crisis” comprises two characters, one representing danger and the other opportunity.  This concept holds true in the business world, where a crisis has become the potential to destroy shareholder value or, with a strategic lens, can build long-term value.

Friday afternoons have long been the tradition of receiving the dreaded phone call from a journalist requesting comment on a negative story.  Most executives are mentally exhausted by the end of the week and often respond poorly to the incoming media request for comment or, even worse, adopt an ostrich strategy and hope it will all go away.   

Negative press, whether from a product failure, a leadership scandal, or another misstep, can be a significant blow to a company’s value. However, experienced crisis communications experts understand that such situations can be turned around to create valuable opportunities for building relational capital. In this blog, we will delve into the PR tools that can help corporates leverage negative press and transform the experience into a stepping stone towards building stakeholder trust.

1. Acknowledge the Situation: Facing the Storm Head-On

The first and most crucial step in managing negative press is acknowledging the situation openly and honestly at the earliest opportunity. Pretending that the crisis doesn’t exist, downplaying it or deflecting blame will only exacerbate the problem and damage your credibility. Companies that take responsibility quickly for their mishaps demonstrate integrity and gain public respect. Be transparent regarding the process to mitigate the crisis, restore trust, and remember to communicate clearly throughout the process.

2. Assess the Impact: Understanding the Damage

Understanding the extent of the damage caused by negative press is essential. Conduct a comprehensive assessment to gauge the impact on your company’s reputation through open dialogue with stakeholders. Remember, this is largely a listening exercise. This analysis will provide valuable insights when formulating and adapting a response. 

3. Construct a Crisis Response Team: Stand United

In times of crisis, a well-coordinated team is your most valuable asset. Assemble a crisis response team comprising public relations, legal, marketing, HR and senior management. This team will work together to develop a unified response strategy, ensuring that all perspectives are considered and, to avoid groupthink, bring in an external advisor to challenge internalised thinking.

4. Transparency and Authenticity: The Pillars of Credible Communication

When the storm is at its peak, the best way to weather it is through transparency and authenticity. Craft your communication sincerely, admitting mistakes and outlining the measures to rectify the situation. Openly address concerns and questions from the public, building trust and credibility.

5. Seize Control of the Narrative: Write Your Story

The negative coverage often becomes a dominant narrative about a company. Your organisation must actively write its story to reclaim control of the narrative. Engage with the media to share your side of the story and the steps being taken to remedy the situation. Use multiple channels, such as press releases, interviews, and social media, to consistently communicate your message. Do not leave a vacuum for your critics to dominate.

6. Turning Critics into Advocates: Listen and Learn

Rather than shunning critics, invite them to engage in constructive dialogue. The negative press often comes from stakeholders who feel unheard or undervalued. By inviting them to the table and actively seeking their input, you can turn critics into advocates who appreciate your responsiveness and dedication to betterment.

7. Showcase Positive Aspects: Highlight Your Good Deeds

While the negative press may put your company’s flaws in the spotlight, it is essential to balance it with showcasing the positive aspects of your business. Highlight your charitable efforts, environmentally friendly practices, or contributions to the community. By showcasing your good deeds, you create a more nuanced image of your company, mitigating the negative impact. It is essential to be a good corporate citizen from the outset and not jump on the charity bandwagon during a crisis. Build a reservoir of trust and goodwill so you can draw from it in times of crisis.

8. Learn from the Crisis: Evolve and Strengthen

Every crisis is a valuable lesson for a company. Use the experience gained from handling negative press to strengthen your crisis management strategies for the future. Conduct a post-crisis analysis to identify what worked and what didn’t, and use those insights to refine your crisis response plan. This will prepare your company to handle future challenges with greater resilience and effectiveness.

9. Rebuilding Trust: Actions Speak Louder Than Words

Rebuilding trust is a gradual process requiring consistent actions aligned with your promises. Implement the necessary changes to prevent similar crises from occurring in the future. Keep the public informed about your progress and the positive impact of your reforms. Over time, your brand’s actions will speak louder than words, earning back the trust of your audience.

Understand that crisis unfolds over time, and each stage requires a change in responses and priorities. Ultimately, preparing before the storm is the best way to turn a crisis into an opportunity. Undergo rigorous risk audits, issue management and crisis planning regularly. Horizon scan for threats as most crises can be predicted if the organisation can listen and harness the transformative power of two-way communication. 

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Curzon PR is a London-based PR firm working with clients globally. If you have any questions, please feel free to contact our Business Development Team bd@curzonpr.com