
A common misconception in today’s business-driven world is that corporations are like superhumans. They are all-powerful, have a treasure trove of resources, and most importantly, they should be perfect. The fact that CEOs in America are paid on average 287 times more than the average rank-and-file employee does not help to debunk this myth.
However, the truth is that corporations are run by ordinary, everyday people. And sometimes, these people make mistakes just like the rest of us. Think about some of the most beloved superheroes, like Clark Kent and Peter Parker: even they are only human at their core.
Being fallible like the rest of us, big corporations often have a tough job of explaining themselves to the public when things go wrong. Constantly under scrutiny and held to high expectations, anything a CEO or other spokesperson says can be used against them. Therefore, it’s important for a company in crisis to consider several things before speaking or acting on the situation:
“What do our stakeholders want from us?”
This is perhaps the most critical question to ask from a public relations perspective, yet often the hardest question for CEOs to address. What the company wants for itself and what the public wants from it do not always line up. It can be difficult for the CEO of a “superhuman” corporation to lay down their pride and take responsibility for a crisis, but it usually must be done. In the International Air Transport Association’s guidebook for crisis management, it is recommended to always acknowledge the reality of the situation, accept an appropriate level of responsibility, and commit to a forward-looking action plan that addresses the needs of those affected by the situation. Making sure your stakeholders believe that you care is the first step towards minimizing any reputational damage an incident may cause.
“How quickly are we expected to respond?”
The answer to this question is almost always “as soon as possible.” But the time a PR team can afford to strategize and plan their messages can vary based on the type of crisis that has occurred. For instance, it is going to be very important for a power company to respond as quickly as possible (even within minutes) to a storm that causes outages across their customer base. By contrast, a corporation whose CEO is involved in a scandal may find itself with more time to release a statement, since less stakeholders are directly affected by the situation. However, it is still incredibly important to respond to crises in a reasonably timely manner no matter what. It has actually been proven that organizations who are the first to share news about a crisis are perceived as more responsible and trustworthy, thus suffering less damage to their reputation. W. Timothy Coombs suggests that this concept is similar to that of “stealing thunder” in law: “a weakness does less harm to a defendant’s case as much when the defense raises the weakness rather than when the prosecution raises the weakness” (para. 6).
“What are the realities of the situation, and how could it evolve into a worst-case scenario?”
Another tendency of CEOs is to downplay the seriousness of a crisis situation and ignore the facts as though to seem more in control. But crises are changeable and complex, and every one is different. It’s important to plan for the worst in order to be maximally prepared, and this involves being realistic about where your company is and what might happen if no preventative actions are taken. Swetha Amaresan at Hubspot writes that “it helps to create an escalation system within your customer service team that can diffuse the issue before it gets out of hand” (para. 13). It may also be a good idea to create mock press releases or data reports that visually demonstrate the potential for damage on the line.
All corporations deal with crisis situations: it’s just a part of business. While publics can be harsh and unforgiving at times, they will always be more likely to look past the mistakes of a brand that is sympathetic, transparent, and owns up to its actions – the good and the bad. As it turns out, it’s not actually too hard for companies to handle crises like a pro. All they have to do is tap into the good part of human nature.








