The right kind of crisis communication is what keeps a difference between swift recovery and long term reputation disaster in the world of business and public relations. Product recalls, public scandals, and other crises can strike at any moment. Thus, how such a company reacts is the determining factor. This blog looks at ten notable crisis communications campaigns, analyzing approaches and outcomes, in hopes that it might help us understand a little better what works-and what doesn't-when handling a crisis.
1. Tylenol Poisoning Crisis (Johnson & Johnson) – 1982
The most widely known case in history, the Johnson & Johnson response to the Tylenol poisoning crisis is often invoked when explaining what was done right. Although cyanide laced Tylenol capsules killed several people, the company responded swiftly by pulling 31 million bottles off the shelves and giving clear communications to the public that included the introduction of tamper-proof packaging. Their quick response and focus on consumer safety restored public confidence, and one learned about the value of transparency in a crisis communication plan.
2. BP Oil Spill (BP) – 2010
Whereas the grandeur of J&J will forever be etched in history, similarly, the case of BP and its extensive mismanagement of the Deepwater Horizon oil spill. There was still an environmental disaster, but instead of proper communication about it, the company communicated the magnitude of the disaster in a haphazard manner while playing down the magnitude and, more importantly, the case of their Chief Executive Tony Hayward, where he famously stated that "I'd like my life back." This campaign outlines, in acute detail, the critical time to exercise care, accountability, and a well-designed crisis communication plan when disaster strikes.
3. Pepsi Syringe Scare – 1993
When it was reported that people were consuming syringes in cans of Diet Pepsi, the company was at the pinnacle of its reputation crisis. Instead of asking for a product recall, Pepsi adopted this different approach. Using media to show how tamper-proof its manufacturing process is, the company communicated with transparency and showed concern for the public. The impromptu decision to fight misinformation on its own turf helped Pepsi combat the crisis without a costly recall.
4. United Airlines Passenger Force 2017
The widespread backlash against United Airlines, triggered by the virality of a video showing how a customer was forcibly removed from an overbooked flight, shed light on the seriousness of the issue raised when serious situations such as this occur. United Airlines was initially defensive with its response and justified the removal of the customer while downplaying this situation. It issued a genuine apology only when public outcry became extremely intense, and the airline then changed its overbooking policies. This event clearly makes obvious the importance of having crisis communication that is swift, sympathetic, and proactive at the time of public concern.
5. Oxfam Sexual Misconduct Scandal – 2018
This led to the scandal that hit Oxfam, an international relief organization, after rape and other acts of sexual misconduct by employees were leveled against them in Haiti. The response at first came out as a defensive act and slow. Since then, more decisive, clear, and accountable communication is employed in communication. Apologies are made public, and the reforms adopted are upheld. This was the case of Oxfam experience based on acknowledge about the occurrence of the event and becoming transparent while communicating the crisis to gain trust.
6. Volkswagen Emissions Scandal – 2015
Volkswagen's scandal-the company has popularly been known as "Dieselgate"-was connected with the revelation made by the company that it had installed software in its cars to cheat the emissions test. Initially, the company had denied the scale of the issue, but after the scandal broke, it once again swung into damage control by recalling all the affected vehicles and committing to transparency in the investigation process. Though the damage to its reputation was huge, the company was still able to not lose balance due to its well-framed crisis communication plan.
7. Facebook Data Scandal (Cambridge Analytica) – 2018
A modern crisis example involving the handling of data misuse on Facebook by a third party, Cambridge Analytica, also brings out the profound importance of crisis communications in the digital age. In this case, public outrage had time to grow because Facebook responded late, and a public apology plus testimony before Congress by Mark Zuckerberg came after the event. This example makes pertinent reference to the need for a timely and transparent crisis communication plan when news spreads so quickly in a digital space.
8. Samsung Galaxy Note 7 Recall – 2016
Mass recall of Galaxy Note 7 was a disaster that struck Samsung. Batteries in these Note 7 mobile phones were defective and caught fire. Initially, the company downplayed the incident and ordered a partial withdrawal. But as this issue persisted, they decided to fully recall all devices, halt their manufacturing, and provide a complete refund or replacement. Samsung "flipped" fast to a customer-first approach, coupled with effective, clear crisis communication, which helped it salvage what could easily have been a brand-ending disaster.
9. KFC Chicken Shortage – 2018
This could have easily proven to be a PR nightmare, too, when the UK ran out of chicken for KFC due to a supply chain problem; but with a word of humor and humility, the company responded. A very witty apology ad cropped up, featuring the chicken bucket, with letters rearranged to read "FCK," set out exactly what happened. The light-hearted yet honest approach for their customer base made it easy for the customers to forgive KFC and thus, per the above discussion, humor can indeed form a huge part of the crisis communication plan at times.
10. Toyota Recalls -2010
The company was plagued by a massive crisis as cases of unintended acceleration cropped up in some of its vehicles, which led to accidents and fatal casualties. At first, Toyota suffered due to slow information sharing with the public and its perceived lack of transparency, but it then turned the situation around by recalling millions of its cars, issuing a public apology, and ensuring that safety measures would be improved. But Toyota's response showed that even if a crisis communication plan gets off on the wrong foot, there is potential for turning that situation around with the right corrective action and open, transparent communication.
Lessons from Successful and Failed Crisis Communications
Each of these cases illustrates key lessons for crafting an effective crisis communication plan:
Speed and Openness: Prompt, candid and truthful communication is essential in a crisis. Delay or any attempt at keeping the truth from the public will fuel their reaction. Look at BP and United Airlines.
Compassion and Responsibility: The public reacts differently to firms that show compassion and take responsibility for the failure. Most cases of tone-deaf responses, such as those by BP or Volkswagen, tend to result in greater crises.
Adaptability: No crisis is like another, and firms have to react differently for each case. Samsung quickly adapted to the developing situation of their crisis, whereas KFC's lighter reaction succeeded because their problem was quite mild.
But actually, a good crisis communication plan helps businesses weather the storms, thus securing their reputation during difficult times. And by learning from what has brought them success and failure in the process, companies can certainly prepare themselves against their own challenges.
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