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The Power of Accountability in Business: A Guide to Successful Crisis Management

January 18, 20246 min read

Mistakes are always forgivable, if one has the courage to admit them.” - Bruce Lee

In today's fast-paced and interconnected world, public relations crises can strike unexpectedly, threatening even the most reputable brands. When faced with such challenges, the need for businesses to act decisively, rapidly, and with accountability is paramount. A critical part of this response strategy involves issuing an effective apology.

protesters with 'tell the truth' written on a pink prop boat

Why is Accountability Important in Business?

Accountability is a cornerstone of effective crisis management. It demonstrates a company's willingness to accept responsibility, express empathy, and work towards rectifying any harm caused. This approach can soften the blow to a company's reputation, sometimes even turning a negative situation into a positive one.

The impact of a heartfelt and comprehensive apology cannot be overstated as it is critical in regaining the trust of customers, employees, and stakeholders. However, an ill-conceived apology can make a bad situation worse and can escalate a crisis further. Appearing insincere can also damage attempts to mend relationships. Businesses must craft clear and genuine apologies to stand a chance of handling a crisis.

The Role of an Effective Apology in Crisis Management

In the face of a crisis, acknowledging the issue and demonstrating the company's seriousness towards it is essential. An effective apology should be clear, specific, and show empathy for those affected. Companies should use language that conveys genuine concern, avoiding defensiveness or dismissal of responsibility.

Taking ownership of actions, regardless of any mistakes made, is crucial. Excuses or blaming others can appear insincere or defensive. Instead, a successful apology should show the company's commitment to handling the situation and outline a plan to prevent similar issues in the future.

Businesses should also be clear about the steps they plan to take and provide a timeline when possible. Following through on any promises made is paramount. If the apology includes a plan of action, businesses must execute it to completion and keep customers or stakeholders informed of the progress.

Real-life Examples of Successful Apologies

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1. Starbucks

In 2018, Starbucks faced a PR crisis when two black men were arrested at a Philadelphia location for sitting in the store without making a purchase. Starbucks CEO Kevin Johnson issued a sincere and thoughtful apology, acknowledging the issue, expressing empathy for those affected, and outlining specific steps the company would take to address the issue, including mandatory unconscious bias training for all employees.

2. United Airlines

In 2017, United Airlines faced backlash after a video of a passenger being forcibly removed from an overbooked flight went viral. United CEO Oscar Munoz initially issued a defensive and dismissive response. However, he later issued a more sincere apology that acknowledged the issue, expressed empathy for the passenger and other customers, and outlined steps the company would take to prevent similar incidents from happening in the future.

2. Fujitsu Horizon Scandal

The Fujitsu Horizon Scandal serves as a prime example of a company acknowledging its mistakes and committing to make amends. Fujitsu's Europe boss, Paul Patterson, expressed his company’s “moral obligation” to compensate the victims of the Post Office Horizon IT scandal during a session with MPs. Despite the scandal being one of the largest miscarriages of justice in British history, Patterson insisted on Fujitsu's commitment to remain ethical and its willingness to contribute to resolving the issue. One of the most important aspects of starting a blog is establishing a connection with your potential customers. This can be done through engaging in conversation on your blog, posting stories about how you operate your business, or even sharing inspiring content that you think will resonate with them. These interactions also make it easier for you to keep up with what people are saying and sharing on social media.

...And a few Examples not to copy

1. AIG

From personal experience, as I was the PR manager at AIG when it collapsed in 2008, I learnt first hand how not to handle a crisis. Our UK based team reported into the US Comms team and were told unequivocally not to respond to any requests for comments by media - for THREE days! This made the crisis situation even worse because customers and the world at large, wanted, and needed to know what was going on. By not even putting out a simple holding statement along the lines of 'We're looking into things and will give you some information as soon as we can', it made the general public even angrier and media focused on the silence which harmed their reputation even more.

Lesson: Acknowledge the situation as soon as possible and let your customers know you're looking into it.

5. BP

BP and their CEO Tony Hayward’s apology for the 2010 Deepwater Horizon oil spill was wrong on so many levels. Their response was generally unprepared and unsympathetic for an organisation of their size, and what made matters even worse was that Hayward speculated instead of giving facts, relied on stereotypes and blamed others. It was when he said, "I’d like my life back.” while oil was ravaging the Gulf of Mexico, that this became a PR disaster on a whole new level. BP had to spend millions to repair some of the damage.

Lesson: It's never about you.

How to Craft the Perfect Apology

For businesses big and small, when faced with a crisis, here are some steps to help you write and issue an effective apology.

  • Act Quickly: The faster the right message gets out, the easier it is to control the narrative. This is especially true in the age of social media, where things can escalate rapidly.

  • Use Social Media: Social media platforms can be invaluable during a crisis, providing a direct line of communication to customers and stakeholders. An apology issued on these platforms shows that the company understands the gravity of the situation.

  • Be Sincere and Authentic: The apology should not sound forced or insincere. Get a few opinions on its tone before it goes live to make sure it resonates with the audience. Avoiding business jargon and speaking from the heart can help create an authentic apology.

  • Outline Resolution Steps: An effective apology should not only express regret but also detail the steps that will be taken to avoid similar situations in the future. Talk about actions taken to resolve the issue and elaborate if anything sounds unclear.

  • Avoid Excuses: Blaming others or making excuses can make the company appear defensive and unapologetic. The focus should be on the steps to prevent a recurrence of the issue, not on justifying past mistakes.

Hopefully most small businesses won't have to deal with a major crisis but it's always worth building it in to your annual PR strategy so that you prepare in advance for any known issues going wrong. The last thing you want is to be trying to think of how to handle a crisis when you're in it.

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#accountability #publicrelations#PR#howtosaysorry#howtohandleacrisis#brandreputation#brand#reputation

Kerryn Fields

Kerryn Fields has over 20 years of international PR experience having led the PR for global brands like AIG, VISA, Barclaycard and others. She now teaches entrepreneurs how to land coverage for themselves in 10 minutes a day, and specialises in supporting small business and startups in establishing their own PR functions.

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