In the vast ocean of reputation management, one must be prepared for sudden storms and hidden shoals. Just as sailors navigate turbulent seas with the aid of lighthouses and charts, organizations can avoid common pitfalls by learning from others’ experiences. This review of the first half of 2023 provides vital navigation aids from high-profile PR crises involving Bud Light, The Ritz, Etihad Airways, and Silicon Valley Bank.
The Bud Light Scenario: Preparedness and Adapting to Change
Bud Light found itself in a media-fueled crisis when American singer Kid Rock, a vocal supporter of Trump and gun enthusiast, recorded a video of himself shooting a case of Bud Light with an assault rifle. He expressed his offense at Bud Light’s partnership with influencer and trans activist Dylan Mulvaney. Anheuser-Busch, the owner of Bud Light, had sent Mulvaney beer cans featuring her image to celebrate the anniversary of her gender affirmation, and this move was met with backlash, particularly from conservative customers.
Key Takeaways: This incident illustrates the polarized nature of social and media reactions to corporate initiatives. Brands may need to prepare for backlash from different audience segments when taking a stance on socially divisive issues. The incident also asks which customers a brand wants to attract and which ones it might be willing to lose.
The Ritz Incident: Owning Responsibility and Prompt Communication
The Ritz hotel faced backlash after Jerelle Jules, a job applicant, was told that his natural hair did not meet the hotel’s employee grooming policy, which did not allow “unusual hairstyles” like “spiky hair, afro style.” The Ritz issued an apology, stating it was an old policy, but it was updated as recently as 2021. The hotel’s response lacked specifics on how the incident happened and what actions they were taking to prevent such incidents in the future.
Key Takeaways: This case underscores the importance of regularly reviewing and updating internal policies to ensure they are inclusive and non-discriminatory. Also, a corporate statement that doesn’t address the problem directly can be seen as hollow and insincere. Businesses should provide their crisis responses not only to express regret for mistakes made, but also to clearly articulate the steps taken to resolve the issue and prevent its recurrence.
Etihad’s Turbulence: Walking the Talk
Etihad Airways’ claim of ‘sustainable aviation’ fell from grace as the Advertising Standards Authority banned it. Despite Etihad’s efforts to invest in sustainable fuel trials and reduce the environmental impact of flying, the claim was deemed as greenwashing due to the current unfeasibility of truly sustainable aviation.
Key takeaways: This issue emphasizes the importance of honesty in advertising. Businesses should avoid making false claims that could be seen as greenwashing, as these can damage their reputation and trust with consumers. Companies can’t merely anchor their pledges with words but must ensure that these words are buoyed by tangible actions.
The Silicon Valley Bank Crisis: The Power of Transparency
SVB collapsed after a poorly-managed crisis. The bank had been struggling financially for some time. Still, its problems were exacerbated by a series of communication missteps. In particular, SVB should have anticipated how investors and customers would perceive its announcement of a $500 million capital raise. The announcement, which came just days after SVB sold off $21 billion in assets at a loss, triggered a panic that led to a run on the bank. SVB was eventually forced to file for bankruptcy.
Key takeaways: The collapse of SVB showcased the devastation that can follow when an organization fails to maintain clear, honest, and timely communication with stakeholders. This event underscores that navigating reputational risk is a long-term commitment requiring constant vigilance and transparency.
By learning from the experiences of others, organizations can navigate the turbulent waters of public opinion with greater confidence and skill. Remember, reputation management is an ongoing journey, and staying proactive, prepared, and adaptable is key to staying afloat.
Gillott Communications is a Los Angeles-based public relations firm that specializes in high-stakes Crisis & Reputation Management with more than 50 years of expertise in strategic communications, corporate public relations, and working with the media.
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