Managing corporate crises: the reaction that matters
A crisis is a critical moment for any company, regardless of size, industry, or reputation. It exposes vulnerabilities and can have significant consequences for the business. We explored the concept of a corporate crisis in this article, but how should one respond when it becomes a reality?
The best way to handle a crisis is through prior preparation. Companies that develop response strategies in advance have a significant advantage. Well-defined protocols prevent confusion and reduce the risk of an incorrect or delayed response.
The first response: the moment of truth
When a crisis occurs, it’s time for swift and objective action. The first step is creating a dedicated team to handle the situation. This can be a well-structured crisis cell, where each member has a clear role, or a group of internal and external experts addressing at least operational, legal, and communication aspects. All team members must have access to the same information to ensure a coordinated and effective response.
Crisis management takes place on two main fronts: effectively resolving the situation and protecting the company’s reputation. From the outset, the legal team and communication experts must collaborate closely to align legal interests with public communication realities. While lawyers focus on minimizing legal risk, communicators work to mitigate reputational damage.
Communication strategy: calculated transparency
Every crisis situation requires finding the right balance in communication—enough to meet the public’s needs but without compromising the company. The decision depends on the nature of the crisis, the company’s specifics, industry regulations, and the potential impact on public opinion. These decisions are made quickly and adjusted as the situation evolves.
Internal communication is absolutely critical. Employees must be informed about the situation and prepared to address questions from customers or partners. This ensures a unified message and supports the company’s crisis management efforts.
If a public response is necessary, it must be timely and come directly from the company. The media and public don’t wait; they demand real-time information. If the company delays, it risks losing control of the narrative, allowing speculation to fill the void. The window of opportunity to set the right framework is extremely short and critical.
Public responses should only include verified information and clearly outline the steps the company is taking to resolve the situation. It’s also advisable not to immediately expose the company’s leader to the media, especially if they lack experience in public communication. A poorly managed public appearance can turn an already complicated situation into an even more challenging one.
Preparation is the best defense
Few crises arise entirely unexpectedly; preparation can prevent a crisis or, at the very least, reduce its impact on the company. Collaboration between the legal and communication teams is essential, and the early involvement of communication experts broadens the scope for proactive interventions with stakeholders, from directly involved parties to authorities and the media. Aligning the legal strategy with the pulse of public opinion supports legal objectives and ensures an effective and coherent response, protecting the organization’s interests.
This article was published on Juridice.ro
