How to handle negative publicity in your business and someillustrations | Bài thảo luận tiếng anh thương mại

THUONG MAI UNIVERSITY ENGLISH FACULTY -------  -------  DISCUSSION
Topic: How to handle negative publicity in your business and some illustrations Lecturer : Mrs Tran Anh Thu Subject : Business English 2.2 Class : 241_ENPR5311_02 Group : 06 HANOI, 2024
TABLE OF REVIEW AND EVALUATION No. Name Student’sID Task Comment Score 27 Nguyễn Thị 22D170181 - Content: Part I - Complete tasks well and A Hồng Nhung - Presentation submit on time. - Slides design - Content: Part - Complete tasks well and II.1 submit on time. 28 Nguyễn Kiều Oanh 22D170187 - Presentation - Have positive A contribution - Slides design - Content: Part - Complete tasks well and II.2 submit on time. 29 Nguyễn Yến Nhi 22D170174 - Presentation - Have positive A contribution - Slides design - Content: Part - Complete tasks well and III.1 submit on time. 30 Lô Thị Xuân Quỳnh 22D170207 A - Presentation - Slides design - Content: III.2 - Complete tasks well and 31 Nguyễn Hồng submit on time. Như 22D170185 - Presentation A - Have positive - Slides design contribution - Content: III.3 - Complete tasks well and 32 Nguyễn Ngọc submit on time. A Quỳnh 22D170208 - Presentation - Slides design - Content: - Complete tasks well and Nguyễn Thị III.4+Conclusion submit on time. 33 Minh Phương 22D170194 A - Presentation (leader) - Slides design
SOCIALIST REPUBLIC OF VIETNAM
Independence- Liberty- Happiness
Hanoi, 25th November, 2024 GROUP MEETING REPORT
I. Time, location, participants
1. Time: 22h00, 27th November, 2024.
2. Location: Online meeting room Google Meet.
3. Participants: 7/7 members of group 6, subject Business English 2.2 – 241_ENPR5311_02 II. Meeting content
- Rehearsing for a presentation. - Checking and editing slides.
III. Conclusion of the meeting
- Everybody discussed positively and actively.
- All members of the group agreed and reached a consensus on their tasks.
- The meeting ended at 23h00 on the same day. Leader Phương Nguyễn Thị Minh Phương TABLE OF CONTENT
I. INTRODUCTION...................................................................................................... 5 II. THE IMPACT ASSESSMENT AND ROOT CAUSE OF NEGATIVE
PUBLICITY...................................................................................................................... 6
1. The impact assessment of negative publicity in business........................................6 1.1.
The negative effects of bad publicity in business...........................................7 1.2.
The positive effects of negative publicity in business.....................................7
2. The cause of negative publicity................................................................................9 2.1.
Product/service issues......................................................................................9 2.2.
Marketing mistakes........................................................................................10 2.3.
Unethical business practices..........................................................................10
III. SOLUTIONS TO HANDLE NEGATIVE PUBLICITY.......................................12
1. Clear and honest response.....................................................................................12
2. Engagement with media and stakeholders............................................................14
3. Utilization of crisis as an opportunity for improvement........................................15
4. Future negative publicity prevention.....................................................................21
IV. CONCLUSION......................................................................................................... 24 THE MAIN CONTENT I. INTRODUCTION
Publicity: The dictionary meaning of publicity is – notice or attention given to
someone or something by the media. From the marketing point of view, publicity is the
act of conveying information to the general public through the media in a way other than
advertising. The information published could be news, information about a product, etc. A
major difference between advertising and publicity is that while you pay for advertising, you pray for publicity.
Publicity can be achieved through print media (newspapers, journals, magazines, etc.);
television; radio; email; websites; and social media like Facebook, Twitter, and blogs.
Some other means such as public speech, seminars, and workshops are also employed as
tools of publicity. The only purpose of publicity is to disseminate the certain information
across to as many people as possible within the shortest time period. Publicity can be
broadly classified in this digital era as offline publicity and online publicity. Online
publicity is done using any internet-based platform and all others are offline publicity.
It is common knowledge that whenever a major event happens it receives wide
publicity. Similarly, when something notable happens or done by a company, it receives
publicity. When the notable event is pleasant or good it receives wide publicity, makes the
company feel proud and the chances are that it would attract new customers. In the
unfortunate case of the notable event being unpleasant or not all that good one, the
company receives a wider publicity generally termed as negative publicity. Negative
because it damages the company’s public image and leaves the company in a bad feeling.
The chances are that the company may lose its customers.
Negative publicity is defined as “..the non-compensated dissemination of potentially
damaging information by presenting disparaging news about a product, service business
unit, or individual in print or broadcast media or
by word-of-mouth.” (Reidenbach,
Festervand and Macwilliam 1987, p.9).
Consumer trust and brand reputation can be severely damaged by negative publicity,
frequently with long-lasting consequences. According to a recent study conducted by the
Institute for Public Relations, 75% of consumers said they would not buy a product if they
had read unfavorable news reports or reviews about it. Additionally, a 2023 Harvard
Business Review research found that in the week after a public relations issue, brands had
an average 20% drop in stock price. Negative publicity has an impact that extends beyond
initial sales; according to a YouGov study, 63% of customers are less inclined to promote
products from firms that have scandals, suggesting a possible long-term drop in customer
loyalty and word-of-mouth advertising.
These difficulties for brands are made worse by the rapidity with which bad news may
circulate on social media. According to Pew Research Center research, 57% of adults
have spread unfavorable information about a business on social media, which
disproportionately increases the reach of negative publicity in comparison to positive communications.
Consider the case of the well-documented crisis at United Airlines in 2017, where a
passenger was forcibly removed from an overbooked flight. The uproar led to a $1.4
billion loss in market value shortly after the incident. This scenario illustrates that
negative publicity can shift consumer perception almost instantaneously, underscoring the
necessity for brands to implement effective crisis management strategies to mitigate
damage and restore reputational integrity.
II. THE IMPACT ASSESSMENT AND ROOT CAUSE OF NEGATIVE PUBLICITY
1. The impact assessment of negative publicity in business
Negative publicity in business has both negative and positive impacts
1.1. The negative effects of bad publicity in business
Negative publicity affects a business's reputation, financials, and employee morale Damage to brand reputation
Negative publicity can destroy trust between the company and its customers,
employees, and investors. Besides, customers may develop a negative perception of the
brand, associating it with poor quality or other negative attributes. Evenly, the brand’s image a nd reputation ca
n be affected. This leads to difficulties in attracting new
customers and retaining existing ones. Financial loss
Negative publicity can be the culprit of a decline in sales since customers may choose
to boycott the company or its products. This also negatively impacts the company’s stock
price, leading to a decline in shareholder value.
Employee morale and retention
Negative publicity can damage employee morale, because they may feel embarrassed
to work for the company. Therefore, attracting top talent becomes more challenging as
potential employees may be hesitant to join a company with a tarnished reputation.
Employees may be more likely to leave the company, leading to increased turnover and higher recruitment costs. Legal issues
Negative publicity can sometimes lead to lawsuits from customers, employees, or
other stakeholders who feel harmed by the company's actions. Therefore, the company
may face increased regulatory scrutiny and potential fines or penalties.
1.2. The positive effects of negative publicity in business Increased brand awareness
Negative publicity can have significant impacts on both unknown brands and established brands:
For unknown brands, negative publicity can paradoxically increase awareness. A
scandal or controversy can draw attention to your brand, because people have a
tendency to be more curious about negative things than normal things. Unknown
brands can take advantage of negative publicity for free marketing or PR. This is a
great way to make more people know their name on the market, and it is also a
strategy to compete with established brands.
For example, the Case of Justine Sacco. In 2013, Justine Sacco, a relatively
unknown PR executive, tweeted a racially insensitive joke before boarding a flight to
South Africa. The tweet quickly went viral, sparking outrage and widespread
condemnation. While the incident was undoubtedly harmful to Sacco's personal
reputation, it also had an unexpected impact on her brand awareness. The sheer
volume of media coverage and social media discussion surrounding the tweet
catapulted her name into the global spotlight.
For established brands, they sometimes use negative publicity as a strategy to
remind their existence on the market. This can potentially lead to increased brand recall.
For instance, it is the Case of Pepsi and the Kendall Jenner Ad. In 2017, Pepsi
released a controversial ad featuring Kendall Jenner joining a protest and offering a
Pepsi to a police officer. The ad was widely criticized for trivializing social justice movements and appropriating
protest culture for commercial gain. Despite the
backlash, the ad generated immense media coverage and social media discussion.
While the ad itself was widely condemned, it significantly increased brand awareness
for Pepsi. The sheer volume of negative publicity ensured that the ad was seen by
millions of people, even those who would not have otherwise paid attention to Pepsi's marketing efforts.
Increased purchase likelihood and sales
Negative publicity can increase purchase likelihood and sales by increasing product
awareness. Even when the publicity is negative, it still generates media attention and
social media buzz. This increased visibility can expose the product to a wider audience,
reaching new customers who were previously unaware of its existence. This is because
negative publicity can spark curiosity and intrigue among consumers. They may be drawn
to the product to form their own opinions about the controversy or to see if the negative publicity is justified. Opportunity for improvement
Negative publicity can highlight weaknesses in a company's operations or customer
service. In this situation, if the company can address these issues, the company can
improve its overall performance. Moreover, learning from mistakes and developing
effective crisis management strategies can help a company better handle future challenges.
In conclusion, while negative publicity is generally undesirable, it's important to
recognize that there may be potential benefits under certain circumstances. By
understanding these nuances and responding strategically, businesses can minimize the
damage and even capitalize on the situation.
2. The cause of negative publicity
The next step is to analyze the cause of negative reactions. Common causes of
negative publicity include product/service issues, marketing mistakes or unethical business practices. 2.1. Product/service issues
Poor Quality: Poor quality can significantly erode customer trust. When products or
services don't meet expectations, it leads to disappointment, frustration, and negative
word-of-mouth. Defects, inconsistencies, or simply a lack of attention to detail can all
contribute to a negative customer experience
Ineffective Customer Service: A company's customer service team is often the first
line of defense against negative publicity. Slow response times, unhelpful agents, or rude
behavior can quickly turn a small problem into a major crisis. Effective customer service
requires empathy, patience, and a genuine desire to help. 2.2. Marketing mistakes
Misleading Advertising: False or exaggerated claims can severely damage a brand's
credibility. When consumers feel deceived, they may not only avoid the product but also spread negative word-of-mouth.
Poorly Executed Marketing Campaigns: Offensive or insensitive campaigns can
alienate customers and damage a brand's image. It's crucial to carefully consider the
potential impact of marketing messages and to avoid any content that could be perceived as harmful or insensitive.
2.3. Unethical business practices
Environmental Impact: Negative practices like pollution, deforestation, or
unsustainable resource use can lead to public outrage, government regulations, and
boycotts. Companies must prioritize sustainable practices and minimize their ecological
footprint to maintain a positive image.
Social Issues: A company's stance on social issues can impact its brand reputation and
customer loyalty. Involvement in controversial social issues, such as discrimination,
inequality, or political polarization, can alienate customers and employees. Companies
should strive to be socially responsible and avoid taking positions that could harm their reputation. Illustration
The "Volkswagen Dieselgate" crisis
Volkswagen, which owns 70% of the U.S. passenger-car diesel market promoting
“Clean Diesel” as an alternative to hybrid and electric vehicles, is in major trouble for
cheating on diesel emissions tests (Graham, 2015). This intentional fraud with the purpose
of sales improvement leads to reputation risk for Volkswagen.
In terms of what the scandal is, briefly it is a deliberate fraud on customers by using
special software to manipulate diesel performance in order to improve its sales volumes.
Specifically, Volkswagen installed emissions software on more than a half-million diesel
cars in the U.S. and roughly 10.5 million more worldwide.
As for when the scandal happened, in the early warning phase signs of irregularities in
Volkswagen cars were first discovered in 2014 by the International Council on Clean
Transportation (ICCT). Specifically, ICCT summed
up the data from three different
sources on 15 vehicles and detected additional emissions during live road tests on two out of three diesel cars.
However, though given a memo about emissions irregularities in 2014, Volkswagen
insisted for a year before the outbreak of the scandal and continued to install defeat
devices in its cars by indicating that the decision by employees to cheat on emissions tests
was made more than a decade ago.
September 18 2015, the US EPA issued a notice of violation on Volkswagen Group
alleging that approximately 480,000 Volkswagen automobiles equipped with 2-litre TDI
engines, and sold in the US between 2009 and 2015, had an emissions compliance defeat device installed
The reason why the scandal happens
Following are the possible reasons about why Volkswagen’s diesel performance scandal happens.
Firstly, Volkswagen does not have enough internal mechanisms to control and detect
the scandal. Therefore intentional manipulation of individual engineers and the production
process cannot be found and solved timely.
Secondly, the external control environment of Volkswagen is also not good. Emissions
regulations are less stringent in European when compared with U.S., therefore the firm is
confident that their scandal will not be punished by the European emission regulation
Moreover, culture within the company can contribute to the scandal as well.
Volkswagen is known for its tolerance of rule-breaking. Specifically, its unusual culture
including confident, cutthroat, insular and ruthless is considered as potentially enabling
Volkswagen’s lawbreaking behaviour. Thus, employees and management within
Volkswagen do not take the diesel performance manipulation seriously, which deepen the scandal finally How the company responded
Volkswagen's response to the crisis was initially slow and inadequate. The company
initially denied any wrongdoing and attempted to downplay the issue. However, as
evidence mounted and public outrage grew, Volkswagen was forced to admit it's
deception. The company faced significant legal and financial consequences, including
billions of dollars in fines, recalls, and compensation payments to affected customers.
Firstly, Volkswagen provides solutions to affected customers by vehicle buybacks,
vehicle modifications, cash compensation, lease agreement cancels and customer
goodwill package. This way, customers will get benefits and their dissatisfaction with the scandal will be mitigated.
Secondly, Volkswagen provides solutions to its facing penalties by setting aside
money to deal with fines and conducting internal/external investigations to find the
reasons of fraud. This way, Volkswagen can repair its reputation to some degree.
Thirdly, Volkswagen provides solutions to affected environments by recalling vehicles
and establishing a fund to address the excess NOx emissions created by the affected
vehicles. Similarly, this way, Volkswagen can reduce emissions to the environment to
some extent and repair its reputation. III.
SOLUTIONS TO HANDLE NEGATIVE PUBLICITY
1. Clear and honest response
Sometimes the bad publicity is based on lies or misconceptions, but what if it isn’t?
What if the problem is legitimate? You need to be transparent. “Honesty is the best
policy”. It’s never a good idea to try and hide or cover up bad news because chances are
people either already known or they’ll find out.
When negative publicity occurs, being open and honest with your audience is critical.
Trying to hide or deny the problem will only make matters worse. Instead, acknowledge
the problem and provide clear and concise information about what occurred and what
steps you are taking to address it. This will help build trust and credibility with your
audience. Let your audience know what steps you are taking to address the situation and
prevent similar situations from occurring. Make sure to share relevant information about
the situation with your audience. This may include issuing press releases, holding press
conferences, or communicating directly with customers or other stakeholders.
Or in this case, an official apology could be made through a statement, video, or social
media post, which can help to improve your image. In addition to the apology, providing
compensation and reviewing your policies to avoid similar incidents in the future may
also be required. Transparency through not only words but also through actions can
preserve the company’s reputation. Illustration
For example, fast food brand KFC experienced an embarrassing PR disaster in 2018. It
had to temporarily close hundreds of stores because of an issue with the chicken supplier.
But how this brand handled a public relations crisis with humor, accountability, and effective communication.
KFC quickly owned up to their mistake and took to social media to try and bring humor to the situation.
“The chicken crossed the road”, was the fast-food chain’s response, “just not to our restaurants”.
Along with this headline, they addressed the situation and explained what caused it.
After that first “The Colonel is working on it” tweet, they followed it up with more
“updates from the colonel”. They even set-up a website amusingly containing crossed- the-road
in the URL. Lastly, they created a hashtag #wheresmychicken to keep their customers informed.
Additionally, KFC posted a few Q&A style images on Twitter under a caption
“There’s gossip in the hen house, here are the facts…”.
Last, but not least – KFC ran an ad apologizing for the shortage in their own unique way.
Through it all, they stayed true to their brand voice whilst putting emphasis on keeping
their customers informed through the whole process.
This is a great example of crisis communication because the way that KFC reacted
completely reflected their brand values. They did everything transparently, swiftly, and
true to their brand voice, which made everyone put away their torches and celebrate their
favorite fast food giant's humility.
The lesson for many businesses in tackling the issue through KFC’s story is to own up
to your mistake. Don’t try to sweep problems under the rug. Be as direct as possible, but
don’t incriminate your business either. Be honest about the wrongdoing, but don’t
exaggerate it. You want to be apologetic but also hopeful and positive at the same time. In
addition, try to react to the problem as quickly as possible. Delaying the issue day-to-day
can make everything worse. Of course, do not forget to keep your audience informed. Let
the customer know that you are trying to make the issue better.
2. Engagement with media and stakeholders
To effectively navigate negative publicity, businesses must prioritize open and
transparent communication with media, stakeholders, and the public. This involves
promptly addressing inquiries from journalists, bloggers, and influencers with accurate
and timely information. By providing clear and concise responses, businesses can
mitigate the spread of misinformation and maintain credibility.
Simultaneously, engaging with customers and partners on social media platforms is
crucial to foster trust and transparency. Actively monitoring social media channels allows
businesses to identify potential crises early on and respond promptly to customer concerns
and complaints. By addressing issues directly and empathetically, businesses can
demonstrate their commitment to customer satisfaction and prevent negative sentiment from escalating.
A well-crafted communication strategy is essential to keep all stakeholders informed
throughout the crisis. This involves developing key messages and talking points to ensure
consistent messaging across all communication channels. Regular updates, whether
through press releases, social media posts, or email newsletters, help maintain
transparency and keep stakeholders informed about the situation and the steps being taken to address it. Illustration
A notable example of effective crisis communication is Microsoft's Response to the Data Breach.
In April 2024, Microsoft discovered a data breach affecting user accounts that could
have exposed sensitive information. This posed a serious threat to user trust and the company's reputation.
Microsoft immediately notified affected users of the breach. The communications were
not only timely but also detailed, including clear and concise steps on what affected users
should do to protect their accounts.
The communications were also sent directly through the Microsoft Account
Management System, ensuring that affected users received the information directly in
their inbox. Microsoft also provided affected users with free credit monitoring and
identity theft protection services.
The tech giants also issued a public apology, fully acknowledging the breach. They took full responsibility.
-> This is arguably one of the most successful examples of crisis management.
Microsoft’s customer service combined with a strong and authentic crisis communications plan.
Supporting affected users with helpful advice, follow-up products and services was a
great move. In a situation like this, where consumer confidence can be deeply and
negatively affected by such an issue. This kind of effective crisis management minimized
the potential for further damage.
3. Utilization of crisis as an opportunity for improvement
How businesses can use a crisis as an opportunity to improve their
products/services and rebuild trust.
Milton Friedman, the famous US economist, once said: “Only a crisis – actual or
perceived – produces real change”.
It does this because it thrusts change upon us. In a crisis we are often forced to
embrace the change – we are compelled to stop procrastinating and to think and act
differently. As the old expression goes; “necessity is the mother of invention”.
A crisis can reveal things to you – about yourself and others – and it can also bring
new insights as to how you may more effectively operate your business. The crisis also
provides opportunities to have different conversations with your clients.
So how can businesses leverage a crisis?
Embracing the power of endurance
In times of crisis, resilience becomes a vital attribute. Successful individuals and
organizations choose to face challenges directly rather than succumb to #fear or despair.
By maintaining a positive mindset, focusing on solutions, and learning from setbacks,
they develop the resilience needed to weather the #storm and emerge stronger. Thanks to
this resilience, we gain the power to transform times of crisis into a fertile ground for opportunity.
Identifying hidden possibilities
Crises often reveal hidden opportunities that may not have arisen in stable times.
Disruptions in established systems and markets make room for new ideas, innovative
solutions and untapped potential. By closely observing the changing landscape and
identifying emerging trends, entrepreneurs and forward-thinking individuals can capture
these hidden possibilities. Whether identifying gaps in the market or addressing emerging
needs, those who are agile and savvy can position themselves to succeed.
Promoting adaptability and flexibility
In times of crisis, adaptability and flexibility become crucial. While rigidity and
resistance to change impede progress, those who are open to new approaches and willing to tur
n can navigate more easily through uncertainty. Embracing change allows
individuals and organizations to reassess their strategy, realign their goals, and make the
necessary adjustments to thrive in the new reality. By embracing adaptation, we turn the
crisis into a catalyst for growth. Promoting innovation
Crises often ignite innovation as individuals are forced to come up with new solutions
to unexpected challenges. Necessity becomes the mother of invention, and those who
adopt it can make a significant impact. By fostering a culture of creativity and providing
the necessary resources, organizations can unlock the potential for breakthrough
advancements. Investing in research and development, collaboration and experimentation
enables us to turn crises into an opportunity to innovate and progress. Solution
Turning times of crisis into opportunities requires a shift in perspective, resilience,
adaptability and commitment to innovation. Embracing challenges with an open mind and
determined spirit can lead to breakthroughs, advancements and ultimately success. As we
move through uncertain times, let's remember that within every crisis there is the potential
for growth and transformation. By harnessing the power of opportunity, we can become
stronger, more capable and ready to seize the future. Together we can turn crisis into victory. Illutration
With a reputation for providing quality coffee and fostering a welcoming environment,
Starbucks faced a significant crisis that put its brand image at stake.
The way a company responds to a crisis can have far-reaching consequences,
impacting its customer loyalty, shareholder confidence, and overall success.
Examining the strategies employed by Starbucks to navigate this crisis, evaluate their
effectiveness, and uncover valuable lessons for businesses facing similar challenges. Introduction
Starbucks, a global coffeehouse chain, was founded in 1971 in Seattle. It began as a
single store but expanded rapidly under Howard Schultz's leadership, focusing on high-
quality coffee and a welcoming atmosphere. Starbucks is known for its commitment to
ethical sourcing, innovation, and customer service, making it a popular choice worldwide.
Over the years, Starbucks has become a symbol of premium coffee experiences and a
beloved brand embraced by millions of people around the globe. The crisis
The crisis that unfolded at Starbucks was centered around an incident in one of its
stores that sparked widespread controversy and public outrage.
In April 2018, a video surfaced on social media showing two black men being arrested
at a Starbucks store in Philadelphia. The incident occurred when the men, who were
waiting for a friend, were denied access to the store’s restroom. The store manager called
the police, alleging that the men were trespassing.
The video quickly went viral, drawing attention to issues of racial profiling and discrimination.
The events leading up to the crisis can be traced back to a combination of store policies
and employee training practices. Starbucks had a policy in place that required non-paying
customers to make a purchase before using the store facilities.
This policy, coupled with the discretion given to store managers, created a situation
where individual judgment played a role in determining who was allowed to use the
facilities. In this case, the store manager’s decision to call the police escalated the
situation, drawing significant public scrutiny.
Crisis management strategies used by Starbucks
Following are the key aspects of crisis management strategies used by Starbucks: Immediate actions
Immediate actions taken by Starbucks Recognizing the urgency of the situation.
Within 24 hours of the incident, the company’s CEO, Kevin Johnson, publicly apologized
to the individuals involved and expressed deep regret for what had transpired.
Starbucks took immediate action by announcing the closure of more than 8,000
company-owned stores across the United States for a half-day of racial bias training. This
decision demonstrated a commitment to addressing the underlying issues and
implementing tangible measures to prevent similar incidents in the future.
Communication channels used
Starbucks utilized multiple communication channels to address the crisis effectively.
The company made extensive use of social media platforms, such as Twitter and
Facebook, to disseminate its messages. Starbucks posted public apologies and updates on
its official social media accounts, engaging directly with customers and the general public.
Additionally, the CEO and Chairman conducted several media interviews to convey
the company’s stance and commitment to resolving the crisis. Starbucks also employed
traditional media outlets, press releases, and official statements to ensure a wide reach and
consistent messaging across various communication channels. This comprehensive
approach aimed to provide timely and transparent information while actively engaging
with stakeholders during the crisis.
Employees training and policy changes
Starbucks recognized the need to address implicit bias and promote inclusivity among
its employees. The company implemented a comprehensive training program focused on
racial bias awareness and prevention.
This initiative, known as “Starbucks Bias Training,” involved closing over 8,000
company-owned stores across the United States for a half-day to provide racial bias
education to 175,000 employees. The training sessions were designed to create awareness
of unconscious biases, foster empathy, and equip employees with strategies to ensure an
inclusive and welcoming environment for all customers.
Revising company policies and guidelines
Alongside employee training, Starbucks undertook a thorough review of its policies
and guidelines to ensure they aligned with the company’s commitment to diversity and inclusion.
One significant policy change was the revision of the “Third Place Policy,” which
governs customer access to Starbucks facilities. The updated policy clarified that
customers are welcome to use Starbucks spaces, including restrooms, regardless of whether they make a purchase.
Through these employee training initiatives and policy changes, Starbucks sought to
address the root causes of the crisis and build a more inclusive and welcoming culture
within its stores. By prioritizing education and revising policies, Starbucks aimed to
prevent bias and discrimination, demonstrating its commitment to creating a safe and
inclusive environment for all customers.
Rebuilding Trust and Reputation
Rebuilding trust and reputation is a critical process for organizations that have
experienced a crisis or faced significant challenges. It involves implementing long-term
strategies to regain the trust of stakeholders, rebuild a positive brand image, and restore
confidence in the organization’s values and actions.
Starbucks engaged with local communities and various social initiatives to rebuild its
brand image. The company actively participated in community events, supported local
organizations, and initiated social impact programs. These efforts showcased Starbucks’
commitment to social responsibility and its desire to positively contribute to the communities it serves. Conclusion
Starbucks maintained consistent communication during the crisis, reinforcing its
commitment to diversity, inclusivity, and social responsibility. By addressing the issue
proactively and transparently, Starbucks aimed to rebuild trust and align its brand image with its core values.
This case study highlights the importance of timely response, effective
communication, and proactive measures in crisis management. Starbucks demonstrated
leadership accountability, employee training, and policy changes to foster inclusivity and prevent future incidents.
By learning from this case, businesses can better prepare for crises, protect their
reputation, and maintain stakeholder trust.
4. Future negative publicity prevention
In today's fast-paced digital landscape, negative publicity can spread like wildfire,
causing irreparable damage to a brand's reputation. Protecting your brand from harmful
publicity is vital to maintaining trust and ensuring long-term success.
But, how can you avoid negative publicity and safeguard your brand?
There are some effective strategies to your brand from potential reputational risks.
Creating proactive communication strategy to mitigate risks