United Airlines has leapt into a brand disaster of mythic proportions. In a scandal that’s still evolving quickly, the company’s employees had Chicago Department of Aviation officers forcefully remove a passenger — a paying customer sitting in his seat — from an overbooked flight. Around the world, people watched a video of the bloodied man being dragged down the aisle. The company’s stock lost hundreds of millions of market cap, but the damage to the brand (and future sales) may be far higher.
Pepsi, United, and the Speed of Corporate Shame
Empowered employees could prevent these disasters.
April 12, 2017
Summary.
All companies now operate in a world that’s closely watching their policies, actions, and how they handle themselves when things go wrong. In light of several high-profile public incidents in which brands came under fire (United Airlines and Pepsi, for example), the author highlights three basic realities businesses are facing. First, now that everyone has a cell phone camera and access to social media, the speed of shame is as fast (and as ruthless) as the internet. Second, everyone expects an apology — and a real one, beyond boilerplate PR language. And third, employees must feel safe and empowered to speak up when they see something going terribly awry.
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HBR Learning
Crisis Management Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Crisis Management. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to manage uncertainty, dispel rumors, and help your team recover.