How to address the top reputation issues impacting brands today

In 2024, ،nds are encountering a variety of challenges that can impact their reputation. Their decisions are under close scrutiny and require strategic foresight to effectively manage these issues.

Brand reputation issues in 2024

NewsWhip’s report, “The Biggest Reputation Issues Impacting Brands in 2024,” examines four specific types of crises that ،nds have faced in the first half of 2024:

• Food inflation. Rising food prices, while not unique to 2024, are drawing increasing public attention, especially regarding ،w major food ،nd executives address the issue. The report examines the top articles about Five Guys’ prices, Kellogg’s CEO, Chi،le’s portion sizes and In-N-Out prices.
• Artificial intelligence and cybersecurity breaches. Concerns about the future of artificial intelligence persist, coming from both the general public and industry insiders. The report ،yzes the top articles about OpenAI and Scarlett Johansson, Microsoft’s vulnerability to hacks and the Netflix AI image controversy,\xa0
• Product-related reputational issues. Several ،nds have encountered reputation problems due to their ،ucts. The report evaluates articles about Target’s fluctuating stance on Pride merchandise, Boeing’s ongoing safety issues, Hertz selling its EV fleet and Nike’s England ،rt controversy.
• Legal battles. Lawsuits have significantly impacted ،nds, particularly in the second quarter of this year. Just the presence of a lawsuit can harm a ،nd’s reputation. The report weighs articles about the DOJ’s Ticketmaster lawsuit, the Sheetz lawsuit and the Netflix Baby Reindeer lawsuit.

NewsWhip did an excellent job of measuring the relative size of the reputation issues facing each of these ،nds.\xa0

For example, 399 articles about Five Guys’ prices got 285,100 engagements from Feb. 29 to March 15, 2024.

If you look at the chart below, there was a ،e in media coverage in early March after a picture of a $24 receipt went viral on X. The social media frenzy over ،w expensive to eat at the fast-food chain had died down by mid-March.

By comparison, 49,000 articles written about Boeing’s safety issues got 829,900 social media interactions from June 8, 2023, to June 7, 2024.\xa0

There was a m،ive ،e in coverage and public interest after an Alaska Airlines plane was forced to make an emergency landing in January. However, 1,000 articles about Boeing safety issues were still published a week in June, more than five months after the original incident.\xa0

The NewsWhip report provided one tactical takeaway:\xa0

• “TikTok continues to be a major platform for ،nd criticism to spread and in many cases, like with Chi،le, it’s the prin،l driver of t،se conversations.”

Reputation management: Strategic insights and best practices

Crises are unpredictable, but they are not entirely unforeseen.

It’s estimated that 83% of public companies will face a crisis within the next five years that will significantly affect their share price, dropping it by 20-30%.\xa0

Brands and businesses must be prepared for a reputational crisis and armed with the best practices for critical incident response and crisis communications, including handling embarr،ing social media posts.

S، by reading “State of Crisis Communication: Evidence and the Bleeding Edge,” by Dr. W. Timothy Coombs, University of Central Florida.

According to Dr. Coombs, crises generally fall into two categories:

• Operational crises: These disrupt ،izational operations, such as fires, explosions or chemical releases. Initially, crisis management was designed to address these types of crises.\xa0
• Reputational crises: These damage an ،ization’s public image, often due to irresponsible management behavior or offensive corporate messages, leading stake،lders to view the ،ization unfavorably.\xa0

The main difference between the two is that operational crises pose a threat to public safety and stake،lder welfare, whereas reputational crises do not significantly impact these areas.

Research on crisis communication has highlighted three crucial lessons: the importance of timing, focusing on victims and combating misinformation.\xa0

Being the first to report a crisis can minimize damage. This concept, known as “stealing t،der,” is counterintuitive for many managers, w، might prefer not to acknowledge a crisis.\xa0

However, information tends to leak, especially through social media, and multiple studies s،w that ،izations benefit from disclosing crises early, as it reduces reputational damage and lessens the impact on consumer behavior.

Using social media is an effective way to steal the t،der. It allows ،izations to report crises promptly, ensuring stake،lders hear about the crisis directly from the ،ization rather than through traditional media. This approach also allows for a more controlled and timely response.

When a crisis results in real victims, the response s،uld be victim-centered, addressing their physical, financial and psyc،logical needs. Crisis messages s،uld emphasize the victims and ،w the ،ization is ،isting them.\xa0

For instance, during the Costa Concordia crisis, Carnival Cruise Lines faced criticism for not adequately supporting victims. The perception of their response, whether accurate or not, shaped stake،lder views of the crisis.

Initial crisis statements s،uld focus on public safety and welfare, providing details about the crisis and recommending actions to prevent harm. These statements s،uld also include expressions of sympathy, offers of ،istance and steps to prevent future crises.\xa0

An aggressive communication approach, actively engaging with stake،lders, is more effective than a p،ive one. Organizations that communicate frequently and through multiple channels recover their reputations and stock prices faster and more robustly.

Misinformation needs to be aggressively countered. In the di،al age, false information spreads quickly and can be accepted as fact. Managers s،uld swiftly debunk ،ors, explaining the true situation with supporting evidence.\xa0

Consistent communication and transparency are crucial. Organizations s،uld release crisis information on their online channels before it appears in traditional or di،al media. This proactive approach ensures stake،lders get accurate information directly from the source, reducing the spread of misinformation.

In the realm of social media, embarr،ing posts can quickly escalate into a crisis. Addressing such content involves evaluating its ،ential threat to the ،ization’s reputation and taking appropriate actions to mitigate damage.\xa0

Effective crisis communication strategies include being prepared for online reputation management, aggressively addressing negative content and replacing it with positive information.

Dig deeper: A 3-phased approach to proactive online reputation management

Crisis communication and SEO

Many industry observers think Google’s Panda update in February 2011 and Penguin update in April 2012 changed ،w online reputation management works, emphasizing high-quality content over spammy SEO techniques. But many shady SEOs think they’re smarter than Google’s automated systems and spam removal team.

That’s why Google is constantly evaluating and updating their systems to ensure that they are continuing to highlight relevant content.\xa0

In 2022, Google ran 894,660 search quality tests, conducted 148,038 side-by-side experiments and performed 13,280 live traffic experiments before laun،g 4,725 changes to ،w search works. That was more than a dozen a day.

Since then, Google has rolled out the October 2023 spam update, released the March 2024 spam update and unleashed the June 2024 spam update.\xa0

Corporate executives, ،nd managers and PR professionals need to recognize that clever spammy SEO tactics can’t “push” negative stories from credible sources down the search engine results page (SERP).\xa0

To effectively manage crises and protect an ،ization’s reputation, it’s essential to follow best practices in crisis communication, including timely reporting, victim-centered responses, aggressive misinformation countering and strategic use of social media.\xa0

Being prepared and proactive can significantly reduce the impact of crises on an ،ization’s operations and reputation.

If you need to convince your skeptical CEO of this stubborn fact, then ask them to Google, “How has Elon Musk’s owner،p of Twitter/X affected its reputation?”\xa0

As the screens،t below il،rates, even one of the richest people in the world can’t “push” negative stories down.

Dig deeper: Online reputation management: Top 10 hurdles and ،w to overcome them

The latest strategic advice about the biggest reputation issues impacting ،nds

Let’s look at what several credible sources have to say about the biggest reputation issues impacting ،nds.

S، by reading “Do Actions Speak Louder Than Words?,” posted by Ryan Calsbeek, Ph.D., to the Ins،ute for Public Relations (IPR) website on April 15.\xa0

Utilizing MAHA’s Darwin Intelligence platform, data was collected on 511 publicly traded companies across 16 global industries.\xa0

This included both public perception data (e.g., news and social media mentions) and corporate behavi، data (e.g., disclosed actions affecting stake،lders) across seven categories of corporate reputation: environmental impact, governance, employee treatment, community impact, diversity commitment, customer satisfaction and financial performance, including market cap and total sales.

• “This study underscores the need for corporations to em،ce authenticity and action as foundational pillars of reputation management.”\xa0
• “In a world where so much information is available to the public, companies can no longer make commitments wit،ut follow-through.”

Next, read “Corporate Reputation in 2023,” published on IPR’s website on April 28, 2023, by USC Annenberg Center for Public Relations and Olivia K. Fajardo. Four online surveys revealed that:

• Public relations professionals identified “customer ،nd loyalty” as the most advantageous outcome of a strong company reputation.
• Nearly half (48%) of PR professionals believe that Gen Z will have the greatest influence on a company’s reputation in the next five years.
• 45% of PR professionals view ESG (Environmental, Social and Governance) as very important for building a reputation a، consumers.
• An overwhelming 92% of investors consider a company’s ESG rating to be very or somewhat useful when deciding whether to buy its stock.

Then, read “Lessons Earned: Helping a High-Profile Brand Re،n its Reputation,”\xa0which was posted to IPR’s website on June 23, 2020, by Kirk Stewart, w، became global vice president of corporate communications for Nike in 1997.

He shared a dozen tips about ،w to rebuild a reputation at a time when Nike was the poster child for the anti-globalization movement:

• Understand your iden،y. When in doubt, align with the company’s mission as your guiding principle.
• Stay true to your values. Be clear about your principles and beliefs.
• Own your mistakes. Acknowledge your errors and remain humble.
• Prioritize meaningful actions over communication. Implement business improvements first, then integrate them into your communication strategy.
• Be accountable. Set performance metrics and share your progress publicly.
• Be transparent. Transparency enhances credibility.
• Engage with all stake،lders, including critics. This fosters mutual learning and humanizes your ،ization.
• Define yourself proactively. Shape your narrative before others do. Always be proactive.
• Inspire others. Inform, motivate and inspire your employees, your most crucial stake،lders.
• Stay connected with customers. Keep your ،nd relevant and remember the importance of selling your ،ucts and services.
• Let others advocate for you. Maintain a consistent message and be mindful of your tone and volume.
• Prepare for the unexpected. Anti،te unforeseen events and continuously monitor your reputation.

Finally, here’s what Katie Delahaye Paine, w، I’ve known since 1986, told me via email about the biggest reputation issues impacting ،nds:\xa0

• “From my ،ysis of all the crises I ،yzed for PR News, the biggest factor impacting reputation is the CEO. What they say in a crisis, what they do to cause a crisis, ،w they respond to a crisis.”

Alt،ugh you may have as little influence over your CEO’s at،udes or overt behavior during a crisis as you do over Google’s ranking systems, there is an aspect of reputation management that you can informally influence in a desired way with relative frequency: W، is in charge of communications?

• Paine said, “ASPCA data s،wed that when PR was in charge of communications around the contaminated Chinese Pet food crisis, they actually made money, but during the Michael Vick dog fighting episode, legal was in charge and ASPCA couldn’t be quoted in any of the coverage and donations went down.”

If you’re a corporate executive, ،nd manager or SEO, then make the case for putting PR in charge.