Worst Crisis Management Examples
Similar to individuals, even organizations should have effective crisis management. It sets the course of the future and showcases the difference between recovering from a setback or facing irreparable damage to reputation and trust. Throughout history, there have been several high-profile cases where crisis management efforts fell short, resulting in disastrous outcomes.
Let’s look at some of the disasters that brands had to endure, courtesy to a lack of planning and bad judgements.
Facebook (Meta): The social media CEO took some major heat during Congressional hearings which led some lawmakers to call for the dissolution of Zuckerberg’s growing social media empire. In the event of receiving severe accusations saying Facebook operates in bad faith and suppresses evidence that its platforms harm kids, Zuckerberg failed to address their concerns and dug in even deeper. Needless to say, it was a clear violation of crisis management which is to never ignore a brewing crisis. Zuckerberg resolutely avoided taking responsibility, instead largely kept blaming the press for deliberately conducting a smear campaign, which predictably brought him even more negative attention. Rebranding Facebook during the throes of its PR crisis was seen by many as an attempt to distract during a time of mass media focus and the calls grew louder on Capitol Hill in an intention to destroy the internet giant’s monopoly.
Elon Musk: The Tesla boss wiped $2 billion off his company’s shares after launching a misguided Twitter rant at a diver who took part in the Thai Cave rescue earlier this year. Mr Musk took offence after one of the divers, Vern Unsworth, had described his attempt to get involved in the Thailand rescue as a ‘publicity stunt’ and told him to stick the mini-submarine he had designed ‘where it hurts’. Displaying an incredibly thin skin and lack of judgement, Mr Musk appeared to label the diver a ‘paedo’ seemingly on the basis that he lives in Thailand and, when challenged, doubled down on the comment by telling his 22m followers, “Bet ya a signed dollar it’s true.” Not only did his actions cost his shareholders dearly but the offensive posts also invited a huge amount of negative media and social media coverage. Even when an apology came, eventually, it took the form of a tweet to someone who had shared an article claiming to give the ‘full story’ behind Mr Musk’s involvement in the cave rescue. And even then, it still attempted to blame Mr Unsworth for ‘several untruths.’ Mr Unsworth later reportedly filed a defamation suit against the tech mogul. Mr Musk’s controversial social media behaviour continued until November of that year when he eventually posted ‘signing off Twitter for a few days’, which should have been the case sooner.
Travis Scott: An epic example of failed crisis management is the Travis Scott Astroworld concert. The concert came on the radar of the world when ten fans died and more than 300 were injured in a crowd crash. The popular rapper apologized for the pandemonium. But his apology didn’t feel sincere owing to his well-publicized reputation for encouraging mayhem at his events. He is now the target of more than 300 lawsuits filed in the wake of the deadly November concert in Houston. And despite cries from concertgoers to “stop the show,” the concert proceeded for nearly another hour, fuelling the criticism that the organizers did not do enough to take proper precautions. Scott did too little to alleviate the disaster while it was unfolding.
Amazon: One of the many complaints and criticisms against Amazon started with a tweet from Amazon’s executive Dave Clark in March 2021. After he boasted about Amazon’s “progressive workplace”, Rep. Mark Pocan clapped back, calling out Amazon’s “union-busting” and the fact that employees have to “urinate in water bottles”, echoing in the reports from 2018. Amazon responded with outright denial to the claim saying it wasn’t true. However, people did believe these stories as there are many documented examples. Numerous reporters who cover Amazon’s labour practices responded to the tweet with evidence and accounts they received from the employees. While the complaints continue to pile onto Amazon, their crisis management tactic seems to be to deny, act ignorant, and bust efforts to unionize. Simultaneously, they also went on boasting about their above-average minimum wage and being the most desirable place to work
Needless to say, when crisis management is badly handled, the reputation and business can suffer some serious damage. These things, especially if they’re touching on the well-being of employees, customers, or the planet, can have a lasting impact. Customers are becoming more aware and alert, and refuse to stay ignorant. Brands can lose customers if they don’t handle a crisis well, and that’s the reason a brand’s actions matter. How they respond to a crisis matters. Additionally, transparency and actions that support the brand’s promises go a long way in helping the brand successfully manage a crisis. This is something the advertising agencies in Gurgaon, Delhi, or across the globe must keep in mind. Having a fully developed crisis management plan will help brands react quickly and effectively in a time of crisis.
