Mitigating Reputational Damage in Corporate Crises

Abstract

This study addresses the critical role of organizational apologies in crisis management, focusing specifically on their impact on corporate reputation and stakeholder behavior. Recognizing that crises can severely damage an organization's reputation and legitimacy, the research explores the complexities of using apologies as a crisis response strategy. It builds upon existing scholarship that has predominantly analyzed the legal and financial aspects of organizational apologies to delve into the nuances of their effectiveness. The study's scope is narrowed down to crises for which the organization is highly culpable, as perceived by public opinion shaped by news media. The research thereby offers granular insights into the strategic utility of varying apology categories, particularly in situations where the organization faces intense media scrutiny and stakeholder skepticism.