Reputation Management Strategies for Corporate Crisis Events

This literature review explores reputation management strategies employed by key stakeholders, companies, celebrity endorsers, and the public during corporate crises, especially those amplified by social media. It examines the causes of corporate crises, including the impact of social media and online word-of-mouth, and discusses various crisis management approaches such as clear objective setting, dedicated team formation, and proactive communication. The review emphasizes the importance of advanced planning, honesty, and stakeholder engagement in mitigating reputational damage and effectively managing crises in the contemporary digital landscape. The paper highlights that social media has become a critical tool for both causing and resolving crises, necessitating careful and strategic management of online communication.

A study of the reputation management strategies in corporate crisis 1
A STUDY OF THE REPUTATION MANAGEMENT STRATEGIES TAKEN BY KEY
STAKEHOLDERS, THE COMPANY, THE CELEBRITY ENDORSER AND THE PUBLIC,
IN RESPONSE TO A CORPORATE CRISIS EVENT MADE VISIBLE THROUGH THE
CONTEMPORARY SOCIAL MEDIA CONTEXT
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A study of the reputation management strategies in corporate crisis 2
Literature Review
In this section, it is evident that the use of social media remains as the best device for
management of reputation among key stakeholder, organization, celebrity endorser, and the
public in response to the crisis event. Before emergence of information together with
communication technology that leads to empowerment of people, stakeholders of different
companies, endorser of celebrity, and the public were more careful on management of strategies
due to insufficient knowledge of product, low service or product alternatives, or lack of trust on
data provided through social media.
Management of crisis
The occurrence of crisis in most cases can result in a devastating effect on operations of any
company globally. When such instances of crisis occur, there is the need to put appropriate
strategies of managing such reputations into reality (Siemiatycki, and Siemiatycki 2016, p.
1254). Failure to manage crisis within company management has to focus on creation of public
relations responses to fight the reputational crisis (Zipporah and Dr.Mberia 2014, p. 2279). It is
the responsibility of every manager of a company to ensure that its organization is capable of
responding to the crisis and in the process of response, it must maintain reputational strategy.
Using a distancing approach to solve the crisis
The company has to set legitimate arrangements of its operations and exact concentrate on
failure to which will make it fail in having the capacity of successful bargaining with the impacts
of the crisis as well as recouping to its past state. Regarding the rule, it indicates that "Preferable
counteract over treat," best way of adapting effectively to different operational crises by an
organization is through ideas of maintaining a strategic distance from their operations

A study of the reputation management strategies in corporate crisis 3
(Verhoeven, Van Hoof, Ter Keurs, and Van Vuuren 2012, p. 502). Most business in global
society has demonstrated that crises in management can truly be counteracted as well as
maintained a strategic distance during management process. However, establishment of
appropriate avoidance operations together with an appropriate hierarchical structure can allow
every organization to distinguish and oversee in due time any conceivable dangers that can result
to management crisis (Phan 2017, p. 27). It is evident that crisis management always approaches
different dangers that are made visible through the contemporary social media context from the
responsive manner. The management tends to depict various events that should be created while
maintaining the final target to decrease the disaster among key stakeholders of the company,
endorser of celebrity and the public (Shayb 2017, p. 31). With different approaches of
management of crisis set in place, there is some negativity that does arise in the process of
management in responding to the corporate crisis event that is made visible through the
contemporary social media context.
Some of the causes of corporate crisis
There are several causes of corporate crisis that key stakeholders of a company, celebrity
endorser, and public need to form reputation strategies to manage effectively. The causes of
corporate crisis event that are made visible through the contemporary social context can be
classified in different ways depending on the level from which they influence position of
organization and where they appear in operations (Chun 2005, p. 97). Some of these causes of
corporate crisis on event made visible through the contemporary social context consist of online
marketing along with online word of mouth firestorms (Helm and Tolsdorf 2013, p. 147). Other
causes of corporate crisis include insufficient funds for operations, drop in market share,

A study of the reputation management strategies in corporate crisis 4
advancement in technological usage, changes in the market, changes in marketing legislation,
and natural disasters among other elements.
Growing use to social media as a reason for creation and solution of crisis
It is one of the significant impacts of uses of social media that causes corporate crisis. There is a
changing focus on the use of social marketing for promotion on different sites such as Facebook,
WhatsApp, Twitter, LinkedIn, and Instagram among other societal media podiums. The use of
societal media has remained to be an essential approach of attracting consumer by offering ideal
platform to them in expressing their views concerning operations of organization (Nijkrake,
Gosselt, and Gutteling 2015, p. 83). Social media platforms on one side remain to be a highly
beneficial setting for propagation of word-of-mouth of advanced ideas and products. The use of
these platforms has constantly made them be the focus of communication for marketing (Feffer,
Zorbach, and Carley 2014, p. 123). Besides, different organizations, key stakeholders, and
celebrity endorsers have been countering effect of harmful online marketing together with online
word-of-mouth with complaint traits. The online firestorms pose advance challenges for
marketing communication leading to corporate crisis that is always made visible through the
contemporary social media context (van Dreven and Koolma 2012, p. 214). As reported by
Osaretin (2017, p. 25), feeling of shaping the progression of crisis management through web-
based networking media destinations are commanded by different variables. These variables
include speed and volume of correspondence, arrange groups, parallel decisions, unreasonable
data stream, and absence of assorted qualities, cross-media flow, and system activated choice
procedures. All these variables are very interrelated (Eriksson and Olsson 2016, p. 201). The
word of mouth firestorms should be handled appropriately through means of focusing on by the
marketing communicators, and tactfully the situation needs to be handled.

A study of the reputation management strategies in corporate crisis 5
Most common approaches to crisis management
Management of crisis in operations of corporate focuses on the process that organization deals
with the unexpected and disruptive event that threatens to harm the stakeholders or operations of
organization. The approaches of managing crisis consist of different consequent steps from the
acknowledging of impacts of disaster on company to preventing, overcoming, or alleviating the
different kinds of crisis (Eriksson and Olsson 2016, p. 203). Before striking of a crisis,
management of organization owners always thinks on different ways a disaster might impact
workers, clients, suppliers, the general public, celebrity endorsers, and their values of
organization. The crisis can strike any operations of the company at any time and any place.
Therefore, advanced planning of appropriate approaches of managing crisis is the key to survival
(Helm and Tolsdorf 2013, p. 149). Advanced planning to manage crisis is the key to survival of
operations of workers and other stakeholders in a corporation. Some of the approaches to use in
crisis management include ideas of having plan, identification of spokesperson, being honest and
open, as well as keep workers informed. Other approaches include need of communication with
suppliers and customers, update early and often, and improving operations through social media.
The other steps that can be used for crisis management i9nclude activities that the business uses
to respond or counter in the face of a major crisis (Mio and Fasan 2012, p. 276). These steps
consist of development of clear objectives, focusing on employing a dedicated team, keeping the
communication flowing, focusing on prevention model as an approach that is better than cure,
together with anticipating the crisis.
Clear objectives

A study of the reputation management strategies in corporate crisis 6
With clear objectives of operations, nothing will fall into place as the organization operates. If
management lacks a detailed and crystal clear objective, then the company can face crisis in
operations. For this reason, an individual in the management needs to have ideal focus of what
their business targets are together with how particular disaster will impact these targets of
operations (Zafer 199, p. 305). Hence, an individual comes up with aims of planning for disaster
management. There exist several predictions and thoughts that go into this specific approach of
managing catastrophes in operations. Therefore, by the use of this approach, a lot of foresight is
needed.
The process of management in predicting what their organization may stumbled upon is often not
simple, particularly if they fail to have large organization, or have been undergoing through
smooth nautical for extended period presently. These approaches always silence businesses into
fall intellect of security that has upsetting costs at duration of disaster (Podnar, Tuškej, and
Golob 2012, p. 913). Therefore, to avoid such corporate crisis, there is a need to plan out from
the start by planning every operation carefully. Besides, there is a need of being aware of the
details of every single individual, stakeholders, parties, celebrity endorsers, and key stakeholders
that will be impacted by this approach. Therefore, by setting a clear objective, management can
at that point set out the arrangement for how to conceal misfortunes with every one of the
gatherings parties that are involved in operations. All these parties in operations of corporation
must be kept on top of it. From that point on, in view of all these set clear goals during corporate
operations, management has point by point plan in composed frame and back it with all
important relevant legal actions together with proper documentation (Mitra 2011, p. 13).
Therefore, every activity that has to be done that relates to every section of business operation
need to have point by point out in this arrangement. The arrangement should then be in like

A study of the reputation management strategies in corporate crisis 7
manner disseminated to each individual concerned and associated with the operations of
corporation. The use of the approach should be suitably spread to every individual concern and
linked to the organization (Zafer 199, p. 306). Furthermore, approach needs to be altered and
refreshed according to the periodical stream of business. Additionally, the management of
corporate should always remember the nearness of budgetary and lawful specialists and their
inclusions at whatever point working out the notoriety for emergency administration plan.
Having a dedicated team
The belief that all-active deck right now of emergency is the genuine approach to remain one of
most common mistakes that corporate face. However, such issues can be the formula for the
significantly greater disaster (Ethan, Basch, Berdnik, & Sommervil 2016, p. 196). To the extent
procedures of reputational emergency administration go, the best methodology of managing the
emergency is to have the whole group that is devoted exclusively for this reason. The
comparators with responsibility of management need to need to and never keeps emergency
administration as a second thought and sitting tight for the minute for emergency to happen for
management of disaster. From start, management needs to commence with ideas of
brainstorming with prediction on what type of disaster the operations of corporation might face.
The process of planning, prediction, together with action course should be decided by this team
of key stakeholders, the company, celebrity endorser, an entire organization. It is imperative to
be careful for the management to be careful about the personnel that will exist in the
team(Köster, Rüth, Hamborg, & Kaspar 2015, p. 186). Team of managing crisis has to be headed
by CEO, and they should be advised by the senior members of the departments that deal with
public relations along with the senior legal executive of the corporate.

A study of the reputation management strategies in corporate crisis 8
Another essential idea is to employ specialists on the team to help in crisis management.
Providing special training to individuals if there is a it ought to be in a perfect world an
opportune practice to refresh, examine, and audit any conceivable emergency by the business
amid whenever and the conceivable ways to deal with forestall and handle emergency (Eriksson
and Olsson 2016, p. 202). On the off chance that administration trusts that their business does not
have enough aptitude or master people for this kind of work, the colossal alternative is to choose
the legitimate firm or any office that practices amid emergency.
Keeping communication going
It is essential feature of corporate disaster management. It has to be open together with well-
structured system of communication by use of social media platforms. Initial step is to impart all
the potential risk and emergency to the concerned gatherings that would be the key partners,
celebrity endorsers, public, and organization’s customers. The first, as well as foremost issue to
perform is to focus on appointing all around prepared and very much educated emergency
representative (Mersham, Skinner, and Rensburg 2011, p. 198). On the off chance that there
exists a shot that particular emergency will have the effect on general society and in addition
clients, at that point there will undoubtedly be association of media. Therefore, duty of
representative is go about as the company's voice, ready to assuage general public along with
every inquiry with apprehensions. The other essential factor is trustworthy and transparent in
operation as a way of managing catastrophe in corporate (Carrillat, d'Astous, and Christianis
2014, p. 1028). There is a need to ensure that the workforce is always updated with latest
operations particularly in crisis time. The process can help in preventing the ill-feelings and
workers might feel that they are well informed and part of company operations.

A study of the reputation management strategies in corporate crisis 9
Apology as a method to solve crisis
In business operations, it is evident that each business makes mistakes. The need for apology
helps every operator to focus on losing customers forever and gaining lifelong fans. Therefore, it
is clear that every organization and management is at some point going to screw up their
operations (Zheng, Liu, and Davison 2018, p. 61). So the question becomes, if, as well as how,
they need to apologize. Apologizing help in ensuring that management of corporate
acknowledges that they understand and hold responsibility for every negative element that may
affect their customers. Public apology is always the high-risk move in ensuring that corporate
crisis is well addressed (Mitra 2011, p. 13). It is important for key stakeholders, organization,
celebrity endorser, and public to understand what apologies can and cannot do in time of crises.
The idea might help them to avoid both foolhardy stonewalling as well as unnecessary contrition
(Köster, Rüth, Hamborg, & Kaspar 2015, p. 187). Corporate need set guidelines for determining
if the misstep merits the apology and when it does, the manner of delivering the message.
Apology as technique to solve crisis in an organization is even more difficult in its operations. In
considering whether as well as how to apologize, even seasoned managers can become gripped
by indecision in the process (KesetovicK,Toth, and Korajlic 2014, p. 174). The situation is
understandable, however, crisis of company is often caused by the single division or worker, and
the bad situation is occasionally made worse by different vents that are beyond their control.
Most apologies do not incur any form of charge and may create substantial value. They can help
in operations of corporate in defusing the tense situation and fears of legitimating are often
unfounded (Mason 2014, p. 81). The reasons for apologizing as a way of solving crisis is
because it removes the violations that had been real o perceives by enabling an individual to
accept full or partial blame for causing any harm. It is essential as it determines if violation was

A study of the reputation management strategies in corporate crisis 10
core on noncore. It helps in showing how different responsibilities are peripheral or less
consequential.
Celebrity endorsement
The response of organization should always depend on different values and beliefs of the public
along with different types of offense committed as endorser celebrity may not matter so much as
the endorsers a single element. Therefore, management of corporate need to stand in between
endorser and endorsed celebrity in the time of crisis (Carrillat, d'Astous, and Christianis 2014, p.
1029). Every organization has the mandate of planning its reputation management strategies to
help in marketing. According to sediments by Kim, Miller, and Chon (2016, p. 87), the plan can
help in supporting aggressive differential favorable position for the administration of company
and item association. Many organizations tend to contribute immense amount of money towards
adjustment of their brands and operations of endorsers. Such endorsers in most cases are viewed
as exclusive with both alluring and affable traits and arrangement of friends.
Celebrity endorsement remains to be the form of campaign for advertising or strategy of
marketing of different products and services. These strategies are utilized by different brands,
organizations, or non-profit corporations that involve celebrity or well-known individuals using
their social status or their fame (Wartick 2002, p. 381). It helps in promotion of products,
service, or even increase awareness on environment or matters to deal with social activities
during corporate reputation of corporate management. Celebrity branding is having the product
that the endorsers want and utilizes and incorporates into their culture along with having some
understanding concerning the product (Chang and Ko 2016, p. 683). Moreover, celebrity
endorsement poses considerable effects in sales of products and brand by an organization as they

A study of the reputation management strategies in corporate crisis 11
can offer to supply different data that focuses on advantages and remarkable features of the
product in standard and unbiased form.
Celebrity Endorser activity
Given below are all the actions and reactions taken by Pierce Brosnan during the crisis. This
section covers all the important steps taken by him to cover up for the crisis and maintain a good
image in front of the society and the audience. It covers a series of activities undertaken by him
and what he considered was the best approach to overcome the crisis (Carrillat, d'Astous, and
Christianis 2014, p. 1027). However, from a marketing communication (marcom) perspective, it
is significant that associations plan methodologies that help bolster forceful differential good
position for an affiliation's things or organizations. In like way, marcom practices move down
various parts in the promoting mix, for instance, thing arrangement, marking, bundling, valuing,
and put decisions (appropriation channels and physical dissemination) to attempt to make
advantageous results in the brains of buyers (Helm, S. and Tolsdorf 2013, p. 149). In achieving
this, use of whiz endorsers is a used marcoms methodology.
Associations contribute gigantic totals of funds to alter their products as well as and key
stakeholders to endorsers. Such endorsers are seen as one of a kind with both charming and
amicable qualities and companions' course of action that these attributes are traded to things
through marcom works out (Mason 2014, p. 87). Furthermore, given their notoriety, superstars
serve to make and care for thought, and in addition to achieve high survey rates for marcoms
messages in the present much-cluttered circumstances. Initially, this technique appears a no-
chance or all-pick up circumstance, be that as it may, likewise with any powerful marketing
communication methodology leading to possible perils (Kim, Miller, and Chon, 2015, p. 186).

A study of the reputation management strategies in corporate crisis 12
People can vary while endorsement dealings can be on rise during reputational crisis
management.
Concept of Corporate Reputation
Corporate notoriety impacts the way by which distinctive accomplices bear on towards an
affiliation, influencing, for example, delegate upkeep, shopper devotion, and customer
steadfastness. As anybody may expect, CEOs see corporate notoriety as a gainful intangible asset
(Feffer, Zorbach, and Carley 2014, p. 119) A great reputation urges investor to put resources into
an organization; it draws in a great staff, holds clients and corresponds with unrivaled general
returns. The term 'paradigm' is typically utilized as a part of the writing to clarify different
gatherings of ways to deal with a specific field of study. For instance, those five unique
paradigms exist in the investigation of authoritative culture, including one including the
utilization of illustration, an approach of pertinence to this paper (Chang and Ko 2016, p. 683).
While the subject has turned out to be progressively well known, from a scholarly point of view,
the idea of corporate reputation stays vague. Inside the reputation paradigm, there is nobody
source up 'til now which catches aggregate of the idea of reputation.
In marketing writing, the terms picture and reputation are utilized reciprocally without clarifying
any connection between what can be helpfully observed as two unmistakable ideas. Early
research into corporate picture concentrated on retail location picture and corporate (mark)
picture in the marketing discipline (Kesetovic,Toth, and Korajlic 2014, p. 175). The photo of a
favored relates retail store with the psychological self-representation of the individual client,
proposing a model of how picture impacts bolster: person's advancement toward getting to be
customers where the photo of the provider resembles the photo they have of themselves.
Authoritative personality is regularly recognized by corporate character in writing (Mitra2011, p.