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The Power of Transparency in Crisis Communication and Management 

Written by

Molly Mullins

in

Torossian, R. (2018)

Why Transparency Matters in a PR Crisis

Public relations is always changing and evolving, but one rule will always remain the same, be transparent. Transparency highlights the importance of honest, ethical communication when it comes to a PR crisis. 

This is important because “providing transparent, timely information helps companies establish trust with interested parties so they can make decisions in their own best interests.” This can be the difference between a ruined career and redeeming a reputation. If a person or organization is not quick to act with a response, or does not respond at all, they can lose all credibility. An immediate, transparent response, can actually help a person or organization gain trust with the public and lessen any damage that has been done. 

Transparency is about telling the truth and owning the narrative. Trust means that an organization “is authentic and reliable” (Managing image reputation and relationships).  A person or organization can show accountability by addressing an issue quickly and directly. This helps them show their responsibility and remorse, and can lead the public to have empathy. Today, cancel culture and public humiliation are increasing because of the modern digital world. Full transparency allows brands to avoid the digital scrutiny or at least lessen it, this gives them the control to own their story. 

Starbucks Crisis Communication Response 

A major example of transparent crisis management was Starbucks’ response to the 2018 Philadelphia racial bias incident. Two African American men were unjustly arrested at a Starbucks location for waiting for a friend. Starbucks received immediate and aggressive backlash for racial profiling. Starbucks’ management was quick to respond with transparent communication.

Starbucks CEO Kevin Johnson created an apology video the day after the arrest. He called the arrest “reprehensible” and accepted full responsibility. Shortly after, “the coffee chain announced it will close more than 8,000 stores across the U.S. for one day for anti bias training for its employees.” This sent the public a message that the company took the incident very seriously and were working to better themselves in the future.

The transparent response from Starbucks most likely saved the company from a boycott. The company itself would not have gone under, but would have lost a massive amount of sales. This proves that companies need to manage crisis communication with quick, honest, and ethical responses. 

Importance of Trust in Crisis PR and Management 

Starbucks’ handling of its crisis shows how transparency can rebuild public trust and strengthen brand integrity. Public relations professionals need to understand the importance of honesty. A company needs to own up, speak up, and show up to manage a crisis. This will make the biggest difference in making or breaking their brand. Social media and other technology has made it even harder for companies to survive, and those who practice transparency are more capable of navigating public scrutiny and managing their reputation. 

A Follow-Up Message from Starbucks CEO in Philadelphia

Tags/Keywords

#PublicRelations #Starbucks #StarbucksCrisis #CrisisCommunication #Transparency #PRStrategy #ReputationManagement #KevinJohnson

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