How Should Your Organisation Respond to a Reputation Problem?
When an organisation has a reputation problem, its first instinct is often to defend itself. That is usually a mistake.
The first task is not to win the argument.
It is to understand why the argument exists.
Reputation problems rarely disappear because an organisation publishes a better statement. They are resolved when stakeholders believe that the organisation understands the problem, accepts appropriate responsibility and is doing something credible about it.
That makes reputation management an organisational discipline, not a PR exercise.

First, establish what kind of problem you have

Not every negative story is a crisis.

A dissatisfied customer is not necessarily a reputational crisis.

A critical article is not necessarily a reputational crisis.

A viral social-media post may be embarrassing without being consequential.

The first task is therefore diagnosis.

Ask:
  • What actually happened?
  • Who has been affected?
  • How many people know?
  • Who is paying attention?
  • Is the criticism credible?
  • Is there evidence?
  • Could the issue become larger?
  • Does the organisation's behaviour contradict its stated values?
  • Could regulators, investors, employees or customers become involved?
This distinction matters because overreacting can amplify a small problem, while underreacting can allow a serious problem to grow.

Do not confuse reputation with publicity.

A reputation is not the same thing as visibility.
A company can be famous and distrusted.

It can have excellent media coverage and poor customer relationships.

It can have thousands of social-media followers and weak credibility with policymakers. Reputation exists in the judgement stakeholders make about the organisation.

That judgement is shaped by experience, behaviour, leadership, evidence and communication.

Edelman's 2026 Trust Barometer reflects the broader difficulty organisations face. The study, based on nearly 34,000 respondents across 28 countries, examines declining trust, polarisation and an increasingly insular environment in which people are less willing to trust institutions outside their immediate circles.
In such an environment, corporate statements have limited power if stakeholders have already decided that the organisation is not credible.
It is the one that makes the organisation's objective clearer, its argument stronger and its next action more obvious.
Trust has to be earned..
Step 1: Stop the underlying problem
Do not write:
This is the most important rule.

Fix the thing before you try to fix the story.

If customers received faulty products, solve the product problem.

If employees were treated improperly, address the employment problem.

If inaccurate information was published, correct it.

If a safety system failed, investigate and repair it.

If leadership behaved improperly, deal with the leadership issue.

Communication cannot substitute for remediation. Boeing provides a powerful example.

The company's reputational crisis did not arise because it had poor media relations. It arose from a combination of safety failures, manufacturing problems and a profound loss of confidence.
Reuters reported in 2025 that CEO Kelly Ortberg's recovery programme focused heavily on safety, quality, transparency and operational discipline. The company began working to reduce manufacturing defects and improve production quality while trying to rebuild confidence among customers, employees and regulators.
The lesson is obvious:
Reputation recovery requires evidence of change.
Step 2: Establish the facts quickly
Do not speculate.

Do not repeat rumours as facts.

Do not allow ten different executives to give ten different explanations.

Establish:

  • what happened
  • what is known
  • what is unknown
  • who is affected
  • what is being investigated
  • what immediate action has been taken
Then communicate only what can be responsibly supported.

This does not mean waiting until every question has been answered.

It means being honest about what you know and what you do not. "Here is what we know.

Here is what we are investigating. Here is what we are doing next." is often more credible than a confident statement that later proves wrong.

Step 3: Acknowledge the impact
Organisations often apologise for "any inconvenience caused."

That phrase is almost useless.

It sounds as though the organisation is apologising for an unfortunate weather event rather than something it may have caused.

A credible response identifies the actual consequence. If customers were stranded, say so. If employees were affected, say so.

If research participants were harmed, say so. If a community lost confidence, recognise that.

The purpose is not theatrical remorse.

It is to demonstrate that leadership understands the human and organisational consequences of the problem.

Step 4: Take responsibility where responsibility exists
There is an important distinction between responsibility and blame.

An organisation does not need to accept every accusation made against it.

But if it made a mistake, it should say so.

Defensive language often creates a second crisis.

The public may initially be angry about the original event.

It becomes angrier when the organisation appears evasive.

The Southwest Airlines holiday disruption provides a useful example. The airline cancelled approximately 15,000 flights during the 2022 Christmas period, with outdated crew-scheduling technology contributing to the operational failure. The company later offered refunds, reimbursements and loyalty points, while facing political and regulatory pressure.
The practical response mattered because affected customers needed something more than an apology.
They needed the organisation to put things right.
Step 5: Give stakeholders something concrete
A reputation response should answer:

What happens now?

That might mean:
  • refunds
  • replacement products
  • compensation
  • an investigation
  • leadership changes
  • new controls
  • independent oversight
  • employee support
  • public reporting
  • public reporting
The specific remedy depends on the problem.

But without a remedy, communication becomes theatre.

Step 6: Use the right spokesperson
Not every crisis requires the CEO.

But every serious reputational issue requires someone with enough authority to be credible.

The spokesperson must understand: 

  • the facts
  • the organisational position
  • what can be promised
  • what cannot be promised
  • likely questions
  • areas of uncertainty

They must also be capable of speaking like a human being.

Stakeholders are rarely reassured by someone who sounds as though they are reading a legal disclaimer.

Step 7: Communicate differently to different stakeholders
One statement should not be expected to serve everyone.

Employees may need detailed operational information.

Customers need practical answers.

Investors need to understand financial implications.

Regulators may need formal disclosure.

Journalists need accurate facts.

Communities may need direct engagement.

A strong reputation response therefore has a common factual foundation but different forms of communication for different audiences.

Step 8: Do not make the crisis about your organisation
This is another common mistake.

A company says:

"We are deeply disappointed by the situation."

But stakeholders want to know: "What happened to us?"

The response should therefore centre the affected stakeholder, not the emotional experience of the corporation.

That does not mean abandoning the organisation's interests.

It means recognising the hierarchy:

Audience →
Accountability →
Action →
Explanation
Not:
Our feelings →
Our intentions →
Our brand
Step 9: Keep communicating after the news cycle ends
Reputation recovery takes longer than crisis response.
A company may issue an apology today and still face questions six months later.
This is why recovery needs milestones.
  • What has changed?
  • What has been fixed?
  • What has been learned?
  • What has been independently verified?
  • What remains unresolved?
Boeing's experience again illustrates this. Reuters reported that the company continued to face significant operational and financial challenges even after making progress on safety and production. Recovery was therefore an ongoing process rather than a single communications event.
That is how organisations should think about reputation.
Not as a story to suppress.
As a relationship to rebuild.
The five rules of reputation recovery
When a reputation problem emerges, remember five principles:
  • 1. Diagnose before responding.
  • Know what happened and how serious it is.
  • 2. Fix the underlying problem
  • No communication strategy can permanently conceal organisational failure.
  • 3. Say what you know.
  • Do not speculate or create false certainty.
  • 4. Accept responsibility where appropriate.
  • Credibility is strengthened by accountability, not weakened by it.
  • 5. Demonstrate change.
  • The strongest reputation statement is not a statement.
The strongest reputation statement is not a statement.

It is evidence. The objective is therefore not to "control the narrative."

That phrase gives communications too much power and organisations too little responsibility.

The objective is to make the organisation worthy of the reputation it wants.

Communication can explain that change. It cannot replace it.

The five-question test.

Before approving a communication strategy, leadership should be able to answer five questions:
1. What are we trying to achieve?
2. Who must understand, believe or do something for that to happen?
3. What do those people currently think?
4. What evidence supports our argument?
5. How will we know whether communication made a difference?
If those questions cannot be answered, the strategy is not ready.
The best communications strategy is rarely the one with the most channels, content or activity.
It is the one that makes the organisation's objective clearer, its argument stronger and its next action more obvious.
Good communication begins with good strategy.

Key sources

Edelman — 2026 Trust Barometer
Cision — 2025 Comms Report
Reuters — Boeing crisis and recovery
AP News — Southwest reputation recovery