1. Let the Response Fit
the Scandal
Presented By : Bijoy E.V (bijoyev@yahoo.com)
Venue: IBS-Bangalore
Date: 2011 (Dec 18 – Dec 21)
Ref: Alice M. Tybout & Michelle Roehm
@ HBR Dec 2009

2. Idea in Brief
• A blanket approach to scandal management
won’t work. There are too many angles from which
scandals might strike.
• An effective response is one that’s been calibrated
to the characteristics of the brand, the nature of the
event, and the parties being blamed.
• The authors offer a four-step Framework for crafting
just-right reactions.
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3. The Scandal effect
Clearly, scandals can very easily extend beyond the
original perpetrators and affect other companies in
the value chain. They also may spill over to businesses
outside the value chain that are viewed as similar to
the alleged guilty parties
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4. A Framework for
Managing Scandals
Systematic way to gauge whether they should act
immediately or sit tight and wait for the air to clear.
Step 1: Assess the incident
o The spill over effect – A company’s own good behaviour does not
guarantee protection from scandal
o The rebound effect. - Public’s attitude toward the original offender
may actually become more favourable
o The customers’ mind-set.
Step 2: Acknowledge the problem
o Avoid premature statements related to the cause, focus on
the process of investigation, and prevent further harm.
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5. A Framework for
Managing Scandals
• Step 3: Formulate a strategic response
o False allegations - allegation is proved false, the company
should issue a strong denial
o True allegations. - If an alleged wrongdoing proves to be
true, addressing it is more complicated and will typically
involve some combination of
explanation, apology, compensation, and punishment
• Step 4: Implement response tactics.
o Based on Customers prospective, Put it to see now the
negative out come can be avoided
• Which issues should be addressed, and at what level of detail?
• Who should deliver the response, and with what kind of tone?
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6. Closing Note
Executives cannot rely on preventative measures to
protect them from scandal damage. They must be
ready to respond
Having an executive crisis team at the ready, a
contingency budget set aside for crisis response
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7. Thanks!
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