Posted in:

How to Handle Public Relations During Legal Crises

A legal crisis can seriously affect companies in the business world. These types of problems can negatively affect a company’s reputation, as well as its financial status and operations.

A legal crisis can seriously damage the company’s image and trust.

This post explains how public relations can be effectively handled when a company is experiencing a legal problem. It also discusses the benefits of good management and the possible consequences of not acting promptly.

Importance of public relations during a legal crisis

When an organization is in a legal crisis, its credibility and reputation are at risk. In these cases, the opinion of the public can quickly become consolidated and harmful to the company, so the public relations (PR) department must act to:

  • Present the company’s version to the public, control the transmitted information, and avoid speculation.
  • Manage the situation transparently with the idea of ​​maintaining the trust of shareholders, employees, and customers.
  • Respond quickly to reduce the negative impact on the company.

Advantages of proactive public relations management

Acting proactively during a legal crisis can result in several advantages for the organization.

  1. Preventing media escalation

By issuing quick and accurate communications, damage can be prevented from growing in the communication channels. This prevents the spread of rumors and fake news.

  1. Strengthening brand trust

Communicating openly about the company’s situation and how it is acting to solve it can help maintain public trust.

On the other hand, if the crisis is handled well, customers can remain loyal to a brand that knows how to solve serious situations.

  1. Protecting the value of the company

With good communication management, economic losses to the brand can be reduced and even avoided. If you maintain the trust of customers and shareholders, the value of the shares may increase after the crisis.

Acting proactively during a legal crisis can result in several advantages for the organization. For example, timely and transparent communication is critical in cases like the ongoing PFAS lawsuit covered by ConsumerShield, where companies face significant environmental and public health issues. By addressing the concerns of the public and stakeholders early on, companies can mitigate reputational damage and maintain trust.

|Tips for managing public relations during a legal crisis

By following a series of strategic guidelines, you can manage crises effectively.

  • Prepare a crisis plan led by a team composed of management, legal, and communications personnel. Have essential communications that can be adapted to any type of crisis.
  • Conduct drills to validate the staff’s preparation for emergencies.
  • The company should issue a communication as soon as possible. Initially, it may only be a preamble that will be expanded as the company’s work to control the crisis progresses.
  • Keep all interested parties informed about the evolution of the situation.
  • All communications must be consistent with each other to maintain the credibility of the brand.
  • A spokesperson must carry out all communications, which must be aligned with the company’s strategy.
  • Be always honest, even if the organization has committed a fault.
  • Monitor the media to validate opinions and modify the strategy if necessary.
  • Follow up on social networks to address misunderstandings, if they exist.

Consequences of not acting in time in a legal crisis

During a legal crisis, timely action must be taken to avoid serious consequences, such as:

Reputational damage

Reputational damage is very negative for any company. If you do not respond quickly and correctly, customers, employees, and shareholders can lose trust in you.

Conversely, if PR is not managed appropriately, the media can continue to damage the company’s image.

Financial impact

Financial losses can be the order of the day if the crisis is inadequately managed at the communications level.

Dismay and the projection of a bad image can cause a drop in the value of the brand’s shares. In addition, a negative reputation can lead to the loss of customers and sales in general.

Additional legal consequences

Failure to be transparent and honest in company communications can lead to other legal problems. Due to misleading messages, regulators may be forced to request further investigations.

Additionally, mistakes in handling the crisis can lead to new lawsuits or aggravate existing ones.  

Strategies to rebuild reputation after the crisis

After managing and solving the legal crisis, focusing on rebuilding the company’s image is crucial.

Rebuilding trust

One of the first aspects that must be addressed is the recovery of trust at all levels. To achieve this, constant, open, and honest communication must be established and maintained with the public, especially with investors. These communications must demonstrate that the company overcame and learned from the crisis.

On the other hand, corrective actions must also be put into practice and disclosed to prevent the situation from repeating itself.

Strengthening corporate social responsibility

One of the best post-crisis alternatives is to strengthen the brand’s social responsibility. Collaborating for the benefit of communities or the environment is a positive option that significantly helps improve the company’s image.

The ethical values ​​of the brand must also be promoted in each communication that is issued.

Evaluate and improve internal processes.

Organizational weaknesses can be identified and managed during a legal crisis. In these cases, auditing internal processes can help correct deficiencies.

In addition, providing training to employees on issues of regulatory compliance, business ethics, and crisis management is an excellent idea.

Conclusion

Managing public relations during a legal crisis is essential to reducing the company’s damage and maintaining the trust and loyalty of consumers, employees, and shareholders.

The organization must adopt a proactive approach to respond promptly and implement honest and effective strategies in these cases.

Failure to act promptly can increase the damage to the brand. However, the problem can be overcome by managing the crisis appropriately, and the company strengthened in all areas.