Skip to main content

Business Commentary Focus on retaining and rebuilding the trust of your consumers during a company crisis

Melanie Paradis is a strategic communications adviser and director at McMillan Vantage Policy Group.

The data has been breached. The effluent is in the water. The #MeToo accusation was made. The product has been recalled. Worst yet, a workplace fatality has occurred. Your company is in crisis. At risk is your most valuable asset: trust.

Canadian consumers dole out a lot of trust every day. We trust that the groceries we buy won’t make us sick. We trust that the bank we use will keep our data secure. We trust that our boss isn’t sexually harassing the intern and that our drinking water won’t become contaminated by an industrial spill. That’s why corporate crises often become such big news stories, because the violation of our collective trust is a shocking thing.

Story continues below advertisement

The avoidable and preventable often happen, despite your best efforts. While you should of course undertake every effort as a company to safeguard and sanitize your practices to prevent a crisis, do not become lulled into a false sense of security about your ISO or industry best standards. If you trust that your trust will be tested, you can prepare accordingly.

Nothing is unhackable. No engineering infallible. The unsinkable indeed sinks. Anything that can go wrong will. And when it does, everyone will be watching what you do next. Your customers, employees, shareholders and regulators will immediately be waiting to see what you do with the trust they placed in you.

The first step of a crisis is to acknowledge you are in a crisis. Here, you communicate three things: What happened, what are you doing about it and how do you feel? This method applies just as much to a personal crisis, such as telling your children you lost your job, as it does to an oil spill or a mall collapse.

Early in a crisis, you likely won’t have much information to share, but you will need to at least share those three things. And fail to respect that third item at your peril. Too often, the difference between a well-managed crisis and a corporate disaster is executives overlooking the importance of empathy in maintaining trust.

How you feel in a crisis is what makes you relatable. Your willingness to express yourself vulnerably and authentically will immediately strike a chord with your audience and shore up their trust. Perhaps something like: “I feel devastated that the privileged data our customers entrusted in us has been compromised, and I will not rest until we get to the bottom of this to ensure it never happens again.”

Lawyers and communicators will argue about how much personal accountability an executive should take in a crisis. But ultimately, you must ask yourself: Will anyone trust you if you don’t?

When the news cycle changes 72 hours later and the calls from reporters and angry customers or shareholders begin to die down, many companies make the mistake of thinking they have survived the crisis. But a breakdown in trust, a spark of doubt, whether it be with your customers or a spouse, is corrosive. In the aftermath of a crisis, you must redouble your efforts to build, maintain and restore trust. It will not happen overnight. But with a clear plan to consistently communicate, centred firmly around trust and empathy, most companies can overcome virtually any crisis.

Story continues below advertisement

What can you do right now? Map out what keeps you up at night. Talk through worst-case scenarios with leaders from each of your departments, because they may see threats you don’t. Make a plan for each scenario and drill regularly. Too often plans collect dust on shelves, but they are only as good as the practice you put in. Make empathy your new mantra and think long and hard about what you will say when the worst happens. It’s worth the investment because the one thing you can’t buy back is the trust you stand to lose.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter