What does Boeing, Princess Kate Middelton, Ticketmaster, Quaker Oats and London Drugs have in common? They were all at the center of PR crises in 2024. The difference is that two PR crises turned into wins while the others had their brands and personal reputation tested. Let’s dive into the most unforgettable PR blunders of the year to learn some valuable reputation management lessons.
1. Boeing’s Bumpy Ride
With a string of malfunctions, Boeing has lurched from one PR disaster to another under intense public scrutiny. It started with an Alaska Airlines flight, where the door of a 737 MAX blew off one of its planes just after takeoff, resulting in multiple injuries. Then one month later, pilots on a United Airlines 737 Max reported that flight controls jammed as they were landing. Also, another United Airlines flight experienced an unsettling incident when it lost a wheel during takeoff.
Boeing’s failure to respond appropriately and in a timely manner has negatively impacted its reputation. Of course, in a crisis, one doesn’t know all the answers immediately. It takes time to understand what happened and what can be done to prevent it from happening again. However, the fundamental aspect of surviving and thriving most PR crises is timeliness. This is why CEOs must ensure that the timing of their business’s crisis response is suitable. The best crisis responses have the company jump into action promptly to acknowledge the situation and begin steps toward managing and mitigating the issue.
Even better is planning for and addressing potential issues before they flare up into a PR fiasco. By planning for types of crises in advance, businesses can maintain control over the situation. This is probably something that Boeing wished they would have done. Unfortunately, the series of public PR nightmares eventually took their toll on the company leading Boeing CEO, Dave Calhoun to step down in the following months. As a result, Boeing stock prices are down nearly 30%, year to date.
(Sep 1, 2024 Update) From Worse, to Even Worse!
Boeing has lurched from one crisis to another and yet the company decided it was a good idea to send two astronauts into space on one of its own rockets. What could go wrong? Astronauts Butch Wilmore and Suni Williams rocketed off on an 8-day mission to space. Unfortunately, Boeing now has no way to bring those astronauts back to Earth…until at least February!
Employees at Boeing have called this “a massive screw-up.” Boeing and NASA held a contentious meeting on the matter to discuss ways to bring home the two stranded astronauts. In the end, NASA decided to have Elon Musk’s SpaceX do the job.
From a PR standpoint, it doesn’t get much worse than having Boeing’s biggest rival come to the rescue because their space systems are proving to be faulty.
2. London Drugs’ Cyber Showdown
Remember the London Drugs cyberattack in April 2024? The retail chain faced a massive cybersecurity attack, leading to the shutdown of 79 stores. But how they handled it is a shining example of successful crisis management.
London Drugs engaged cybersecurity experts, kept communication lines open with their customers and employees, continued to offer essential pharmacy services and ensure their employees were paid.
Their proactive and transparent approach preserved customer trust and protected their brand reputation. Even during their numerous store shutdowns, their commitment to both customers and employees was unwavering. Their transparent and proactive approach kept customers and employees on their side. Take note: open and prompt communication can save your reputation during a crisis.
3. Princess Kate’s Photoshop Fail
It was hard to ignore the Kate Middleton photoshop blunder that left a blemish on the carefully crafted façade of the British monarchy. When the Princess of Wales edited her Mother’s Day photograph via some DIY Photoshop, she landed herself in the international media’s bullseye and fueled a wave of conspiracy theories.
A few conditions quickly created the perfect storm and placed the Photoshop fiasco under the media spotlight. First, the Royal Family was dealing with serious health issues. Kensington Palace said that Kate was hospitalized for an unspecified abdominal surgery and was recovering. Then King Charles had confirmed that he had been diagnosed with cancer and was undergoing treatment.
That level of public communication worked well for that moment, however, after that there was silence. This radio silence was filled by social media enthusiasts and the British tabloids, suggesting something seriously may be wrong with the Princess of Wales.
Getting ahead of any potential public dustups by speaking out pre-emptively versus after-the-fact is a wise strategy. It is much easier to get on top of something earlier. It doesn’t have to be long. It doesn’t have to be detailed. But when something is going wrong and the public has caught wind of it, it’s always easier to come out to say what it is. This way, you don’t have to repeatedly talk about it publicly.
4. Tesla’s Cybertruck Recall Roundup
Elon Musk’s company Tesla was front and center in the news headlines this year for a slew of embarrassing problems. Its Cybertruck recall represented yet another “black eye” for the company and resulted in its share price falling on the news that the Cybertruck had a serious design problem. The problem, a faulty gas pedal required Tesla technicians to recall nearly 4,000 Cybertruck’s so they could fix the problem. Let’s also not forget the Software glitches, loose trim pieces and failing windshield wipers.
Tesla responded by replacing the faulty parts for free and notifying owners by mail. They also issued a new firmware update so that drivers can easily update it over-the-air. While Tesla’s quick fixes are commendable, these recurring issues highlight the importance of rigorous quality control before launching a product. Better to delay a release than to face multiple recalls.
5. Co-Op’s Cyber Crisis
Cybersecurity has never been more vital than in today’s digital world. Federated Co-operatives Limited (FCL) locations across western Canada were plagued by system outages leading to closures of gas bars, lack of inventory at grocery stores and other logistical issues. The renowned retail chain fell victim to a significant ransomware attack that affected over 500 stores.
The result was stores closures, substantial financial losses and inconvenience to customers. Co-op’s response to the ransomware attack was swift and multi-pronged. The retail chain immediately activated their incident response team, working around the clock to contain the break and start recovery efforts. They also kept customers and stakeholders informed about the situation via regular updates on their website and social media channels. As well, they worked closely with cybersecurity experts and law enforcement agencies to investigate the attack and patched all vulnerabilities to prevent future incidents.
Having an effective incident response and communication plan can help minimize the damage, facilitate faster recovery and ensure your customers receive timely communication that is transparent. And this will maintain trust even during a crisis.
6. Ticketmaster’s Data Disaster
Ticketmaster made headlines with a massive data breach, exposing the personal information of 560 million customers. ShinyHunters, a hacking group with a history of high-profile breaches, claimed responsibility for the attack and initially offered the stolen data for sale on the dark web for a hefty sum of $500,000.
This breach was a public relations disaster for Ticketmaster, a company already weathering scrutiny over its dominance in the ticketing industry and allegations of anti-competitive practices.
Unfortunately, Ticketmaster remained silent, neither confirming nor denying the breach. This silence only fueled the fear and incited mistrust of their customers. When dealing with sensitive data breaches, prompt and transparent communication is crucial. Ignoring the issue just makes things worse.
7. Quaker’s Crunchy Recall
Quaker Canada faced a recall of 38 varieties of granola bars and Harvest Crunch cereals due to salmonella risks. They acted out of abundant caution and public concern for health and safety of its customers by recalling their products and working with the Canadian Food Inspection Agency to ensure consumer safety. Their proactive recall was a smart move. Also, constant vigilance and regular safety checks are essential to avoid such situations in the first place.
8. Nike Just Can’t Get Out of Its Way
Nike is feeling the heat after receiving bad PR over its steadfast refusal to pay more than 4,000 garment workers $2.2 million in unpaid wages and benefits from 2020. Add to this scandal, are the Allegations this year of a toxic workplace, including sexual harassment and intimidation.
These claims surfaced from a 2018 survey called “Project Starfish.” Women at Nike spoke up, detailing everything from inappropriate touching to fear of retaliation if they reported the bad behavior.
One employee summed it up: “Who is going to go up against these guys?” How did Nike respond? By staying silent. Their heads-down approach has only made matters worse for the international active wear brand.
Nike typically prefers to turn a blind eye to bad press. In this instance, they handed over the 2018 survey of these complaints to an independent law firm to investigate.
Nike’s decision to issue a “no comment” only created a vacuum that was quickly filled with anger and mistrust from many members of the public. In PR, silence can often do more harm than good.
Brands need to understand that when a crisis strikes, most times, proactive communication is their best strategy. Your customers and other stakeholders want to hear directly from your senior leadership. Acknowledge the issue, show empathy, and take action.
Nike’s reputation has been carefully curated over decades, but it only takes a moment of silence in the face of serious allegations to tarnish that image.
Wrapping It Up
From Boeing’s tumbling tires to Quaker’s cautious recalls, 2024 has shown us that how a company responds to a crisis can make or break its reputation. Quick, transparent communication and proactive measures are key to surviving and thriving during any PR storm. Here’s hoping 2025 brings fewer PR disasters and more success stories!
