The Downside of Business Branding

Reports of consumer product defects and recalls areIf word has spread to the media and the general public,
coming in fast and furious these days. The mediaa crisis communication plan should be implemented to
onslaught appeared to begin with tainted Chinesecontrol corporate disruption and any resulting financial
products and the surrounding political uproar. Big namedamage. With a simple, effective plan in place,
manufacturers have been outsourcing for decades, soorganizations are not only in a better position to
why all the noise now?minimize damage, they are more often in a better
Much of it has to do with the sea change in editorialposition to handle future crisis situations that could
departments across the nation. "Help Desks" aredisrupt the business and affect its operating expenses,
popping up everywhere in an attempt to thwartprofits and ongoing operations.
dwindling circulation. Politically-driven blogs haveStill, creating a crisis action plan is easier said than
become the rage, and scare tactics at Network TVdone. Fear or flight is a visceral reaction to such
and Cable news networks are always popular duringsituations.
sweeps weeks.One misconception pointed to by the Institute for Crisis
There is one daily newspaper in my own hometownManagement is that there is usually no warning before
that reports product recalls almost everyday.such events occur. The fact is, however that problems
It's a great public service, in my opinion. If there is badmore often than not have been simmering for a long
beef or chicken at my local grocery, I want to knowtime, and management often knows about it before
about it.any public dissemination. Natural disasters and
But I can't help thinking, how much of the reporting isemployee actions play a minor role compared to
being blown out of proportion. And how exactly aremanagement decisions, which are most likely to lead to
businesses coping with all the negative publicity?big, bad business news.
Too many stick their heads in the sand, hoping theThe power of branding is an awesome
crisis will blow over. The general consensus, accordingresponsibility--and a powerful tool--when implemented
to crisis management sources, including the Institute forby experienced managers who understand the
Crisis Management is that the best crisis managementdownside costs that effective brand management
deals with potential crises swiftly, before revenuebrings to the corporate table.
streams and stock prices can be impacted.