In 2018, Italian luxury brand Dolce & Gabbana (D&G) faced a massive backlash in China due to a marketing campaign that many saw as culturally insensitive. This controversy has since become a striking example of how poor intercultural communication can damage even the most globally recognized brands.

The way people think and perceive is guided by the framework of their own culture (De Mooij, 2018, p. 3).

When companies ignore this, even simple messages can be misunderstood or rejected.

Beech, H. (2018, November 22). Dolce & Gabbana ad prompts backlash in China. Time. https://time.com/5461964/dolce-gabbana-ad-controversy-china/

De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes (5th ed.). SAGE Publications.

Wang, Y. (2018, November 23). Dolce & Gabbana’s China disaster shows how global fashion is being reshaped. Welt. https://www.welt.de/iconist/mode/article184467244/China-und-Dolce-Gabbana-Ein-Rassismusskandal-zeigt-wie-die-Modewelt-heute-funktioniert.html

Crisis communication is crucial in shaping public perception and maintaining stakeholder trust during unexpected events. In Southeast Asia, and particularly in Thailand, effective communication must take into account cultural norms such as face-saving, hierarchical structures, and indirect speech. A noteworthy example that highlights these dynamics is the 2013 Thai Airways Airbus A330 accident at Bangkok’s Suvarnabhumi Airport. This blog post discusses the functions of crisis communication and the management of stakeholder expectations in the Thai context, using the Thai Airways case as a focal point. Additionally, Thai Airways’ response will be analyzed using the Image Repair Theory.

Understanding crisis communication in Thailand

In Thailand, crisis communication tends to reflect a cultural preference for harmony and avoidance of direct confrontation. Messages are often filtered through several layers of hierarchy, which can result in delayed or ambiguous public statements. While this approach may align with Thai societal values – where maintaining face and avoiding public embarrassment are important – it can conflict with international expectations that emphasize speed, transparency and accountability.

As social media and global news cycles increasingly demand rapid and open communication, companies operating in Thailand must navigate a careful balance. They need to respect local cultural norms while also recognizing that global stakeholders may expect a different standard of response. (Global Alliance, 2020)

Case Study: The Thai Airways A330 accident

On September 8, 2013, a Thai Airways flight skidded off the runway in Bangkok due to a landing gear dysfunction. Several passengers were injured. What drew widespread attention and criticism was the airline’s decision to paint over the logo on the aircraft after the incident. They were stating that this was standard procedure to protect the brand during a crisis. (The Guardian, 2013)

However, this action attracted widespread criticism, particularly from international observers. It was perceived as an attempt to conceal the incident rather than address it transparently. In an era where images and information spread rapidly online, such a strategy appeared outdated and ineffective. (Bernstein Crisis Management, 2013)

Applying Image Repair Theory

The airline’s response can be analyzed using William Benoit’s Image Repair Theory, which outlines strategic options organizations can adopt to defend their reputation. By removing its branding from the damaged aircraft, Thai Airways was likely attempting to minimize the visual association between the incident and the company. Furthermore, public statements framed the event as a routine technical issue, downplaying its severity and implying that no systemic problems existed.

This approach overlooked the growing public expectation for openness and accountability. Rather than choosing more constructive image repair strategies such as corrective action or mortification – both of which involve acknowledging fault and committing to change – Thai Airways relied on image control. This ultimately failed to restore public confidence or demonstrate genuine responsibility. (Coombs & Holladay, 2012)

Managing expectations: The Thai cultural context

Managing stakeholder expectations during a crisis requires sensitivity to both local and international norms. In Thailand, communication often avoids assigning blame and instead focuses on maintaining calm and preserving reputation. For local audiences, this can be acceptable, even preferred. It reflects respect, modesty and a desire to avoid public confrontation. (Midas PR, 2022)

However, for international stakeholders and media, such an approach may be interpreted as evasive or insufficient. In high-stakes situations, audiences outside of Thailand are more likely to expect direct communication, detailed explanations, and clearly defined corrective actions.

For companies operating in Thailand, it is essential to adapt communication strategies accordingly. While honoring Thai cultural values, organizations should also ensure they are prepared to meet international expectations. This includes developing crisis response protocols, training senior executives in effective public communication, and delivering accurate information promptly to all relevant audiences. (Global Alliance, 2020)

Conclusion: The need for strategic adaption

The Thai Airways case underscores the limitations of traditional crisis communication methods in a globalized media environment. Successful crisis management in Southeast Asia requires more than image protection. It demands substance, timeliness and a commitment to stakeholder trust.

By aligning culturally sensitive communication with the transparency expected by global audiences, organizations can better protect their reputation and credibility. Planning ahead, responding quickly and communicating clearly are key to navigating crises effectively – both within Thailand and on the international stage.

Sources

Bernstein Crisis Management. (2013, September 9). Hey Thai Airlines, it’s not 1950 anymore. BernsteinCrisisManagement.com. https://www.bernsteincrisismanagement.com/hey-thai-airlines-its-not-1950-anymore/

Coombs, W. T., & Holladay, S. J. (2012). The handbook of crisis communication. Wiley-Blackwell.

Global Alliance for Public Relations and Communication Management. (2020, April 13). 12 steps for managing an association in a time of crisis. https://www.globalalliancepr.org/thoughts/2020/4/13/global-alliance-12-steps-for-managing-an-association-in-a-time-of-crisis

Midas PR. (2022). Crisis communication through the lens of Thai culture. https://www.midas-pr.com/crisis-communication-through-the-lens-of-thai-culture/

The Guardian. (2013, September 9). Thai Airways plane skids off runway in Bangkok. https://www.theguardian.com/world/2013/sep/09/thai-airways-plane-runway-bangkok

In today’s world, international marketing does not start with a campaign — it starts with a Zoom call. Global teams brainstorm across time zones, pitch ideas in second languages and send messages through screens. The assumption? As long as everyone speaks English and has internet, communication should flow. But often, it does not.

Behind the screens, cultural expectations silently shape how we speak, listen and respond. A smiley emoji might feel friendly in one country and childish in another. A blunt “no” could mean honesty — or offense. What appears as simple miscommunication in remote teams reflects deeper challenges in international market communication.

A global team, a local problem

Take the example of an international marketing team spread across New York, Tokyo, São Paulo and Munich. During virtual meetings, the American team lead pushes for fast feedback. The German colleague offers direct criticism, believing it is constructive. The Brazilian team member prefers to open with casual conversation to build rapport. Meanwhile, the Japanese participant avoids open disagreement altogether, nodding quietly. The result: Everyone leaves the meeting with a different understanding of what was agreed.

This is not an exception. It is a daily reality for global organizations. According to communication research, misunderstandings in virtual teams often stem from cultural communication patterns — not just language proficiency. A recent study on cross-cultural digital interaction confirms that values like individualism, hierarchy and privacy influence how people behave online. Some cultures view silence as respectful; others see it as disengagement. Some expect group consensus before responding; others value personal initiative.

From internal gaps to external failures

When internal communication does not work, the consequences go far beyond team dynamics. Inconsistent messaging, clashing assumptions, or lack of cultural awareness can lead to serious failures in international market communication. If a global team misunderstands each other internally, how can they effectively speak to consumers in different cultures?

For instance, a team that assumes direct language is “clear” might create campaigns that feel aggressive in more harmony-oriented markets. Or a campaign rooted in humor might fall flat, or offend, if the cultural context is not shared. As the Cross-Cultural Differences in Online Communication study highlights, marketers need to adapt communication not just by translating content, but by deeply understanding the digital behaviors, values and sensitivities of each cultural audience.

5 Tips to improve cultural sensitivity in virtual communication

Before brands can succeed globally, teams must learn to collaborate across cultures. Improving cultural sensitivity is not about mastering etiquette. It is about building trust and avoiding costly missteps. Here are five concrete ways teams can improve:

First, invest time in learning how different cultures communicate. What sounds efficient to you might sound rude to someone else. Second, rotate meeting times fairly to respect different time zones. Third, avoid idioms or jokes that do not translate well, and speak at a clear, steady pace. Fourth, create space for everyone to contribute. Whether in meetings, chats, or follow-up emails. Lastly, take interest in your team members’ cultural backgrounds. Small gestures, like asking about holidays or understanding cultural values, create deeper connections and mutual respect.

From meetings to markets

Ultimately, every brand that wants to go global must start by going inward. How well a company communicates within its diverse teams directly impacts how it connects with diverse consumers. A tone-deaf internal culture often produces tone-deaf campaigns. On the other hand, teams that embrace cross-cultural awareness are better equipped to transcreate their brand message, not just translate it, making it resonate meaningfully across borders.

As one study concluded, there is no single way people communicate online. There are only culturally shaped patterns. And the more we understand them, the better we can collaborate and communicate across the world.

Sources:
WeWorkRemotely. 5 Tips To Improve Cultural Sensitivity in Virtual Communication.
https://weworkremotely.com/5-tips-to-improve-cultural-sensitivity-in-virtual-communication

Businessing Magazine. Top 10 Zoom Mistakes You Might Not Realize You’re Making.
https://businessingmag.com/14523/equipping/zoom-mistakes/

Best Buy is a well-known electronics store in the United States. In 2003, the company tried to expand into China and things looked good at first. But despite its massive success at home, the company struggled to connect with Chinese consumers and closed all its branded stores in 2011. What went wrong? And what can other brands learn from this?

That blog post will look at how a better media campaign could have helped. I will also explain what a CEO should know before speaking to the media in a new country. Lastly, I will discuss the challenges of doing research in a foreign market.

Media strategy that fits China

When entering a new country, it is important to understand local habits. Best Buy used the same strategy in China as it did in the U.S. That did not work. As the case study says, “Best Buy’s entrance into the Chinese market presented numerous unforeseen hurdles that have led to the company’s inability to gain a market share in China” (p.3).

Chinese consumers prefer to bargain and shop in small local stores. The case explains that “the level of traffic in China’s metropolitan cities contributes to the popularity of these smaller, local stores” (p.3). In contrast, Best Buy opened large stores that were far from many neighborhoods.

The company also missed the chance to connect with Chinese values. In China, people trust word-of-mouth. They often ask family or friends before buying. The case study says, “Chinese consumers regard the interests of their families more than their Western counterparts and use word of mouth to research products” (p.3).

A better campaign would have focused on value and trust. It should have shown that Best Buy understands local needs. Instead of just offering customer service, the message should have explained why shopping at Best Buy a smart and safe choice for families is.

Preparing the CEO for media interviews in China

If I were training the CEO for interviews in China, I would start by reminding them of the company’s past mistakes. The case explains that Best Buy “failed to recognize the unique composition of China’s retail landscape” (p. 3). The CEO should not assume that the U.S. model works everywhere.

In China, business is based on relationships, or guanxi. One quote says that Best Buy’s approach “created both guanxi and face problems” (p. 4). This happened because the company did not involve suppliers in the same way other Chinese stores do.

The CEO should talk about how the company is learning from these issues. It would be good to mention the partnership with Five Star. That shows Best Buy is now working with people who know the Chinese market well.

Challenges in doing research in China

Before planning a media campaign, research is needed. But doing research in China brings challenges. One issue is understanding behavior. The case says, “In China, when consumers make a purchase, they value a fair price over the fixed costs associated with products at Best Buy” (p. 4). This makes it hard to ask the right questions. People may not respond in ways that researchers expect.

Another problem is language and culture. The name “Best Buy” was translated to “Baisimai,” which means “to buy after thinking 100 times” (p. 4). The case says this name may have made people distrust the brand. That shows how even small details can affect results.

It is also hard to build trust when doing surveys or interviews. People may not speak openly. They might feel unsure about foreign companies collecting data.

Conclusion

Best Buy’s story in China shows that a strong brand is not enough. Companies need to learn about local culture, values and habits. A media campaign must fit the country. CEOs must speak with care. Research must be done with respect and understanding. Only then can a business truly succeed in a new market.

Sources:

Sharma, R. (2023, December 28). Why Best Buy failed in China. Investopedia. https://www.investopedia.com/articles/personal-finance/072315/why-best-buy-failed-china.asp

Case 4 – Best Buy Is China Ready for the Big Box?

Culture shapes how people think, communicate and interpret meaning. It influences everything from tone and body language to humor and hierarchy. A message that works in New York might confuse or even offend in Tokyo.
To understand why culture is central to international market communication, let’s look at Japan. It is a country with deep cultural roots, precise communication norms and advertising preferences that sharply contrast with Western styles. Japan’s example shows just how essential it is to adapt not only what we say, but how we say it.

What is Intercultural Communication?
Intercultural communication is how people from different cultures share and understand messages. It is shaped by values, norms and unspoken rules. Intercultural communication is not just about words: It is about meaning, behavior and context. Misunderstandings happen when we assume our way of communicating works everywhere.

Cultural Codes in Communication: Context and Collectivism
Two cultural dimensions play a particularly powerful role in shaping communication: context and collectivism.
Japan is considered a high-context culture, where much of the communication relies on what is not said. Meaning is often found in tone, timing, facial expressions or shared social norms. People are expected to understand the message without it being fully spelled out. This contrasts with low-context cultures, such as the United States or Germany, where clarity and directness are valued. In high-context cultures, direct language may be seen as aggressive or disrespectful.
Japan is also a collectivist society, where group harmony, social roles and family obligations guide behavior. The individual is not the central figure in communication. Instead, the needs of the group come first. Advertising in Japan often reflects shared emotions, mutual respect and unity. Western campaigns that focus on standing out or being different can feel out of place.

Japan and the Language of Advertising
Japan’s communication style is indirect and implicit. This is clearly shown in Hofstede’s model of advertising styles, where Japan appears in the upper-right quadrant: a high-context, high uncertainty-avoidance and collectivist culture. Here, advertising is rooted in drama, metaphors and emotion rather than logic or personal appeals.
Japanese advertising rarely follows the Western pattern of presenting a problem and then offering a solution. Instead, it may focus on building a mood or telling a symbolic story. Products are introduced through feeling and experience rather than features and facts.
The advertising styles graphic also shows how different cultures cluster around shared values. While countries like the Netherlands or Denmark favor humor or personal storytelling, Japan prioritizes harmony, aesthetics and emotional resonance. To market successfully in Japan, businesses must consider their culture. (Hofstede, 2001)

Culture as a Communication Strategy
Culture determines how messages are created, delivered and received. In international marketing, it is not enough to have a good product or a clever slogan. If the tone is wrong, or the format does not match local expectations, even the best ideas can fail.
Japan shows us that understanding cultural patterns, like high-context communication, respect for hierarchy, and preference for emotional storytelling, makes the difference between connection and confusion. Culture shapes trust. It sets the rhythm of interaction. It defines what is polite, persuasive or offensive.

Nike, founded in 1964 as Blue Ribbon Sports, has grown into one of the most recognized and influential brands in the world. Known for its iconic logo and slogan “Just Do It,” Nike is not only a sportswear company but a brand that shapes culture, identity and lifestyle. Nike has managed to stay culturally relevant for decades, inspiring millions of people to not just wear the brand, but to live it. However, what makes Nike’s communication that powerful?

Not Just a Brand
Nike is known for emotional and empowering campaigns. It doesn’t just promote products – it tells stories. From TV ads with famous athletes to social media posts about social change, Nike’s message is always clear: believe in yourself, push your limits and be part of something bigger.

Nike’s brand strategy is simple and strong and known by everyone. They keep it obvious and clear, without changing their strategy for decades. First, Nike uses emotional storytelling to create a connection with consumers. Nike’s storytelling includes, for example, heroic narratives, where it celebrates the journey of everyday athletes.

On the other hand, the brand is present on every channel and builds a community through apps and events. Nike’s community building efforts aim to enhance interaction and build a loyal community.

The Customer Journey
The customer journey is a theory that shows how people interact with a brand step by step – from first contact to loyalty.

Nike fits into this model in a very natural and effective way. It starts by creating the need through emotional and inspiring campaigns that make people want to take action. Then, it shows up where people look for information – on social media, YouTube and through influencers – helping potential customers learn more. When people are considering buying something, Nike provides all the support they need. The buying process is made easy on their online platform or through a strong in-store presence. After purchase, Nike offers fast delivery. In addition to that, Nike encourages customers to use their products through apps like “Nike Run Club” or “Nike Training”, offering challenges and tips. Finally, Nike builds long-term loyalty through membership, early product access and exclusive events, making customers feel like they’re part of something bigger.

Nike’s communication goes far beyond product promotion. It creates a feeling and a lifestyle that customers choose to be part of.

Sources:
Saleh, H. R. (2023, January 6). Nike: A masterclass in integrated marketing communication and brand orientation. Medium. https://medium.com/@hrsaleh/nike-a-masterclass-in-integrated-marketing-communication-and-brand-orientation-38951ec505e5

Nike, Inc. (n.d.). About Nike. https://about.nike.com/en/

de Backer, G. (2024). Customer journey map: How-to & examples [+ template]. https://gustdebacker.com/customer-journey-map/

Imagine biting into a chocolate bar, only to learn its ingredients may have contributed to the destruction of rainforests and endangered species. For Nestlé, this scenario turned into a huge crisis when Greenpeace exposed its palm oil sourcing practices.

This blog delves into how Nestlé navigated this crisis and what we can learn from it using the Situational Crisis Communication Theory (SCCT).

In 2010, Greenpeace accused Nestlé of sourcing palm oil from suppliers linked to deforestation in Southeast Asia. Their campaign gained attention with a provocative video showing the impact of Nestlé’s palm oil use on orangutan habitats. The video went viral, triggering public anger and mobilizing millions online.
Nestlé requested the video be removed and tried to suppress criticism on its social media platforms. This defensive strategy backfired, leading to an avalanche of negative comments. Realizing the need for a shift, Nestlé eventually engaged with stakeholders and committed to more sustainable palm oil sourcing practices.

Applying the Situational Crisis Communication Theory
SCCT helps to understand how organizations should respond to crises based on their perceived responsibility and the level of reputational threat.

Denial and Defense:
At the beginning of the crisis, Nestlé initially adopted a denial strategy. This approach is typical when a company is perceived as responsible for a crisis, but SCCT advises against it because it can escalate public backlash. Nestlé’s attempt to suppress the Greenpeace video and remove critical comments only stimulates outrage. The public viewed this as a refusal to acknowledge the environmental harm caused by its palm oil sourcing, making the company appear evasive and untrustworthy.

Rebuild and Engage:
As the crisis escalated, Nestlé shifted to a rebuild strategy, acknowledging responsibility for its role in deforestation. SCCT emphasizes the importance of apology and corrective action in such situations. Nestlé publicly committed to sustainable palm oil sourcing and engaged with Greenpeace and other stakeholders to address the issue. This strategy helped rebuild public trust by demonstrating transparency and a genuine commitment to change.

Lessons and Conclusion
Nestlé’s crisis illustrates key lessons in crisis communication:
• Transparency is non-negotiable: Hiding or suppressing criticism can escalate a crisis.
• Adaptation is key: Switching to a collaborative approach helped Nestlé rebuild trust.
• Social media is a double-edged sword: While it can amplify criticism, it also offers a platform for transparent communication and stakeholder engagement.

In conclusion, Nestlé’s crisis response shows the importance of transitioning from denial to a more responsible approach. SCCT underscores that acknowledging responsibility and taking corrective action is essential for reputation repair, especially in preventable crises like this one.

What do you think about this crisis and how it was handled? Share your thoughts in the comments below!

Sources
Coombs, W. (2014). Nestlé and Greenpeace Disagree Over Palm Oil Sourcing. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 97 – 111).

When Nestlé and Tetra Pak became the focus of a baby food safety scare in 2005, the world watched closely. The crisis began with a chemical called isopropylthioxanthone (ITX), being found in Nestlé’s baby milk. ITX came from the ink used in Tetra Pak’s packaging process. Although health experts later said the amounts were not harmful, the crisis quickly spiraled out of control, largely due to poor communication.
This case shows how important it is for companies to handle a crisis carefully.

What happened in the ITX crisis?
The issue started in July 2005, when tests in Italy found ITX in some baby milk products. However, this was not shared with the public right away. It was not until November that Italian authorities confiscated millions of liters of milk, forcing the problem into the spotlight.
Nestlé and Tetra Pak both became targets of public criticism: Tetra Pak was blamed for the packaging issue that caused the contamination. Nestlé faced backlash for being slow to inform customers about the problem.
Both companies had to respond, but their approaches were very different.

How did Nestlé and Tetra Pak handle the crisis?
Tetra Pak’s Response: Fast and apologetic
Tetra Pak acted quickly. They admitted the problem, apologized and promised to fix their packaging process to ensure it would not happen again. By taking responsibility and showing concern for public safety, Tetra Pak managed to stay mostly out of the spotlight.

Nestlé’s Response: Defensive and slow
Nestlé, on the other hand, was slower to act. They said the amount of ITX in the milk wasn’t dangerous but did not provide enough details to reassure worried parents. Instead of focusing on calming the public, Nestlé accused Italian authorities of using the crisis for political reasons. This defensive approach hurt their reputation and made people question their commitment to safety.

What is the SMCC Model?
The Social Mediated Crisis Communication (SMCC) Model explains how communication happens during a crisis. The model also focuses on the role of (social) media, in spreading information quickly and shaping public perception.

How the SMCC Model explains the ITX Crisis
The Role of Media
The media played a big role in spreading news of the ITX crisis worldwide. Headlines about “contaminated baby food” caused fear and pressure on both companies to act.
Tetra Pak’s quick response showed they understood the power of media. By apologizing and explaining their next steps, they avoided becoming the main villain in the story. Nestlé, however, did not react as effectively. Their slow and defensive communication made them look less trustworthy.

Public Trust
In crises involving products for babies, trust is everything. Parents wanted clear, honest answers—and they wanted them fast. While Tetra Pak addressed public concerns early, Nestlé struggled to connect with their audience. They did not explain enough about ITX or what they were doing to fix the problem, which made people worry even more.

The Influence of Third Parties
Influencers, journalists and health experts shared their opinions on the crisis, which shaped how people saw it. Nestlé and Tetra Pak could have worked more closely with these groups to provide accurate information and reassure the public. For example, they could have partnered with health experts to explain that ITX levels were not harmful.

What could have been done better?
Both companies could have improved their crisis response:

1. Share information early and honestly to build trust.
2. Acknowledge people’s concerns and show that they care about their safety.
3. Collaborate with experts and influencers to spread accurate information.
4. Monitor public discussions on social media and respond to questions in real time.

Conclusion

The ITX crisis is a powerful reminder that a company’s communication strategy during a crisis can make or break its reputation. Tetra Pak’s quick and empathetic response helped minimize their role in the scandal, while Nestlé’s slow and defensive approach eroded public trust.
What do you think? Could Nestlé have done more to handle the ITX crisis better? Share your thoughts in the comments!

Sources

Coombs, W. (2014). Tetra Pak, Nestlé, and ITX. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 89 – 97).

In 2006, Cadbury faced a corporate crisis that would challenge its reputation and brand loyalty: Salmonella contamination in its chocolate products.
It began when Cadbury identified traces of salmonella in some chocolate batches from a leaking pipe in its factory. At first, the company believed the bacteria level was too low to pose a public health risk – so it chose not to inform health authorities. Months later, with consumers reporting food poisoning cases, the story broke to the public. This delay, combined with Cadbury’s initial response strategy, created a storm of negative media coverage. Finally, that crisis damaged consumers’ trust in the brand and leading to regulatory inspections.

Cadbury’s response strategy in this crisis can be analyzed using Image Repair Theory to understand how organizations try to protect their reputation.

Denial
Initially, Cadbury did not completely deny the contamination but minimized its importance. They did not completely deny that salmonella was found, but downplayed the risk, claiming it was too low to harm consumers.
Evading Responsibility
While Cadbury didn’t directly blame others, it did suggest the situation was an unfortunate accident. The company avoided fully acknowledging how its delay in reporting the contamination contributed to the crisis.

Reducing Offensiveness
Bolstering: Cadbury’s communication strategy reminded the public of its long history of quality and consumer trust, which was an attempt to bolster its positive image in the face of the crisis.
Minimization: They downplayed the severity of the contamination, arguing that the salmonella levels weren’t high enough to cause harm, which is a typical example of minimizing the crisis’ severity.

Mortification
Cadbury did not fully adopt mortification in the early stages of the crisis. It was slow to admit fault and took a defensive stance, focusing more on the company’s reputation rather than offering an apology for the lapse in safety measures. It wasn’t until the crisis escalated that they began to take corrective steps.

Corrective Action
Eventually, Cadbury issued a product recall and worked with health authorities. This was an example of corrective action, though it came too late to prevent significant damage to the brand’s reputation.

Conclusion
The Cadbury salmonella crisis offers a valuable lesson in crisis communication, highlighting the risks of prioritizing brand reputation over transparency and consumer safety.
In the end, Cadbury’s crisis management demonstrated that when it comes to health-related issues, consumers expect swift, transparent and responsible communication. The lack of a clear apology and the slow corrective actions ultimately undermined public trust. This case emphasizes the importance of adopting a comprehensive, transparent and accountable crisis communication strategy.

Sources

Tahir Abbas (2023, May 28). Cadbury Crisis Management Case Study: Preserving Trust in Times of Crisis. https://changemanagementinsight.com/cadbury-crisis-management-case-study/.

Coombs, W. (2014). Cadbury Salmonella Recall. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 63 – 75).

In 2009, a Salmonella outbreak linked to the Peanut Corporation of America (PCA) triggered one of the largest food recalls in U.S. history. Contaminated peanut paste, used in thousands of products, caused illness, death and a wave of mistrust across the food industry. The crisis wasn’t just about contamination – it was about poor crisis management.
Internal documents revealed PCA knowingly distributed contaminated products. This revelation destroyed their reputation and dragged their corporate partners into the fallout. The company’s delayed and vague public responses amplified public outrage. Worse, they failed to prioritize consumer safety.

Why Companies Must Prioritize Safety and Communication
Transparency is not negotiable. When companies respond with silence or half-truths, they erode public trust and deepen the crisis.
Ethics matter. Prioritizing profit over safety not only endangers lives but also ensures long-term reputational damage.
Organizations must be prepared. Organizations must act quickly with clear and honest communication to effectively manage crises and rebuild trust with stakeholders.

How PCA failed the Contingency Model
The Contingency Theory states that in a crisis, a company should adapt its communication strategy—from defending itself to fully addressing public concerns—based on the situation and the needs of its stakeholders.
Advocacy instead of accommodation. PCA’s first response was primarily set on advocacy, focusing on minimizing liability rather than addressing public health concerns. Their delayed and vague communication and attempts to downplay the situation showed a clear disregard for stakeholder safety.
Ignoring situational demands. The outbreak’s seriousness, resulting in deaths and widespread illness, demanded an immediate switch to accommodation. PCA should have prioritized transparency to mitigate harm. Instead, they ignored stakeholder expectations and withheld critical information.
Unethical Practices. Contingency Theory emphasizes that ethical considerations must guide an organization’s stance. PCA’s decision to knowingly distribute contaminated products was a direct violation of ethical principles, amplifying public outrage and legal consequences.

Lessons from PCA’s crisis management
To effectively apply Contingency Theory, organizations must be prepared to assess the situation honestly, as the severity of the crisis should guide their response. Prioritizing stakeholders is crucial, as ethical communication and swift action are key to building trust during a crisis. Additionally, organizations must be able to adapt swiftly to changing circumstances. As demonstrated by PCA, a fixed focus on self-interest only leads to long-term reputational and legal damage.

Conclusion
The Peanut Butter Paste recall serves as a clear reminder that crisis management is not only about minimizing immediate damage but also about maintaining public trust and prioritizing ethics. PCA’s failure to adapt its communication strategy, coupled with its disregard for consumer safety, led to a crisis of trust that could have been mitigated with swift, transparent and ethical responses.
What’s your take? Can flexibility in crisis communication save a company’s reputation? Let us know in the comments!

Sources
Coombs, W. (2014). Peanut Butter Paste Recall of 2009. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 75 – 89).

Coombs, W. (2014). Crisis Capsules. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 7 – 32).

In today’s fiercely competitive and eco-conscious market, H&M, the global fashion retailer, finds itself in a significant dilemma. The company has been accused of “greenwashing” – making claims that its products are more eco-friendly than they are. For years, H&M has promoted its “Conscious” collection, which features items made from organic cotton and recycled materials. However, critics argue that these claims often lack transparency and that the company’s overall practices are not as sustainable as advertised.
Reports have surfaced suggesting that the Higg Index, a tool H&M uses to assess the sustainability of its products, may provide misleading information about the environmental impact of its clothing.

H&M’s response to the crisis
In response to these criticisms, H&M is taking steps to improve its transparency and credibility. The company has promised to provide clearer information about the sourcing and production processes of its products.
Additionally, H&M is collaborating with independent auditors to confirm its sustainability claims. They aim to ensure that customers can trust the brand’s commitments. A significant part of this strategy includes a commitment to using only sustainably sourced or recycled materials by 2030.
Eventually, we can analyze how H&M’s sustainability crisis could benefit from the strategic crisis response theory.

Denial Posture
Adopting a Denial Posture could mean the company would outright deny any greenwashing accusations, possibly arguing that the critiques stem from misunderstandings about their sustainability efforts. However, given the extensive evidence and growing consumer awareness around “greenwashing,” this approach could come across as evasive or dismissive, risking further backlash. With a brand as visible as H&M, denial might be counterproductive unless the accusations were proven entirely unfounded.

Diminishment Posture
While the Diminishment strategy might help soften the perception of intentional wrongdoing, it could also come across as an excuse. Consumers might still feel misled, and merely minimizing the issue could be insufficient for a company that has positioned itself as a leader in sustainable fashion. However, if paired with tangible actions (like transparent reporting on supply chain improvements), this approach could be moderately effective.

Rebuilding Posture
This approach demonstrates accountability and commitment to change, which may help restore customer trust. As part of a Rebuilding Posture, H&M could invest more in sustainable practices, such as sourcing greener materials or adopting stricter supply chain standards and keep the public informed on its progress. This strategy, though it involves humility, could resonate positively with consumers seeking authentic, transparent brands.

Bolstering Posture
H&M could use this strategy by reminding customers of its previous environmental initiatives and the positive impact of its “Conscious” collection, expressing gratitude for ongoing customer suppor
Additionally, H&M could emphasize that it, too, is impacted by sustainability challenges, just as consumers are. This approach can be effective in humanizing the brand and reinforcing a sense of solidarity with stakeholders. However, H&M would need to balance this with concrete actions—simply appealing to past goodwill without real change could risk seeming disingenuous.

Combining Rebuilding and Bolstering Posture
Rebuilding – By accepting responsibility for any misrepresentations, H&M can start mending its relationship with consumers. Publicly pledging to improve transparency and inviting stakeholders to track its progress could build credibility over time.
Bolstering – Simultaneously, H&M could remind consumers of its positive efforts in promoting affordable eco-friendly options. By expressing gratitude for its customer base and reaffirming its commitment to sustainable practices, the brand can reinforce its alignment with customer values.
This combined approach allows H&M to acknowledge the issue, reassure customers, and take steps to prevent similar crises in the future. Rebuilding with transparency and bolstering with gratitude are likely to be most effective for H&M, enabling it to emerge from this crisis with a stronger, more authentic commitment to sustainability.

To conclude

By carefully applying crisis response strategies, H&M can reshape its approach, demonstrating that the brand is committed to meaningful change rather than just image repair. In doing so, H&M has the opportunity to not only recover but to become a more genuinely sustainable brand.
What do you think about H&M’s efforts to improve sustainability?

Sources
Forbes. (2022, July 13). H&M Case Shows How Greenwashing Breaks Brand Promise. https://www.forbes.com/sites/retailwire/2022/07/13/hm-case-shows-how-greenwashing-breaks-brand-promise/.

Coombs, W. (2014). Crisis Capsules. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 7 – 32).

Hershey is one of the world’s largest and most famous chocolate companies. But even the most beloved brands can find themselves in crisis. Hershey faced significant criticism for sourcing cocoa from suppliers in West Africa where children were reportedly exploited under poor labor conditions. Public pressure and investigations showed that Hershey had not ensured ethical practices in their supply chains. In response, the company promised to improve transparency and work with fair-trade organizations.
In the following, we can analyze how Hershey might approach repairing its image using the Image Repair Theory.

Denial
Hershey could argue that it does not directly control the cocoa farms and thus is not directly responsible for labor practices on those farms. This approach might work if the company can convincingly show that it had no knowledge of these practices and highlight any previous efforts to maintain ethical standards in its supply chain.
However, in today’s interconnected world, denial may be difficult to uphold. Consumers and activists expect companies like Hershey to have oversight of their suppliers, making it hard for the brand to distance itself from child labor issues without further investigation and action.

Evading Responsibility
Hershey might attempt to explain that it is not entirely at fault. The company could argue that the problem of child labor is systemic in the cocoa industry and beyond its immediate control.
While this approach can reduce some blame, it might not resonate well with a public that expects companies to take proactive responsibility.

Reduce Offensiveness
Hershey could try to make the situation appear less damaging or suggest they are already addressing it. For instance, the company might release statements showing how only a small percentage of its cocoa supply is potentially problematic.
Minimizing the seriousness of the issue could backfire, leading consumers to feel that Hershey is insensitive to the well-being of workers in their supply chain.

Corrective Action
Corrective Action involves promising to fix the issue and ensure it won’t happen again. For Hershey, this could mean implementing stricter supply chain oversight, increasing transparency and working with third-party certifiers to verify ethical sourcing.
If Hershey can show measurable steps and follow through with promises, this strategy can significantly help restore public trust.

Mortification
Hershey has to admit guilt, express genuine concern for the issue and ask for forgiveness. When done sincerely, mortification can be powerful.
However, in a case as serious as child labor, the apology must be coupled with corrective action to seem credible. By showing empathy, regret, and a willingness to change, Hershey could foster goodwill and start rebuilding its reputation. Each of these strategies from the Image Repair Theory offers a path forward for Hershey, but in my opinion the best response may involve a combination of Corrective Action and Mortification. A simple denial or evasion of responsibility could damage trust, while a sincere apology and commitment to concrete change might restore some of Hershey’s credibility. Through thoughtful and decisive action, Hershey can turn this crisis into a chance to build a more sustainable and ethical brand for the future.

Sources
Coombs, W. (2014). Hershey, Cocoa, and Child Slavery. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 47 – 62).

Coombs, W. (2014). Crisis Capsules. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 7 – 32).

In recent months, Starbucks has found itself at the center of a growing labor movement in the U.S. As more of its employees join the unionization wave, questions are being raised about the company’s treatment of its workforce and its response to these efforts. What does this mean for the company’s reputation and how is Starbucks handling this challenge from a communication standpoint?

The push for change
For many Starbucks employees, unionizing is a means of securing better pay, fairer hours and improved working conditions. In an industry where long hours and low wages are the norm, employees are rallying together to demand more. Workers argue that their voices aren’t being heard and unionizing offers them the collective bargaining power to negotiate for better wages, benefits and working conditions

Starbucks’ reaction
The company has resisted these efforts, preferring to deal with employees directly. However, their pushback hasn’t stopped workers at several stores from successfully unionizing, showing that change is possible.

Starbucks’ approach to handling the unionization efforts can be analyzed through Image Repair Theory. This theory explains how organizations attempt to restore their public image when it is threatened by a crisis.

One key strategy that Starbucks has used is denial, suggesting that unions are unnecessary because the company already provides fair wages and benefits. Starbucks has stated that it prefers to deal directly with employees, implying that the presence of a union would only complicate or disrupt this direct relationship. By denying the need for unions, Starbucks aims to distance itself from the issue, framing the situation as an isolated concern rather than a systemic problem.
Starbucks also uses differentiation to minimize the impact of the unionization efforts. The company may highlight that most of its stores remain non-unionized, suggesting that the workers pushing for unionization are in the minority. By framing the issue as an isolated instance, Starbucks can distance itself from the broader labor movement, thus downplaying the significance of the unionization trend.

What’s next?
As Starbucks continues to face unionization efforts at various locations, the question arises: What should Starbucks do next to preserve its image and maintain a strong relationship with its employees and customers?

A shift from denial and differentiation toward rebuilding its public image might be the best course of action. This would involve openly addressing the concerns raised by workers, providing fair compensation and showing a genuine commitment to improving working conditions. In doing so, Starbucks would not only restore its image but also lead by example in creating a more ethical and sustainable workplace culture.

Starbucks’ reaction to the union efforts shows how tricky it is to protect its reputation while also taking employee concerns seriously. While denial and differentiation may provide short-term relief, a long-term solution lies in genuinely engaging with workers and addressing their demands. By shifting toward a rebuilding strategy, Starbucks can not only repair its reputation but also set a standard for ethical corporate practices.

What do you think about the union movement at Starbucks? How should the company handle the situation from your point of view?

Sources:

Forbes. (2022, December 19). Starbucks Union: Why Are Workers Unionizing Now? What Do Unions Really Mean To Investors? https://www.forbes.com/sites/qai/2022/12/19/starbucks-union-why-are-workers-unionizing-now-what-do-unions-really-mean-to-investors/

Molla, R. (2022, April 8). How a bunch of Starbucks baristas built a labor movement. Vox. https://www.vox.com/recode/22993509/starbucks-successful-union-drive

Alex n.press. (2024, February). The Starbucks Workers’ Union Has Finally Broken Through. https://jacobin.com/2024/02/starbucks-workers-united-master-contract-bargaining

Coombs, W. (2014). Crisis Capsules. In Applied Crisis Communication and Crisis Management: Cases and Exercises (pp. 7 – 32).