Examples abound of companies that have averted public relations crisis large and small through the deft and honest handling of information. But there's also no shortage of companies that have created their own public relations crisis by mishandling or misinterpreting a public relations crisis situation.

Whether due to their own ignorance, arrogance or inflated self image; or because they've underestimated their critics' influence; or because their detractors are obviously opportunistic blowhards and jerks, senior executives may dig in their heels and take a wrong-headed position on a public relations crisis issue. As a result, they wind up corroding their company's reputation when they should have created a public relations crisis plan.

However, even when public opinion has turned against your company -- but before a situation spins completely out of hand -- you can still take this one critical step to deflate a growing public relations crisis:

Admit when you're wrong or have made a mistake.
But you can't stop there with your public relations crisis plan. You also must take these additional steps:

Explain how you're going to make things right.

Correct the situation as quickly as possible.

The folks at AIG who distributed $165-million in executive bonuses after the government gave the company $85 billion to save it from bankruptcy stand out as the latest example of how a company can create and exacerbate its own public relations crisis.

At first, the company's leadership acted on its opinion that giving the bonuses was their prerogative. I'm sure they thought they were on solid ground when they did it. And I'll bet they were comforted by assurances they'd received weeks earlier from legislators who said they'd go along with AIG's bonus plan.

But when word leaked and public opinion turned against AIG, the same politicians who'd initially Okayed the pay-outs either withdrew or denied their support. Indeed, many attacked the company with all the theatrical, self righteous indignation they could muster.

The critics' reaction reminded me of Police Captain Renault, played by Claude Rains in the classic movie Casablanca, when he exclaimed, "I'm shocked, shocked to find that gambling is going on in here!"

Immediately after these remarks, the casino manager gave Captain Renault a handful of money and said, "Your winnings, sir."

AIG and its public relations crisis advisors should have realized the company could not and should not try to convince the American public it was entitled to give away taxpayers' money to pay for executive bonuses. Of course, if they'd grasped that fact in the first place, chances are they would not have taken the route that caused them so much trouble.

But, for a brief period before the situation spun out of control, AIG had an opportunity to admit it was wrong and return the $165 million to the taxpayers. And before admitting the error of their ways, company executives even had a chance to explain why they'd believed rewarding certain executives was justified.

However, they didn't eat "humble pie," they didn't return the money right away and they didn't clarify the reasoning behind their actions. As a result, they were pilloried.
So if, for whatever reason, you make the wrong decisions when it comes to averting a public relations crisis,
Take your medicine.
Admit your mistake,
Correct the problem
Move on.

Find strength in the words of philosopher Friedrich Nietzsche: That which does not kill us makes us stronger.

Source: Brian R. Salisbury link