✅ How companies survive crises through capability and character
Corporate communications, public relations, media and management insight
Boeing, BP, Goldman Sachs and VW are all examples of successful organisations that have endured significant crises over the past decade.
According to Rupert Younger, founder and academic director of the Oxford Centre for Corporate Reputation, the key to their survival lies in the dual nature of reputation. Speaking at a webinar organised by the CIPR Crisis Communications Network, Younger explained that reputation is shaped by two key factors: capability and character.
"Capability is the perception of what an organisation or individual can do - their technical competence, ability to deliver products or services effectively and resource allocation. It is about being good at what you do," said Younger.
"Character, on the other hand, is about how an organisation presents itself. It relates to values, culture, behaviour, transparency and ethical conduct. In essence, it's about how you do what you do."
Younger challenged Warren Buffett's famous quote, "It takes 20 years to build a reputation and five minutes to ruin it," arguing that this applies more to character than to capability.
His research suggests that capability-based reputations are more resilient than commonly thought, whereas character issues often lead to the most severe and immediate reputational damage.
An organisation's ability to withstand a crisis depends on how different stakeholder groups assess these two aspects of reputation.
Have an excellent week.
Management
🔄 CORPORATE SHIFT: Major US companies are rapidly realigning their public positions and corporate practices following President Trump's election victory, with firms like Meta, Amazon and Walmart rolling back DEI initiatives and environmental commitments. Practitioners need to consider how to advise clients operating across both markets about managing stakeholder communications during this pivot, particularly regarding corporate purpose and ESG messaging. Source: The Financial Times.
🔬 RESEARCH INSIGHT: In our midweek newsletter last week, we explored how McDonald's model of standardisation could inform better methodologies for measuring the impact and value of public relations. You can spot the issue at several levels within corporate communications and public relations research, including using practitioners as an audience and surveys as a research tool. Source: Wadds Inc.
📊 ECONOMIC DIVIDE: Global investors at Davos highlight an unprecedented economic divergence between a bullish US and struggling Europe, with ECB President Christine Lagarde warning of an "existential crisis" for the continent. This economic divergence presents immediate challenges in managing stakeholder messaging around investment decisions, market expansion plans, and regulatory compliance on both sides of the Atlantic. Source: The Financial Times.
Industry
📊 INTERNSHIP INEQUALITY: The Sutton Trust reports a widening class divide in UK PR internships, with 55% of middle-class graduates securing internships compared to 36% of working-class peers, while 61% of internships are illegally unpaid or underpaid. The data underscores the public relations industry's persistent accessibility crisis and highlights the urgent need for reform in entry-level recruitment practices. Source: Socially Mobile.
🔍 TRUST SCRUTINY: Academics and industry professionals increasingly question Edelman's claim to 'own' trust measurement through its annual barometer, citing methodological concerns and its self-serving nature as a marketing tool. The report's 25-year consistency and annual launch at Davos demonstrate its enduring effectiveness as a promotional platform. Source: Mark Pinsent.
🌟 FLEXIBLE FUTURE: New Randstad research reveals a watershed moment as 83% of global workers now prioritise work-life balance over salary, with significant increases in flexible working adoption. The shift requires communications practitioners to reimagine employer brand narratives and workplace policies, as one-third of employees report leaving roles that lack sufficient flexibility. Source: Randstad.
Events
📊 DATA MASTERS: We’re fans of PR Moment’s Masterclass events. The upcoming Intersection of Data, Planning and Measurement on 6 February features speakers from agencies such as Applause Consultancy, Burson, CommsClarity and Golin, and organisations including the Information Commissioner's Office, Meta and the UK Government. Wadds Inc. readers can get 15% off virtual and in-person tickets using the code EXCLUSIVE15. Source: PRmoment.
Media
📈 NEWSLETTER BOOM: The number of Substack email newsletters earning at least half a million dollars a year in subscription revenue appears to have doubled in two years. The platform now ranks as the 26th most-visited news site globally, according to Similarweb data. It's a significant opportunity for practitioners to leverage newsletter platforms as a form of earned and owned model. Source: The Press Gazette.
🧑⚖️ MEDIA SETTLEMENT: In a significant milestone in media accountability and reputation management, News UK has admitted to "unlawful activities" at The Sun newspaper and issued a full apology to Prince Harry. It agreed to pay substantial damages in an eleventh-hour settlement of his privacy case. A police investigation is now underway. Source: The Press Gazette.
Social media
📱 THREADS UPDATE: Meta has rolled out new features for its Threads platform, including post-scheduling capabilities, detailed metrics tracking via Insights, and a new "markup" resharing feature being tested in select markets. The updates enhance the platform's content planning and performance measurement capabilities, making it a more viable channel for strategic communications. Source: Meta.
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Thank you to Richard Bagnall, Tricia Fox, Catherine Frankpitt, Alan Morrison, Mark Pinsent, Sarah Waddington CBE, Jane Whitham and everyone who shares and debates the stories in the newsletter via our Facebook and LinkedIn communities.