Hirst AcademyBrand Strategy & Communication
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Module 6

Crisis and Reputation Management

Estimated time: 6–7 hours · Protects the equity the rest of the course builds.

Reputations that took decades to build can be damaged in an afternoon. By the end of this module you'll be able to tell an issue from a crisis and run an issues register, classify a crisis with Situational Crisis Communication Theory and choose a response that matches the responsibility stakeholders will attribute, write a holding statement and plan the first hours of a crisis that is unfolding on social media, and evaluate reputation repair strategies and the learning that should follow. The running case is Fellwise Outdoor Co., a fictional UK outdoor-clothing brand based in the Lake District, whose "made to be mended" promise of free lifetime repairs from its Kendal workshop is exactly the kind of reputational asset a crisis puts at risk.

Interactive Tool

Crisis Readiness Audit

Check your organisation's crisis preparedness — team, protocols, holding statements, monitoring and recovery — and get the gaps to close first.

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6.1

Issues and Crises: The Lifecycle and Issues Management

Not every problem is a crisis, and treating every problem as one is itself a risk. An issue is an emerging matter of stakeholder concern: a gap between what an organisation does and what its stakeholders expect, which could affect the organisation if it is left unmanaged. A crisis is a sudden and unexpected event that threatens to disrupt an organisation's operations and poses both a financial and a reputational threat (Coombs, 2007). The difference is partly one of time. Issues develop over months or years and leave room to act; crises compress decisions into hours. Many crises are issues that were noticed and not managed.

Issues management is the discipline of scanning for these gaps early and closing them before they erupt. In the practitioner literature (e.g. Regester and Larkin, 2008) it is presented as a cycle: identify the issue, analyse its likely trajectory and impact, decide the organisation's position, act, and evaluate the result. Acting matters most, because an issue is often resolved by changing what the organisation does, not what it says; evaluation then shows whether it worked. Module 5 mapped Fellwise's stakeholders by salience and power–interest; the same map tells an issues manager whose expectations are moving, and how much it matters. Regulation is a common source of issues: Regulation (EU) 2024/3015, for example, will bar products made with forced labour from the EU market from 14 December 2027, turning supply-chain labour standards into a compliance issue for any brand selling there.

Lifecycle models give the work a shape. Fink (1986) described a prodromal stage of warning signs, an acute stage set off by a triggering event, a chronic stage of lasting effects and investigation, and resolution. Coombs (2007) uses a simpler frame of pre-crisis, crisis and post-crisis. Both are heuristics rather than laws: real crises loop back, and online they can skip the warning stage entirely. Their value is to remind managers that much of the useful work happens outside the acute phase, in prevention and preparation beforehand and in learning afterwards.

The practical tool for the pre-crisis stage is the issues register: a living list of emerging issues, each with its source, the stakeholders affected, the likelihood and impact of escalation, the organisation's current position, an owner and a review date. Its weakness is that it records only what someone has thought to write down, so it needs input from beyond the communications team: customer service, procurement, the workshop floor and social listening.

Learning ObjectiveDistinguish issues from crises, place a situation in the crisis lifecycle, and apply issues management through an issues register.
Key ConceptsIssue vs crisis; expectation gaps; issues management (identify, analyse, decide a position, act, evaluate); Fink's prodromal, acute, chronic and resolution stages; pre-crisis, crisis and post-crisis; the issues register and its owners.
Practical ExampleFellwise's register has carried "supplier audit coverage" as a medium-likelihood issue since campaigners began asking outdoor brands to publish their supplier lists; it has an owner in sourcing but no deadline, which is exactly the gap a crisis would later expose.
ExerciseBuild an issues register for your own organisation (or Fellwise, starting from the supplier-audit issue in this lesson's example and adding four more labelled as assumptions) with at least five issues, recording source, affected stakeholders, likelihood and impact (1–5), current position, owner and review date, then justify which issue is most likely to become a crisis.
6.2

Situational Crisis Communication Theory

Once an issue becomes a crisis, the first strategic question is how much responsibility stakeholders will attribute to the organisation, because that attribution drives reputational damage. Situational Crisis Communication Theory (SCCT) builds on attribution theory to link the two (Coombs, 2007). Its first tests found the predicted relationship: the more responsibility people attributed to the organisation, the lower they rated its reputation (Coombs and Holladay, 2002).

SCCT groups crisis types into three clusters. In the victim cluster the organisation is itself a victim and attributions are weak: natural disasters, rumours, workplace violence and product tampering. In the accidental cluster attributions are minimal because the harm was unintended: challenges, in which stakeholders claim the organisation is acting inappropriately, and technical-error accidents or product harm. In the preventable cluster, sometimes called intentional, attributions are strong because the organisation knowingly placed people at risk, acted inappropriately or broke the rules: human-error accidents and product harm, and organisational misdeeds (Coombs, 2007). Two intensifiers then adjust the assessment. A history of similar crises, or an unfavourable prior reputation, raises attributions, so an accidental crisis may be judged as harshly as a preventable one.

Response strategies are grouped by how far they accept responsibility. Deny strategies (attacking the accuser, denial, scapegoating) try to break the link between the organisation and the crisis. Diminish strategies (excuse, justification) try to reduce perceived responsibility or harm. Rebuild strategies (compensation, apology) accept responsibility and offer something to those affected. Bolstering (reminding, ingratiation, victimage) is secondary and only supplements the others. The guidance is to match the response to attributed responsibility. First give instructing information, telling people how to protect themselves, and adjusting information, expressing concern and explaining corrective action. For a victim crisis with no intensifiers this may be enough. Add diminish strategies for a victim crisis with an intensifier and for an accidental crisis without one, and move to rebuild for an accidental crisis with an intensifier and for every preventable crisis. Reserve deny for rumours and unwarranted challenges. Never mix deny with diminish or rebuild, because the contradiction erodes the whole response (Coombs, 2007).

SCCT is unusually well tested for a communication theory, but much of the evidence comes from experiments in which participants read hypothetical cases. It also models reputation, not legal liability, which is why lawyers and communicators can pull in opposite directions over an apology.

Learning ObjectiveClassify a crisis with SCCT, adjust for intensifiers, and select a response strategy that matches the responsibility stakeholders are likely to attribute.
Key ConceptsAttribution theory; crisis responsibility; victim, accidental and preventable clusters; crisis history and prior reputation as intensifiers; instructing and adjusting information; deny (attack the accuser, denial, scapegoating), diminish (excuse, justification) and rebuild (compensation, apology); bolstering (reminding, ingratiation, victimage); the risk of mixing deny with other strategies.
Practical ExampleA campaign group alleges that a Fellwise fabric supplier forces unpaid overtime; unverified, it is a challenge in the accidental cluster, but if Fellwise's own audits had flagged the problem and nothing was done, it becomes an organisational misdeed in the preventable cluster and a diminish response would backfire.
ExerciseChoose a crisis whose facts are well documented in reliable sources, classify it with SCCT (cluster, crisis type, intensifiers), recommend a response group with reasons, and compare your recommendation with what the organisation actually said.
6.3

Crises in the Social-Media Age

Social media has changed the tempo of crises more than their nature. An allegation can reach a national audience before a communications team has confirmed a single fact, and stakeholders expect a visible response within hours rather than at the next news cycle. Jin, Liu and Austin (2014) developed the social-mediated crisis communication (SMCC) model to explain how publics create, consume and share crisis information across social media, traditional media and word of mouth, and tested how the origin of a crisis and the form and source of information influence people's responses. The practical implication is that the organisation is one voice among many, not the gatekeeper of the story.

Two further concepts help. A paracrisis is a publicly visible threat, often an online campaign, that warns of a possible crisis and has to be managed in full view (Coombs and Holladay, 2012). Stealing thunder means disclosing bad news before others do: Arpan and Roskos-Ewoldsen (2005) found that organisations that broke news of their own crisis were judged more credible than those whose crisis was revealed by someone else.

The key first-hour tool is the holding statement: a short response, drafted as a template before any crisis, that can be approved and published quickly. A good one acknowledges what is being said, separates what is known from what is not yet known, says what the organisation is doing and when it will next update, shows concern for anyone affected, and claims nothing that has not been verified. It buys time without saying "no comment", which tends to read as evasion. Its tone should be the brand's voice under pressure, not legal boilerplate. Apply the pressure test and swap test from Module 3: if a rival could publish your holding statement unchanged, it is not yet in your voice.

Misinformation and AI-generated fakes add a verification step. A convincing fake screenshot, audio clip or video of an executive can start a crisis about something that never happened; in SCCT terms it is a rumour, where denial is appropriate once the organisation is sure. Sensible practice is to verify before responding, keep originals of official statements and media for comparison, point people to a single official channel, report impersonating content to the platforms, and avoid amplifying a fake by repeating its claims in detail. Deny too early and the organisation may deny something true; wait too long and the fake sets the story.

Learning ObjectiveWrite a holding statement and plan the first hours of a crisis unfolding on social media, including one involving suspected fake content.
Key ConceptsSocial-mediated crisis communication (SMCC) model; paracrisis; stealing thunder; the holding statement (acknowledge, known and unknown, action, next update, concern); why "no comment" fails; misinformation, deepfakes and verification; a single official channel.
Practical ExampleFellwise's pre-approved template lets its duty communicator adapt and publish a short holding statement on the website, pinned on its social channels, within the first hour, with the next update promised by a stated time.
ExerciseAfter reading Fellwise's 08:40 holding statement in the worked example at the end of this module, draft a holding statement of no more than 120 words for an issue in your register that has escalated into a crisis (if you are using Fellwise, choose an issue other than the supplier allegation), then list what must be verified before the next update and who signs off each item, and write a two-line response for the same scenario if a realistic but unverified video of your chief executive appears, stating what you would check first and on which channel you would respond.
6.4

Recovery and Reputation Repair

When the acute phase passes, attention turns to repairing reputation and learning. Benoit's image repair theory, set out in Benoit (1995) and applied to corporate crises in Benoit (1997), starts from the premise that reputation is threatened when an act is seen as offensive and the organisation is held responsible for it. It identifies five broad strategies. Denial covers simple denial and shifting the blame. Evasion of responsibility includes provocation, defeasibility (lack of information or control), claiming an accident and pleading good intentions. Reducing offensiveness includes bolstering, minimisation, differentiation, transcendence, attacking the accuser and compensation. Corrective action promises to fix the problem and prevent it happening again. Mortification admits responsibility and apologises.

The typology overlaps with SCCT but comes from a different tradition. Benoit's approach is rhetorical: a vocabulary for analysing what organisations actually said, usually case by case. SCCT is predictive and tested experimentally. A common pairing uses SCCT to choose the overall posture and Benoit's strategies to analyse and refine the messages. Benoit (1997) argues that an organisation at fault should admit it promptly, and that corrective action is especially persuasive because it shows the problem will not recur. Apology still worries lawyers. In England and Wales, section 2 of the Compensation Act 2006 provides that an apology does not of itself amount to an admission of negligence or breach of statutory duty, but it is no general shield. It does not stop factual admissions within an apology being used as evidence, and Scotland's Apologies (Scotland) Act 2016 goes further. No repair strategy can rescue an organisation whose conduct has not changed.

Recovery is not a single statement. A recovery plan sets out, group by group, what each stakeholder needs to see and hear to restore trust, who owns each relationship, what evidence will be published and when, and how progress will be tracked. The map from Lesson 5.2 is its natural backbone: groups with high power and interest need direct engagement, not press statements.

The post-crisis stage then turns to learning. A blame-free learning review asks what happened, why, what worked, what did not and what must change in plans, training and operations. Its output should update the issues register from Lesson 6.1, the templates from Lesson 6.3 and the crisis plan itself; a review that is filed rather than acted on lets the same weaknesses resurface.

Learning ObjectiveEvaluate reputation repair strategies with image repair theory, and plan stakeholder recovery and a blame-free learning review.
Key ConceptsImage repair theory; denial, evasion of responsibility, reducing offensiveness, corrective action and mortification; rhetorical vs predictive approaches; apology and legal exposure; the recovery plan by stakeholder group; the blame-free learning review.
Practical ExampleFellwise pairs mortification with corrective action, apologising that its audits missed the problem and publishing its supplier list with dates for independent re-audits, rather than leaning on bolstering about its repair promise.
ExerciseAfter reading the "Recover" step of the worked example at the end of this module, write a one-page recovery plan for your holding-statement scenario listing each key stakeholder group, the repair strategy you would use with it, the evidence you will publish, an owner and a date, then add three questions for the learning review.
Worked Example

Fellwise and the Supplier Allegation

At 07:40 on a Tuesday, a campaign group posts a thread alleging that workers at an overseas mill that weaves Fellwise's waterproof fabric are forced to work unpaid overtime (the scenario is fictional). By 08:30 it is being widely shared and an outdoor-trade journalist has asked for comment.

Classify. The facts are unverified, so on its face this is a challenge in SCCT's accidental cluster. With no crisis history and a favourable reputation, no intensifiers apply yet. But the issues register shows the mill's last audit is over two years old. If the allegation proves true, stakeholders will ask why Fellwise did not know, pushing the crisis towards the preventable cluster. Denial is ruled out: the facts are unknown, and retracting a premature denial would mean mixing strategies.

Hold (published 08:40). "We've seen the concerns raised this morning about working conditions at one of our fabric suppliers. We don't yet know whether they're accurate, and we're finding out: our sourcing lead is contacting the mill today and we've asked for an independent audit. If anyone there has been treated unfairly, we'll make sure it's put right. We'll update here by 5pm today." It is pinned on social channels, sent to the journalist and briefed to staff.

Recover. Suppose the audit confirms unpaid overtime. Fellwise moves to rebuild: an apology and corrective action. Re-scored for this crisis, suppliers move up the map as their urgency jumps, so the plan deals with them first: remediation terms and re-audit conditions agreed with the mill. The mill workers the map left out, a low-power group with a strong moral claim, receive verified back pay. Regulators and investors receive the audit findings and remediation timetable; customers get a plain update and FAQ; employees, including the Kendal workshop, are briefed before each update; and the campaign group is invited to comment on the plan. Fellwise publishes its supplier list, including fabric mills, and budgets an illustrative £25,000 for independent audits. Its turnover (assumed at £40m in Module 1) is above the £36 million threshold for an annual statement under section 54 of the Modern Slavery Act 2015. The Act requires only a statement of steps taken, but government guidance encourages reporting risks and remediation, so silence on a known finding would be hard to defend. A learning review asks why a known audit gap sat in the register without a deadline.

Knowledge Check

  1. What distinguishes an issue from a crisis, and why does the distinction matter to a communications team?
    An issue is an emerging gap between conduct and stakeholder expectations that develops over time and can be closed by changing policy or practice, whereas a crisis is a sudden threat to operations and reputation, so managing issues early is usually cheaper, and leaves more options, than handling the crises they become.
  2. Under SCCT, why might an accidental crisis call for the same response as a preventable one?
    Intensifiers, namely a history of similar crises or an unfavourable prior reputation, raise the responsibility stakeholders attribute, so SCCT recommends moving from a diminish to a rebuild response (Coombs, 2007).
  3. What should a first-hour holding statement contain, and what should it avoid?
    It should acknowledge the concern, separate what is known from what is not, say what is being done and when the next update will come, and show concern for anyone affected, while avoiding unverified claims, speculation and "no comment", which reads as evasion.
  4. A realistic video appears to show Fellwise's founder dismissing worker complaints, but Fellwise suspects it is AI-generated. How should it respond?
    Treat it as a potential rumour: verify first, then deny clearly through a single official channel with evidence and report the content to platforms without repeating its claims in detail, because denying genuine footage would turn a rumour into a far worse crisis.
  5. How do Benoit's image repair theory and SCCT differ, and why might a manager use both?
    Benoit offers a rhetorical typology of five strategies for analysing messages, while SCCT predicts which response fits the responsibility attributed, so SCCT can set the overall posture and Benoit's strategies can refine what is actually said.
  6. Which attribute from the salience model in Module 5 changes fastest when a crisis breaks, and what should Fellwise do with its stakeholder map as a result?
    Urgency: salience is dynamic, so a crisis gives groups urgency within hours, making a group that already holds power and legitimacy definitive and one with legitimacy but little power, like Fellwise's suppliers, dependent, which is why Fellwise re-scores its map for this crisis, moves suppliers up as their urgency jumps, and also asks who the map left out, such as the mill workers, whose power is low but whose moral claim is strong.

Resources & Further Practice

  • Situational Crisis Communication Theory: Coombs, W.T. (2007) 'Protecting organization reputations during a crisis: the development and application of situational crisis communication theory', Corporate Reputation Review, 10(3), pp. 163–176, the core statement of the clusters, intensifiers and response guidelines.
  • First tests of SCCT: Coombs, W.T. and Holladay, S.J. (2002) 'Helping crisis managers protect reputational assets: initial tests of the situational crisis communication theory', Management Communication Quarterly, 16(2), pp. 165–186.
  • Image repair: Benoit, W.L. (1995) Accounts, Excuses, and Apologies: A Theory of Image Restoration Strategies. Albany: State University of New York Press; and Benoit, W.L. (1997) 'Image repair discourse and crisis communication', Public Relations Review, 23(2), pp. 177–186.
  • Social media and crisis: Jin, Y., Liu, B.F. and Austin, L.L. (2014) 'Examining the role of social media in effective crisis management: the effects of crisis origin, information form, and source on publics' crisis responses', Communication Research, 41(1), pp. 74–94; Coombs, W.T. and Holladay, S.J. (2012) 'The paracrisis: the challenges created by publicly managing crisis prevention', Public Relations Review, 38(3), pp. 408–415.
  • Proactive disclosure: Arpan, L.M. and Roskos-Ewoldsen, D.R. (2005) 'Stealing thunder: analysis of the effects of proactive disclosure of crisis information', Public Relations Review, 31(3), pp. 425–433.
  • Lifecycle and issues management: Fink, S. (1986) Crisis Management: Planning for the Inevitable. New York: AMACOM; Regester, M. and Larkin, J. (2008) Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice, 4th edn. London: Kogan Page.
  • Free reading: Coombs, W.T., 'State of Crisis Communication: Evidence and the Bleeding Edge', a research summary published by the Institute for Public Relations (instituteforpr.org).
  • Further practice: audit your organisation with the Crisis Readiness Audit, turn the high-priority gaps into owned actions, and carry your issues register, SCCT classification and recovery plan into the risk and governance section of Module 8.
Checkpoint

Reflect on Your Crisis Plan

  • What I did: name the issue you escalated, the SCCT cluster it would fall into, and the response group your recovery plan uses.
  • What I learned: note one thing your holding statement had to leave unsaid until it was verified, and what that taught you about the first hour.
  • What I'll change: write one change you will make at work before any crisis, for example giving every issue in the register an owner and a review date.