To win back lost trust, it’s important to grasp a fundamental truth about apologies: When something bad happens, you must first decide if an apology is even warranted—sometimes apologizing is not the best strategy.
If an apology is warranted, companies must then answer three key questions to properly craft a response: Do we tell the truth? On whose behalf are we acting? How do our actions benefit those who trust us? To help executives be better prepared to speak to stakeholders in difficult and make-or-break moments, we explain this process below.
What are you apologizing for?
To decide if an apology is needed, determine if the issue is one of competence or integrity. Competence problems involve a failure of reliability, while integrity problems involve a failure of responsibility. Apologies are effective for competence problems, but denial is better for integrity problems, assuming the company acted with integrity.
Competence problems are easier to forgive, while integrity problems are harder to overcome. Diagnosing the type of trust problem is the first step to an effective response: apologize for competence problems and deny integrity problems if wrongly accused.
Acknowledge information that’s already out there (or may be soon)
Leaders should disclose facts they know are in the public domain or may be revealed by investigative reporters or whistleblowers. In our era of 24/7 information flows and social media, companies are not alone in explaining what went wrong.
Accepting, rather than denying, glossing over, or failing to disclose material facts that have been unearthed, reinforces that the company embraces a truthful account of its actions.
Focus on them, not on you
It’s natural for any leader to feel a sense of guilt and responsibility in the wake of a tragedy; it’s also normal to worry about not only the public but shareholders and employees as well.
However, your public apology should focus on those who suffered harm — for example, the friends and family members of people who were hurt or killed in an accident — rather than on how you or members of your organization may feel.
Be truthful
A statement must be factually true, both in terms of what happened and what the company is doing about it. This is crucial for convincing stakeholders that they can believe the company’s statements now and in the future.
A good apology also takes into account the context that gives a company’s assertions credibility—or serves to discredit them.
Be detailed and quick
Make sure to include personal information about those who were harmed to show their families and friends that you recognize the true cost of your company’s error.
Don’t worry that you may not have all the facts yet; you should be forthright about the ones you do have. What is important is to show that, as a company, you are aware of and deeply sorry for the harm that was caused.
Explain what went wrong
It’s vital to provide a full account of what the company did wrong. Researchers Roderick Kramer and Roy Lewicki found that, when apologizing for a competence problem, a full and detailed account of actions committed by a company is much more persuasive than one that, for example, attributes the problem to factors outside the company.
Details show a level of understanding of the mistakes that were made, helping concerned parties trust that the company knows what it did wrong.
