The Worst Types of Corporate Cultures During A Crisis
In an era where news races across the globe instantly, a single misstep can lead to a full-blown corporate crisis.
Whether it’s a product failure, a cyber security breach or an employee mistake that goes viral, how a company responds can derail even the most successful operation, resulting in loss of market share, exodus of employees, and weakening of investor confidence, and eroding trust in the brand.
Effective crisis communication is more than simply knowing what to say. It requires having a plan in place outlining who are the internal and external stakeholders, what are the communications roles and responsibilities for each member of the team, and how to internally organize an effective response.
But what separates the companies that emerge stronger from those that crumble under pressure? The answer lies not just in their communications plans and strategies, but in their internal corporate culture.
A strong, collaborative culture can enhance a company’s ability to manage a crisis, while a weak or misaligned culture can make the crisis worse. The corporate culture affects everything from the tone of the messaging to the speed of the response.
We’ve seen many instances where corporate culture weaknesses are amplified during the heat of a crisis. Structural and cultural barriers —poor communication, lack of accountability, and siloed departments—can make it harder to operate effectively amid a crisis situation.
There are many varied corporate culture profiles that can derail even the best-laid crisis response plan:
1. Bureaucratic
In a bureaucratic culture, decisions take too long to make as they get bogged down in layers of approval. A delayed response can be outdated and reduces the company’s ability to respond to developing situations.
2. Siloed
In a siloed culture, communication and coordination during a crisis can be fragmented, leading to inconsistent messaging and confusion about who is doing what Roles and responsibilities are conflated, which can lead to a lack of accountability and internal conflict.
3. Secretive / Closed
In a secretive culture, information is withheld or delayed, causing trust issues among the internal players and external audiences. Without access to information, employees are left to speculate on what is going on, which can feed into an inaccurate narrative that could go public. Also, a closed culture prevents open collaboration amongst teams, which is essential during crisis management.
4. Authoritative
Companies with strictly top-down hierarchies often struggle with transparency, leading to delayed communication. Information is typically not shared with those who need it and decisions do not involve people who should be consulted.
5. Blame
The blame game erodes trust and credibility both internally and externally. Employees often lose trust in their leadership which leads to lower productivity, decreased morale, less motivation to help the company during the crisis and high turnover rates when unity is what the company needs. Blaming others also causes internal conflict and lasting resentment.
6. Risk-Averse
Employees know when their company is unwilling to take chances which makes them fearful of taking initiative and making a mistake. The response team is more likely to stay quiet instead of advocating for action. Messaging is typically “safe” and often out of touch with the situation, not really saying anything.
7. Questionable Ethics
Companies lacking a strong ethical value system may try to mislead stakeholders or deflect responsibility. By distorting the truth or failing to provide the complete story, the company creates distrust in its brand and leadership.
The companies that prioritize openness, collaboration and accountability are the ones that can survive any crisis with their brand intact. At the end of the day, corporate cultures should align with the values of the organizations and those are the same values that should be visible during a crisis.
Meghan Tisinger
Managing Director, based in Washington, DC
Meghan brings more than 15 years of strategic communications, crisis management, international advocacy and media relations experience to Leidar.