Corporate apologies can be a powerful force for defusing antagonism, helping both sides see what happened and even aiding organizations to correct mistakes and build relationships. But the apology must be real and lead to true reform. As soon as customers sense that a mea culpa is no more than a couple of fancy Latin words, forgiveness will turn to mistrust, says HOW contributor Erik Sherman. And in the process, the company will have betrayed its values and injured itself in the market.
More »"It's up to senior management and the board to communicate the facts and the story. If you don't, people will make their own up, and it's usually much worse."
— Blyth McGarrie,
CEO, LIF Group
History has a way of repeating itself. In 1987, the markets also faced fluctuating oil prices and a credit crunch. When the tide came back with a vengeance, Mellon Bank Corp. faced its first loss in 120 years. But the money management giant recovered. The key to its rebirth was a lesson from history: A company cannot pull itself out of trouble without applying transparency and honesty.
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