The Organizational Apology

At some point, every company makes a mistake that requires an apology--to an individual; a group of customers, employees, or business partners; or the public at large. And more often than not, companies and their leaders fail to apologize effectively, if at all, which can severely damage their reputations and their relationships with stakeholders. Companies need clearer guidelines for determining whether a mistake merits an apology and, when it does, for crafting and delivering an effective message. In this article, the authors present their framework--the apology formula--to help companies navigate the tricky terrain. Leaders should ask themselves four questions: (1) Was there a violation? (2) Was it core to our promise or mission? (3) How will the public react? (4) Are we committed to change? As a general rule, the more central to the mission of the company the violation is and the more people it affects, the more important it is that the apology be pitch-perfect. Once a company decides that an apology is necessary, it needs to carefully consider the who, what, where, when, and how of executing it. For core violations, the "who" has to be senior leaders, the "what" has to show a tremendous commitment to change, the "where" has to be high profile, the "when" has to be fast, and the "how" must be deeply sincere and demonstrate empathy.

• Company reputation
• Customer retention
• Business law
• Trustworthiness
• Crisis management