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Ahead of the Storm

July 15, 2025
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Lynnette Lounsbury

In today’s volatile environment, businesses, whether small or multinational, are vulnerable to a range of crises: anything from supply chain failure, to social backlash or even  cyberattack. How you communicate during these events can shape customer trust, stakeholder confidence, and long-term survival. Crisis communication is not just about damage control. It’s about preserving your reputation and demonstrating leadership under pressure. The traditional model of crisis communication was developed by W.Timothy Coombs and is called Situational Crisis Communication Theory (SCCT) and it identifies three main responses which will depend on your level of responsibility as a business. It offers an ethical roadmap based not only on reputational risk but also moral responsibility.

  1. Deny – this is used then an organisation is falsely accused.
  2. Diminish – This is used when you have minimal responsibility, but it still requires acknowledgement.
  3. Rebuild – this is used when you are at fault. It requires you to apologise, make restitution and change.

From an ethical perspective, transparency and empathy must guide your choice of strategy. Anything less risks long-term reputational damage and public distrust. A recent example of a company who did crisis communication really well was Owala, a popular drinkware company, who in 2024 voluntarily recalled nearly 2 million water bottles due to a choking hazard posed by a faulty spout design. While a recall could be disastrous for a brand built on health and safety, Owala’s textbook-perfect communication strategy turned the crisis into an opportunity to deepen customer trust. Here’s what they did well:

  • Immediate action and transparency: They didn’t wait for consumer pressure. They announced the recall themselves.
  • Empathetic language: Their messaging acknowledged parents' concerns and offered full refunds or replacements.
  • Multi-channel consistency: They updated their website, emailed customers, posted across social media, and coordinated with the U.S. Consumer Product Safety Commission.
  • Visual and clear instructions: Their recall page included easy-to-understand guides on how to identify affected bottles and claim refunds.

As a result, the brand experienced only a minor dip in reputation, followed by a spike in customer loyalty and online praise for “doing the right thing.” Another great example is the Australian B-Corp “profit for purpose” toilet paper company Who Gives a Crap who, during the height of COVID-19 panic buying, faced massive demand they couldn’t meet. Instead of hiding behind logistics excuses, they embraced full transparency. They turned ethical communication into loyalty by using:

  • Honesty over spin: Their emails and social posts explained the situation clearly, with humility and humour. WGAC send some of the most amusing brand emails you will ever receive and are a great case study in overall communication strategy.
  • Putting community first: They prioritised orders from rural and regional areas, where supplies were scarcest.
  • Staying mission-aligned: Despite pressure, they continued to donate 50% of profits to sanitation charities.

This approach wasn’t just good PR — it was a values-driven response that aligned with their brand purpose and respected their customers. Using Coombs model, but also tried and true methods from companies who have had to face similar issues, here are five ethically grounded tips for any business facing a crisis:

  1. Tell the truth early – Even partial honesty can backfire. Assume the facts will come out eventually and say it first.
  2. Apologise if necessary – A genuine apology is not weakness. It shows accountability and humanity.
  3. Put people before profit – Consider how your decisions impact customers, staff, and community — not just the bottom line. The bottom lines matters, but not the most, and your customers will note your choice to put people first.
  4. Stay aligned with your values – Your mission and brand voice should guide your response, even under pressure.
  5. Learn and improve – Ethics doesn’t stop when the crisis ends. Communicate what you’re doing to prevent a repeat.

So, what happens if you do it another way? Unethical crisis communication happens all the time. It almost always backfires and ends up with deep reputational damage. For example, in 2015, Volkswagen was caught cheating emissions tests with illegal software in millions of diesel cars. Instead of taking immediate responsibility, the company blamed rogue engineers and delayed a full apology. Their inconsistent and technical messaging ignored the environmental harm and public trust issues. The fallout included over €30 billion in fines, global reputational damage, and ongoing legal trials. It’s a stark reminder: in a crisis, ethical and transparent communication is both your survival as a company, and the right thing to do.  

You can’t always prevent a crisis — but you can plan for it. Smart communication can be the difference between a stumble and a catastrophe. As Coombs reminds us, “The perception of responsibility matters just as much as the reality.” Crisis communication is your moment of truth. It reveals your business’s character — to your customers, your staff, and your community. The question isn’t just how you’ll respond, but who you’ll be when it matters most.


Image via Freepik from wirestock

About the author: Lynnette Lounsbury is a Senior Lecturer in Communications at Avondale University. She is an author, educator and film maker. LinkedIn

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