In the age of social media, even a minor, unfortunate mistake by an entrepreneur can trigger a devastating avalanche within a few hours. Managing a serious image crisis is a fight for the company's survival. We'll tell you why, in the face of "online hate," it's worth putting emotions aside and handing over the reins to a well-coordinated team – PR specialists and experienced lawyers.
💡 Key takeaways
- The quickest way to exacerbate a crisis is for a shocked entrepreneur to engage in personal and emotional discussions with internet users. Letters and retractions should always be cool, balanced, and prepared by specialists.
- A company's personal rights (of a legal entity) are subject to the same legal protection (Articles 23 and 24 of the Civil Code) as an individual's personal rights – in the case of companies, this applies to, among others, reputation, good name, brand or market authority.
- Polish law protects companies from dissemination false facts (e.g. "there are rats in this restaurant," while the sanitary inspection states otherwise) and unauthorised opinions (If the opinion is not based on a real, proven event).
A reputational crisis is like a leaky boat – the more water it takes on, the faster it sinks. A poorly thought-out, personal post by the company's CEO on social media at the start of the scandal often leads to irreversible sinking.
Reputational crisis. Lawyer or PR professional, who saves the company?
What is a reputational crisis and why does it bring down companies?
A reputation crisis is a sudden event that causes a drastic drop in trust in an entrepreneur. In the digital age, these breaches quickly go viral. A permanently attached label of a fraudster or "poisoner" discourages customers, deters suppliers, and immediately drains the company's finances, leading it in extreme cases directly to bankruptcy.
Why can acting on your own be toxic?
Reacting under extreme stress is always flawed. Imagine a manufacturer accused of evading emissions standards. Irritated, they mock environmentalists on the company's official Facebook page and question the existence of climate change. The result? Pouring petrol on the fire. Accusations of car defects are now compounded by the rage of environmentalists and the management's climate denialism. Engaging a marketing agency (PR) at an early stage avoids this type of communication catastrophe.
The role of a lawyer in crisis management
PR is a soft skill – it's responsible for regaining trust and shaping the message. But on the side A lawyer must standHe oversees the defensive strategy.
Working with PR: a cool analysis of statements
A lawyer scrutinises every word of statements issued to the press to ensure that, in the heat of battle, the company doesn't inadvertently infringe upon the personal rights of another person or entity (e.g. by rashly making accusations without hard evidence), which would only lead to further litigation.
Mitigation of liability (reduction of sentence)
When a problem touches upon criminal law (e.g. a celebrity or businessman causing a collision under the influence of alcohol), a lawyer, together with a PR agency, develops a "remorse protocol". A skilfully formulated and publicised admission of guilt (combined, for example, with a donation to a social cause and compensation to the victims) is an element of image building that simultaneously very effectively reduces the actual sentence later imposed by the court.
Protecting a good name – how the law protects a company
In accordance with Article 43 in conjunction with Articles 23 and 24 of the Civil Code, legal persons (i.e. companies, partnerships) possess personal goods, of which the most important are: reputation, prestige, good brand, commercial opinion and good name (property sphere, excluding the sphere of "feelings", i.e. dignity - this is exclusive to people).
False fact and unauthorised opinion (hate speech)
Online hate that causes reputational crises is divided into two types:
- Allegation of fact "I saw rats in this restaurant's kitchen." We verify the fact simply – we present the sanitary inspection reports. The action was unlawful, the image has been restored.
- Evaluative statement (opinion): The conditions in their kitchen are disgusting. According to the Supreme Court's case law (e.g. ruling V CK 314/05), an opinion statement can constitute an infringement of a company's personal rights, if it finds absolutely no objective coverage in a real event.
What can a company claim as compensation?
If the crisis was caused by a deliberate and false violation of personal rights, the ruined entrepreneur can demand from the perpetrator of the disturbance (within the framework of the so-called omission procedure, Art. 24 of the Civil Code):
- Immediate cessation of defamation (removal of posts/articles) or contacting administrators, e.g. Google or Facebook, to remove entries.
- Corrections and publication of apologies (which heals the image most strongly at the end).
- Monetary compensation for damage to reputation or substantial, demonstrable damages for proven financial losses caused by the scandal (e.g. lost contracts).