For entrepreneurs, few events are more damaging than a product recall. The immediate image is always financial: refunds, fines and settlements. But anyone who has been inside these cases knows the true cost runs far deeper. Recalls erode consumer trust, unravel years of brand building and expose systemic failures in leadership. I have seen firsthand how these crises unfold. In nearly every instance, the warning signs were there.
In 2019, a beauty giant cut ties with a famous influencer after a scandal involving her parents exploded online. The collaboration was dropped almost overnight, leaving people wondering: What kind of agreement did they have in place? Could companies legally walk away that fast? Were there any protections for either side? The exact details notwithstanding, this moment became a case study in why influencer contracts matter. A well-written legal document can include r eputation clauses, clear deliverables, exit terms, a confidentiality clause, and usage rights.
Recently, consumers of cosmetics brand E.L.F. Cosmetics were upset because the brand posted an ad featuring comedian Matt Rife. In his Netflix special a few years ago, Rife made a joke about domestic violence that many women found distasteful. For consumers, seeing Rife in an ad with a brand they love and use - and one that is often touted for its commitment to inclusion felt like it was a betrayal of their brand values.
Consistent, clearly communicated values are among a company's strongest defenses in a crisis. But values can't just live in a motto. They need to show up in leadership behavior, brand voice and what the company spotlights far in advance of a crisis scenario.
Positive reviews can boost SEO as they indicate trustworthiness, a key metric that Google uses for ranking websites. They also communicate to potential customers that the brand is worth their investment.
Building a strong brand means recognizing potential reputation crises and knowing how to handle online articles that misrepresent you or your business. Negative press on Google can erode customer trust and disrupt your operations. Burying negative search results can be complex, time-consuming and cost a fortune that in the long run will negatively affect the financials of your company or your career.
A company's brand is incredibly powerful and indicative of the success of the business as a whole. If customers think highly of a company's services, customer interactions, or quality goods, it has the potential to transform their position within the marketplace.