Papa John’s Recent PR Crisis
It can take years to build brand reputation and only one moment to tarnish it. While no company wants to make mistakes or attract negative publicity, mistakes happen. The list of mishaps – from Facebook to H&M, to United to Pepsi, to Dove to Tesla – prove that no company is immune to a PR crisis.
While the best strategy is to be proactive about preventing PR crises. It is also important in establishing a purpose-driven code of conduct, we cannot always foresee problems before they happen. The good news is that there are clear steps companies can take to recuperate and regain consumer trust. Admitting wrongdoing, apologizing and taking actions to course correct are essential steps to responding to a PR crisis. What’s more, brands with clearly defined purpose have an advantage because they can utilize their core beliefs to rebound in a way that moves them beyond the negative publicity and back to business growth.
Here are 4 essential lessons from Papa John’s on dealing with a PR crisis
Apologize Directly: The first thing a company must do after an incident is to take ownership of what they did wrong. Don’t make excuses or try to place the blame on a third party, acknowledging your mistake is essential to moving forward. For example, after John Schnatter, Papa John’s founder, said racists remarks in a meeting, CEO Steve Ritchie responded with an empathetic letter. The letter expressed how the founder’s actions were unacceptable and do not represent the company’s position. By acknowledging and apologizing for the founders wrong doing, Ritchie is owning Papa John’s mistakes rather than trying to avoid responsibility. The apology was also more authentic because it came from the CEO. By showing face, Ritchie illustrates the humanity behind the brand. This is especially critical in today’s ultra-connected world in which brands are constantly in the social media spotlight. Social engagement creates less polished, more intimate dialogue between brands and consumers. It is important to show the real people behind the brand to regain consumer trust. The key lesson here is that consumers want to support authentic, trustworthy and responsible companies. Apologizing honestly is the first step to demonstrating that you’re running an upstanding operation.
Take Immediate Action: The next step to coming back from a PR crisis is to take action. Words are important but making conscious efforts to restructure your organization is crucial to reassuring stakeholders that you won’t make the same mistake again. Papa John’s took appropriate action by outlining the steps it will take to ensure that racism doesn’t persist throughout the organization. To address the problem, Schnatter resigned as chair of the board. Papa John’s is also hiring diversity and inclusion experts to audit its corporate culture, sending senior leadership to speak with employees and managers across the country to understand key concerns and will report back on their process. Further, Ritchie asked consumers to keep the brand accountable. By outlining a plan of action, Papa John’s is backing up its apology and progressing down the road to a PR recovery. Essentially, actions speak louder than words. Take responsibility by implementing a meaningful change within your organization that addresses internal weaknesses and strengthens your corporate culture.
Monitor & Report Progress: Actions are paramount to recovering from a PR crisis. However, not all actions lead to the intended result. That’s why it’s important to have a transparent and accountable monitoring system to ensure that you meet your goals. While Ritchie did mention that Papa John’s will conduct an internal audit and report back, he did not specify how he will monitor progress. Papa John’s would be more accountable if it adhered to an established framework for measuring diversity and inclusion. For example, the KaleidoScore Diversity and Inclusion Measurement Framework is useful tool to begin monitoring and benchmarking progress. Ultimately, you can’t change what you can’t measure. Running a responsible business means monitoring your social impact, just as you monitor your finances. To make your efforts worthwhile, you must follow up on your actions and continue to assess progress over time. The important note is to frame the lessons you learned as social impact initiatives that you pursue as part of your brand’s recovery and give back to others.
Commit To Leadership: Today’s consumers value meaningful connections and want to make the world a better place. Companies that not only pursue a purposeful mission, but also invite consumers to partake, build goodwill and expand their network. Papa John’s is working to implement internal growth around diversity and inclusion. However, they have yet to incorporate mission-driven initiatives into its branding and external community. The pizza maker could turn this PR crisis into a growth opportunity. Pursuing an impactful program that addresses issues of racism in society. Taking it further, by inviting consumers to participate in efforts to better the world. In this way, the brand could connect people with a cause they feel passionate about. Further creating a memorable experience for consumers. Ultimately, by leveraging your business for social good you can generate earned media and change the story consumers tell about your company.
With the widespread adoption of social media, brands can no longer hide from unwanted media attention. Companies must take responsibility for their actions, implement internal change, and go the extra mile. Most importantly by aligning their brand with cultural conversations that resonate with consumers.