Best and Worst Ways Companies Handled Crises in 2023

Here’s a rundown of the businesses that flourished (and failed) in 2023 and how companies should plan to face crises in 2024.

Today’s guest post is by Thomas Mustac, Publicist — Otter PR

The way a company handles a crisis can be a defining moment for the organization, either endearing them to their market or destroying the company altogether. In a business landscape where every move or decision is immediately broadcast through the grapevine of social media, companies that are not adequately prepared for a crisis could be left decimated in its wake. 

The year 2023 saw some headline-making crises handled very well by the businesses involved — and some that brought the businesses to their knees. Here’s a rundown of the businesses that flourished (and failed) and how companies should plan to face crises as we enter the new year. 

The best crisis responses 

The companies that provided the best responses to a crisis were those that were prepared and aware of what was going on outside of their organizations.

Amid a burgeoning recession, Google gave voice to Black-owned businesses with its wildly popular Black-owned Friday initiative. By creating a video with Keke Palmer and highly publicizing its desire to see people “search and shop” Black-owned businesses, Google turned recession lemons into lemonade for many minority small-business owners. 

Another brand that faced a crisis in 2023 but came out relatively unscathed was Chick-fil-A. Known for its more Christian-aligned, conservative values, fans of the brand accused them of “going woke” when they announced they were dedicated to having a “culture of belonging.” Chik-fil-A was the subject of a handful of scathing social media callouts but remains as popular as ever largely due to its history of credibility and strong brand identity. Though being called “woke” may not seem like a crisis, one only needs to recall the similar trouble that brands such as Bud Light faced in this politically contentious current social climate.

How companies approach the crisis can make all the difference in the court of public opinion. Companies that adeptly navigate crises showcase a blend of resilience, adaptability, and strategic acumen.

The worst crisis responses 

Where there are winners, there are losers as well. Quite a few companies ran afoul of one crisis or another in 2023, dropping the ball in terms of response and redemption.

The collapse of Silicon Valley Bank was probably one of the most memorable business crises of the last year. It was the second biggest bank failure in US history, and how it was handled from a public relations perspective contributed to a panic response. Due to rising interest rates, US bonds held by SVB lost some of their value, but the bonds were still worth billions. 

However, SVB — perhaps trying to get ahead of a possible crisis — released a statement that talked only about losses and neglected to explain that they were still cash-positive. The negative statement caused a run on withdrawals, knee-capping the bank past the point of recovery.

Another failed response came from the head of Disney. Amid the SAG-AFTRA/WGA strike that took over much of the year — grinding TV shows and movie production to a halt — CEO Bob Iger stated that the demands of the strikers were “not realistic” and that they were “adding to the disruption” of an already difficult moment in time post-Covid. The response from SAG-AFTRA president Fran Drescher was swift and biting, calling Iger “tone deaf” and “repugnant.” 

Iger’s comments came at a time when Disney was already faltering with the public, who had grown tired of rising park prices, movies that were failing to meet expectations, and a drawn-out public feud with Florida Governor Ron DeSantis. Though Iger later walked back his comments regarding the strike, much of it was too little, too late for the many who supported the actors and writers. 

Handling a crisis 

Regardless of the size or scope of the crisis, the best response by a business should include some essential components. 

Preparation and planning

Crises will eventually happen, and businesses must anticipate potential crises and establish contingency plans to minimize their impact.

Prompt response

Often, fallout from a crisis comes because the response from the business is not swift enough. Companies need to take immediate action to prevent a crisis from escalating. Designating a crisis management team or a point of contact can facilitate this swift decision-making.

Transparency

Businesses should focus on maintaining timely and accurate communication. Stakeholders should remain informed about the crisis and the response, and it is vital that the business manages uncertainty and focuses on fostering trust.

Adaptability and flexibility

A crisis situation can shift on a dime. Businesses should remain open to changing their approach or response based on an evolving situation.

Learning and improvement

After a crisis has died down or been resolved, businesses should analyze the crisis and the response, identifying weaknesses and strengths, enabling them to better prepare for the next crisis.

How not to handle a crisis

Some of the worst crisis responses in 2023 fell victim to many of the ineffective crisis-management approaches: 

Ignoring or denying the issue

Disregarding or downplaying a crisis will not make it go away and will likely make it worse.

Poor communication

A lack of open dialogue or transparency can cause confusion and panic.

Delayed response

Procrastination or indecisiveness can make a crisis worse.

Blaming others

Focusing on assigning blame for resolving the issue can create conflicts and impede problem-solving efforts.

Failure to learn

If a business doesn’t learn from the mistakes it made amid a crisis, it is doomed to repeat them. 

No one likes to withstand a crisis, but with proper planning and thoughtful management, a crisis needn’t destroy one’s business. By being prepared and keeping the lines of communication open, crises can even be an opportunity for learning and growth.

Thomas Mustac is Otter PR’s medical and health industry PR specialist. He previously held positions at the Dr. Oz Show and New York Medical College. He has his Master’s Degree from Iona University and received an Advanced Certification in Nonprofit Public Relations. He has a diverse background in healthcare, pharmaceutical, telehealth, tech, cosmetics, sports, and interior design public relations.

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