Over the past few weeks, the C-suite has been under a microscope after the affair between the former Astronomer CEO and the organization’s Chief People Officer was exposed on the jumbotron at a Coldplay concert.
In the weeks since the scandal’s first appearance, there have been multiple skits, memes, and even recreations of the viral moment at sports venues dubbed “the Coldplay cam.” Industry leaders have also jumped on the trend to discuss what lessons professionals can learn from the situation. The one thing I haven’t seen discussed yet is how a company is supposed to come back from a national scandal-turned-joke that even my grandma has heard of.
That’s what this C-Suite 411 article will look at: How companies who face such a public scandal can rebuild their reputation and navigate the aftershock socially without causing more damage to their brand.
When Virality Works Against You
The biggest issue for Astronomer is the fact that there hasn’t been this level of virality based on a CEO scandal before. Sure, there have been scandals that have been popular that resulted in short-lived virality, but many of these cases were regarding CEOs who have been in the spotlight longer or that stayed mostly in specific professional spaces.
Take Meta’s Mark Zuckerberg, who is constantly made into a joke based on Meta’s many data privacy scandals. His virality as a joke is based around his long history as CEO and the popularity of his platforms. These factors, combined with the current negative social stigma around the 1%, have led to numerous jokes and viral memes being made at his expense. Luckily for Meta, these moments are short-lived and rarely extend beyond Mark himself, allowing for the company to still succeed despite constant attention from the public.
Another recent example is FTX CEO Sam Bankman-Fried, who became a meme after overseeing what finance experts have dubbed “the most dramatic financial collapses in modern history.” While news of his scandal did reach the public, memes and skits on the situation mostly stayed within the finance space of social media.
When you have a viral scandal that goes on to be as popular as the Astronomer incident among the average person, it’s important to navigate the weeks after with caution. You won’t be able to stop the jokes, but your response can influence how they impact your reputation. Ignoring viral criticism often comes across as tone-deaf or dismissive, so company leaders need to acknowledge the scandal without pointing fingers or being defensive. Instead, using a measured, human response — possibly even with a touch of appropriate humor — can help diffuse tension and show the public that your organization is listening and willing to grow.
Simultaneously, company leaders should work to rebuild the trust lost due to the scandal.
Rebuilding Your Brand After the Fallout
A single scandal can unravel years of hard work and dedication. Depending on the severity of the scandal, companies can face significant financial impacts, operational challenges, and even undergo changes in management that can make the company unstable.
Putting the Astronomer scandal aside, other companies faced similar scandals in the past and still survived after a strategic approach. Perhaps the closest example we can look at is the Uber “bro culture” scandal involving the ride share’s former CEO Travis Kalanick. Kalanick had many accusations of him fostering a toxic “bro” culture, including allegations of sexual harassment and bullying tactics.
After public criticism and investor pressure, Kalanick resigned in 2017 and was replaced by current CEO Dara Khosrowshahi. Uber went on to perform a cultural overhaul prioritizing new values centered around respect, inclusivity, and proper ethical behavior. The group also enacted numerous policy changes to improve the company’s transparency and public accountability. Khosrowshahi’s leadership helped Uber navigate its reputation crisis and set the company toward a more sustainable and ethical future.
Companies are bound to experience some form of scandal at some point. A 2024 study found that many scandals are internal but can still reach the outside world. The same study found that companies can rebuild their reputation and funds, but it can take some time to see results depending on how company leaders choose to respond.
Fortunately, the more prepared for the scandal you are, the faster you can get the ball rolling. Here are the four most critical steps for responding to any scandal.
Act, Acknowledge, Apologize
The first step is technically three steps that are critical to preventing a scandal from spiraling out of control. Company leaders should act fast as the longer they wait to address the issue, the worse it can get. It’s critical that company leaders immediately and sincerely acknowledge the scandal and the harm it caused.
Past examples have shown that organizations who utilize this step first are more likely to regain trust faster.
Take Decisive Action
Leaders need to then address the root cause of the scandal and implement necessary changes to prevent future occurrences. Depending on the severity of the scandal, this could include internal investigations, policy reforms, or even changes in leadership. Making these changes is necessary for the company to have a chance of survival after the scandal dies down.
Communicate Transparently
Clear and unified communication is needed to keep interested parties calm and informed about the state of the company. These interested parties include investors, employees, and any consumers with a vested interest in your company. While it isn’t always necessary to keep the public informed, it can help prevent the spread of misinformation. These communication channels can also operate as a two-way street and be used as a way to gain feedback regarding the scandal.
Aim for Long-Term Change
Organizational leaders should go beyond just addressing the immediate crisis and demonstrate a long-term commitment to ethical behavior and corporate social responsibility. This could involve supporting community initiatives, promoting diversity and inclusion initiatives, or adhering to strict ethical guidelines. Regardless of the option, it’s important to lead by example to provide lasting organizational change.
Source: Crowe, BBG
