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Reputation Management in Crisis Situations

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Reputation Management in Crisis Situations

Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EDITOR’S PERSPECTIVE

Reputation Management
Anne V. Seyferth, BS
Kevin C. Chung, MD, MS
Ann Arbor, MI

I
n 2016, Samsung released its highly anticipated name of an organization, company, or product.4
Galaxy Note 7 smartphone. This new device Samsung is an example of a company that priori-
was expected to compete with comparable tized maintaining its reputation in the long term
technology at the time, including Apple’s iPhone, over short-term profits. By doing so, it was able
and rival its previous model. Instead, the product to not only survive a crisis but also gain the trust
launch would lead to Samsung facing its biggest and loyalty of additional customers. The concept
crisis in company history, one that would threaten of reputation management extends beyond com-
its reputation as a technologic innovator and bil- panies; both individuals and organizations should
lion dollar company.1 strive to maintain an honest reputation that is
Shortly after the Galaxy Note 7’s debut, reflective of their internal beliefs and practices.
numerous reports of the cell phone bursting into
flames led to widespread concern; the model
REPUTATION MANAGEMENT IN
was even banned on many airlines. Samsung was
forced to take rapid action and made the difficult HEALTH CARE
decision to recall over 2 million devices and halt
further production.2 The company did not stop Branding versus Reputation
there; Samsung created a battery advisory group, An organization’s “brand” and “reputa-
hired researchers to determine the cause of the tion” may seem similar but have key differences.
problem, and designed an 8-point battery safety Reputation contains beliefs or expectations about
system to prevent further explosions. Throughout the future behavior of an organization and its
the crisis, Samsung maintained transparency and members.5 Branding, in contrast, is the perpetual
honesty with its customers. Prioritizing customer process of identifying, creating, and managing
safety over profits enabled Samsung to survive the the assets and actions that shape the perception
crisis, uphold its reputation, and maintain its solid of a business or product in stakeholders’ minds.6
position in the technology market. After endur- Simply put, the main difference is that branding
ing short-term revenue losses, 1 year later the is related to current relevancy, whereas reputa-
company released its Galaxy Note 8, which won tion is related to historic credibility.7 In addition,
the “best Android phone” award and was well- an organization’s reputation is largely beyond
received as an innovative—and safe—device. A its control and is instead based on interactions
report the same year indicated that 89% of exist- with customers and stakeholders. It reflects how
ing Samsung customers would consider buying a well an organization lives up to its commitment
Samsung smartphone again, and 66% of custom- and, unlike a brand, cannot simply be changed
ers would consider buying a Samsung smartphone through advertising.8 These differences have
at their next upgrade, up 15% from October of important implications when considering how a
2016.1 reputation and brand are built and maintained.
Benjamin Franklin once said, “It takes many Both branding and reputation are important
good deeds to build a good reputation, and only for an organization. Creating a memorable brand
one bad one to lose it.”3 Reputation management is essential for an organization’s survival in a com-
is the act of protecting and improving the good petitive market. Once a brand is created, however,
it is the reputation that requires continuous moni-
toring and attention. Unlike a brand, a reputation
From the Section of Plastic Surgery, Department of Surgery, takes longer to form but can change extremely
University of Michigan Medical School.
Received for publication September 27, 2023; accepted
November 2, 2023. Disclosure statements are at the end of this article,
Copyright © 2025 by the American Society of Plastic Surgeons following the correspondence information.
DOI: 10.1097/PRS.0000000000011851

[Link] 589
Copyright © 2025 American Society of Plastic Surgeons. Unauthorized reproduction of this article is prohibited.
Plastic and Reconstructive Surgery • April 2025

Fig. 1. Three steps to reputation management.

rapidly. Once established, it can be easy to ignore had the potential to be a breakthrough company
the necessary maintenance that is required to making a positive difference in health care man-
uphold this reputation. However, as shown in agement, Theranos was fraught with fraud and
Samsung’s 2016 crisis, reputation management dishonesty, ultimately leading to its demise.
can be responsible for the survival or demise of These antithetical examples show that it is
an organization. nearly impossible for an organization to maintain
a positive reputation if its values do not align with
Reputation Management as a Strategy for Long- it. This is particularly evident in the current age
Term Success of social media and immediate access to informa-
An additional complexity that must be recog- tion. Although a physician or health care organiza-
nized is that reputation is a perception; it is dis- tion may have a positive reputation, it can quickly
tinct from the actual character of the company diminish if not properly managed. Reputation
and may be better or worse.3 For long-term suc- management includes avoiding, reducing, or con-
cess, it is essential to ensure that a company’s trolling known or potential risks to the organiza-
reputation aligns with its character. For example, tion, stakeholders, and the public. Three steps to
Samsung’s reputation before the Galaxy Note 7 accomplish this are shown in Figure 1.
crisis was one of quality and technologic innova-
tion. By taking responsibility and acting quickly Applications of Reputation Management in
to remove a defective product, diagnose and treat Health Care
the root of the problem, and release an improved As technology has made information more
product the next year, Samsung was able to main- accessible, it is necessary for physicians to under-
tain this reputation in the face of crisis. However, stand and monitor their reputation on search
not all brands may respond with such integrity. engines such as Google, physician review sites, and
Theranos, a health technology company founded social media. A study from 2021 shows that 81%
in 2003, claimed to be able to identify health con- of patients consider online reviews when choos-
ditions with just a few drops of blood. It sought to ing a health care physician. Furthermore, 75% of
revolutionize health care and, at its peak, was val- patients would only consider health care physicians
ued at nearly $10 billion.9 However, when years of or practices with a minimum 4-star rating.10 With
deceit, false promises, and fraud were uncovered, this increased emphasis on reputation, consultants
the company’s reputation unraveled. Although it have emerged to assist physicians in maintaining

590
Copyright © 2025 American Society of Plastic Surgeons. Unauthorized reproduction of this article is prohibited.
Volume 155, Number 4 • Reputation Management

their online reputation by requesting favorable media use.14 The American Medical Association
reviews and highlighting positive messages. These emphasizes the need to maintain patient confi-
services can cost thousands of dollars and are not dentiality, be cognizant of privacy settings, and
ideal for all practices or physicians.11 Alternatively, provide accurate and truthful information. The
there are several methods to successfully manage Federation of State Medical Boards also empha-
an individual or organizational reputation. sizes patient privacy and confidentiality, profession-
One of the first steps in reputation man- alism, and transparency, and avoiding dispensing
agement is online monitoring.12 This requires medical advice online.14 As with patient reviews,
searching for negative reviews and using a tem- social media for practices or individual physicians
plate or creating a personal response to customer should be consistently monitored. Caution should
feedback. There are several things to consider, always be used—think or ask before posting and
however, when responding to feedback. First, avoid any controversial content.
responses must be compliant with the Health
Insurance Portability and Accountability Act and Reputation Management during Crisis
should not discuss personal information pub- Upholding a current positive reputation is
licly. For sensitive situations, it is preferable to ideal, but circumstances may arise in which it is
reach out to a patient to discuss the situation pri- necessary to respond to a crisis or negative por-
vately. In addition, combative language should be trayal of an individual or one’s organization.
avoided, and compassion used to understand the Times of crisis serve as a test for vital stakeholder
patient’s perspective. Above all, it is best to think relationships and how leaders can use their influ-
before posting and consider what, if anything, will ence to maintain these relationships.16
improve a situation or make it worse. A positive reputation confers an advantage;
Besides patient reviews, there are several other crisis management scholars argue that it serves
components that contribute to one’s online reputa- as protection during a crisis. However, the way an
tion. A physician’s or practice’s website, for instance, organization manages a crisis can reduce, main-
is often the first thing a patient will see and there- tain, or even enhance an existing reputation.16 A
fore helps form an initial judgment. Depending on 2021 study aimed to determine the relationship
the practice, physicians will have varying control between leadership approach and company repu-
over their website. For example, a physician work- tation during controversies surrounding United
ing within a hospital system may have to follow and Delta airlines’ forced passenger-removal inci-
regulated templates and content rules. Those with dents. This study analyzed 2 separate controver-
control over their website should focus on creating sies and the responses by the companies’ chief
a sleek and professional, customer-facing site that executive officer (CEO) using the “responsibility
is easily accessible and simple to use.13 compass” and adjusted share prices as a proxy for
Another popular and effective way for physi- reputation (Fig. 2). Results from this study indi-
cians to communicate with patients, other physi- cated that between 50% and 70% of variations
cians, and the public is through social media. Social in share prices could be explained by respon-
media in health care has a variety of uses, includ- sible leadership, even with many other factors at
ing professional networking, professional and play. For example, United Airline’s share prices
patient education, organizational promotion, and dropped the day after a leaked memo from the
public health programming.14 A physician’s social CEO supported the actions of the flight crew who
media presence has also been shown to influence forcefully removed a Kentucky physician from an
patient trust. A cross-sectional survey conducted overbooked flight; they rose after the CEO apolo-
in 2019 indicated that physicians posting racist gized publicly and promised an internal investi-
comments, disrespectful patient narratives, photo- gation into the incident. Similarly, Delta Airline’s
graphs of patients appearing intoxicated, or pro- share prices rose after a public apology was issued
fanity was associated with decreased patient trust.15 in response to the removal of a family from a
In addition, social media comes with increased California-bound flight; they also rose after a
risk for patient privacy, legal issues, and damage to settlement with the family was announced.16 Both
professional image.14 To avoid these downfalls and cases demonstrate the benefit of adopting respon-
promote the positive use of social media, physi- sible leadership strategies, especially when vital
cians should follow professional guidelines. These stakeholder relationships are at risk. The use of
guidelines may come from a physician’s health responsible leadership when responding to crisis,
care institution, and several professional organiza- also exemplified by Samsung’s response to the
tions have released guidelines for physician social Galaxy Note 7 problem, indicates the importance

591
Copyright © 2025 American Society of Plastic Surgeons. Unauthorized reproduction of this article is prohibited.
Plastic and Reconstructive Surgery • April 2025

Fig. 2. Responsibility compass.

of having a proactive and practical plan for repu- carpal tunnel outcomes. Anne V. Seyferth has no finan-
tation management during crisis. cial relationships or conflicts of interest to disclose.

CONCLUSIONS ACKNOWLEDGMENT
An individual’s or organization’s reputation is The authors would like to thank Mike Stokes, staff
formed over time and is related to the credibility vice president of communications at the American Society
of the subject. Reputation takes years to form but of Plastic Surgeons, for peer review and edits.
can quickly be damaged with as little as 1 mistake
or misunderstanding. This risk is especially preva-
lent for patient-focused organizations in the cur- REFERENCES
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representative of its values and character. 3. Eccles RG, Newquist SC, Schatz R. Reputation and its risk.
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8. Da Costa VG, Saivish MV, Santos DER, de Lima Silva RF, 12. Worth T. Practice management: responding appropriately to
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Common questions

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Aligning company values with its reputation is crucial for long-term success. Samsung maintained its reputation by acting quickly to remove defective products and prioritizing customer safety during the Galaxy Note 7 crisis, demonstrating alignment of its actions with values of innovation and quality. Conversely, Theranos' reputation suffered when its fraudulent practices were uncovered, showing a misalignment between claimed values and business practices. These examples highlight that a company's survival and success depend significantly on its ability to maintain consistency between its values and public reputation .

Brand is associated with current relevancy, involving the creation and management of perceptions, while reputation is about historic credibility, reflecting interactions with stakeholders and the fulfillment of commitments. This distinction affects management strategies where branding focuses on identity and perception, and reputation management emphasizes long-term trust and credibility, often beyond the company's direct control, requiring continuous monitoring and proactive measures .

Ongoing maintenance of an organization's reputation is crucial because reputation develops slowly but can be quickly damaged by neglect. Without continuous monitoring and proactive management, risks such as negative public perception and loss of stakeholder trust can emerge. As seen in various industry examples, neglecting reputation management can exacerbate crisis impacts and lead to rapid deterioration of a previously strong reputation. Thus, consistent efforts to uphold integrity, transparency, and stakeholder engagement are crucial for resilience against potential threats .

During the Galaxy Note 7 crisis, Samsung implemented several strategic measures to manage its reputation. These included recalling over 2 million devices, halting production, forming a battery advisory group, hiring researchers to determine the issue, and implementing an 8-point battery safety system. Their focus on transparency and prioritizing customer safety over profits helped them maintain their reputation and strong market position. One year later, the successful release of the Galaxy Note 8, recognized as an innovative and safe device, and reports of customer loyalty improved significantly .

Social media plays a significant role in shaping the reputation of healthcare professionals by facilitating communication, professional networking, and public engagement. However, it also poses risks, such as breaches of patient privacy, legal issues, and potential damage to professional image. The irresponsible use of social media, such as posting derogatory comments or sharing patient information, can decrease patient trust. Therefore, adherence to professional guidelines and cautious use of social media are crucial to maintaining a positive reputation .

During crises, responsible leadership positively affected the reputations and share prices of United and Delta airlines. The CEO of United initially supported the flight crew's actions, resulting in a drop in share prices, but subsequently apologized and promised an internal investigation, leading to recovery in share prices. Similarly, Delta's reputation improved after issuing a public apology and settling with affected customers. These actions demonstrate how adopting responsible leadership strategies during crises can preserve stakeholder relationships and positively influence share prices .

Healthcare organizations can utilize branding by creating a strong, memorable identity to attract patients and markets. Reputation management further enhances this by building trust and ensuring customer satisfaction through transparency, quality service, and responsiveness to feedback. By monitoring online presence and maintaining consistent professional standards and communications, healthcare organizations can effectively navigate competitive markets. This approach fosters long-term relationships with patients and stakeholders, thereby securing both current relevance and historic credibility required for sustainable success .

Theranos failed in its reputation management by engaging in deceit, false promises, and fraudulent activities, making its reputation incongruent with its claimed values. Despite its potential to innovate in health care, its practices led to a loss of credibility once the truth was revealed, leading to its downfall. In contrast to organizations that recover from crises by aligning their actions with their reputation, Theranos failed to do so, proving the importance of integrity and transparency in reputation management .

Healthcare professionals can manage their online reputations by consistently monitoring online feedback, using patient review management strategies, and having a professional social media presence. This involves responding to patient reviews in compliance with privacy laws, using compassion and professional language, and maintaining an informative and accessible online presence. Adhering to guidelines from professional organizations is also crucial to ensure patient trust and avoid negative impressions that can arise from inappropriate online behavior .

Customer and stakeholder interactions significantly impact a company's reputation as they form the basis for beliefs and expectations about future behaviors. Effective management of these interactions involves maintaining transparency, responding to feedback appropriately, and ensuring alignment with internal values. This requires ongoing monitoring, risk management, and genuine engagement to build long-term trust and credibility, which are vital for maintaining a positive reputation in the face of challenges .

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