Public Opinion Is Important In Business
Public opinion is important in business. Public opinion can make or break a business. If one thing goes wrong, it could ruin your business. Your business may never recover if something major happens so it is important to maintain great public opinion.
Three companies were evaluated based on controversies they faced recently. Nestle, Dominos and United Airlines all went through controversial issues lately. The companies came up with ways to recover from the controversies. Two of the companies were able to bounce back while one had a hard time recovering.
Examples of Bad Publicity
Nestle tried to stop a video that angered activists. Dominos had employees who were caught violating health codes. A passenger’s property was damaged and the passenger was never paid the money for the damages at United Airlines. After these companies went through their controversies, they came up with ways to recover from the bad publicity because their positive ratings dropped after the incidents.
During the time of their bad publicity, the companies were mentioned a lot online. People were suddenly talking about these companies because of the bad publicity. Before the crisis, Nestle wasn’t mentioned much. Once the crisis happened, there was a jump in interest. Dominos and United Airlines were mentioned before the crisis, but not the way they were after the crisis.
The Negative Effects
All three companies saw a drop in their positive ratings once they went through the bad publicity. Nestle had the biggest drop in their rating because they had the highest positive rating before the controversy. Nestle fell over 36 percent. Dominos had the next biggest drop with over 21 percent. United Airlines had a drop of over 13 percent.
All three companies came up with plans to do damage control. Nestlé’s attempt to fix the damage that was done didn’t work for them. Domino’s attempt fared better. They issued a public apology and dealt with the offending employees. This raised their positive rating. United Airlines gave away gift cards to customers, which raised their positivity rating.
If a company tries to fix a problem right away, they may be able to recover from it. Nestle took longer to fix their situation than the other companies which resulted in them not getting back to the positive rating they had before the controversy. Dominos did damage control right away which resulted in them recovering faster.
Public opinion is important in business. It is important for companies to have positive ratings in order to thrive. If a company faces controversy, it would be a good idea to handle it right away instead of procrastinating. If the situation is taken care of right away, it may not affect your business in a negative way. If a company takes too long to react, it could have a damaging affect on the business and it may never recover.