Chapter 7b: Effective Apologies in Environmentally Sustainable Business Communication
“It takes a great deal of character strength to apologize quickly out of one’s heart rather than out of pity. A person must possess himself and have a deep sense of security in fundamental principles and values in order to genuinely apologize.”
-Stephen Covey
Objectives
By the end of this chapter, students will be able to:
1. Explain the importance of effective apologies in maintaining business reputation and stakeholder relationships.
2. Identify the key elements of an effective apology in a business context.
3. Analyze case studies to distinguish when to apologize.
4. Apply the apology formula to create structured and sincere business apologies.
5. Critically examine real-world examples of corporate apologies in the energy sector to understand best practices and common pitfalls.
Introduction
At some point, we have all made a mistake that required an apology; given that businesses are organizations of people, professional communicators also must make an apology at one time or another, such as to an individual, a group of customers, employees, business partners, or the public at large. Unfortunately, many leaders fail to apologize effectively, if at all, which can severely damage their relationships with stakeholders and their reputations, especially if the incidents become public (and publicized). [1] Understanding how to apologize is especially important to those in the energy sector, who must handle these situations adeptly to maintain their reputation and relationships.
Companies need clear guidelines for determining whether a misstep merits an apology and, when it does, how to deliver the message effectively. In the business world, how and when a company apologizes can significantly shape its reputation, rebuild trust, and prevent long-term damage. A vague or poorly timed apology can make a bad situation worse, while a clear, sincere, and timely one can demonstrate accountability and even strengthen stakeholder relationships. This chapter presents an apology formula, drawn from research in management and psychology, that provides practical guidance on the who, what, where, when, and how of an effective apology. This chapter explores the elements of an effective corporate apology, why they matter, and how businesses can communicate responsibility without exposing themselves to unnecessary legal or reputational risk.
Why Explore Effective Apologies After The Chapter on Energy?
Apologies about an environmental disaster involving energy (such as oil or batteries) should be tailored to stakeholder expectations and complaints. Legal guidance and ethical duty are debated, with some arguing that legal reasons should not outweigh the ethical imperative to apologize and make apologies. The research shows that ethical apologies may strengthen stakeholder relationships and business reputation, indicating that organizations that behave responsibly and apologize when appropriate are more likely to gain stakeholder confidence. [2]
Tips include sending apologies timely and sincerely and key components in an apology:
- admitting fault
- accepting responsibility
- expressing remorse
- and preventing future situations
Fast and meaningful apologies may keep customers loyal following interruptions via case studies. A quick reaction can control the narrative and reduce public wrath, while sincerity rebuilds stakeholder confidence. Effective apologies build trust and accountability, without which may damage a company’s image. Stakeholders are more willing to forgive and support a firm that demonstrates real contrition and a commitment to fixing the problem. [3]
The Apology Dilemma
Two primary challenges complicate apologies: psychological resistance and legal concerns.
Psychological Resistance. Apologizing feels uncomfortable and risky. It involves a loss of power or face and makes us temporarily beholden to the other party. [4] This discomfort is intensified in organizational contexts where leaders can become stuck when faced with indecision.
Legal Concerns. Companies often evaluate a situation through a legal lens, fearing that an apology might be construed as an admission of liability, potentially exposing the company to litigation. However, effective apologies are about addressing the recipients’ feelings, not proving a point. [5]
Case Study: BP Deepwater Horizon Oil Spill (2010)
On April 20, 2010, the Deepwater Horizon oil rig, operated by BP, experienced a catastrophic failure that led to a massive oil spill in the Gulf of Mexico. This disaster resulted in the deaths of 11 workers and the release of millions of barrels of oil into the ocean, causing extensive environmental damage. BP faced significant criticism for its initial handling of the crisis. The company was slow to recognize the severity of the spill and to take responsibility for the incident. Initially, BP’s response was characterized by a focus on technical solutions to stop the spill rather than addressing public concerns and environmental damage. This delay in acknowledging responsibility was perceived negatively by the public and stakeholders.
It wasn’t until significant public and governmental pressure mounted that BP’s leadership recognized the need to issue a formal apology and take full responsibility. The delay in their acknowledgment and apology further damaged their reputation.
On May 30, 2010, over a month after the spill began, BP’s CEO Tony Hayward issued a public apology (see appendix). Following this, BP made more substantial efforts to address the situation, including establishing a $20 billion fund to compensate victims and committing to long-term environmental restoration. However, the initial delay in acknowledging the violation and issuing a sincere apology had already caused significant reputational damage.
Should You Apologize?
When debating whether or not to apologize, managers should consider the nature and severity of the violation and the costs and benefits of offering an apology. Four key questions can help determine if an apology is necessary.
- Was there a violation, whether real or perceived? A company must quickly determine if a violation has occurred and if it is responsible. Perceptions of responsibility matter, as illustrated by BP’s response above, which exacerbated the crisis. [6]
- Was the violation core or non-core?
- Core violations pose a fundamental threat to the company’s mission, so they require a more robust apology. Core violations directly affect the primary products, services, or functions that the company provides. For example, safety issues in an automobile company or environmental disasters caused by an oil company. These violations typically result in severe consequences, including financial loss, legal repercussions, and extensive media coverage. They can lead to loss of customer trust, regulatory fines, and long-term damage to the brand.
- Non-core violations may allow for more flexibility but still often benefit from an apology. These violations are peripheral to the main activities of the company but still can affect stakeholder perceptions and trust. A case of non-core violation could be a tech company’s customer service mishandling that leads to public complaints on social media. [7]
- How will the public react? Thanks to social media, even small transgressions can blow up into costly public relations nightmares. High-profile companies are particularly vulnerable to public outrage. [8]
- Is the company willing to commit to change? An apology must be backed by a commitment to change. Without this, the apology will sound hollow and unconvincing. [9]
Examples of Apologizing for Core Violations vs. Non-Core Violations
The Volkswagen emissions scandal is a prime example of a core violation. In September 2015, the United States Environmental Protection Agency (EPA) issued a notice of violation to Volkswagen Group, revealing that the company had installed software in its diesel vehicles designed to cheat emissions tests. This scandal, known as “Dieselgate,” involved approximately 11 million vehicles worldwide, which were found to emit nitrogen oxide pollutants up to 40 times above the legal limit. [10]
Volkswagen was found to have installed software in diesel engines to manipulate emissions tests, significantly violating environmental regulations. This breach directly contradicted the company’s stated commitment to sustainability and engineering excellence, leading to a substantial loss of consumer trust, hefty fines, and a damaged reputation. [11] CEO Martin Winterkorn publicly apologized, stating, “I am endlessly sorry that we have disappointed this trust. I apologize in every way to our customers, to authorities, and to the public.” He subsequently resigned, taking responsibility for the scandal. [12]
ExxonMobil, one of the largest oil and gas companies in the world, faced criticism over its advertising practices, specifically its climate change advertisements. The controversy revolved around accusations that the company’s advertisements were misleading the public about the extent of its efforts to combat climate change. Critics argued that ExxonMobil’s advertisements overstated the company’s commitment to renewable energy and climate change mitigation, potentially misleading the public and investors about its environmental efforts. This issue has led to negative media coverage and increased scrutiny from environmental groups and regulatory bodies. [13]
ExxonMobil’s handling of its advertising practices as a non-core violation highlights the importance of addressing stakeholder concerns through clear communication and a commitment to transparency. While the issue did not threaten the company’s core operations, the response aimed to preserve its reputation and demonstrate corporate responsibility, making it a non-core violation.
The Apology Formula: The Right Way to Apologize
Effective Apology Checklist
Lazare (2021) provides the following checklist for an effective corporate apology:
- An apology for a core violation must come from the highest levels of leadership, such as the CEO or board members. For non-core violations, an apology can come from anyone in the organization
- The company must fully acknowledge the extent of the violation and its implications
- There must be a clear, detailed plan for correcting the issue and preventing future occurrences. This often includes structural changes within the company.
- The company must show a genuine commitment to change, which might involve policy overhauls, leadership changes, or significant investments in new practices. For non-core violations, a change may not be necessary, but regular updates and open communication with affected stakeholders help in maintaining trust and mitigating negative perceptions [14]
Once a company decides to apologize, they must do it right. Effective apologies consist of five elements: who, what, where, when, and how.
Who? The more serious the violation, the more necessary it is that a senior leader—up to and including the CEO—makes the apology. Involving a clear transgressor may be beneficial, but if that person isn’t sufficiently senior, it could convey that the company is not taking the violation seriously. [15]
What? Effective apologies must be candid, express remorse, and show a commitment to change. They should clearly acknowledge the harm caused and the company’s responsibility. For example, Razer’s CEO apologized for delays in preorders by candidly stating, “We suck at this. I suck at this. I apologize.”
How? The delivery of an apology matters as much as its content. Informal language and personal communication can help convey sincerity. For example, Zuckerberg’s use of “We really messed this one up” was effective due to its informal and direct nature. [16]
Where? The setting of an apology can influence its effectiveness. Written statements, videos, or live statements each have their place depending on the situation. High-profile settings are often necessary for significant violations. [17]
When? Speed is crucial. A quick apology signals sincerity and decisiveness. Delays can be detrimental, although a well-timed apology is always better than none. [18]
Business Apology Email Template
Below is a sample structure for a business apology email:
Subject line: An apology from [Your Business Name]
Email Content:
Hi [First Name],
As you may already know, [insert problem and time period]. [Briefly explain expected outcome and actual outcome.]
It is completely unacceptable for [reiterate problem]. I’ve heard from customers who [three examples of how the problem affected your customers]; you depend on us to [goal of your product] and we hindered more than helped yesterday.
I want to apologize for the [problem] and, more importantly, I must apologize for the total failure to communicate this to you.
One of our company’s values is [core value or company mission] and we glaringly missed the mark yesterday. We are taking this incident very seriously and are making plans to ensure that it will never happen again.
To thank you for your patience, we will be giving [discount, coupon code, free item, etc. and time frame to use it]. And [something you’ve already done to make up for the problem: reimbursement, refund, etc].
If there is anything else our team can do to improve your experience, please don’t hesitate to reply to this email and ask.
Sincerely,
[Your First Name]
[Your Title]
Conclusion
A well-executed apology can significantly improve relationships with customers, employees, and the public, leaving the company in a better position than before the error. Leaders in the energy sector must be particular in their communication, as their services are essential, and any misstep can have far-reaching consequences.