In keeping with the theme of corporations with a complete disregard for reputation management, disgraced insurance group AIG’s appearance before the House Financial Services Subcommitee yesterday did nothing to change public sentiment towards them.
“We understand that since our relationship with the Government and taxpayers had changed, our behavior as a company needed to change.”
Edward M. Liddy, Chairman and Chief Executive Officer, AIG
AIG’s crisis management strategy is fundamentally flawed, Liddy’s statement shows that their irresponsible behavior only changed because it HAD to, not because they realized the error of their ways. This article by Rich Klein investigates the mistakes that led to the destruction of the insurance giant’s reputation and gives insight into how reputation is formed in the first place.
Did all of these mega-corporations blow budgets on advertising and corporate perks and forget to hire a PR team, except after the fact? What do you think?
JB
Jonathan Bernstein
www.bernsteincrisismanagement.com