Careful of scandals that can crush your profits

Careful of scandals that can crush your profits

You might have noticed in recent years how scandals have hurt larger companies. While some have survived and even rebounded, others have been knocked out of the market completely by what equates to bad press. You do need to be aware of the danger here as a business owner. Do not fall into the trap of killing the potential of your company by not protecting yourself in the right areas. So, let’s look at some of the scandals with clear examples where things went wrong for other businesses.

Apple And The iPhone Controversy

Are you adhering to the necessary standards when you create your products or offer your services? Or, are there some skeletons in your closet? A couple of years ago director of the Steve Jobs biopic Aaron Sorkin suggested that Apple had bigger issues to worry about than the film, such as paying child workers in China to make their products. While the company immediately went into damage control they did not actually pursue Sorkin with a slander lawsuit. Sorkin ultimately walked back the comments but after they were published Apple’s stock did drop. A smaller company would not survive a scandal like this.

Trouble On The Roads

Thousands of people die due to truck collisions ever year in America. The issue has become so prevalent there are public campaigns for the problem to be corrected and better safety measures to be put in place. Various trucking companies have been caught in the crossfire here with many losing thousands or even millions after an accident.

It’s important to realize though that it’s not always the trucking companies at fault. While overworked drivers can create issues here, it’s quite possible for an accident to occur due to an issue on the road surface. Spills on roads must be cleaned up by the property owner and this can be the responsibility of another business owner. Thankfully, there are plenty of spill management companies that can handle the situation and make sure it is completed effectively.

Security Solutions

Have you heard of Equifax? They are actually a credit checking company and have hundreds and thousands of clients. Did you know that they were exposed to a data breach a couple years ago? Probably not because they didn’t actually bother to tell anyone. Instead, they continued on while working behind the scenes to correct the issue. Ultimately this wasn’t possible and the truth came out. By this point, the company profile was so badly damaged it needed fresh marketing to fix the issue. Equifax did recover but countless clients are still at risk.

Sexual Harassment

Finally, you do need to be aware of a problem like sexual harassment. Sexual harassment is a hot topic due to the me-too movement and a spotlight has been shone on businesses that are not reaching the necessary standards. Correcting the issue here is a matter of making sure that you do have the right policies in place. Failure to do this will damage your business rep and the chance of winning new customers on the market.

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