How much can a PR crisis cost you?

The reputational damage of a scandal or communications firestorm can wreak havoc on a organization’s image, but it also hits its bottom line.

There have been many PR nightmares that have plagued organizations over the past few years.

Chipotle, Wells Fargo, United and Volkswagen are a few organizations that have collected countless negative headlines for their respective blunders, but how much did it actually cost them?

In Chipotle’s case, E.coli outbreaks caused the company’s stock price to plummet 40 percent. The fast-food chain lost an estimated $8.3 million from the fiasco.

United Airlines, which dominated headlines when a man was dragged off an over-booked flight, only took a 2.5 percent stock hit after the PR crisis, but lost an estimated $700 million.

The bottom line is this: Negative stories have real consequences that affect organizations’ bottom lines. How brand managers and executives respond can be the difference between severe, moderate and minimal impact on an organization’s reputation—and its worth.

The following infographic by GetCRM shows how a few organizations that were embroiled in these scandals were affected following their PR nightmares:


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