Originally from Dispute Resolution Journal

If love means never having to say you’re sorry, being a giant corporation seems to mean just the opposite. From Firestone to United Airlines to Johnson & Johnson, a number of the big companies have apologized at one point or another. Taryn Fuchs explores the meaning of corporate apology—why big corporations are compelled to say they’re sorry and how they do it—by reviewing several examples. Fuchs writes that mass public apologies are generally important to repair damaged relationships, including the often-fickle relationship between corporations and consumers. However, not all corporate apologies are successful, says Fuchs, and “apology is not a good weapon in every battle.”

Corporations can and should apologize in appropriate situations. This article posits that corporations should apologize, but carefully, and offers advice on what contributes to an effective apology through an analysis of recent apologies by Firestone, United Airlines, and Exxon.

Mass corporate public apology is not just another cost of doing business, but rather, it serves both society and the self-interest of the apologizer. Mass public apologies give the phrase “safe protected apologies” a whole new meaning. Corporations that make a calculated choice to apologize publicly in the face of wrongdoing (whether actual or perceived) are motivated by more than sheer legal liability. While a public apology may be “safe” it is clearly not without costs, including loss of reputation and market share.

We live in an age where it is nearly impossible to escape the plethora of public apologies made by corporations and politicians alike whether over the airwaves, on prime time television or on the front page of local newspapers. Apologies are common in the context of medical malpractice, attorney disciplinary actions, civil mediation, and victim/offender cases, to name a few.

A large body of case law discusses the role of apology4 and in addition, a number of legal articles discuss the role of apology in litigation and various forms of alternative dispute resolution.5

Professor Jonathan Cohen of the University of Florida, a leading scholar in the field of apology, has examined the role of apology in civil lawsuits, including divorce, employment, personal injury and medical malpractice,6 in mass tort litigation,7 and in the product liability arena.8 He argues that apologies can facilitate settlements,9 and he suggests that the following elements comprise an effective apology: (1) appropriateness of the case for apology; (2) timing of the apology; (3) scope of apology; (4) method of apology; (5) nuance, and (6) interpersonal variation.

Cohen analyzes the benefits and costs of apology and argues that apology and forgiveness create value to those parties involved by offering avenues that are beneficial to both parties.

In the context of an organization, Cohen argues that where an organization has a policy of taking responsibility for its mistakes, its members are more likely to report, investigate and embrace reform arising from errors.

This article focuses on mass public apology by publicly held corporations. It explores the use and effectiveness of corporate public apologies and addresses whether a corporation stands to gain from engaging in acts of public contrition in the long run.