Neural Correlates of Public Apology Effectiveness.

Apologizing is an effective interpersonal conflict resolution strategy, but whether, and if so how, organizations should issue public apologies after crises remains less clear. To assuage the fear of possible crisis reoccurrence, public apologies may be effective when they provide a comprehensive account of what happened and clarify actions taken by the company to address the problems. If this is so, public apologies may be most effective when the crisis source resides within the organization itself, suggesting that the company has control over it. In the current study, we first tested this hypothesis by presenting participants with multiple crisis scenarios (e.g., ignition failures in a new car model) followed by one of two written apologies: one stating that the crisis source was internal to and controllable by the organization, and the other external and uncontrollable. The internal-controllable (IC) public apology proved most effective. We then examined the neural basis of this public apology assessment and found that the frontal polar cortex appears to mediate the assessment of organizational control, and the angular gyrus uses the information for the apology assessment. Examination of complex social interactions, such as the public's reaction to corporate crises, helps to elucidate high-level brain function.

The Effect of Bad News and CEO Apology of Corporate on User Responses in Social Media.

While social media has become an important platform for social reputation, the emotional responses of users toward bad news have not been investigated thoroughly. We analyzed a total of 20,773 Twitter messages by 15,513 users to assess the influence of bad news and public apology in social media. Based on both computerized, quantitative sentiment analysis and in-depth qualitative analysis, we found that rapid public apology effectively and immediately reduced the level of negative sentiment, where the degree of change in sentiments differed by the type of interactions users engaged in. The majority of users who directly conversed with corporate representatives on the new media were not typical consumers, but experts and practitioners. We extend the existing cognitive model and suggest the audiences' psychological reaction model to describe the information processing process during and after an organizational crisis and response. We also discuss various measures through which companies can respond to a crisis properly in social media in a fashion that is different from conventional mass media.