I’m Sorry. Apologies and Reputation
Saturday’s Business Day section of the New York Times offered an interesting juxtaposition of perspective for anyone who was paying attention. Page B4 featured a continuation of a story on Toyota’s belated apology to customers for the recall of vehicles announced January 21st due to some brake issues and on page B5, a column entitled “An Attempt to Revive the Lost Art of Apology, “ by Alina Tugend. I noticed the latter item when I turned the page of the newspaper while wondering why the CEO of Toyota waited nine days from the day of announcing the recall to apologize and why he did it from Davos as opposed to returning to his company to sort out an issue which is clearly devastating to sales.
It’s understandable that companies do not like to communicate with customers when things go wrong until they feel that have the complete story and can answer the question “what will you do to fix the problem.” It may even be legal counsel that is discouraging a public apology or communications.
But, the equity gained by saying “I’m sorry this happened” first, and then communicating as information and solutions are found, is profound. The need for an apology has even been noted in reviews of malpractice litigation where plaintiffs frequently report that all they wanted was for the doctor to say “I’m sorry.”
The power and value of an apology is clearly pointed out by Professor Jonathan R. Cohen, a law professor at the University of Florida, in Ms. Tugend’s piece. “Saying I’m sorry, or asking forgiveness permits you to have a future relationship,” he said.
While the apology finally came from Toyota’s Akio Toyoda, one has to wonder if it came too late to allow a future relationship with affected customers as they look to take advantage of the trade-in incentives being offered to owners of the recalled Toyota vehicles by competitors such as Chrysler, GM and Hyundai.
Ame Wadler can be reached at awadler@mww.com.