Litigation as PR: How Companies Use Legal Proceedings to Shape Public Perception
Litigation has become a common tool used by companies to address various issues, including public relations. While it may seem counterintuitive to use litigation as a public relations strategy, it can be an effective means of shaping public perception and protecting a company’s reputation. At the same time, companies have also been using legal proceedings in order to draw attention to specific issues, often in an attempt to damage the competition or to improve their image.
Litigation as PR and PR litigation
Litigation as PR is a practice that involves using legal proceedings to shape public perception and improve a company’s reputation. This can be done in a number of ways, such as generating positive media coverage for the company, settling a case quickly and efficiently, or drawing attention to specific issues.
Litigation PR, on the other hand, is a more focused approach that employs public relations strategies to manage a company’s reputation during legal proceedings. This can include actively engaging with the media, providing regular updates on the case, and positioning the company in a positive light. This approach is particularly useful in high-profile cases, where the outcome of the trial can have a significant impact on the company’s reputation.
In addition to managing a company’s reputation during legal proceedings, litigation PR can also be used to build relationships with stakeholders and create a positive image for the company. This can involve developing a comprehensive communications strategy that includes messaging, media relations, and stakeholder engagement. By effectively communicating with stakeholders and the public, a company can strengthen its reputation and build trust with key audiences.
Overall, litigation as PR and litigation PR are both important strategies for companies looking to protect their reputation during legal proceedings. By leveraging the power of the media and effective communication, companies can effectively manage their reputation and ensure that their brand remains strong in the face of legal challenges.
Although the definitions are different, we can say that litigation PR is broader and encompasses litigation as PR as well. For this reason, the benefits and drawbacks described in this paper generally apply to both, even tough they generally see PR as the consequence of litigation. Despite my efforts, I struggled to find sources that talk about litigitation as PR. Also, I could not find examples of cases where the whole litigation process started for PR reasons or cases where PR was the driving factor.
Benefits and drawbacks
Litigation can be used as a means of drawing attention to specific issues, often with the aim of damaging the competition or improving a company’s image. Historical examples of this include Apple’s legal battle with Samsung over patent infringement, which showcased the power of litigation as a PR tool and the crucial role of media and public relations in shaping public perception. However, it is important to consider the potential impact on reputation and image, and to ensure that legal proceedings are used thoughtfully and strategically to protect the company’s reputation while also being fair and just.
In some cases, litigation can be used to generate positive media coverage for a company. This is particularly true when a company is involved in high-profile litigation that captures the public’s attention. By engaging with the media and providing updates on the case, a company can use the litigation as an opportunity to showcase its values and commitment to its stakeholders. This can include highlighting the company’s efforts to comply with regulations and its commitment to ethical business practices.
For example, in 2018, Microsoft was involved in a lawsuit with the US government over its refusal to hand over customer data stored in overseas data centers. Microsoft used the litigation as an opportunity to showcase its commitment to privacy and data protection, positioning itself as a defender of its customers’ rights. By engaging with the media and providing updates on the case, Microsoft was able to generate positive media coverage and highlight its efforts to protect the privacy of its customers. (McBride, 2016)
A situation where PR plays an essential role in litigation is when there is a need to settle a case quickly and efficiently. By doing so, a company can avoid prolonged negative media attention and demonstrate a willingness to take responsibility for any wrongdoing. This approach can be particularly effective in cases where the company’s liability is clear, and the focus is on mitigating the damage to the company’s reputation. Furthermore, settling a case can also show that the company is committed to finding a resolution that is fair and just for all parties involved.
Another recent example is Volkswagen’s admission of wrongdoing in the emissions scandal in 2015. The company admitted to cheating on emissions tests for diesel engines, which led to a massive recall of affected vehicles, billions of dollars in fines, and a significant hit to the company’s reputation. Volkswagen took action by launching a comprehensive communication strategy, including public apologies, taking responsibility for the wrongdoing, and implementing a plan to fix the affected vehicles. Additionally, the company provided regular updates and communicated transparently with stakeholders, which helped to regain trust and limit the damage to their image. However, they delayed this moment as long a possible, since they lied for more than a year before admitting their fault. (Hakim, 2016)
There have been instances where fake news has been used to damage a company’s reputation through litigation. For example, in 2012, there was a widespread rumor that Samsung paid a $1 billion fine to Apple in pennies as a result of a patent infringement lawsuit. This rumor was later debunked, as Samsung did not pay Apple in pennies, nor did they pay a $1 billion fine. However, the rumor had already spread widely on social media and other online platforms, causing damage to Samsung’s reputation. This highlights the importance of fact-checking and verifying information before spreading it, especially in the age of social media where false information can spread rapidly and cause significant harm. (‘Fact Check-Samsung Did Not Pay Apple a $1 Billion Fine in Coins’, 2021)
When we look at litigation as PR, it is essential to say that the risks are very high. If a company is seen as using the legal system to intimidate or silence critics, it can damage the company’s reputation and cause long-term harm. Additionally, if a company is seen as using litigation to avoid taking responsibility for its actions, it can create a backlash and further damage the company’s reputation. For example, Shell sued Greenpeace over the occupation of one of their oil rigs and the general intimidations, but these just backfired by shining light on how the company is actively expanding their drilling operations (Greenpeace, 2023)
Therefore, it is essential to use litigation strategically and thoughtfully, with the aim of protecting the company’s reputation while also being fair and just.
However, the risk is so high that companies generally do not even consider using litigation as PR, as the risks are too high.
The role of content strategy in litigation PR
Content strategy plays an important role in litigation PR by helping to shape the narrative around legal proceedings and protect a company’s reputation. This involves developing a comprehensive communications plan that includes messaging, media relations, and stakeholder engagement. By effectively communicating with stakeholders and the public, a company can strengthen its reputation and build trust with key audiences. Content strategy can also improve the business ability to quickly create meaningful content that reinforces the company’s values and commitment to its stakeholders. Additionally, content can be used to highlight the company’s efforts to comply with regulations and its commitment to ethical business practices.
A comprehensive content strategy also plans for governance and helps in developing a crisis management plan. It can involve identifying and addressing potential risks and challenges associated with legal proceedings. This includes planning for various scenarios that could arise during legal proceedings, and developing a crisis management plan that outlines how the company will respond to these scenarios. By proactively addressing potential challenges and risks, a company can effectively manage its reputation and reduce the negative impact of legal proceedings.
A good example are the problems that emerged with the Boing 737 Max Safety Crisis, where communication was not appropriate and a lot of confusion was created, that did not make happy investors, employees, clients as well as passengers. (Sucher, 2019)
Overall, content strategy is an important component of successful litigation PR, as it helps to ensure that a company’s message is consistent and effective in shaping public perception, and is crucial if a company intends to start a litigation as a PR tool. It also plays a critical role in managing risks and protecting a company’s reputation during legal proceedings.
Conclusion
In conclusion, litigation can be an effective PR tool when used strategically and thoughtfully. By sending a message of commitment to stakeholders, generating positive media coverage, and settling cases quickly and efficiently, companies can use litigation to protect their reputation and shape public perception. However, it is important to be very well prepared, and use this tool carefully to avoid actions that can harm the company’s reputation in the long term. Companies should always consider the potential impact of litigation on their image and reputation, and use it only when it is necessary and appropriate.
Sources
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Beke, T. (2013). Litigation Communication: Crisis and Reputation Management in the Legal Process. In Litigation Communication: Crisis and Reputation Management in the Legal Process. https://doi.org/10.1007/978-3-319-01872-0
Ewing, J. (2015, September 22). Volkswagen Says 11 Million Cars Worldwide Are Affected in Diesel Deception. The New York Times. https://www.nytimes.com/2015/09/23/business/international/volkswagen-diesel-car-scandal.html
Fact Check-Samsung did not pay Apple a $1 billion fine in coins. (2021, October 29). Reuters. https://www.reuters.com/article/factcheck-samsung-apple-idUSL1N2RP1ZO
Greenpeace hit with claim for $120,000 over Shell oil platform protest — ten days after Shell posts profits of nearly $40bn. (n.d.). Greenpeace International. Retrieved 10 April 2023, from https://www.greenpeace.org/international/press-release/58190/greenpeace-hit-with-claim-for-120000-over-shell-oil-platform-protest-ten-days-after-shell-posts-profits-of-nearly-40bn
Hakim, D. (2016, February 26). VW’s Crisis Strategy: Forward, Reverse, U-Turn. The New York Times. https://www.nytimes.com/2016/02/28/business/international/vws-crisis-strategy-forward-reverse-u-turn.html
Kastrenakes, J. (2018, June 27). Apple and Samsung settle seven-year-long patent fight over copying the iPhone. The Verge. https://www.theverge.com/2018/6/27/17510908/apple-samsung-settle-patent-battle-over-copying-iphone
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McBride, S. (2016, April 14). Microsoft sues U.S. government over data requests. Reuters. https://www.reuters.com/article/microsoft-privacy-idUSL2N17H1F6
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Sucher, S. J. (2019, March 14). How Boeing Should Have Responded to the 737 Max Safety Crisis. Harvard Business Review. https://hbr.org/2019/03/how-boeing-should-have-responded-to-the-737-max-safety-crisis
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