Navigating the Storm: How a Misconduct Allegation Became a Reputation Crisis

Explore how Crisis IQ Partners guided a company through the treacherous waters of an employee misconduct allegation, averting a full-blown reputation meltdown.

The challenge: A brewing storm

A 180-employee technology services firm believed they were low-risk because they didn’t handle hazardous materials, large machinery, or high-risk operations. Their COO said, “We’re not the type of company that has real crises.” No crisis communications plan existed.

The Crisis Event

A terminated employee posted a viral TikTok stating that leadership “covered up harassment.” Within 24 hours:

  • The video reached 1.5 million views

  • Reporters began calling the CEO

  • Glassdoor reviews spiked with anonymous allegations

  • Two enterprise clients froze renewals

  • Employees demanded transparency in an all-hands meeting

 

The COO confessed later, “The crisis wasn’t the allegation. The crisis was our silence.”

How Crisis IQ Partners Responded

Crisis IQ was contacted on Day 2. Within the next six hours, we:

  • Built a unifying internal message addressing employee concerns

  • Prepared legal-compliant media responses

  • Trained the CEO on what to say—and what not to say

  • Developed a stakeholder response for clients and board members

  • Implemented a 7-day communications cadence

 

We helped leadership shift from defensive reactions to questions that diffuse escalation:

  • “How do we ensure employees feel heard and safe right now?”

  • “What would transparency look like for every stakeholder?”

 

Outcome:

  • Media coverage remained neutral—no major negative headlines

  • The viral narrative never escalated into a lawsuit

  • Both enterprise clients renewed within 60 days

  • Employee confidence recovered after leadership delivered a series of structured updates

 

Key takeaway: An unlikely crisis event is NOT a reason to not have a plan

Crisis doesn’t care about your industry risk profile. Culture, communication, and perception are the modern crisis accelerants. Organizations don’t prepare because they think a crisis is unlikely. They suffer because they thought that.

 

Contact us today to learn how Crisis IQ Partners can help you build a resilient crisis strategy.