Lessons from Illicit Arms Sales
The defense sector operates under intense scrutiny due to its involvement in arms manufacturing and global security. Companies in this industry face reputational risks from regulatory violations, ethical concerns, and international scrutiny over arms sales. This case study examines how a leading European defense manufacturer faced a crisis related to illegal arms sales and regulatory violations, exploring its crisis management strategies, stakeholder response, and long-term reputation recovery efforts.
Damage Control in Brussels
The European Commission plays a central role in EU governance, acting as both the executive body and a regulatory authority. Its legitimacy is built on trust, transparency, and adherence to ethical norms. However, political scandals can severely damage this legitimacy, triggering crises that require strategic communication and reputation management. This paper examines the EC's crisis communication strategy through two high-profile scandals: the Dalli Cash-for-Influence Scandal (2012) and the Barroso Revolving Doors Scandal (2016). Using five key crisis management indicators—speed, openness, rule application, tone, and reform engagement—this analysis assesses the effectiveness of the EC’s response and extracts key lessons for political crisis management.