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Public apologies from the heads of South Korea's major corporations have come in quick succession recently.
Amid the general strike by Samsung Electronics' labor union, Chairman Lee Jae-yong issued a public apology last month, saying, "I will take all the harsh wind and rain upon myself and bear the blame," while emphasizing to employees that "we are one body, one family." Regarding criticism of Starbucks Korea's "Tank Day" marketing tied to the May 18 Gwangju Uprising, Shinsegae Group Chairman Chung Yong-jin personally released an apology, stating, "I will make no excuses. All responsibility for this matter lies with me. It is my fault." Furthermore, this month, immediately following the explosion at Hanwha Aerospace's Daejeon plant, Hanwha Group Chairman Kim Seung-youn bowed his head, saying, "I cannot contain my grief," and ordered, "Carry out the recovery efforts swiftly and with utmost sincerity."
The types of crises differ. Labor disputes, marketing missteps, and industrial accidents are entirely different events. Yet these cases share a common thread: the top executive personally stepped forward, acknowledged responsibility, and apologized. At that moment, each crisis entered a new phase.
Peter Sandman, who has quantified the scale of risk in the fields of environmental health and industry in the United States, proposed the formula that risk equals hazard plus outrage. This means the magnitude of a crisis is not determined by objective facts alone but is greatly shaped by the emotional reactions of stakeholders. Companies often weigh facts and legal liability, but the public reacts first with emotion. The greater the sense of injustice, betrayal, and disappointment, the more the crisis is amplified.
Thus, the first effect of a CEO's apology lies in easing outrage. The public can understand that no company in the world is perfect. When a problem arises, the public wants to see a company take a responsible attitude. An apology signals that the company recognizes the problem and respects the feelings of its stakeholders. The moment a CEO steps forward in person, it conveys the message that "the company is taking the situation seriously." It creates an opportunity to shift public opinion from a one-sided pursuit of blame toward a discussion of solutions.
The second effect is that it creates a starting point for restoring trust. In today's age of social media, stakeholders accept a CEO's attitude as the company's attitude. In a crisis, the actions and messages of the top executive have a decisive impact on building corporate trust. Ultimately, an apology is both an act of admitting fault and the first step toward restoring trust.
The general strike by Samsung Electronics' labor union over the distribution of performance-based bonuses can be interpreted in the same context. Chairman Lee Jae-yong's remark that "we are one body, one family" was a symbolic message sharing a recognition of reality with employees and transforming internal conflict into a matter of restoring community.
The third effect is that it shifts the entire organization into a problem-solving mode. An apology is not the end point of a crisis but a starting point. Once a CEO publicly acknowledges responsibility, the organization can no longer remain in mere defense and explanation. Concrete actions must follow: investigating the cause, devising measures to prevent recurrence, improving systems, and innovating organizational culture. Indeed, in Samsung's case, discussions on coexistence with the public and on organizational culture proceeded more actively; Starbucks reexamined its marketing verification system and launched history education for all employees. Hanwha Aerospace, too, halted all operations for a week for the first time since its founding to reexamine its entire safety management system and focus on developing safety measures. The crisis was turned into an opportunity for improvement.
Of course, not every CEO apology succeeds. A late apology, an apology mixed with excuses, or an apology that evades responsibility only worsens a crisis. An effective apology must meet three conditions: speed, accountability, and empathy. Above all, stakeholders must be able to feel its sincerity.
Today, a company's competitiveness is not measured by products and technology alone. The attitude it shows in the face of crisis has also become an important measure of competitiveness. A CEO's apology is not an expression of weakness. Rather, it is a message of resolve demonstrating responsible management and leadership.
The companies that recently stepped forward to apologize represent our economy and industry. I cheer for the responsible apologies their CEOs showed amid crisis to lead to genuine change and innovation within these companies, and for them to earn even greater trust from the public.
