pub·lic re·la·tions

/ˈpəblik rəˈlāSHənz/

noun

the professional maintenance of a favorable public image by a       company or other organization or a famous person.

• the state of the relationship between the public and a company or other organization or a famous person.

    "companies justify the cost in terms of improved public relations"

  Public relations can make or break a company. Negative pr, depending on how negative, has the power to either severely damage a company or completely kill it. Two recent negative PR incidents that come to mind for me are:

1. The email sent by ADIDAS after this year's Boston Marathon.
    

"Congrats, you survived the Boston Marathon!"

 

Adidas representatives sent out an honest, heartfelt apology the same day owning the mistake. By doing this, they were able to avoid too much damage to the company.

 

2. United Airlines forceful removal of a passenger.  

 

This one didn't go so well. 

 

Mistake #1: Cold, unfeeling apology.

 

"This is an upsetting event to all of us here at United. I apologize for having to re-accommodate these customers." 

-Oscar Munoz, CEO, United Airlines

 

Mistake #2: Munoz criticized the passenger and defended the removal.

 

United Airlines' customer perception dropped to a 10 year low following this incident. In addition to that, their stock plummeted. They lost customers and money. 

 

Negative PR happens, they way it's handled makes all the difference.