How your company handles a diversity-related crisis can make the difference between whether your leadership stays or goes and whether the public loses faith in your organization (causing plummeting stock price, for example). Here are examples of bad and good ways to handle the type of scandal Rutgers University now faces:
The nonprofit breast-cancer-prevention group decided to defund Planned Parenthood, then flip-flopped after public outrage. Its CEO ended up resigning.
The home-improvement chain caved in to an anti-Muslim group and stopped advertising on a reality show featuring Muslims. The public outcry was significant.
The flip-flops from the food chain have cost it several contracts and public support.
jcpenney CEO Ron Johnson stood up quickly and very publicly for the choice of lesbian Ellen DeGeneres as company spokesperson after anti-gay One Million Moms launched a campaign to have her removed.
When progressive corporations found out their local representatives in Tennessee supported anti-gay legislation, they were horrified and reacted swiftly to try to reverse the decision. It was too late, but their public statements were forthright and they have subsequently made sure this won’t happen again.