Crisis Management: The Penn State Scandal
by Amanda Kicera on Nov 15, 2011

When news started to spread about the child sex abuse scandal involving Penn State University’s former assistant football coach, no one realized how bad things were about to get. There are currently charges on 40 counts of sexual abuse leveled at Jerry Sandusky, and with more shocking details and developments becoming public each day, the Penn State brand is living a nightmare—a catastrophe in every sense of the word.
A crisis can be an opportunity for a brand to show leadership, but when its very leadership is to blame, all the rules change. At Penn State, staff members thought it was more important to preserve a believed flawless reputation than to do the right thing—and in so doing, went against the core values of the athletics department and the goal it was committed to pursuing: “Success with Honor.”
The question on everyone’s mind: how could so many have been aware of the abhorrent actions of Sandusky and neglect to report these crimes to the proper authorities? And how could they let it continue for years? Although the university’s board of trustees has fired President Graham Spanier and head football coach Joe Paterno—two high-ranking staff members reportedly aware of the abuses—it’s far from over for Penn State.
The Penn State brand—with a formerly solid reputation of both academic and athletic excellence—has undoubtedly been tarnished. With administrators already having made so many mistakes, now, more than ever, the entire country will be tuned into the actions of the school and the way its people respond under pressure.
Reinstating Penn State’s brand value with students, faculty, fans, donors and sponsors—not to mention the general public—will be a huge feat. Strong new leaders will need to step up and give direction to the brand. Even more important will be communication and transparency throughout the course of the crisis—especially since a lack of action and transparency led to this issue in the first place.
As a reminder about the importance of reputation management, I’m hoping this scandal will also serve as an ethical lesson highlighting the significance of internal branding and culture—a matter that is often ignored. Although the atrocities committed by Sandusky and concealed by other staff members will never be forgotten, I do believe Penn State will be able to reestablish trust and credibility over time.