Controversy requires swift and firm action. The clear and frequent communication that was necessary in the midst of change becomes doubly important during times of controversy. Otherwise, the situation can mushroom into a much larger problem. For example, perhaps your company manufactures a product that has been tampered with, or a fraud has occurred. There could be an incident of polluting the environment. When the controversy hits the Wall Street Journal or the New York Times, the impact could be a decline in team morale, a loss of customers who no longer want to do business with the firm, and a sharply lower stock price as investors dump their shares. As you can see, the effects are both internal and external.

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