JPMorgan Chase’s image has gone from being respected and reputable to controversial and doubtful in these past few weeks after its CEO announced trading losses of $2 billion. This loss won’t sink the company entirely, and announcing these losses to the public was the right move for the organization. However, JPMorgan Chase needs to devise a carefully structured public relations effort to save the company’s reputation.
The message that JPMorgan Chase needs to convey to its publics is that it will rebound from this crisis by not only reforming their own organization, but by calling for change within the entire financial industry. Since the 2008 financial crisis, many of their publics have become critical of JPMorgan Chase and other financial institutions worldwide. The practice of credit default swaps was not only a major cause that led to the 2008 financial crisis, but this also led to JPMorgan Chase’s recent trading losses.
Reform is necessary for the finance industry, and after JP Morgan Chase’s error it should be made a priority for the organization. Financial reform has been a hot topic of debate during this year’s presidential election, however reform in this industry needs to begin with the banks themselves. JPMorgan Chase should make it a point to ban risky trading activity in their company. This type of behavior has occurred in the financial industry for years, and JPMorgan Chase would be a pioneer in the financial industry by taking steps to end these practices.
A few of the crucial publics that JPMorgan Chase needs to target with the overall message of financial reform are investors, politicians and government agencies, and consumers. JPMorgan Chase should tailor the message to its publics so that the idea of financial reform can fit into their public’s best interests.
Investors and consumers need to be confident with JPMorgan Chase’s future trading practices. By announcing their plan to reform to their practices by eliminating risky moves will build both consumer and investor confidence back up. Current and potential consumers include corporations, financial advisors, financial institutions and other small to mid-sized businesses, and public sector and non-profit organizations. To communicate with government agencies and politicians, JPMorgan Chase should publicly call for a much-needed reform to the financial industry. They can also work with politicians to formulate ideas and help draft legislation for these reforms to become standard law.
Public relations is the best technique for JPMorgan Chase to utilize to improve their image and reputation among their publics. One of the most crucial things that PR can do for JPMorgan Chase is push the organization to become an advocate for financial reform and responsible financial practices. On the PR effort, the organization should put out press releases to journalists, secure interviews on national news shows on television and radio to communicate its message and use social media to their advantage by blogging their stance, keeping their publics updated of their situation in a timely manner and responding to their public’s questions and concerns.
JPMorgan Chase’s reputation as a sound banking institution has lately been deemed as uncertain and questionable. However, with the use of a carefully strategized communications plan, the organization’s reputation can be restored.