When Another Company’s Crisis Hurts Your Reputation

Written by on November 25, 2025

by Wei Shi

November 24, 2025

Tom Grill/Getty Images

A firm’s reputation can suffer even when it has done nothing wrong. When a peer experiences a crisis—whether a product safety failure, a regulatory violation, or a high-profile scandal—customers, investors, and regulators often assume that others in the same space may harbor similar weaknesses.

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