[Photo:  CEO John Cryan, World Economic Forum screengrab]

Deutsche Bank issued a 'mea culpa' with full-page advertisements in major German newspapers, apologizing for its bad conduct in a series of scandals that have cost the company billions in fines and tarnished its reputation. The company, which agreed to pay the U.S. Department of Justice $7.2 billion to settle issues related to bonds based on home loans, has also battled charges of rigging interest rates and money laundering involving Russia.

Chief Executive John Cryan, who signed the ad and spoke on behalf of top management, admitted “serious errors were made” and pledged that leadership will do “everything in our power” to prevent a repeat of such misconduct. While the “vast majority” of company employees were not involved in any wrongdoing, Mr. Cryan said the “relatively small number” who were involved jeopardized the company’s “most value asset: its reputation.”

So, how well did Deutsche Bank do in communicating its apology. Let's hear from 3 experts:

Anthony D’Angelo, PR Professor at Syracuse U. & chair-elect of the Public Relations Society of America:   “Deutsche Bank may as well put ‘This is a paid, promotional announcement’ across the top of its ad but it’s not necessary because everyone who reads the ad already knows that. This is the inherent weakness in advertising an apology, a decision that tends to produce both awareness and suspicion.

“John Cryan’s apology may be sincere, and his plans for the company positive and honorable. The act of advertising, however, may inform audiences that would otherwise be unaware of Deutsche Bank’s troubles and could cause those who are already aware–investors, the news media, customers, employees–to wonder why the bank had to buy the space to state its case while more direct, less promotional methods are available.

“Customers and investors have a right to expect direct and more personalized communication–emails, letters, phone calls, meetings–from this institution that has done them wrong. News media have a right to expect a dialogue with Mr. Cryan and others responsible for righting the ship, so they can explore and report on what’s being done to fix the mess. Employees, most of all, deserve to know what is happening and what will happen next in the place they go to work each day. Audiences with direct connections expect conversations, not broadcasts.

“Communicating with these audiences should be ongoing processes and hopefully Deutsche Bank is implementing them rather than settling for a one-shot ad that delivered an apology, a public sign of taking responsibility but one that delivered predictable generalities about regret and preventing recurrence. OK, the CEO said he’s sorry, what’s next?”

Adele Cehrs, CEO of Epic PR Group:   “In a world of fragmented media consumption, Deutsche Bank’s strategy to buy a full-page advertisement in several German newspaper to address its shareholders directly was a smart and bold public relations strategy. However, the company offers no additional comments on its own website, social media channels or additional press statements, which is unusual.

“In the ad, signed only by the CEO, the bank acknowledges its own pain with the $7.2 billion imposed fine by saying, ‘…these legacy issues not only cost us money, but also our reputation and trust,’ which makes the bank seem too concerned with brand perception instead of the implications of its crisis on shareholders. While the statement mentions its investors and clients, the placement of the language seems like an afterthought, with the greater emphasis on the bank and those it serves. It is clear the bank is using the newness of its CEO to curry forgiveness but it does not take responsibility for its board’s legacy of poor decision-making.

“The apology suggests nothing about the damage to the financial market, which threatened the entire banking system. The ad also omits any direct promise for vigilance in the future, it simply states it is a ‘goal.’ Moreover, it excuses the scandal as a human flaw by citing, ‘…wherever human beings work, there will always be mistakes.’ This makes it seem like the company’s role in the housing crisis was unavoidable and that weakens its positioning. Is the ultimate goal of a financial institution to be ‘trusted by its clients’ or should that already be expected?”

Vincent Schiavone, CEO of AKUDA Labs and Prioratus Consulting and Crisis Simulation:   “Deutsche Bank CEO John Cryan’s public apology on behalf of the board was a textbook example of current thinking in crisis communications, with one glaring omission. Deutsche selected its audience, channel and message carefully, choosing to go direct to its customers, partners and the public with a public apology to frame the incidents as past behavior of a few and to put the matter behind.

“The message was carefully crafted to acknowledge serious errors and misconduct, apologize for past behavior of a few and promise to do everything in its power to assure it does not happen again. Mr. Cryan correctly identifies its reputation as Deutsche Bank’s most valuable asset. By publishing its apology to the public Deutsche Bank makes its case for trust and confidence directly to all stakeholders.

“The glaring omission is the elephant in the room unaddressed in the communication: will Deutsche Bank fail? What is Deutsche Bank doing to assure its survival and can it recover from a disastrous stock slide over the last few years? The crisis addressed in the letter was handled well but the big crisis remains.”