The “Court of Public Opinion” can make or break a company for the good or the bad almost instantaneously. When making business decisions, particularly during a crisis or economic downturn, it is easy to forget or ignore the counsel of political and public relations experts.

However, when companies omit these key players from the discussion, the company runs the risk of a significant misstep and potential blowback that will create a negative news tsunami that wreaks collateral damage during an already chaotic time.

Twice in the last 12 years, the federal government has acted swiftly to provide economic stimulus to keep key sectors of the American economy from collapse. Both times, company leaders made significant missteps that caused unnecessary backlash when they were already fighting for their professional lives.

On March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act into law. The legislation’s primary goal was to help small businesses, including those here in Colorado, during the COVID-19 crisis. This sweeping legislation provided $349 billion in economic stimulus to small businesses through the new Paycheck Protect Program (PPP). These funds were intended to help small businesses in Colorado and around the country keep their employees working and off unemployment during these difficult times.

The program was a success. So successful that in 13 days, the appropriated $349 billion had been completely exhausted and allocated to businesses around the country. In Colorado, the Small Business Administration approved more than 41,000 PPP loans, totaling more than $7.39 billion for Colorado small businesses.

But there was, as there always seems to be, clever writing within the appropriating legislation. It has been widely reported that many large publicly traded companies received PPP loans. One large publicly traded company, Shake Shack, with 8,000 employees, applied for and received $10 million in PPP loans.

Once this information became public, and just days after the PPP funds ran dry, small business owners across the country were none too happy. Taking to social media to tell their story, disgruntled small business owners, looking to keep their employees and businesses afloat, were outraged that seemingly large companies were able to receive tremendous resources when true small businesses were suffering.

The outrage had grown so loud so quickly that on April 19, just days after receiving the loan, Shake Shack announced it would return its $10 million to the federal government. We will see if this action is enough to rebuild the brand’s credibility with the public.

The 2008 Great Recession created another example of large companies needing a bailout and engaging in some questionable spending practices during difficult economic times. In November 2008, the three largest auto manufacturers testified before Congress to plead their case for tens of billions in economic-stimulus dollars through the Troubled Asset Relief Program, or TARP. It was not the dollar figure that was outrageous; it was the fact the three CEOs traveled to Washington, D.C. on private jets when their companies were on the brink of bankruptcy.

After learning of the flights, members of Congress unloaded on the CEOs as they testified before their committee. The companies learned their lesson and on their next trip to D.C., just a month later, the CEOs traveled the 521 miles from Detroit to Washington by car.

I am not saying large businesses are any less deserving of financial support during recessions. An employee of a large company needs a paycheck just as much as an employee of a small company. Nor am I saying companies should shelve the tools – or planes – they have at their disposal.

But perception is the only evidence the court of public opinion considers. Weighing both operations and optics must be a regular part of a business process, whether in times of crisis or calm. In the case of the auto industry and the Shake Shack, the step was missed and the blowback immediate.

Companies, large and small, should prepare for and understand public relations mistakes like these before they happen. Companies should have political and public relations teams with expertise and an outsider’s perspective working alongside the decision-makers to help anticipate potential obstacles and make necessary adjustments.

And most importantly, they must remember the court of public opinion does not close down during a crisis.

Mark Truax is executive vice president at Pac/West, a political public relations firm specializing in strategic communications, government affairs and campaign management. It has offices in Oregon and Colorado. Truax manages the firm’s Denver office.