California Management Review
California Management Review is a premier professional management journal for practitioners published at UC Berkeley Haas School of Business.
Dritjon Gruda, Arménio Rego, and Miguel Pina e Cunha
Image Credit | Bits and Splits
Organizations often overlook how anxiety in crisis communications “infects” stakeholders, a phenomenon called “anxiety contagion”. Analyzing 505 responses via machine learning, this research quantifies how a leader’s emotional signature directly influences public reactions. Findings reveal that perceived organizational anxiety predictably increases stakeholder anxiety, whereas responsibility acknowledgment effectively mitigates this effect. The authors propose evidence-based strategies, including anxiety detection protocols and leadership emotional regulation training. Mastering this emotional dimension is essential for maintaining trust and business continuity.
Howard Kunreuther and Paul J. H. Schoemaker, “A Playbook to Anticipate and Prevent Disasters,” California Management Review Insights, August 28, 2023.
David M. Boje and Kenneth J. Gergen, “Quest for Success: The Hero’s Journey Narrative in Corporate Change Management,” California Management Review Insights, December 11, 2025.
When AirAsia Flight QZ8501 disappeared from radar screens on December 28, 2014, CEO Tony Fernandes did something that would define crisis leadership for years to come. Within hours, he was on the ground in Surabaya, tweeting with raw emotion: “My heart is filled with sadness for all the families involved in QZ 8501. On behalf of AirAsia my condolences to all. Words cannot express how sorry I am.” He didn’t hide behind corporate speak. He didn’t deflect. He simply expressed genuine human concern while maintaining operational control.
Compare this to Malaysia Airlines’ response to MH370 earlier that same year. For weeks, confusion reigned. Officials contradicted each other. Communications oscillated between defensive justifications and evasive non-answers. The airline’s anxiety was palpable, spread like wildfire among families and stakeholders, while the global community watched the tragedy unfold.
The stark contrast between these two Malaysian carriers’ crisis responses reveals a truth that every senior executive must understand: Your organization’s emotional signature during a crisis doesn’t just reflect your internal state. It actively transmits to and amplifies among your stakeholders, with measurable consequences for trust, reputation, and business outcomes.
As a senior executive, you understand that crises are inevitable and that managing the operational response is crucial. What’s far less understood, and what our research (Gruda and Ojo 2022) quantifies, is how the anxiety embedded in your crisis communications operates as an invisible force multiplier, potentially causing more damage than the original crisis itself.
We refer to this phenomenon as “anxiety contagion” (Gruda et al. 2023). It operates through emotional contagion mechanisms (Barsade 2002) and works exactly as the metaphor suggests. Just as a virus spreads from host to host, the emotional undertones of your crisis communications infect your stakeholders’ emotional states. Case in point: when Tony Hayward, BP’s CEO during the Deepwater Horizon disaster, infamously said “I’d like my life back,” he wasn’t just making a PR gaffe. He was transmitting his personal anxiety to millions of stakeholders, amplifying the crisis exponentially. And while our study focused on the existence of contagion rather than its speed, the social media context suggests rapid transmission. Previous research by Kramer et al. (2014) indicates emotional contagion on social platforms can occur within hours of initial communication. This is driven by the real-time nature of social media interactions and the constant users’ exposure to emotionally charged content.
Using computational sentiment analysis on 505 stakeholder responses to 18 corporate crisis announcements (Gruda and Ojo, 2022), we quantify what seasoned executives have intuitively felt: the emotional temperature of your crisis response directly influences and can even inflame stakeholder reactions.
The implications are immediate and actionable. Unlike operational crisis management, which follows established protocols, managing your organization’s emotional signature requires a fundamentally different approach. An approach that recognizes emotion not as a byproduct of crisis but as an active force that must be deliberately controlled. Here is what we found:
1. Anxiety is Contagious: Perceived organizational anxiety predicts subsequent public anxiety. This means that when your organization communicates with detectable anxiety during crises, public anxiety increases measurably and predictably. This emotional contagion occurs regardless of the specific content of the messages.
2. The Response Strategy Matters - But Not Always How You’d Expect: We examined three crisis response strategies based on Situational Crisis Communication Theory (Coombs and Holladay 2002):
Based on our findings and subsequent validation work, we recommend five evidence-based strategies to manage your emotional signature:
In the long term, consider establishing a permanent Crisis Communication Audit Team that provides rigorous, rapid, and real-time responses to stakeholder communications and raises awareness of risks. Anticipating potential negative public reactions enables prompt adjustments to the message’s content and form. Conversely, delayed “clarifying” reactions often backfire. For example, when Oxfam GB faced allegations of misconduct in 2018, its delayed and defensive explanations only reinforced the accusations and heightened public outrage—a phenomenon known as the “boomerang effect.” This, in turn, led to stronger accusations against the authors of those statements and the organization.
Some implementation issues must be considered. We highlight the following:
The implications of our research extend well beyond the communications department. The anxiety your organization projects during a crisis is not a passive byproduct; rather, it is an active force that spreads to stakeholders with measurable consequences for trust, reputation, and business continuity. Organizations that master the ability to communicate with appropriate concern, but minimal contagion, will have a significant competitive advantage in crisis management. The choice is clear. Either manage your organization’s emotional signature deliberately or watch as unmanaged anxiety amplifies every crisis you face.
As a senior executive, you set the emotional tone of your organization’s crisis response. In moments of crisis, your leadership will be defined not only by operational response but also by your ability to contain and manage the emotional dimensions of the situation. Ensure you understand and manage this contagion effect in your organization, thereby preventing your own stress from becoming a multiplier that turns a situation from bad to worse.
Remember: your stakeholders aren’t just listening to what you say. They’re feeling what you feel. Make sure your emotional signature helps rather than harms you and your organization.