KENNESAW, Ga. | Nov 10, 2025

New research from a KSU Marketing Professor shows how the wording of public apologies can impact companies' profits.

When CEOs face a crisis—from faulty products to workplace scandals—their apologies do more than make headlines. They can influence investor confidence and even stock prices. According to new research from Associate Professor of Marketing Prachi Gala, the difference between saying “I apologize” and “We apologize” can be worth millions.

Gala and her collaborators analyzed 224 corporate apologies issued between 1996 and 2023. They found that CEOs who use “I apologize” tend to see significantly smaller stock drops and sometimes even gains compared to those who use “We apologize.” The reason? Investors perceive the use of “I” as a sign of personal accountability and strong leadership, while “we” spreads responsibility and can seem evasive.

Gala’s full article, “Investors prefer ‘I’ over ‘we’ when CEOs apologize,” is published on The Conversation and dives deeper into how words shape market reactions and public trust. Read more about her study of corporate apologies here.