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When products fail or companies behave negligently, customers' perceptions and purchasing decisions will be adversely affected. Executives get that. But they're much more likely to be caught off guard by how far-reaching the aftershocks of a scandalous situation can be--and how varied the degrees of blame may be among the players involved. Clearly, scandals can very easily extend beyond the original perpetrators and affect other companies in the value chain. They also may spill over to businesses outside the value chain that are viewed as similar to the alleged guilty parties. With so many angles from which scandals might strike--and so many possible levels of perceived responsibility for wrongdoing, from accidental to negligent to intentional--a blanket approach to handling them just doesn't work. Drawing on more than 10 years of our own research, as well as studies by others, we've developed a four-step framework that allows executives to craft just-right, just-in-time responses to scandals. Step 1: Assess the incident. Step 2: Acknowledge the problem. Step 3: Formulate a strategic response. Step 4: Implement response tactics.