3 Steps Adidas Must Take in Wake of College Bribery Scandal

October 5, 2017

Adidas is the latest example of the risk that all brands are subject to because reputations rest upon the shoulders of those employees wearing its logo. Jim Gatto, head of marketing for Adidas’ basketball division, is one of 10 people who are at the center of an FBI investigation centered on a high school athlete/college sports bribery scandal that is rocking the college sports industry. Business Insider writer, Dennis Green, put it very well in his Sept. 27 article on the topic, “Part of the reason for Adidas’ newfound success is its evolved reputation. It has courted fashion trendsetters and lifestyle gurus to help turn it into a “cool” brand. If the scandal grows, it’s not hard to see how that reputation could vanish.”   It takes both time and consistent effort to build, shape and protect a reputation. As Warren Buffett once said, “it takes 20 years to build a strong reputation and five minutes to ruin it.  If you think about that, you’ll do things differently.” Beyond the damaged public perception and tarnished image, Adidas also suffered a direct financial foul after the scandal hit headlines and saw its U.S. stock value dropped by 3% in one day. This type of reputation scenario as well as the financial and public fallout happens every day at varying levels to large and small organizations. While the court of public opinion has yet to deliver its verdict, below are three steps that Adidas – and any company – must take in the wake of a public scandal to not lose its business stride and come out stronger in public perception! 3 Steps Adidas must take in the wake of college basketball bribery scandal Commit to Action & Communicate – You can’t control where the investigation goes or what life it takes on as this scandal unravels.  However, Adidas can control how it processes the information it learns through its own internal investigation, the development of its action plan, and then how it is shared to its stakeholders, employees, and customers to demonstrate its commitment to doing the right thing. Demonstrate Transparency – What did you learn through the investigation? It might be tough to look at and even scarier to share, but understand that in this age of instant information, it will eventually come out.  It’s always best to ‘own’ the message versus it come from a third-party source.  The actions of an individual certainly don’t always reflect that of the organization.  This is the time to acknowledge breakdowns in the system and emphasize that this is not how business is done at Adidas. Outline Change – This is the proverbial ‘Tylenol moment’ and the stamp in time that will either propel a brand forward or anchor it down after the crisis. In every crisis there is opportunity to use a negative situation to create positive industry-wide change.  This is exactly what Tylenol did back in 1982 after seven people died of cyanide poisoning due to Tylenol bottle tampering.  Tylenol went on to create revolutionary bottle safety measures that helped re-establish the brand as an industry leader committed to safety.  Bribery is not new […]

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2 Critical Actions that Saved Belmont University’s Reputation

September 26, 2016

2 Critical Actions that Saved Belmont University’s Reputation:  When leaders or brands find themselves in the middle of a crisis there are two critical elements to remember in order to protect a reputation – time and decisive action. I’ve worked through my share of crisis situations over the past two decades – ranging from race car driver deaths to sponsor/brand crisis – and employed two vital components for successfully managing through those reputation challenges. Belmont University nailed both of them when the school was pulled into a social conversation by one of its students who posted a racially charged post on Snapchat. Click on the link below to read more from the New York Daily News. http://www.nydailynews.com/sports/football/belmont-boots-student-called-protesting-eagles-n-word-article-1.2799746 Below are 2 critical actions that saved Belmont University’s reputation. Time is not on your side Time is not on your side when assessing and beginning to manage a crisis situation. The Belmont University communications team quickly acknowledged, via the university’s Facebook page, that the administration was aware of the social post. Belmont University’s Facebook statement at 11:43 AM: “This morning, we were made aware of a racist social media post by a freshman student at Belmont. We reject comments rooted in racism or bigotry. This is not free speech – this is hate speech. The University is investigating and will take immediate action. As a Christian institution, it is our goal to build a diverse and inclusive community where all members feel accepted, safe and valued.” Acknowledgment, especially in today’s socially connected world, is a critical step in the timeline of reputation management. In fact, the expectation is that a brand or leader will respond through Social Media channels in a matter of hours. A response that takes too long can be considered to be avoidance or disinterest by the leader, organization or brand. Decisive Action is Necessary Theodore Roosevelt once said, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” While the crisis-management clock is ticking, the social-media monster is still feeding – people are watching social timelines for updates, posting comments and armchair quarterbacking what should be done. While it is beneficial to monitor what is being said, those comments should never guide your actions and next steps. The best way to chart the path towards action is to ‘check in’ with your values. Does your action plan align with your values? If so, move forward. Now. If not and you choose to proceed, then you are opening yourself (or company) up to additional scrutiny and reputation damage beyond the initial issue. It’s time to put your plan into action once you have evaluated and selected a values-based decision. Now that your decision has been made, you must see it through. Anything less is indecisive and will undermine your efforts. Belmont University’s Facebook Update at 1:22 PM (less than 2 hours later): “After investigating a racist social media post that surfaced earlier today, we can report that the person involved is no longer a student at Belmont. […]

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