Communicating corporate values across borders: The heart of global reputation

Framing in international marketing: What you see depends on what you are shown

Sources:
https://www.britannica.com/topic/cognition-thought-process
https://marketingmaverick.io/p/you-can-t-stop-us-campaign-by-nike
https://masscommtheory.com/theory-overviews/framing-theory

Crisis communication in Southeast Asia: Navigating complexity with cultural intelligence

Sources:
https://www.straitstimes.com/tech/grab-fined-10000-for-fourth-data-privacy-breach-in-two-years
https://medium.com/grab/reflecting-on-the-five-years-of-bug-bounty-at-grab-adf1df55eb80
https://www.pwc.com/gx/en/issues/crisis-solutions/crisis-communication.html

Rethinking communication and culture in international business

Sources:
https://pdf.sciencedirectassets.com
https://simpleflying.com/airbus-a380-computer-design-delay/

The power of country studies in cross-cultural public relations research

Sources:
https://unacademy.com/content/nta-ugc/study-material/business-and-general-awareness/understanding-environmental-scanning/
https://nextlevelecommerce.co/the-importance-of-environmental-scanning-for-business-success/

Understanding corporate and organizational identity

Corporate identity refers to the visual and communicative elements that represent a company to the public, such as logos, branding, and messaging. It’s the outward expression of a company’s values and mission. Organizational identity, on the other hand, is the collective understanding within the organization about “who we are” as a company. It encompasses the shared beliefs, values, and norms that define the organization’s culture and operations. When these identities are misaligned, it can lead to confusion, mistrust, and a weakened brand reputation.

Examples of identity mismatches
BP’s “Beyond Petroleum” campaign
In the early 2000s, BP rebranded itself with the slogan “Beyond Petroleum,” signalling a commitment to renewable energy. However, the company’s core operations remained heavily focused on oil and gas. This discrepancy became glaringly apparent after the Deepwater Horizon oil spill in 2010, leading to public skepticism about BP’s environmental commitments.

The Body Shop’s ethical image
The Body Shop built its brand on ethical sourcing and social activism. However, reports of inconsistencies between its stated policies and actual practices led to public scrutiny. An ethical audit revealed gaps between the company’s communicated identity and its actual operations, undermining consumer trust.

Hilton Hotels’ dual branding
Hilton Hotels faced challenges when two corporate identities operated under the same brand name but communicated different brand promises. This led to confusion among consumers who perceived Hilton as a single entity, highlighting the risks of inconsistent corporate messaging.

Theoretical insights: Managing multiple organizational identities
Organizations often encompass multiple identities, especially when they operate across diverse markets or merge with other entities. Pratt and Foreman (2000) discuss how managers can respond to multiple organizational identities through strategies like:

So, is it possible to have multiple organizational identities?
Yes, it’s possible—and sometimes beneficial—for organizations to have multiple identities. This multiplicity allows companies to cater to diverse markets, innovate across sectors, and adapt to changing environments. However, managing these identities requires clear communication, strategic alignment, and an understanding of how each identity serves the organization’s overarching goals.
In conclusion, aligning corporate and organizational identities is crucial for maintaining brand integrity and stakeholder trust. By understanding and strategically managing multiple identities, organizations can navigate complexities and position themselves effectively in the market.

Sources:
https://medium.com/%40thomasstllnwrk/how-companies-run-into-identity-crisis-2c7fe8e8557e
https://www.referenceforbusiness.com/encyclopedia/Con-Cos/Corporate-Identity.html
https://fastercapital.com/content/Brand-Identity–Branding-from-Within–How-Organizational-Culture-Shapes-Our-Public-Face.html
https://www.researchgate.net/publication/317215835_Corporate_brand_idenity_and_image_to_align_or_separate_-_this_is_the_question

Global branding in action: Coca-Cola’s “Share a Coke”

Coca-Cola, operating in over 200 countries, launched the “Share a Coke” campaign in Australia in 2011, replacing its iconic logo with popular local names on bottles. This personalized approach expanded to more than 80 countries, adapting to regional naming conventions and cultural nuances. The campaign’s success lay in its ability to foster personal connections, encouraging consumers to find bottles with their names or those of friends and share their experiences on social media. This strategy not only boosted sales but also enhanced brand engagement globally.

To comprehend how branding communication operates, the source–message–channel–receiver (SMCR) model, developed by David Berlo in 1960, offers valuable insights. This model outlines the communication process as follows:

  • Source: The originator of the message—in branding, this is the company or brand.
  • Message: The content being communicated, such as the brand’s values, stories, or campaigns.
  • Channel: The medium through which the message is delivered, including television, social media, packaging, etc.
  • Receiver: The target audience or consumers who interpret and respond to the message.

In the context of Coca-Cola’s campaign, the company (source) crafted a personalized message (“Share a Coke with [Name]”) delivered through various channels (bottles, advertisements, social media) to reach consumers (receivers), who then engaged with the brand by sharing their experiences.

Coca-Cola’s strategy also aligns with the principles of emotional branding, which focuses on creating a bond between the consumer and the product by evoking emotions. By personalizing bottles and encouraging sharing, Coca-Cola tapped into consumers’ feelings of connection and belonging, strengthening brand loyalty.

In summary, Coca-Cola’s “Share a Coke” campaign demonstrates effective global branding by combining personalization with consistent brand messaging. Understanding communication theories like the SMCR model and emotional branding provides deeper insight into how such campaigns resonate with audiences worldwide.

Sources:
https://smallbizoptimize.com/branding-case-studies/
https://theglobalreachvisionary.com/successful-case-studies-in-global-marketing-campaigns-lessons-from-coca-cola-and-nike/
https://www.toolshero.com/communication-methods/berlos-smcr-model-of-communication/
https://blog.hubspot.de/marketing/emotional-branding

Carrefour’s response to protests and boycotts in China

To briefly summarise: The case study discusses the controversy surrounding Carrefour, China, and the Olympic Torch Relay in connection with the 2008 Beijing Summer Olympics. Carrefour, an international chain of hypermarkets, faced challenges due to its French origin during the torch protests, which were aimed at drawing attention to Tibet’s independence and human rights issues in China. The protests led to a boycott of French companies, including Carrefour, by Chinese citizens, impacting the company’s business and reputation.
The context of the torch attacks in France, heightened tensions about the Beijing Olympics, and the Chinese government’s efforts to counter claims made by Tibetan independence proponents are important factors in understanding the situation. The protests and boycotts illustrate the unpredictable risks faced by global businesses and raise ethical questions about the attacks on the Olympic torch, Carrefour’s response, and the Chinese government’s efforts to stop online protest activities.

The crisis management in the context of the Carrefour controversy in China during the 2008 Beijing Olympics can be explained through the application of the Situational Crisis Communication Theory (SCCT). This theory, developed by Timothy Coombs, focuses on the response strategies that organisations can employ during a crisis based on the perceived level of responsibility and the reputational threat posed by the crisis.

In the case of Carrefour, the company faced a crisis due to the boycotts and protests in China, stemming from the torch attacks and the perception of the company’s association with France, a former colonial power. The SCCT suggests that when an organisation is perceived as having high responsibility for a crisis and faces a severe reputational threat, it should employ strategies such as full apology, compensation and corrective action to mitigate the negative impact.

Carrefour’s response to the crisis can be analysed through the lens of the SCCT. The company initially expressed regret over the torch attacks and voiced support for the Beijing Olympics, but it faced challenges in addressing the rumors and online anger linking the company to pro-Tibetan independence groups. The theory suggests that in such situations, a proactive crisis response, including denying the allegations and providing evidence to refute the rumors, could have been effective in managing the crisis and protecting the company’s reputation.

Overall, the application of the Situational Crisis Communication Theory provides insights into the crisis management strategies that could have been employed by Carrefour to address the challenges it faced during the 2008 Beijing Olympics controversy in China.

Sources:
https://moodle.w-hs.de/pluginfile.php/161162/mod_resource/content/3/2%20Crisis%20Capsules.pdf
https://moodle.w-hs.de/pluginfile.php/346989/mod_resource/content/1/9%20Carrefour%2C%20China%2C%20and%20the%20Olympic%20Torch%20Relay.pdf

Greenpeace, Nestlé and palm oil

To summarise the case study briefly: Greenpeace accused Nestlé of using palm oil from suppliers responsible for rainforest destruction, particularly the Sinar Mas Group. The conflict escalated when Greenpeace launched an online campaign and released a video denouncing Nestlé’s use of palm oil, leading Nestlé to attempt to remove the video. This resulted in strong backlash on social media, leading to a massive negative public reaction. Ultimately, Nestlé gave in and announced a partnership with The Forest Trust to reform palm oil procurement and stop deforestation. Greenpeace then ended its campaign and praised Nestlé for its actions. The use of social media played a crucial role in intensifying the conflict, and Nestlé’s communication errors on social media led to a deterioration of the company’s public perception. Ultimately, the pressure from Greenpeace and the public led to significant changes in Nestlé’s procurement policy.

The crisis communication strategy employed by Nestlé during the palm oil sourcing crisis can be analysed through the lens of the Situational Crisis Communication Theory (SCCT). This theory, developed by Timothy Coombs, focuses on the response strategies that organisations can adopt during a crisis based on the severity of the crisis and the attributions of responsibility.

In the case of Nestlé’s palm oil crisis, the company initially responded defensively, attempting to remove negative content and control the narrative. This aligns with the “denial” response strategy in the SCCT, which is typically employed when an organisation perceives the crisis as low in severity and attributes responsibility externally. However, this approach backfired as it led to increased negative attention and backlash, particularly on social media platforms.

As the crisis escalated, Nestlé shifted its strategy towards a more accommodative approach, acknowledging the issue and taking steps to address it. This aligns with the “diminish” response strategy in the SCCT, which is suitable for crises of moderate severity where the organisation accepts some responsibility. Nestlé’s partnership with The Forest Trust (TFT) and the commitment to reform its palm oil sourcing can be seen as an accommodative response to the crisis.

To conclude, Nestlé’s crisis communication strategy evolved from denial to accommodation as the severity of the crisis became apparent. This demonstrates the application of the SCCT in guiding the organisation’s response to the palm oil crisis, highlighting the importance of adapting communication strategies based on the evolving nature of a crisis.

Sources:
https://moodle.w-hs.de/pluginfile.php/161162/mod_resource/content/3/2%20Crisis%20Capsules.pdf
https://moodle.w-hs.de/pluginfile.php/643980/mod_resource/content/1/8%20Nestlé%20and%20Greenpeace%20Disagree%20Over%20Palm%20Oil%20Sourcing.pdf

Peanut butter paste recall case study

1. What are the dangers of guilt by association?
The dangers of guilt by association in the context of the Peanut Corporation of America (PCA) salmonella crisis are evident in the collateral damage suffered by companies not directly involved in the recall. Despite not using PCA products, major peanut butter manufacturers experienced a drop in sales due to consumer perceptions associating them with the recall. This illustrates how guilt by association can significantly impact “innocent” companies, leading to financial losses and reputational damage.

2. Why did it take so long to warn consumers about the danger?
The delay in warning consumers about the danger of the salmonella outbreak can be attributed to several factors. The initial reports of salmonella illness were received by the Centers for Disease Control (CDC) in September 2008, but it took time to assess the clusters of illness and determine the source of the outbreak. Additionally, the investigation involved coordination between multiple agencies, including the CDC, Food and Drug Administration (FDA) and state agencies, which contributed to the time taken to issue warnings to consumers.

3. How could you justify the Peanut Corporation of America’s limited crisis communication efforts? Do any theories or principles support their choices?
The limited crisis communication efforts of the PCA cannot be justified, as they failed to effectively address the severity of the situation. The company’s decision to remain quiet throughout the crisis exacerbated the damage and led to widespread public condemnation. From a theoretical perspective, a fragment of the PCA’s actions could be explained with the instructing and adjusting information theory. However it cannot be supported by crisis management principles, as proactive and transparent communication is essential in mitigating the impact of a crisis.

4. Was the Peanut Corporation of American in legal compliance throughout the case?
The Peanut Corporation of America (PCA) was not in legal compliance throughout the case. The company knowingly shipped out tainted products that had tested positive for salmonella, and evidence from internal emails revealed attempts to circumvent laboratory testing. Additionally, the PCA only reported negative test results to the government, failing to disclose the positive test findings. These actions demonstrate a clear violation of legal and ethical standards.

5. What does this case say about not acting on information discovered in scanning?
This case highlights the consequences of not acting on information discovered in scanning. The PCA’s failure to take appropriate action upon discovering salmonella contamination in its products led to a widespread outbreak, financial losses for the peanut industry and public health concerns. It underscores the importance of promptly addressing and rectifying issues identified through scanning processes to prevent further harm.

6. Why did the American Peanut Council feel the need to get involved?
The American Peanut Council felt the need to get involved in response to the extended product recall announced by the Peanut Corporation of America (PCA) in the public’s best interest. The Council worked closely with the U.S. Food and Drug Administration (FDA) and other regulators to understand the extended recall and protect the entire industry. Their involvement aimed to reassure consumers and partners about the safety of unaffected products and to uphold the industry’s food safety practices and procedures.

7. How would you evaluate the government’s crisis communication efforts and why?
The government’s crisis communication efforts, particularly those of the CDC and FDA, were effective in providing consumers and partners with up-to-date information about the recalls and salmonella outbreak. The use of a wide range of social media channels, such as blogs, eCards, and social networking sites, helped people stay informed about the recalls and the outbreak. This multi-channel approach increased the likelihood of people finding the information they sought, demonstrating a proactive and comprehensive crisis communication strategy.

Contingency theory applied on a case study: peanut butter paste recall of 2009

Contingency theory suggests that there is no one-size-fits-all approach when it comes to crisis management and that the most effective course of action depends on the specific circumstances.

In the case of the Peanut Corporation of America (PCA), the company’s limited crisis communication efforts and failure to address the salmonella outbreak effectively can be analysed through the lens of contingency theory. The theory emphasises that the effectiveness of an organisation’s actions depends on the unique situation it faces.

In this case, the PCA’s decision to remain quiet throughout the salmonella crisis could be seen as a failure to adapt its crisis communication strategy to the severity of the situation. Contingency theory would suggest that in a crisis of this magnitude, a more proactive and transparent approach to communication may have been more effective in mitigating the damage to the company’s reputation and the peanut industry as a whole.

Furthermore, the theory highlights the importance of aligning organisational actions with the specific demands of the situation. In the case of PCA, the evidence of deliberate misconduct, as indicated by internal emails and the company’s knowledge of contaminated products, suggests a need for a more proactive and accountable crisis response.

Contingency theory would argue that in such a situation, a more transparent and accountable approach to crisis communication may have been more effective in addressing the concerns of stakeholders and the public. In conclusion, applying contingency theory to the actions of PCA during the salmonella crisis underscores the importance of adapting crisis management strategies to the unique demands of a situation and the need for organisations to be responsive and adaptive in their approach to crisis communication.

Sources:
https://moodle.w-hs.de/pluginfile.php/192278/mod_resource/content/5/6%20Peanet%20Butter%20Paste%20Recall%20of%202009.pdf
https://moodle.w-hs.de/pluginfile.php/646652/mod_resource/content/1/Contingency%20Theory.pdf
https://moodle.w-hs.de/pluginfile.php/161162/mod_resource/content/3/2%20Crisis%20Capsules.pdf

Cadbury’s salmonella crisis 

The Cadbury salmonella recall crisis in 2006 was a significant event that raised concerns about food safety and crisis management. The outbreak was linked to the presence of Salmonella Montevideo in Cadbury’s chocolate products, leading to widespread illness and a subsequent product recall. The crisis highlighted the importance of effective communication and transparency in addressing public health concerns. The disagreement between Cadbury and the Health Protection Agency (HPA) regarding the severity of the situation underscored the importance of crisis scanning and response. Cadbury’s response, including its acknowledgment of the failure to report the incident to authorities and the subsequent legal actions, raised questions about the company’s crisis management and corporate responsibility. Overall, the Cadbury salmonella recall crisis serves as a case study in crisis communication, risk management, and corporate accountability. 

Cadbury’s communication strategy during the Salmonella recall crisis can be analysed through the lens of Timothy Coombs’ Situational Crisis Communication Theory (SCCT). This theory suggests that organisations should adopt different communication strategies based on the severity of the crisis and the level of responsibility attributed to the organisation.

In the case of Cadbury, the company initially downplayed the severity of the situation, claiming that the detected levels of salmonella were not a significant health risk. This approach aligns with the “diminish posture” strategy in SCCT, where the organisation attempts to minimise the perceived severity of the crisis. However, this strategy can be risky, especially in cases where public health is at stake, as it can lead to a loss of credibility and trust.

As the crisis unfolded and government agencies became involved, Cadbury shifted its communication to acknowledge the issue and took corrective actions, such as initiating a product recall and providing instructions for consumers to return the affected products. This aligns with the “rebuilding posture” strategy in SCCT, where the organisation takes responsibility and seeks to rebuild trust and reputation by demonstrating transparency and accountability.

To sum it up, Cadbury’s communication strategy during the crisis can be seen as a mix of “diminish” and “rebuild” strategies, reflecting the evolving nature of the crisis and the need to adapt communication approaches based on the changing circumstances.

Sources:
https://moodle.w-hs.de/pluginfile.php/161162/mod_resource/content/3/2%20Crisis%20Capsules.pdf
https://moodle.w-hs.de/pluginfile.php/190435/mod_resource/content/2/5%20Cadbury%20Salmonella%20Recall.pdf

Hershey’s child slavery and labour abuse covered in chocolate

In this blog entry Hershey’s strategy will be analysed regarding Timothy Coombs’ situational crisis communication theory (SCCT), in which he elaborates the decision of a crisis communication strategy based on not only the severity of the accusations, but also the company’s level of assumed responsibility.

When Hershey faced the risk of severe public exposure about the exploitive child slavery-labor in their supply chain back in 2012, they made their very first announcement about the efforts they will pursuit in order to reinforce cocoa sustainability. To keep in mind, the company was aware of this inhumane child slavery-labor issue since 2001. The announcement contained great promises with changes in the Hershey’s Bliss collection, however the elephant in the room was not addressed.
Despite the unfiltered and loud accusations of the public and campaigns, such as “Raise the Bar, Hershey!”, the company remained silent about the cocoa supply chains tainted by forced child labor and human trafficking. Hershey was held accountable for this issue mainly for the reason that many other chocolate- related companies had already taken necessary steps to trace and reduce child slavery-labor from their cocoa supply chains years ago. The laggard of Hershey compared to its competitors and missing demanding a more proactive approach led to a high level of responsibility regarding this problem. In addition to that, Hershey’s rather ignorant and silent stance toward this topic, contributed neither to benefit the relationship with their stakeholders, nor the proactive approach against this severe matter.
To briefly summarise: not only was there a great severity of the accusations, but also Hershey’s high level of assumed responsibility in the public eye.

In Coombs’ model, SCCT categorises crises into three types based on the level of responsibility or blame attributed to the organisation. In Hershey’s case, the company faced strong attribution of crisis responsibility since the company pursued no proactive actions in tracing and reducing child slavery-labor from their cocoa supply chains.

The SCCT also emphasises the importance to acknowledge and address transparently the issues or wrongdoings the organisation is being accused with. Which brings us to their crisis response strategy. Decades passed and denial took place. Coombs proposes specific response strategies for each crisis type, however in this instance Hershey chose to deny their knowledge about public initiatives, such as “Raise the Bar, Hershey!” and their demands. Yet they showed actions on rebuilding their reputation. However not only rebuilding the own reputation, but also contributing on working against inhumane circumstances would’ve been a better solution.

Summing up, Hershey failed and still fails on working towards improvement and showing learnings from “past” mistakes. If competitors managed to reduce cruelty in their supply chain, then Hershey ignoring this matter seems to be a rather conscious choice.

Sources:
Coombs, W. T. (2007). Protecting organization reputations during a crisis: The development and application of situational crisis communication theory. Corporate reputation review10, 163-176.
Coombs, W. T. (2013). Applied crisis communication and crisis management: Cases and exercises. Sage Publications.
Coombs, W. T. (2012). Ongoing crisis communication: Planning, managing, and responding (3rd ed.). Thousand Oaks, CA: Sage.

Pampers’ dry max rumor/crisis management

To summarise the case briefly, in May 2010, Procter & Gamble (P&G) faced a product-harm crisis when rumours emerged on social media claiming that their new Pampers’ Dry Max diapers were causing chemical burns on babies.

Due to previous trending rumours about the company, P&G did not react at first. After the once harmless social media rumour became a larger issue the company pursuit various communication strategies to gain control over the crisis. P&G responded by denying the claims and mobilising various communication resources, including third-party endorsements and social media engagement, to combat the rumours. The company also showed respect for parental concerns and provided evidence to support the safety of their product.

The crisis response strategies used by P&G align with the principles of image repair theory, as they employed reducing offensiveness, corrective action, and mortification strategies to repair their public image. They established a Q&A section and overall improved their customer services so parents could get answers to their questions and engage with the company directly instead of speculating in online networks. The inclusion of third-party endorsements improved P&G’s crisis response by providing independent support for the safety of their product, enhancing their credibility and trustworthiness.

For P&G the crisis was challenging due to the emotional involvement of parents and the vulnerability of babies, making it crucial for the company to address the situation with sensitivity and transparency. The crisis was defined as a rumor by P&G and the company utilised a variety of communication resources, including social media and traditional media, to combat the rumours. The Internet played a significant role in both working for and against P&G in this case, as social media platforms amplified the rumours but also provided a channel for P&G to engage with concerned consumers and disseminate their message.

Overall, P&G’s crisis response strategies aligned with the principles of image repair theory and corporate apologia, as they focused on repairing their public image, addressing the concerns of stakeholders, and providing evidence to support the safety of their product. The company’s proactive and multi-faceted approach helped mitigate the impact of the crisis and maintain the sales of Pampers, demonstrating the effectiveness of their crisis communication strategy.

Sources:
Coombs, W. T. (2013). Applied crisis communication and crisis management: Cases and exercises. Chapter 3. Sage Publications

Corporate apologia and image repair applied on a case study: Balenciaga’s controversial teddy bear campaign

The clothing brand Balenciaga ran an ad campaign in November 2022 featuring children holding teddy bears in bondage costumes. Dressed in studs and harnesses, the teddy bears had very rough and destroyed looks, which viewers associated with BDSM. Many critics felt the children posing amid an array of grown-up items, conveyed nothing but an abhorrent sexualization of children. Furthermore an image from a separate Balenciaga campaign, depicted papers scattered across a desk including documents about a Supreme Court case on child pornography.
The campaign and ads evoked loud controversies with quite a backlash accusing both Balenciaga and its creative director Demna, of condoning pedophilia and child exploitation.

In the case of Balenciaga’s controversial ad campaign, the principles of corporate apologia can be applied to analyse the brand’s response to the crisis.

In response, the brand and its creative director, Demna, publicly expressed apologies for the ads and took accountability for the wrongful creative choices and lack of oversight. This aligns with the corporate apologia strategy of admitting guilt and expressing concern, which is a crucial aspect of crisis communication and reputation repair.

Regarding the three dissociation strategies according to Hearit, in this specific case, Balenciaga’s crisis communication strategy can be described as an individual group dissociation. Denma, the creative director, dissociated the company itself from the crisis by taking full accountability for the incident. Additionally, Balenciaga filed a lawsuit against those responsible for the controversial set design and shoot production and shifted the responsibility on to a group of individuals.

Furthermore, the brand’s commitment to image repair, establishing new rules of checks and validations and promising better internal control and funding to support organisations devoted to child protection aligns with the corporate apologia strategy of rebuilding posture. By taking these steps, Balenciaga aimed to regain public trust and reputation, which is a key objective of corporate apologia in crisis communication.

Summarising, Balenciaga’s responses to the crisis encompassed important aspects of corporate apologia, including admitting mistakes, taking accountability, apologising, and taking tangible actions to improve and learn from past mistakes. While there may have been some defensive communication within the involved individuals, the brand and creative director ultimately took full accountability and pursued making amends to regain trust and reputation in the public eye, which reflects the principles of corporate apologia.

Sources:
https://www.thecut.com/article/what-to-know-about-the-balenciaga-ad-scandal.html
https://www.vogue.com/article/demna-addresses-balenciaga-controversy
https://nypost.com/2022/12/03/balenciaga-drops-25m-lawsuit-against-producers-of-disturbing-campaign/

https://moodle.w-hs.de/pluginfile.php/161162/mod_resource/content/3/2%20Crisis%20Capsules.pdf

Crisis communication: Balenciaga’s controversial teddy bear campaign

In November 2022, the clothing Brand Balenciaga ran an ad campaign featuring children holding teddy bears in bondage costumes. Dressed in studs and harnesses, the teddy bears had very rough and destroyed looks, which viewers associated with BDSM. Many critics felt the children posing amid an array of grown-up items, conveyed nothing but an abhorrent sexualization of children. Furthermore an image from a separate Balenciaga campaign, depicted papers scattered across a desk including documents about a Supreme Court case on child pornography.

The campaign and ads evoked loud controversies with quite a backlash accusing both Balenciaga and its creative director Demna, of condoning pedophilia and child exploitation.

After the backlash and accusations, Denma publicly expressed apologies for the ads and took accountability for his wrongful creative choices and lack of oversight and control. The brand withdrew both campaigns and denied allegations of promoting child abuse through the images used for the ads. Balenciaga and Kering Foundation announced a partnership with National Children’s Alliance (NCA) for the next three years. This partnership aims on educating the house about child protection and helping children to heal from trauma and deal with mental health. Furthermore Balenciaga filed a 25$ million lawsuit against those responsible for the set design and shoot production, regarding the Supreme Court case documents, which however later had been dropped. In the latest statement, Cédric Charbit, president and CEO of Balenciaga, promised better internal control and fundings to support organisations devoted to child protection.

Considering Balenciaga’s characteristic for controversies, these campaigns might have caused the most damaging image to recover from.
It can’t be denied, that Balenciaga’s name suffered a great damage due to these ads, however the brand publicly expressed their intention on restructuring the image department and establishing new rules of checks and validations that go through multiple channels, internal and external. Regarding the importance of admitting to have committed a mistake, taking accountability, apologising and taking obvious actions on improving and learning from past mistakes, Balenciaga’s responses covered the important aspects of crisis communication and regaining the brand’s image. Even though the communication within the involved individuals seemed rather finger pointing and defensive, the brand itself and creative director took full accountability and pursued on making amends to gain back the trust and reputation in the public eye.

Sources:
https://www.thecut.com/article/what-to-know-about-the-balenciaga-ad-scandal.html
https://www.vogue.com/article/demna-addresses-balenciaga-controversy
https://nypost.com/2022/12/03/balenciaga-drops-25m-lawsuit-against-producers-of-disturbing-campaign/
instagram/@balenciaga