Brandstanding - Cause and Effect
Brandstanding - Cause and Effect
Let’s look at a few examples from the past couple years of outspoken CEOs who have made great social strides… or stepped in a pile of flaming PR disaster:
Let’s look at a few examples from the past couple years of outspoken CEOs who have made great social strides… or stepped in a pile of flaming PR disaster:
Starbucks CEO Howard Schultz - champion of same-sex marriage and gay/trans-gender rights, took a hard stance not only against discriminating clientele, but also shareholders
Actions: Added coverage of transgender reassignment surgery to the company’s health benefits in 2013 (prescription drugs for hormone replacement therapy and mental health care were already covered); and in 2014 flew the Pride flag atop its Seattle headquarters for the 1st time
Results: While the first quarter after his initial announcement showed very disappointing figures, overall since then - revenue is up and people are still guzzling their jitter juice, gay or not.
Chick-fil-A CEO Dan Cath, opposing same-sex marriage in a down-home, old-fashioned kind of way
Actions: Financially supports organizations regarded as anti-LGBT rights and releases public statements advocating marriage between a man and a woman
Results: Public outrage and withdrawal of sponsorship from corporate partners resulted in his denouncing of earlier statements – saying he regretted drawing his company into the controversy. Conversely, there was public defending of his statements by key political figures and a “Chick-fil-A Appreciation day” to offer support – with record-breaking results. Sales figures went up 12% in 2012 (the year of the controversy), showing the negative press had no effect on their core customer-base and has perhaps even helped their “wholesome family values” image in a twisted way.
Yuengling, America’s oldest beer brewery owner Dick Yuengling declares himself pro-Trump while giving Trump Jr. a tour through the facilities - it goes viral
Actions: Openly supported Trump’s campaign for presidency
Results: A large number of customers said they would no longer drink the beer, and numerous bars in the LGBT community removed their taps. Since this just happened in October (2016), no solid numbers are in except for a few preliminary reports that sales are down.
Grubhub CEO Matt Maloney goes anti-Trump loud and proud
Actions: Sends email out to employees denouncing Trump and suggested anyone that agrees with Trump’s politics should resign
Results: Stocks fell 4% the day after Maloney’s email - and while he received no employee resignations he did receive lots of angry social media replies.