PR debacle of Wal-Mart
Wal-Mart and its 'celebrated' spokesperson Andrew Young have decided to part ways. This follows, ironically, after Young made some very strong pro-Wal-Mart comments.
Andrew Young is a prominent civil rights leader from the black community, a former mayor of Atlanta and an ex-UN ambassador. Earlier this year Young became chairman of Working Families for Wal-Mart, a nonprofit organization funded by the retail giant to combat criticism of the company.
As part of his defence of Wal-Mart's threat to small mom-and-pop shops that dot neighbourhoods, Young told the Los Angeles Sentinel that those small shops were owned by Jews, Koreans and Arabs who ripped off the black community and "are the people who have been overcharging us, selling us stale bread and bad meat and wilted vegetables."
Wal-Mart denounced the statements of its spokesperson and Andy Young resigned from his post at the NPO.
What was meant to be a PR coup a few months back has turned out to be a PR debacle for Wal-Mart.
Not only has it managed to rub the black community the wrong way, but has now to contend with an angry multi-national, multi-cultural and very large customer base.
This incident brings to light the dangers of corporates hiring brand ambassadors and celebrity spokespersons. While the strengths of such an arrangement are numerous - like the celebrities ability to cut through the clutter of news - the dangers are never as apparent until something goes wrong.
What should corporates do to get a healthy business relationship going with its celebrity ambassadors?
First of all, choose them with care. Typically, the celebrity should exhibit values that are in line with those of the corporate.
Secondly, make the parameters of the arrangement crystal clear, preferably on paper. This avoids confusion during a crisis.
Thirdly, arrive at a consensus on the celebrities stand on the corporate's businesses. This might even go down to training the celebrity on how to answer questions on the corporate.
These are only risk management strategies, which will help avoid any crisis. If one does occur, then the corporate needs to take quick action to defuse the situation - as does its celebrated ally.
Andrew Young is a prominent civil rights leader from the black community, a former mayor of Atlanta and an ex-UN ambassador. Earlier this year Young became chairman of Working Families for Wal-Mart, a nonprofit organization funded by the retail giant to combat criticism of the company.
As part of his defence of Wal-Mart's threat to small mom-and-pop shops that dot neighbourhoods, Young told the Los Angeles Sentinel that those small shops were owned by Jews, Koreans and Arabs who ripped off the black community and "are the people who have been overcharging us, selling us stale bread and bad meat and wilted vegetables."
Wal-Mart denounced the statements of its spokesperson and Andy Young resigned from his post at the NPO.
What was meant to be a PR coup a few months back has turned out to be a PR debacle for Wal-Mart.
Not only has it managed to rub the black community the wrong way, but has now to contend with an angry multi-national, multi-cultural and very large customer base.
This incident brings to light the dangers of corporates hiring brand ambassadors and celebrity spokespersons. While the strengths of such an arrangement are numerous - like the celebrities ability to cut through the clutter of news - the dangers are never as apparent until something goes wrong.
What should corporates do to get a healthy business relationship going with its celebrity ambassadors?
First of all, choose them with care. Typically, the celebrity should exhibit values that are in line with those of the corporate.
Secondly, make the parameters of the arrangement crystal clear, preferably on paper. This avoids confusion during a crisis.
Thirdly, arrive at a consensus on the celebrities stand on the corporate's businesses. This might even go down to training the celebrity on how to answer questions on the corporate.
These are only risk management strategies, which will help avoid any crisis. If one does occur, then the corporate needs to take quick action to defuse the situation - as does its celebrated ally.
posted by chakkare at
9:37 PM
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