Introduction
Operating in the global business setting implies having to encounter multiple controversies. With an increased focus on social justice, quite a number of companies have faced significant public and economic repercussions for failing to meet the set ethical standards. Though accepting an ethical stance might seem pointless in the short term, a company will be able to build a long-term positive reputation.
Incident 1
Among the organizations that came under fire due to their controversial choices in the past year, one should mention Balenciaga and its infamous publicity stunt (Cost, 2022). In an attempt to capture the attention of a broader audience and regain its global influence, Balenciaga developed a marketing project that involved children modeling in highly inappropriate scenarios (Cost, 2022). The issue in question has gained particular notoriety among general audiences due to the involvement of children in the company’s infamous advertisement campaign, which suggests that there is a possibility of child abuse (Cost, 2022). Given the rapid pace at which the information about Balenciaga’s egregious actions has spread across social media, the company is likely to face a substantial drop in customers.
Examining the strategy that Balenciaga has adopted in tackling the issue at hand, one must give credit to the company’s public relations strategy. In addition to providing extensive and exhaustive apologies to all those involved, including the global community, Balenciaga’s leaders have unanimously and unequivocally condemned the dire effects that the commercial has produced on all parties involved, particularly on the children participating in it (Cost, 2022). Therefore, the notorious campaign was represented as a misstep and a lapse in judgment as opposed to a deliberate, adverse, and malicious effort (Cost, 2022). Thus, the ethical standpoint from which the company has approached the controversy in question can be considered sufficiently sound and reasonable. Namely, the strategy in question has helped Balenciaga to remain a popular and well-respected brand, which proves the importance of introducing an effective ethical framework for managing public controversies.
Incident 2
Another case of a business controversy has recently been observed in the IT realm, where Apple, Inc. failed to address quite obvious and glaring safety issues when introducing its AirPods to the global market. Specifically, according to the complaints voiced by people who bought the product, the specified technological advancement opens multiple opportunities for person tracking and data theft (Matney, 2022). In other words, major security issues can be seen as the direct effect of the use of AirPods. Though the company made the required statements to minimize the damage to its reputation and avoid falling off the public grace, its reaction could have included greater transparency and more direct action.
At first glance, the approach that Apple undertook to manage the controversy was quite sufficient. Specifically, the company issued a formal apology to its customers, announcing that it has solely its buyers’ safety and security at heart (Matney, 2022). Furthermore, the company detailed its policy, mission, and vision extensively in relation to the key aspects and characteristics of the product: “We will be updating the alert users receive to indicate that AirPods have been traveling with them instead of an ‘Unknown Accessory’” (Apple, Inc., 2022). The specified response, while being seemingly adequate, masks the company’s unwillingness to introduce changes to its product and suggests that the tracking issue will not be resolved unless further complaints surface and are made public with the help of social media. Therefore, it is recommended that Apple revisit its approach to public relations and introduce a more nuanced framework for handling ethical controversies such as the one described above.
Conclusion
Though the application of an ethical approach might appear to be ineffective as an immediate solution, it will contribute to positive public relations in the future. Therefore, organizations need to seek ethical decision-making strategies. As the examples of Balenciaga and Apple have shown, the focus on transparency is the most effective solution when addressing a public controversy, which suggests that companies should consider utilizing social media as the means of addressing and mitigating public relations issues when making controversial choices.
References
Apple, I. (2022). An update on AirTag and unwanted tracking. Web.
Cost, B. (2022). Balenciaga finally cops to mistakes in disturbing BDSM ad campaign, condemns child abuse amid scandal. New York Post. Web.
Matney, L. (2022). Apple’s biggest scandal of 2022 is already happening. Techcrunch. Web.