Business is nearly impossible without trust on both sides. One of the quickest ways to destroy that trust is for one side to act unethically. In the past, companies could often escape their wrongdoings because news spread slowly, but that’s no longer true. A company’s reputation can be ruined overnight if they upset the wrong social influencer.
A recent striking example of this was a viral video that a popular social media influencer named Faith Ordway (faithordway7) posted on TikTok. In it, she accuses a tooth whitening company, Purely White, of failing to pay her after she posted an advertisement for them on her page. Almost immediately, a backlash ensued and Purely White suffered a massive PR scandal with widespread calls for a boycott. As of this writing, faithordway7’s video has over 481k likes and almost 5,000 comments, most of them negative toward Purely White.
A Hashtag Means It’s too Late
Even the perception of unethical behavior can create a reputation management crisis, whether or not there’s any proof. It doesn’t matter that there’s little to no actual evidence besides a screenshot of a snippet of the alleged conversation between Faith Ordway and the company. In today’s climate, there’s no time for a company to try and get their side of the story out. By the time they can craft a response to an attack, the damage has already been done.
What does this mean for the company that’s just trying to manage its online reputation? It’s simple in theory but difficult in practice; it needs to avoid even the perception of impropriety. Lightning-fast communication and an army of people ready to jump to conclusions makes reputation management even more important than ever. A company needs to be ready to guard its reputation at all times, and unethical business practices make this exponentially harder. By the time there’s a #cancelinsertbusinessnamehere out there, it might be too late.
What’s Ethical Behavior Nowadays?
This is a complex question to answer, with even mundane topics becoming highly controversial in the current politicized climate. The obvious solution — a studious and deliberate avoidance of anything that even smacks of politics — may not be possible, but after working for 15 years in the reputation management industry, I can tell you this for certain:
While respecting the politics of others, here are the only places a company or executive can be brought down with a bad reputation.
- Not delivering what was promised. This goes for customers and employees. Your reputation is only as good as your word. Be worthy of trust.
- Criminal activity. It goes without saying that the laws of the land should be adhered to.
- Human rights violations. This would include anti-religious policies or workplaces, labor abuses, and the general negligence of human rights and equality for all.
The only time I have seen a company unable to weather a reputation crisis is when one of the above points has been violated. Character assassination, political cancellations, and media attacks do not have the power to eliminate a brand when a company is honest and true, as the company is supported by its customers and employees.
While a company can do its best to adhere to the few still universally accepted ethics of business: don’t lie, abide by the law, take care of customers, and provide a good workplace for your employees.
With any human endeavor, there are going to be times when a business falls short of its ethical standards, and that’s understandable. If unethical behavior does occur, showing accountability and taking ownership for any previous missteps is a good way companies can protect their reputations in the face of scandal. While a crisis can cause millions in lost revenue in a very short amount of time, it doesn’t need to destroy a company completely.
Learn From Others — Not the Hard Way
There are plenty of examples of companies handling crises stemming from unethical behavior both very well and very poorly, and both sets of companies provide important lessons. Some may argue that it’s only a matter of time before a company finds itself under fire for alleged unethical conduct; it’s easier than ever for people to get an audience and there are people online whose job is to find the next social media outrage. All of this should make it pretty clear why setting high ethical standards, and reacting swiftly and transparently when those standards are not met, is so important to a sound reputation. After all, the public will find out either way. Stick to ethical behavior to avoid the crises in the first place, and if a scandal does occur then make sure you handle it right the first time — and then never make the same mistake again.