Public opinion has recently erupted in the UK following the participation of a few UK national companies to use unpaid or forced labour to participate in their businesses. The participation of commercial trading organization in politics has had a very chequered past especially those companies close to public opinion in the retail business. The notion of participation in politics is seen as a strategist as an unwelcome, unknown element in the business which is to be avoid.
For those who remember the Benetton’s story tracking the meteoric rise of the business and the meteoric fall of the business following a political, ethical, and social advertising campaign are hurriedly writing an exit strategy. The battles in the press of politics unethical trading at Nike and more recently at Apple have already sounded the alarm bells. The mention of slave labour,child labour, and unethical management actions have made shareholders feel very uneasy.
So what are they worried about?Companies dependent on public opinion for buyer behavior have in the past suffered difficult trading conditions, diminution in Brand Value,prolonged unwelcome press relations,shareholder loss of confidence over the running of the business,and profit slumps. Many of which are motivated by shifts in public opinion and business the resulting investor reactions.
This week a major retailer is experiencing the brunt of public and shareholder disquiet at any interference in the current volatile political arena. Threats of extra ordinary shareholders meetings to remove the chief executive, illegal trading, unethical trading, court actions, breach of human rights, insecurity of existing workers , demonstrations outside stores has made companies realise they should look towards a hasty exit strategy. The use of new media is a powerful media which many have expressed as a the most powerful medium following wiki leaks which has the potential to kill companies in real time and give competitors strategic advantage.
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