Brand reputation: No such thing as bad publicity? Insights & strategy on how to improve your own

When it comes to brand reputation, let’s set the record straight. Is there any evidence of bad publicity not affecting a brand? Let’s consider Volkswagen. The automaker was caught using software to cheat diesel emissions tests. The result? Volkswagen was forced to pay billions of dollars in fines and settlements. 

Consumer trust plummeted, and the brand suffered far greater long-term losses than any short-term gains from the original deception. Did it pay off? NO, absolutely not. Today, consumers are highly aware of unethical and corrupt practices, and Volkswagen's reputation has been permanently tarnished. Why would people trust them in other areas of business?

The damage to Volkswagen’s brand is undeniable. What the VW logo once represented—technical excellence—has been overshadowed by distrust. This shift in perception is not easily reversible and will haunt the brand for years to come.

Let’s take a step back: What is brand reputation?

Brand reputation represents the collective perception that customers, stakeholders, and the public hold about your company. It encompasses every impression, experience, and belief people form about your brand through both direct interactions and indirect exposures. Think of it as your company's public report card – one that's continuously being graded by everyone who encounters your brand.

What makes up brand reputation?

Your brand's reputation stems from multiple sources and touchpoints:

Direct experiences

• Product or service quality
• Customer service interactions
• Website and app functionality
• In-store or online shopping experience
• Employee interactions

Indirect influences

• Word-of-mouth recommendations
• Online reviews and ratings
• Social media presence and engagement
• News coverage and media mentions
• Corporate social responsibility efforts
• Employee satisfaction and workplace culture

Why brand reputation matters

In today's interconnected world, reputation carries more weight than ever before. A strong brand reputation delivers several crucial benefits:

Trust and credibility

When customers trust your brand, they're more likely to choose your products or services over competitors, even at premium prices. This trust transforms into loyalty, leading to repeat business and organic word-of-mouth marketing.

Market performance

Companies with positive reputations typically enjoy stronger financial performance. They can command higher prices, attract better talent, and often recover more quickly from market downturns or industry challenges.

Crisis resilience

A solid reputation acts as a buffer during difficult times. When problems arise, customers are more likely to give well-regarded brands the benefit of the doubt and remain loyal through challenges.

Stakeholder relations

Beyond customers, a strong reputation positively influences relationships with employees, investors, partners, and suppliers. This broader impact creates a supportive ecosystem for business growth and stability.

The dynamic nature of brand reputation

Brand reputation isn't static – it evolves constantly based on:

• Changing consumer expectations
• Market trends and competition
• Social and cultural shifts
• Company actions and responses
• Digital presence and online conversations
• Customer experiences and feedback

This dynamic nature means reputation requires ongoing attention and management. Companies must actively monitor, maintain, and strengthen their reputation through consistent actions and communications that align with their stated values and customer expectations.

Understanding that reputation management isn't just about damage control but about building and maintaining positive perceptions through every business decision and customer interaction is crucial for long-term success. Whether you're a small startup or an established corporation, your reputation serves as a fundamental asset that influences nearly every aspect of your business performance.

What makes or breaks a brand's reputation: Real-world lessons

While understanding brand reputation in theory is valuable, examining real-world examples provides crucial insights into how reputational management plays out in practice. Some of the world's most recognised brands have experienced both triumphs and significant challenges in maintaining their reputation, offering valuable lessons for businesses of all sizes.

These cases demonstrate how quickly a strong reputation can unravel through poor decisions, misaligned values, or inadequate responses to crises. They also show that no brand, regardless of its size or historical standing, is immune to reputational damage.

Let's explore some notable examples that illustrate the delicate nature of brand reputation and the lasting impact of corporate decisions:

Uber: A rapid rise, but at what cost?

Now let’s examine Uber. This disruptive brand quickly overtook traditional licensed taxis, famously challenging London’s iconic Black Cabs, which had served the city for over 120 years. Uber offered customers convenience and affordability, while Black Cabs were historically more expensive due to their rigorous training, safety standards, and higher service levels. For many, Uber was a welcome alternative, not only in London but across the UK and around the globe.

However, the initial success came at a cost. Uber’s reputation was severely damaged by a series of scandals, including allegations of a toxic workplace culture, sexual harassment claims, and regulatory violations. This led to a decline in public trust and significant profit losses.

While Uber has since implemented management changes and operational reforms to recover, these issues could have been mitigated had they been addressed from the start. A more ethical approach to branding and operations would have saved the company from reputational damage and profit losses in the long run.

Boeing: When safety takes a backseat

Another example is Boeing, a brand that historically symbolised professionalism and trust in the aerospace industry. However, two fatal crashes involving the Boeing 737 MAX in 2018 and 2019 revealed serious flaws in the company’s safety standards. A faulty software system, coupled with accusations of prioritising profits over passenger safety, devastated the brand. The 737 MAX was grounded worldwide, costing Boeing billions and irreparably damaging its reputation as a trusted leader in aerospace.

This is a clear example of how sacrificing brand values—such as safety and reliability—for short-term gains can result in long-term reputational and financial losses.

Pepsi: A tone-deaf marketing misstep

Let’s take a family favourite: Pepsi. In a now infamous marketing campaign, Pepsi aired a controversial ad featuring Kendall Jenner, who was accused of trivialising social justice movements. The campaign was widely mocked and criticised for being tone-deaf and culturally insensitive. Pepsi quickly pulled the ad and issued an apology, but the backlash underscored the importance of cultural awareness in marketing.

The lesson here is clear: brands must stay true to what connects them to their customers. Venturing into highly contentious social or political issues requires careful thought and genuine conviction. Otherwise, the risks to a brand’s reputation can far outweigh the potential benefits.

More examples of reputational damage

There are countless other examples:

• Nike: Criticised for its use of sweatshops in manufacturing.
• Cartier: Tarnished by associations with blood diamonds.
• Wells Fargo: Damaged by the fake accounts scandal.
• BP: Infamous for the Deepwater Horizon oil spill and the "Beyond Petroleum" narrative.
• Gerald Ratner: Famously destroyed his jewellery business by calling his own products "rubbish," leading to the collapse of the brand.

These cases highlight a common theme: large corporations often prioritise cost-cutting and short-term profits, ignoring the risks to their reputation. This shortsighted approach frequently results in financial losses, long-term damage to brand equity, and, in some cases, complete failure.

Building a strong brand reputation

Building a strong brand reputation requires deliberate strategy, consistent execution, and long-term commitment. While many companies focus solely on marketing or PR, true reputational strength comes from aligning every aspect of your business with your desired reputation while maintaining authenticity throughout all interactions.

Developing a clear brand identity

Your brand identity forms the foundation of your reputation. Think of it as your company's personality and promise to the world. This includes not just your visual elements like logos and colours, but more importantly, your mission, values, and voice.

A compelling mission statement guides your purpose, while core values shape decision-making and behaviour throughout your organisation. Your brand voice should remain consistent whether communicating through social media, customer service, or marketing materials.

Creating authentic customer experiences

Every interaction a customer has with your brand shapes your reputation. Focus on delivering experiences that align with your brand promises. This means going beyond just providing quality products or services – it's about creating meaningful connections at every touchpoint. Consider how your brand makes people feel, from their first website visit to their post-purchase support needs.

Key elements of exceptional customer experience include:

• Consistent quality across all products and services
• Responsive and empathetic customer service
• Transparent communication about policies and practices
• Swift and fair resolution of any issues

Building internal culture and employee engagement

Your employees serve as your most important brand ambassadors. A strong internal culture naturally translates into better customer experiences and a stronger reputation. When employees believe in your brand values and feel valued themselves, they become powerful advocates who enhance your reputation through every interaction.

Foster this culture by investing in employee development, encouraging open communication, and ensuring your internal practices align with your external brand promises. Remember, what happens inside your organisation eventually reflects in your external reputation.

Corporate social responsibility and community impact

Modern consumers expect brands to contribute positively to society. However, this goes beyond simple charitable donations or environmental initiatives. True corporate responsibility means integrating sustainable and ethical practices into your core business operations.

Consider how your business impacts various stakeholders and communities, and look for meaningful ways to create positive change that aligns with your brand values.

Managing through change and crisis

Even the strongest reputations face challenges. The key is preparing for potential issues before they arise. Develop clear protocols for crisis communication and ensure key team members understand their roles in managing reputational challenges. More importantly, build a foundation of trust through consistent, ethical behaviour that will help your brand weather any storms.

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Remember that building a strong brand reputation is a continuous journey rather than a destination. It requires constant attention, genuine commitment to your values, and the ability to adapt while maintaining your core identity. The most respected brands achieve this balance, earning trust through consistent delivery on their promises while evolving to meet changing customer needs and expectations.

Branding consultancy insights: Building trust for long-term success

At the end of the day, brands are almost always created with profitability as the primary goal. In our capitalist world, shareholder value and financial performance are the ultimate drivers, contributing to a country’s GDP. While some brands claim to focus on purpose, this is often "purpose washing"—a marketing strategy to boost profits. Whether it’s virtue signalling, exaggerating achievements, misleading consumers, or greenwashing, these tactics rarely align with authentic brand values.

As a branding consultancy, our role is to guide clients in protecting their brand reputation. By advising them to act ethically and remain authentic, we help them build long-term consumer trust. This trust is the foundation of enduring profitability and sustainable growth. 

Unfortunately, we often encounter resistance from clients who prioritise short-term objectives over long-term brand health. While we can foresee the consequences of these decisions, we are frequently overruled. It’s frustrating, but we always aim to act in the best interests of our clients, even when their vision diverges from our recommendations.

Final thoughts

For any brand, reputation is its most valuable asset. It takes years to build and moments to destroy. As branding consultants, we emphasise the importance of aligning business practices with consumer expectations. 

Ethical branding is not just the right thing to do—it’s a competitive advantage. By fostering genuine connections with their audience, brands can safeguard their reputation and secure profitability for years to come.