When stories arise about reputation management in a crisis, many companies bury their heads in the sand, insisting “it will never happen to me”. But then… it happens and this time it’s hitting Spanish clothes retailer Zara, owned by Inditex.
On August 17, news broke that Zara was under investigation by Brazil’s labour ministry after a contractor was found to be using employees in sweatshop conditions (in April a similar case involved a Puma supplier in Cambodia). The revelation has reverberated online, especially with anger and condemnation being expressed in social media.
The company’s lack of response in the digital environment (so far) is a timely reminder of how important it is for companies to equip themselves with the tools and skills needed to respond to these reputational crises. It also indicates that transparency in disclosing corporate responsibility information must be backed up by intelligent and proactive social media management.