Will Consumers give us another chance to bounce back? Evaluating how a company’s commitment to social issues adds brand resilience

Author: Dr. Jiyun Kang

In a crisis, can a company’s commitment to social issues add resilience to its brand?

We are all familiar with the idea of a brand crisis; Tesla is a recent example of this. They have dealt with a range of performance crises with their safety issues, and they’ve endured a values crisis when their CEO decided to get involved in global politics. At this point, it will take a sustained and long-term strategy for them to regain any significant brand share.

But what if your company is only dealing with a single brand crisis? What could help engender goodwill from the general public?

Studies have widely demonstrated that commitment to product responsibility builds a positive influence with consumers. Companies can’t be successful if they advertise a product that doesn’t meet expectations or won’t produce the results promised. But what if a company also has a well-established history of actively meeting social responsibilities?

Dr. Jiyun Kang, Amy A. Faria, et al. have published a study that examines brand resilience and the potential benefits of a company’s commitment to social responsibilities.