University of Southern California Dissertations and Theses

Corporate reputation crisis in the digital age: a comparative study on Abercrombie & Fitch’s reputation crisis in the U.S., China and Taiwan

(USC Thesis Other)

Corporate reputation crisis in the digital age: a comparative study on Abercrombie & Fitch’s reputation crisis in the U.S., China and Taiwan

PDF

Download a page range

Download transcript

Copy asset link

Request this asset

Transcript (if available)

Content CORPORATE REPUTATION CRISIS IN THE DIGITAL AGE: A COMPARATIVE STUDY ON ABERCROMBIE & FITCH’S REPUTATION CRISIS IN THE U.S., CHINA AND TAIWAN by Carol Perng A Thesis Presented to the FACULTY OF THE USC GRADUATE SCHOOL UNIVERSITY OF SOUTHERN CALIFORNIA In Partial Fulfillment of the Requirements for the Degree MASTER OF ARTS (STRATEGIC PUBLIC RELATIONS) May 2015 Copyright 2015 Carol Perng 1 Dedication This thesis is dedicated to my amazing parents who bought me my first book, taught me to embrace diversity and encouraged me to pursue my passions. Mom and Dad, thank you for always being there for me. My accomplishments are yours. 2 Acknowledgments I would like to thank my thesis committee chair, Matthew LeVeque, for encouraging me to explore my creative side and teaching me how to manage and analyze complex social media data. I would also like to give special thanks to Laura Jackson for her endless support and guidance. She is an amazing leader, teacher and PR practitioner, and I am so grateful to have her as my mentor and friend. In addition, I’d like to thank Daren Brabham for giving me valuable feedback and helping me complete this project. Last but not least, I’d like to thank Julie Hamp and Emily Wang for providing me knowledge and insight on the communications industry. 3 Table of Contents Dedication ....................................................................................................................................... 2 Acknowledgments .......................................................................................................................... 3 List of Tables ................................................................................................................................. 6 List of Figures ................................................................................................................................ 7 Abstract .......................................................................................................................................... 8 Preface ............................................................................................................................................. 9 Research Methodology ...................................................................................................... 9 State of the Media ............................................................................................................ 10 Introduction ................................................................................................................................... 13 Chapter One: The Importance of Corporate Reputation ............................................................... 15 Corporate Reputation ...................................................................................................... 15 Leadership Reputation ..................................................................................................... 16 Online Reputation ............................................................................................................ 17 Chapter Two: The Evolution of Reputation Management ........................................................... 19 Chapter Three: Abercrombie & Fitch Case Study ........................................................................ 22 Background ..................................................................................................................... 22 Controversy ..................................................................................................................... 23 Marketing to “Cool” People ............................................................................................ 25 A&F’s Response .............................................................................................................. 29 Analysis of Media Coverage, 2006 vs. 2013 ................................................................... 30 a. Traditional Media Coverage in the U.S. ........................................................ 31 b. Traditional Media Coverage in China, Hong Kong and Taiwan ................... 36 c. Online Campaigns in the U.S. ....................................................................... 39 d. Social Media Coverage in the U.S. ............................................................... 42 Impact .............................................................................................................................. 49 Chapter Four: Corporate Reputation Management Today and in the Future: Facing a Global, Digital Audience ........................................................................................................................... 53 Communication Challenges in the Digital Age ............................................................... 53 Are Multinationals Prepared for Reputation Crises in the Digital Age? ......................... 54 Talents Needed for Strategic Communications in the Digital Age ................................. 55 Chapter Five: Suggestions for Corporate PR Leaders: How To Maintain Credibility from a Global, Digital Audience .............................................................................................................. 58 Conclusion .................................................................................................................................... 63 4 Bibliography ................................................................................................................................. 65 Appendix A: Interview Guide ....................................................................................................... 72 Appendix B: Industry Interviews .................................................................................................. 74 Appendix C: Mike Jeffries and A&F Media Coverage in 2006 (LexisNexis) ............................. 81 Appendix D: Mike Jeffries and A&F Media Coverage in 2013 (LexisNexis) ............................. 82 Appendix E: Mike Jeffries and A&F U.S. Media Coverage in 2013 (Google) ............................ 91 5 List of Tables Table 1: Top Mike Jeffries and A&F-Related U.S. News Articles in 2013 .................................3 2 Table 2: Top Mike Jeffries and A&F-Related U.S. News Articles in 2006 .................................3 3 Table 3: Top Mike Jeffries and A&F-Related Chinese News Articles in 2013 ...........................3 7 Table 4: Top Mike Jeffries and A&F-Related Taiwanese News Articles in 2013 .......................3 8 Table 5: Top U.S. Media Outlets That Covered the #FitchTheHomeless Campaign ..................41 6 List of Figures Figure 1: ANF Stock Price, January-December 2006 ................................................................. 26 Figure 2: A&F Ranking Among Google Searches of Fashion Brands, 2006 ............................... 26 Figure 3: Google A&F-Related Searches Chart, 2006 ................................................................. 27 Figure 4: A&F News Headlines in Google Trends, May 12-May 18, 2013 ................................. 28 Figure 5: A&F News Headlines in Google Trends, May 5-May 11, 2013 ................................... 29 Figure 6: Kristie Alley’s Tweet ....................................................................................................35 Figure 7: Daily Number of Views of the #FitchTheHomeless Video ......................................... 40 Figure 8: Number of Tweets About the #FitchTheHomeless Video ............................................ 40 Figure 9: Total Number of Social Media Posts Regarding #FitchTheHomeless from May-August 2013.................................................................................................. 43 Figure 10: First Peak of the #FitchTheHomeless Social Media Conversation ............................ 43 Figure 11: Second Peak of the #FitchTheHomeless Social Media Conversation ........................ 44 Figure 12: Word Cloud of the First #FitchTheHomeless Conversation Peak ............................. 45 Figure 13: Word Cloud of the Second #FitchTheHomeless Conversation Peak .......................... 45 Figure 14: Total Number of Posts Regarding the #FitchTheHomeless Campaign ...................... 46 Figure 15: Comparison of Consumers’ Perception Toward A&F, American Eagle and H&M in 2013......................................................................................................................... 50 Figure 16: ANF Stock Price from May-December 2013 ............................................................. 51 7 Abstract Corporate reputation is the public’s perception of a company’s behavior, and a company’s behavior is one of the key elements that determine the success of a business. This paper investigates the influence of traditional media and social media on corporate reputation, compares media culture and news story focus in different countries, including the U.S., China and Taiwan, and analyzes the impact of corporate reputation on a company’s brand value. The goal is to demonstrate why companies should invest in digital communication strategies, overcome language and cultural barriers that may hinder communication with a global audience, and establish best practices for real-time crisis communication in the digital age. In order to understand the relationships between media, corporate image and consumer perceptions, this study compares media responses to Abercrombie & Fitch’s former CEO Mike Jeffries’ exclusionary comments on only selling products to “cool and attractive people” in both 2006 and 2013. The results showed that the amount of relevant media coverage in 2006 was noticeably less than that of 2013, and the news stories were much more aggressive and sarcastic in tone in 2013. This suggests that the change in media landscape – from traditional media-driven to social media-dominated – may be the reason why negative news spread so quickly in 2013 and escalated into a crisis that damaged the brand and the company’s sales performance. In addition to analyzing relevant U.S. and Chinese news stories, this study discusses the importance of leadership reputation and Chinese consumers’ perception and expectations toward business leaders. The author concludes by providing recommendations for companies to stay competitive in the digital age. The findings in this study could be the basis of further studies as well as valuable information for companies that plan to expand their business to Asian countries. 8 Preface Research Methodology In this study, the author conducted both secondary and primary research to unveil the factors that influence corporate reputation. Secondary research includes review of news articles, blogs, tweets, Facebook posts, research papers, survey results, relevant websites and books. Quantitative primary research includes media coverage pulls using LexisNexis for U.S. print coverage and Google search for additional online coverage; Baidu search for relevant online news coverage in China, and Yahoo Taiwan search for relevant online news coverage in Taiwan; media analysis on 2006 and 2013 news coverage in the U.S., China and Taiwan; content analysis on the sentiment and focus of the news articles; social media data analysis using social media analytics tool Radian6; and analysis on social media conversations on Twitter and YouTube during a designated period of time. Small websites (monthly unique visitors under 2,500, estimated by web traffic analysis service compete.com) were excluded from the analysis to ensure that only content from larger, legitimate news was analyzed in this study. The purpose of traditional and social media analysis was to assess the impact of media coverage on a company’s brand value, and demonstrate the importance of real-time crisis communication. Qualitative primary research includes interviews with Julie Hamp, Chief Communications Officer, Toyota Motor North America, and Emily Wang, Senior Vice President, Director of Marketing and Community Development, East West Bank. Interviewees provided insight into the challenges faced by companies in the digital age, as well as talents needed for developing real-time crisis communication plans. 9 State of the Media Advanced communication technology has changed the way people consume and share information. The reach and speed of social media is impressive – people are now able to generate and share content through numerous channels, with millions of others across the globe, anytime of the year. In 1980, there were a total of 1,745 daily newspapers, but in 2011, only 1,382 were left (Newspaper Association of America). From 2003 to 2012, the American Society of News Editors documented a loss of 16,200 full-time newspaper newsroom jobs, while Advertising Age recorded a decline of 38,000 magazine jobs (Jurkowitz). As the number of digital news outlets increased significantly in 2013, more newspapers folded and many news reporters transitioned to new roles at digital news outlets. In 2013, approximately half of U.S. survey respondents cited the Internet as a main source of national and international news (Pew Research Center). This not only suggests that a considerable amount of news and information is distributed online, but also shows that people no longer rely on print publications or broadcast news for information. Furthermore, social media platforms allow people to not only obtain news, but also share and discuss content with others. According to a 2013 study by Pew Research Center, half of social media users have shared news stories and visual content as well as discussed news events via social media platforms. Pew Research also found that in 2014, 14% of social media users had posted their own photos and 12% had posted videos of news events to a social networking site, and this practice had played a role in a number of breaking news events (Anderson and Caumont). Following are four social media platforms that have significantly changed the way the U.S. public obtain and share news: 10 1. Facebook Roughly 64% of U.S. adults use Facebook, and approximately half of the users get news on Facebook, according to a 2013 study by Pew Research Center. In addition, 78% of Facebook news consumers get news when they are on Facebook for other reasons (Mitchell, et al.). This suggests that Facebook exposes some people to news who otherwise might not get it. 2. YouTube A study by Journalism.org shows that more than 60% of U.S. adults now watch videos online, and among those people, 36% watch news videos (Olmstead, et al.). According to Nielsen, YouTube reaches more U.S. adults ages 18-34 than any cable network. More than one billion unique users visit YouTube each month, and 100 hours of video are uploaded to YouTube every minute (YouTube.com). Furthermore, 80% of YouTube traffic comes from outside the U.S. (YouTube.com), which means that companies or individuals that share content via YouTube could be communicating with international audiences in real-time. 3. Twitter Twitter is another popular social media platform among companies and individuals. According to Internetlivestats.com, approximately 6,000 tweets are tweeted on Twitter every second, which corresponds to over 350,000 tweets sent per minute, 500 million tweets per day and around 200 billion tweets per year. Jack Dorsey, the creator of Twitter, sent the first tweet on March 21, 2006, and the number of tweets grew from 5,000 a day in 2007 to 500 million per day in 2013 (Twitter.com). 11 4. Snapchat Discover In January 2015, mobile messaging service Snapchat launched Snapchat Discover, a news section within the app that allows users to view news content from brands including National Geographic, Vice, Yahoo News, People, Daily Mail, Comedy Central, Cosmopolitan, CNN, Food Network, and ESPN (Crook). Unlike Twitter, Snapchat Discover clearly shows users from where they're getting their news (Kosoff). Digital communication and social media also have become a major part of the lives of people in China. According to a survey from the China Internet Network Information Center, the number of Internet users in China increased from 253 million in 2008 to 485 million in 2011 (Cnnic.cn). A 2012 McKinsey survey of 5,700 Internet users in China showed that the country had by far the world’s most active social media population, with 91% of respondents saying they visited a social media site in the previous six months, compared with 30% of respondents in Japan, 67% in the United States, and 70% in South Korea (Chiu, et al.). Weibo, one of the most popular microblogging websites in China, had 167 million monthly active users and 76.6 daily active users in 2014 (weibo.com). 12 Introduction People in the digital age are witnessing an evolution of new forms of digital communication technologies. In the past few years, people have transitioned from email to blogs and from blogs to Twitter and YouTube. The reach and speed of digital communication is exciting but also extremely dangerous. In a space where anyone could create and share content in real-time, what could have been a small issue could be amplified and easily become a major crisis. According to Burson-Marsteller’s 2011 Crisis Preparedness Study, 65% of business decision makers believed new media had actually made managing crises more difficult, and 66% of respondents believed new media have also significantly increased the potential cost of a crisis (Burson-Marsteller). Multinational companies are adjusting to the digital world and developing multicultural marketing plans, but many are still in the early stages of developing effective social media risk/crisis communication plans. Sixty percent of organizations had no strategy or plan in place for using social media during a crisis (Community Insights), and according to a PricewaterhouseCoopers study, companies that use social media during a crisis are not seeing how it is helps expedite communication. In addition, nearly 40% of the participants were “modestly” leveraging social media as a tool, but not necessarily seeing improvements in their capabilities (PwC). In addition, global organizations and companies are continuing to struggle with cultural and language barriers when communicating with a global audience. The speed of communication, according to Julie Hamp, Chief Communications Officer of Toyota Motor North America, is one of the greatest communication challenges in the digital age. Today, communication practitioners are no longer speaking to a local audience – when messages are 13 sent via digital communication tools, they are delivered to anyone with a digital communication device. Knowing that messages can now spread worldwide within minutes, companies and organizations could easily raise brand awareness by proactively releasing content that interested their target audience. On the other hand, an inappropriate tweet from an organization or company also could be translated into 17 languages and shared across the globe within minutes. Whether technology has brought companies and organizations more benefits than disadvantages remains a question to many communication practitioners. Nevertheless, many business case examples show how social media has the power to turn a small incident into a major crisis, and crisis communication plans that rely only on traditional media channels can no longer sufficiently protect a company’s reputation. Multinationals and other companies that wish to expand globally should have a thorough understanding of media and consumer behavior in different countries, and be truly prepared for real-time communication in the digital age. This paper will examine Abercrombie & Fitch’s reputation crisis in 2013, with the focus on social media’s impact on corporate reputation and how it has revolutionized the communications industry. 14 Chapter One: The Importance of Corporate Reputation Corporate Reputation According to the Financial Times, the definition of “Corporate Reputation” is “the observers’ collective judgments of a corporation based on assessments of financial, social and environmental impacts attributed to the corporation over time.” Market research firm Harris Interactive states that corporate reputation can be defined as “the sum of all perceptions and expectations that relevant stakeholders have about a company in relation to that specific stakeholder’s own agenda.” In other words, corporate reputation is not necessarily controlled by the company, and can be affected and communicated by people outside the company’s control or knowledge. A 2011 survey by Weber Shandwick and KRC Research showed that 87% of executives in the U.S. believe that a strong corporate brand is just as important as strong product brands, and that a majority of the companies surveyed reported having increased their corporate reputation- building efforts in the past few years. (Weber Shandwick). A corporation's reputation is considered among a company’s most valuable assets, and many organizations assess the reputation of corporations. Fortune magazine, for example, conducts surveys asking executives and analysts to rate companies in their industry on nine criteria, including innovation, people management, use of assets, social responsibility, management quality, financial soundness, long-term investment, product quality and global competitiveness. According to the Reputation Institute, companies operate today in a Reputation Economy – a marketplace where stakeholder support is now based more on perceptions of the company than perceptions of its products or services. A company’s values and behavior matter more than 15 what it produces, and now more than ever, reputation defines what companies are worth. Some critics argue that reputation doesn’t matter all that much, and the best strategy for building a successful business is to concentrate more on producing the best products and services (The Economist). However, a company’s products and services also comprise part of a brand’s reputation; like leadership, management, communication and media presence, they are elements that effect people’s perceptions toward a brand. According to a 2012 study by the Reputation Institute, 69% of people’s willingness to say something positive about an organization is influenced by their perception of the company, and only 31% by what they think of the company’s products and services (Reputation Institute). This shows that reputation is one of the most important factors that determine a company’s image and business value. Leadership Reputation Reputation without character is worthless, according to John Baldoni, author and president of leadership development firm Baldoni Consulting. Managing leadership reputation requires an individual to have strong ethics, good communication skills and the willingness to invest time in connecting with its stakeholders. However, some experts, such as physician, author and motivational speaker Dr. Wayne Dyer, believe that leadership reputation is in the hands of other people, not the leader. In other words, people’s perception is a huge factor that determines a leader’s reputation. A leader’s reputation can influence the company’s decision-making process, determine whether or not team members will support the leader, and if employees will become advocates of 16 the company. However, according to the Institute for Health and Human Potential, most organizations and their leaders don’t recognize the impact of leadership reputation (ihhp.com). A survey conducted by Weber Shandwick and KRC Research in 2011 showed that 49% of company reputation was attributed to a CEO’s reputation, and 60% of market value was attributed to company reputation. The survey also showed that nearly 28% of consumers regularly or frequently talked about company leaders with others, and 59% said they were influenced by what top leaders communicate. In addition, consumers in emerging markets, such as China and Brazil, were more likely to discuss company executives than those in developed markets (Weber Shandwick). In addition, nearly a third (32%) of investors’ investment decision, on average, was based on perceptions of the CEO (FTI Journal). Therefore, for many companies, leadership can be considered the most valued asset. Former Apple CEO Steve Jobs, for example, was one of the most valued business leaders in the U.S. The day after Jobs passed away, the company saw a 5% drop in stock price (Kollewe), and many reporters, analysts and investors posited that Apple would no longer be the same without its visionary CEO. Trip Chowdhry, an analyst with Global Equities Research, said: "Apple is Steve Jobs, Steve Jobs is Apple, and Steve Jobs is innovation. You can teach people how to be operationally efficient, you can hire consultants to tell you how to do that, but God creates innovation." (Potter). Online Reputation Reputation-based exchanges, or “Reputation Economics,” according to technologist and writer Joshua Klein, was how people traded before web-based commerce, and is still the primary way value gets generated in the global economy. Craigslist, eBay, Amazon and Alibaba are all 17 examples of e-commerce sites where reputation-based transactions happen. As Klein notes, people feel more comfortable exchanging their money for goods if they know more about the seller and product, and the ratings and reviews (or one might say “reputation”) of the seller and their product can help buyers decide whether or not to transact business with them. A vivid if rather unfortunate example of the power of reputation-based exchanges comes from the terrorist group that funded the 9/11 tragedy in the U.S.: terrorists preferred using an FDIC-insured bank to move the funds they needed to crash a plane into the World Trade Center, rather than using an unregulated trust network comprised of their ethnic relatives (Rodale). Before social media became prevalent, companies mostly relied on word-of-mouth and traditional media relations and marketing activities to build and maintain their reputation (Bracey). Today, companies can easily reach their stakeholders through numerous online platforms anytime, anywhere. However, the speed and reach of digital media channels have made it more difficult for companies to manage news coverage and almost impossible to manage social conversations. In addition, online commentary from activists and celebrities has become as influential as legitimate news stories. In order to stay ahead of the reputation management game, companies should not only monitor news stories in traditional channels that are relevant to the brand, but also be aware of “non-news content” from influential individuals or groups. 18 Chapter Two: The Evolution of Reputation Management Reputation risk is a threat or danger to the good name or standing of a business or entity (Investopedia.com). It can occur directly as the result of the actions of the company itself, indirectly due to the actions of an employee or employees, or tangentially through other peripheral parties, such as joint venture partners or suppliers. In addition to having good governance practices and transparency, companies also need to be socially responsible and environmentally conscious to avoid risks to their reputation (Investopedia.com). Back when traditional media was the main source of consumer news and information, organizations primarily had to consider news coverage on radio, TV and print vehicles. Now they are facing the challenge of monitoring, analyzing and managing posts on Facebook, Twitter and other social media platforms, in addition to managing traditional media coverage. Social media allows stakeholders to express their feelings and opinions toward a brand anytime, anywhere. In other words, social media users can control when, where, and how a brand’s reputation is built. This is a significant challenge to organizations because it is extremely difficult to capture and monitor the vastness of the social space, users may actively create and stimulate issues that may lead to crises, and the reach and speed of online communication may fuel a crisis and cause severe, unexpected damage to a brand. However, social media is a two- way channel – some consumers could use it to support or damage a brand, but companies also may use it to manage a crisis or even build trustworthy relationships with consumers to help prevent a crisis. A 2014 survey of global CEOs by the consulting firm Deloitte showed that reputation was rated as the highest impact risk area, and social technologies were one of the main factors driving rising concerns about reputation. Deloitte’s report quotes Elvin de Kock, Chief Risk 19 Officer, Zurich Insurance Company, who states that reputational risk is one of the more challenging risks to manage as it generally is a consequence of inadequately managing other risks. Threats to companies’ reputation and brand can be damaging to the point of sometimes being irreversible, particularly given social media’s prevalence and global reach (Deloitte). One of the most studied PR crises impacting corporate reputation, which occurred before the digital age, related to rumors of tampering with the contents of Pepsi-Cola cans. In 1993, syringes and hypodermic needles were allegedly found in a number of cans of Pepsi-Cola products, and the public accused Pepsi of selling unsafe products to consumers. The company defended itself by releasing statements and visual evidence, including a report on its soda canning process, to assure consumers that the company’s products were safe. With the support of the FDA, the rumors died down in two weeks and the company managed to recover from the sales drop caused by the rumors within a month (Business Insider). Social media channels such as Twitter, Facebook and YouTube did not exist back then, which means the negative news had spread slower, public discussion was limited, and additional issues, such as more videos with contaminated products made by pranksters, had been avoided, allowing the company more time to develop strategies, respond and take control of the situation. Domino’s Pizza faced a similar crisis of contaminated products, but unfortunately it occurred in the age of social media. In 2009, Domino’s employees uploaded prank videos with adulterated food to YouTube. The video that contained unsanitary activities were viewed over one million times within a few days, and discussions went viral on Twitter (Clifford). Online surveys showed that consumers’ perception toward the company’s product quality had changed from positive to negative after watching the videos. HCD Research found through its Media Curves Web that 65% of respondents who would previously visit or order Domino’s Pizza 20 were less likely to do so after viewing the video (Flandez). Domino’s did not respond until two days after the video appeared, as its initial strategy was to disregard the situation in hope of avoiding more attention. However, as outraged social media users continued to express their disgust, the company eventually realized that they had to properly address the issue. The company created a Twitter account to address the comments, and it presented its CEO in a video on YouTube. Clearly, when social media is involved, companies don’t have much time to plan their response. If they don’t respond quickly and wisely, the situation could easily become out of control, and it could be extremely hard for the company to recover its reputational losses. In order to have a deeper understanding of both traditional media and social media’s impact on corporate reputation throughout the years, the author conducted a case study on Abercrombie & Fitch’s 2013 reputation crisis, including analysis on media coverage in 2006 and 2013, social media conversations, corporate response and the impact on the company’s brand value. 21 Chapter Three: Abercrombie & Fitch Case Study Background Abercrombie & Fitch (A&F) is an American clothing retailer that produces and offers casual clothing for young consumers. Operating brands that include Abercrombie & Fitch, Abercrombie Kids, Hollister and Gilly Hicks, the company has 843 stores in the United States and 163 stores in the rest of the world. (Abercrombie.com). Originally called Abercrombie Co., A&F was founded in 1898 by David T. Abercrombie as a small waterfront shop on South Street in Manhattan. In 1904, Ezra Fitch bought a major share in the growing company and joined as co-founder. The company became the first company to sell clothing to both women and men in 1910 (Business Insider). The company saw a significant loss in sales during the Great Depression, but Otis Guernsey, the company’s president at the time, helped the company recover and achieve profitability in subsequent years. By 1939, A&F was promoting itself as 'The Greatest Sporting Goods Store in the World' (Fundinguniverse.com). It reached a sales peak in 1947 and continued to expand in the 1950s. However, in the early 1960s, net sales started to drop and the company filed for bankruptcy in 1977 (Business Insider). Oshman's Sporting Goods, a Houston-based chain, bought the Abercrombie & Fitch name, trademark, and mailing list in 1978 and opened a store in 1979 under the A&F name in Beverly Hills, California. In 1988, Limited Inc. acquired A&F and tried to revive it by selling modern sportswear (referenceforbusiness.com). Limited Inc. brought in Mike Jeffries as A&F’s CEO in 1992. The company began publishing A&F Quarterly, a magazine that features its clothing lines as well as articles on pop culture, sex, music, and other “teen appropriate” topics. A&F's advertising conveyed an open 22 sexuality intended to appeal to its young targeted customers but concerned some parents and legislators. Despite the controversy, sales increased significantly and Jeffries successfully rebuilt A&F as an upscale apparel retailer for young Americans. Following this success, A&F continued to expand its business by launching Abercrombie Kids in 1997, Hollister in 2000 and Gilly Hicks in 2008 (Business Insider). Controversy Abercrombie & Fitch is well known for its sexually charged advertising and controversial marketing campaigns. Following are several major controversies over the company’s history: In 2002, A&F launched T-shirts featuring caricatured faces with slanted eyes and rice- paddy hats and the slogan "Wong Brothers Laundry Service -- Two Wongs Can Make It White." Other controversial products included T-shirts depicting a Buddha figure along with the slogan "Abercrombie and Fitch Buddha Bash - Get Your Buddha on the Floor." Asian Americans accused the company of being racist and demanded a public apology from the retailer (Strasburg). In December 2003, A&F launched a 280-page 2003 Christmas Field Guide featuring photos of nude and partially clad women (The Associated Press). The National Coalition for the Protection of Children & Families, a Christian Cincinnati-based group, launched a boycott campaign against A&F, claiming the company’s catalog contained frontal nudity and articles promoting "sexual promiscuity." (Parvaz). In 2004, the company sold T-shirts featuring a map of West Virginia and the words, “It's all relative in West Virginia,” which outraged Bob Wise, then-Governor of West Virginia. He argued that the shirt played off the stereotype of West Virginia as a haven for incest, and 23 demanded that the company stop selling the shirt and destroy its entire stock (Dao). In June 2003, the NAACP Legal Defense and Educational Fund filed a class action lawsuit, Gonzalez v. Abercrombie & Fitch Stores, against A&F. The lawsuit, filed in U.S. District Court in San Francisco, charged that the company discriminated against African- American, Latino and Asian American applicants and employees (NAACP Legal Defense and Educational Fund). In 2005, the company settled the lawsuit by awarding $40 million to anyone of color who either tried to get a job or was employed by the company between February 1999 and November 2004. The company was also required to overhaul their hiring and employee management practices (Minyanville.com). In 2005, Abercrombie shareholders filed a lawsuit against A&F alleging that CEO Jeffries’ compensation was excessive. The suit was settled, Jeffries’ bonus was reduced by 50%, and he gave up some stock options. Other lawsuits accused Jeffries of misleading stockholders about the company’s profits (Denizet-Lewis). In 2011, A&F launched padded bikini tops for 8-year-old girls. The line outraged parents and psychologists, but the company refused to recall the products (Abraham). It appears that most of the company’s controversial acts originated from Jeffries’ marketing ideas. As Benoit Denizet-Lewis from Salon magazine wrote in a 2006 article 1 , “Mike Jeffries is the Willie Wonka of the fashion industry. A quirky perfectionist and control freak, he guards his aspirational brands and his utopian chocolate factory with a highly effective zeal. Those who have worked with him tend to use the same words to describe him: driven, demanding, smart, intense, obsessive-compulsive, eccentric, flamboyant and, depending on whom you talk to, either slightly or very odd.” 1 Denizet-Lewis, Benoit. “The Man Behind Abercrombie & Fitch.” Salon. 24 January 2006. Web. 11 December 2014. <http://www.salon.com/2006/01/24/jeffries/>. 24 Marketing to “Cool” People In January of 2006, Jeffries was quoted in an interview with Salon magazine, to celebrate the opening of A&F’s flagship store in New York. The story, written by Denizet-Lewis, included the following disparaging comments Jeffries made when describing his target customer: “…That’s why we hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that. “In every school there are the cool and popular kids, and then there are the not-so-cool kids…Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either.” Readers left negative comments at the bottom of the article (Salon.com), but according to a Google search and LexisNexis search, mainstream media outlets didn’t pick up the story. A&F’s stock price still increased in 2006, and the company was still one of the most popular fashion brands among U.S. teenagers (Figure 1). Bloomberg BusinessWeek estimated 20% sales growth to $3.3 billion in fiscal year 2007 and 14% sales growth to $3.8 billion in fiscal year 2008, stating, “…while there is no guarantee of success, ANF's brand-building and retail development acumen is considerable.” (Driscoll). 25 Figure 1: ANF Stock Price, January-December 2006 (Source: Yahoo Finance) As seen in Figure 2, a search on Google Trends showed that A&F was the most searched fashion brand on Google in 2006. In Figure 3, the related searches chart shows that people weren’t searching for information related to the Salon interview. Figure 2: A&F Ranking Among Google Searches of Fashion Brands, 2006 (Source: Google Trends) 26 Figure 3: Google A&F-Related Searches Chart, 2006 (Source: Google Trends) Jeffries’ comments didn’t gather a lot of media attention in 2006, but it wasn’t because the public was more acceptable of discrimination against “fat” and “ugly” people back then. In fact, a 2006 survey from the market research firm NPD Group showed that the percentage of Americans who said they find overweight people less attractive steadily dropped from 55% to 24% (The Associated Press). USA Today also published an editorial piece “Why Fat Jokes Aren’t Funny” (D’Souza), which argued that insulting obese people and making fun of them equaled bullying. Stories never disappear on the Internet. Although Jeffries’ embarrassing Salon Interview wasn’t necessarily picked up in mainstream media nor discussed in 2006, it found a new life in 2013, when Business Insider published an article by Ashley Lutz “Abercrombie & Fitch Refuses to Make Clothes for Large Women.” The story begins by these harsh words: “Teen retailer Abercrombie & Fitch doesn't stock XL or XXL sizes in women's clothing because they don't want overweight women wearing their brand.” (Lutz). This time the story went viral. Mainstream media outlets were covering the story and re- 27 posting Jeffries’ quotes from the original Salon interview, social media conversation was rolling, change.org started a petition to get the company to “Stop telling teens they aren't beautiful; make clothes for teens of all sizes!” (O’Keefe), and Elite Daily’s article “Abercrombie & Fitch CEO Explains Why He Hates Fat Chicks” received 1.6 million “Likes” on Facebook (Levinson). When Lutz questioned A&F why it doesn't offer larger sizes for women, the company’s spokesperson replied that the company wasn't available to provide a comment (Lutz). A search on Google Trends (Figure 4) showed that from May 12 to May 18 in 2013, A&F appeared in 100 news headlines worldwide. Figure 5 shows that from May 5 to May 11 in 2013, A&F appeared in 75 news headlines in the U.S. Although the content of the news articles were not shown in the figures, it is highly possible that the peak in May was due to Business Insider’s article on Jeffries’ exclusionary comments. Figure 4: A&F News Headlines in Google Trends, May 12 to May 18, 2013 (Source: Google Trends) 28 Figure 5: A&F News Headlines in Google Trends, May 5-May 11, 2013 (Source: Google Trends) A&F’s Response Following a week of relentless online criticism, A&F finally responded by posting the following statement on the company’s Facebook page (https://www.facebook.com/abercrombie/posts/10151345201895378): “A note from Mike, our CEO: I want to address some of my comments that have been circulating from a 2006 interview. While I believe this 7 year old, resurrected quote has been taken out of context, I sincerely regret that my choice of words was interpreted in a manner that has caused offense. A&F is an aspirational brand that, like most specialty apparel brands, targets its marketing at a particular segment of customers. However, we care about the broader communities in which we operate and are strongly committed to diversity and inclusion. We hire good people who share these values. We are completely opposed to any discrimination, bullying, derogatory characterizations or other anti-social behavior based on race, gender, body type or other individual characteristics.” 29 Unsatisfied with Jeffries’ initial statement, Benjamin O’Keefe, the 18-year-old who started the change.org petition to get Abercrombie to expand their sizing, protested at A&F’s headquarters in Ohio with members of the National Eating Disorder Association. They met with A&F executives and urged them to make changes in their company to become more inclusive and increase diversity (Yandoli). After the meeting, A&F released its second statement (Lutz): “We look forward to continuing this dialogue and taking concrete steps to demonstrate our commitment to anti-bullying in addition to our ongoing support of diversity and inclusion. We want to reiterate that we sincerely regret and apologize for any offense caused by comments we have made in the past which are contrary to these values." The company’s response leads the author to believe that A&F initially may have decided not to address the situation because they believed that Jeffries’ comments were part of the company’s marketing strategy and there was nothing wrong about it, or they didn’t want to bring more attention to the issue. Both of the company’s responses were reactive, vague and too late in the process. Because the company failed to take control of the situation and communicate with its key stakeholders, they were relentlessly criticized on traditional and social media. Analysis of Media Coverage, 2006 vs. 2013 It is worth noting that Facebook was a relatively new social platform in 2006, and Twitter was launched only two months before Salon magazine published the article of Jeffries’ interview. In order to find out whether the lack of social media channels was one of the reasons why the article didn’t gather more attention when it first went public, the author developed a study comparing related U.S. news stories in 2006 and 2013, and analyzing relevant social media 30 campaigns and conversations. News stories in the U.S. and China also were analyzed and compared in order to understand whether the negative publicity had spread to international markets, and how Chinese and Taiwanese consumers perceived the situation. a. Traditional media coverage in the U.S. The author gathered relevant news stories from LexisNexis and Google, and coded the sentiment of each relevant news story from traditional media outlets, including print news publications and online news outlets. The author defines a story that shows support of A&F as a “positive” story, an objective, factual story about the incident as a “neutral” story, and a story that criticizes A&F and/or Jeffries as a “negative” story. According to a LexisNexis search using keywords “Abercrombie & Fitch” and “Mike Jeffries,” from January 2006 to December 2006, there were only three relevant articles (two U.S. articles and one article from Asia) (Appendix C). However, from May 2013 to December 2013, there were 85 relevant news stories worldwide (Appendix D), including publications from Europe, Asia, United Arab Emirates, Canada, and 38 related news stories in the U.S. Among the 38 U.S. news articles, 10 were neutral and 28 were negative. In order to capture additional online coverage, the author did a Google search from January 2006 to December 2006 using keywords “Abercrombie & Fitch” and “Mike Jeffries. The author examined a total of 83 webpages and only found one relevant U.S. news article in 2006. The author then changed the search period to May 2013 to December 2013, yielding 269 webpages that were examined, and 59 relevant online U.S. news articles. Among the 59 articles, 12 were neutral, two were positive (in support of A&F’s exclusionary marketing strategy), and 45 were negative (Appendix E). 31 In order to further explore how traditional media portrayed the company and its leadership, top mainstream media and lifestyle outlets were selected and the corresponding stories from each outlet were analyzed and compared. Results were recorded in an Excel file and are presented here as Table 1, showing top U.S. media outlets (defined as online news and magazine outlets with more than 3 million monthly unique visitors estimated by compete.com) that covered the story in 2013. The Los Angeles Times was the only outlet that wrote a neutral story on the incident; four out of 11 of the outlets used the word “fat” in the title; 10 out of 11 of the outlets had negative titles; nine out of 11 of the articles were negative in tone. Nearly half (five out of 11) of the outlets included the name of A&F’s CEO in the title; 10 out of 11 included Jeffries’ comments on only selling clothes to “thin and beautiful” people. Moreover, three of 11 articles mentioned #FitchTheHomeless, an online campaign that angry consumers started, encouraging people to donate their A&F clothes to the homeless, in an attempt to essentially highjack and rebrand the company in a unique gesture of reputational activism. Table 1: Top Mike Jeffries and A&F-Related U.S. News Articles in 2013 In contrast, Table 2 shows the single U.S. media outlet that covered the story in 2006. 32 The news article from Google search had a negative title and included Jeffries’ comments in the story. Table 2: Mike Jeffries and A&F-Related U.S. News Articles in 2006 The author further analyzed relevant U.S. news stories in 2013 and discovered the following story angles, in addition to Jeffries’ comments about only selling clothes to “thin and beautiful” people: a) A&F’s poor stock performance in 2013. Investors were worried that the drop in stock price was due to Jeffries’ poor public image. According to Kyle Woodley at InvestorPlace.com, “Booting Michael Jeffries won’t necessarily save ANF stock, and it certainly doesn’t provide an immediate fix to its sales problems. But it’s definitely a better option than keeping him.” (Woodley). b) Replacement of A&F’s CEO. Engaged Capital, an activist investor that owned 0.5% of ANF stock, said in a letter to A&F’s Board of Directors that the company should look for a replacement for CEO Mike Jeffries, and that a sale of the company could be its best option (Benoit). A&F instead renewed Jeffries’ contract and kept him as the company’s CEO, but whether this was the right decision became a popular topic among analysts and reporters. c) Social media campaign #FitchTheHomeless. Writer and filmmaker Greg Karber started an online campaign #FitchTheHomeless on May 13, 2013, with the goal of rebranding the company. He filmed a YouTube video bashing the company and encouraging people to donate A&F clothes to the homeless. The video went viral on social media within a 33 week it was posted. Interestingly, U.S. media didn’t support the campaign. Many media outlets, including major news outlets such as the Huffington Post, stated that the campaign was sending a wrong message and was even worse than Jeffries’ behavior. d) Celebrity responses. Comments from celebrities often may be as influential as news coverage from major media outlets. TV talk show host Ellen DeGeneres addressed Jeffries’ inappropriate comments during an episode of The Ellen DeGeneres Show, and received positive feedback from her audiences and the media. The Huffington Post even came up with a list of Ellen’s best comments (The Huffington Post): • “Fitch, please!” • “There is a size zero, which I don't understand. Zero is nothing.” • “Now they have a double zero. There's a double zero! What are we aspiring to? ‘Honey, do these jeans make my butt look invisible?’” • “Beauty isn't between a size zero and a size eight. It is not a number at all. It is not physical.” • “What you look like on the outside is not what makes you cool -- at all. I had a mullet and I wore parachute pants for a long, long time. And I'm doin' OK.” • “As long as you're healthy and you're happy, that's the most important thing.” American actress and comedian Kristie Alley also spoke up against Jeffries’ exclusionary comments. She told Entertainment Tonight that Jeffries’ comments would make her never want buy anything from the company, and she would never again walk in A&F stores because of Jeffries’ view of people (Sieczkowski). She also directed harsh words to Jeffries in her Twitter post (Figure 6), which had been retweeted 384 times. 34 Figure 6: Kristie Alley’s Tweet About Jeffries’ Comments e) Jeffries’ statement. Nearly two weeks after protests against Jeffries’ exclusion of plus- sized women, Jeffries addressed the situation but did not apologize, according to the media. Ashley Kutz, the Business Insider reporter who brought back Jeffries’ Salon interview, wrote another article titled “Abercrombie & Fitch CEO Won't Apologize for Saying He Only Wants Cool Thin People to Wear His Clothes” (Kutz). Other major news outlets including the Huffington Post and Us Weekly magazine described Jeffries’ statement as a “semi-apology” (Fairchild and Chen). f) Change.org petition. A&F issued a second apology after activist Benjamin O'Keefe created a change.org petition to boycott the company and met with A&F executives. g) A&F’s marketing strategy. Instead of criticizing the company, several marketing professionals praised Jeffries’ “exclusionary” marketing strategy. However, even though A&F had successfully built an image that attracts its target audiences, ultimately, it underestimated the power of social media and lacked strong relationships with its consumers, investors and employees to successfully defend its position or turn the situation to the company’s advantage. Analyzing media coverage and identifying potentially damaging story angles is extremely important when a company’s reputation is in the hands of media. The author’s analysis shows 35 that four of the story angles listed above (the #FitchTheHomeless campaign, celebrity responses, Jeffries’ statements and change.org petition) were likely to be shared by people on social media because these stories could stimulate emotions – they were funny, interesting and controversial. Because A&F’s target audience is teenagers, and since most teenagers are constantly on social media, it is even more critical to understand what stories interest them and why they share specific stories online. While business reporters may be most interested in A&F’s stock performance and the possible replacement of the company’s CEO, this may not gain significant attention from social media users. Once the company had identified news stories that were most discussed on social media, it would be easier to use appropriate language to address negative comments or divert people’s attention away from the negative news. In addition, fast response is crucial when a crisis hits. Underreacting during the early stages of a crisis can cause it to escalate exponentially, and not taking action may generate even more negative coverage (Wetherhead). In order to be able to move fast in a crisis, companies should plan ahead of time and have key messages in place. The media is in constant need of information, and if the company doesn’t provide sufficient information, the media are left with no choice but to gather information from other sources. b. Traditional Media Coverage in China, Hong Kong and Taiwan The author searched for relevant news stories on China’s largest online search engine Baidu.com using keywords “Abercrombie & Fitch” and “Mike Jeffries” and found 10 relevant news stories in 2013 (Table 3). A search on Yahoo.com.tw using keywords “Abercrombie & Fitch” and “Mike Jeffries” resulted in 10 relevant news stories in 2013 (Table 4). Neither Chinese nor Taiwanese traditional media covered the story in 2006. Most of the news stories 36 were based on U.S. news stories, and 90% of the Chinese stories and 90% of the Taiwanese stories were negative. Interestingly, the titles of Taiwanese news stories were more aggressively negative compared to news titles reported in the U.S and China. Taiwanese reporters also used the term “淘汰主義者” (exclusionary CEO) to describe Jeffries and expressed anger toward him, while most Chinese reporters focused on Jeffries’ comments alone. As shown in Table 3 below, 80% of the outlets used negative titles; 90% of the articles were negative; none of the outlets used Jeffries’ name in the title. Two of 10 of the outlets used the word “fat” in the title; only three of 10 of the articles included Jeffries’ comments on only selling clothes to “cool and attractive” people, and 40% of the articles mentioned the #FitchTheHomeless campaign. Table 3: Top Mike Jeffries and A&F-Related Chinese News Articles in 2013 Table 4 shows that Taiwanese media reported that Jeffries’ comments were extremely inappropriate. These articles actively promoted the idea of boycotting A&F, and reporters used strong and sarcastic words to express anger toward the brand. Exclamation marks that suggest anger and strong emotions were used in the titles of three news articles. Among Taiwanese media, 90% of the outlets used negative titles; 80% of the articles were negative; only one outlet 37 used Jeffries’ name in the title. Two of 10 of the outlets used the word “fat” in the title; nine included Jeffries’ comments on only selling clothes to “cool and attractive” people, and 50% mentioned the #FitchTheHomeless campaign. Table 4: Top Mike Jeffries and A&F-Related Taiwanese News Articles in 2013 The analysis shows that relevant news articles from China and Taiwan were based on U.S. news stories. Judging by the tone and content of the articles, the author suspects that Chinese and Taiwanese media did not thoroughly investigate the case before covering the story – the news articles shows that stories in Chinese and Taiwanese media were translated and modified U.S. news stories but there was no evidence that reporters there reached out to A&F officials or protestors directly to confirm the story. This suggests that although business news can travel across the globe, it may be unlikely that there would be many different versions of the news story. In other words, the actual news story, although may be widely shared, is unlikely to be altered by media from different countries. If it is determined that reporters in certain countries often only translate and pass along the news instead of writing original stories about a given situation, it may be much easier for companies to anticipate and manage negative media coverage. 38 In addition, consumers in many Asian countries, including Japan and Taiwan, have high expectations toward business leaders – they expect a company’s CEO to take full responsibility when the company is involved in a crisis. This may be the reason why Taiwanese media coverage expressed more anger toward Jeffries than the U.S. media. A&F already has stores in China, and reported plans to open new stores in Taiwan in 2015. However, the analysis does not appear to suggest that A&F made attempts to communicate with media or consumers in China or Taiwan, even though they were likely just as aggressive, if not more so, than U.S. consumers and media. c. Online campaigns in the U.S After Jeffries’ comments about only selling clothes to “cool and attractive” people resurfaced in 2013, 18-year-old activist Benjamin O'Keefe created a change.org petition to boycott the company until it gave a formal apology. The online petition, which collected more than 80,700 signatures, caught the attention of A&F executives. O’Keefe, along with other activists, met with A&F’s executives and urged them to apologize to the public and make changes in the company to embrace the beauty in all sizes by offering XL and XXL sizes for women and men (Change.org). Greg Karber’s video campaign #FitchTheHomeless criticized the company and encouraged people to donate their A&F-branded clothes to the homeless. (https://www.youtube.com/watch?v=O95DBxnXiSo&list=UUpLdH8LqLBTT1Nw4JmqjVrg&i ndex=1). The video, entitled "Abercrombie & Fitch Gets a Brand Readjustment #FitchTheHomeless”, reached nearly 6 million views within a week (Dumenco). Figure 7 shows that the daily number of views of Karber’s video increased significantly; 39 Figure 8 shows the number of relevant tweets within two days after the campaign was launched (Reputation-metrics.org). Figure 7: Daily Number of Views of the #FitchTheHomeless Video (Source: Reputation-metrics.org) Figure 8: Number of Tweets About the #FitchTheHomeless Video (Source: Reputation-metrics.org) The author did a Google search from May 2013 to December 2013 using #fitchthehomeless as the keyword, examined a total of 320 webpages, and found 36 relevant online news stories. Among the 36 articles, 10 stated that #FitchTheHomeless was an inappropriate campaign that sent the wrong message and exploited the homeless. 40 In order to further understand U.S. media’s attitude and perceptions toward the campaign, the author selected top media outlets and analyzed and compared the news stories from each outlet. Table 5 shows top U.S. media outlets (defined as online news and magazine outlets with more than 3 million monthly unique visitors estimated by compete.com) that covered the campaign in 2013. Business Insider was the only news outlet that supported the campaign. The Huffington Post and Vice.com, along with other smaller news outlets, reported that the campaign was exploiting the homeless and would not be effective in bringing down A&F. The Huffington Post stated that the campaign was using people experiencing homelessness as pawns to make a political statement (Utt), and that the campaign might even unintentionally generate more brand awareness for A&F (Roumelioti). Table 5: Top U.S. Media Outlets That Covered the #FitchTheHomeless Campaign The #FitchTheHomeless campaign gathered much attention from traditional media because it stimulated people’s emotions – it was interesting, controversial and unusual. In addition, unlike most protests, #FitchTheHomeless was online and viral, attracting a global audience. Reporters in Australia, England, Taiwan, China and Singapore covered the campaign, and through 2014, the original Fitch The Homeless video had been viewed more than 8.2 million times from people across the globe. 41 d. Social Media Coverage in the U.S. In order to more closely analyze relevant online campaigns, the author used Radian6, a social media monitoring and analysis tool, to capture and analyze relevant online conversations on social channels including Twitter, Facebook, YouTube and blogs in the U.S., China and Taiwan. Language settings included English, Traditional Chinese and Simplified Chinese. The following keywords used for the topic profile analysis were based on frequently used terms found in relevant Twitter posts and online news stories: #fitchthehomeless OR abercrombie & fitch OR abercrombie & fitch AND ellen show OR abercrombie & fitch AND petition OR boycott a&f OR boycott abercrombie & fitch OR fitch the homeless OR jeffries AND abercrombie Mainstream media started to report stories about Jeffries’ disparaging comments in May 2013. As shown in Figure 9, from May 1, 2013 to August 1, 2013, there were a total of 99,568 relevant social posts, including 57,481 tweets, 39,560 Facebook posts, 2,330 blogs posts and 197 videos. 42 Figure 9: Total Number of Social Media Posts Regarding #FitchTheHomeless from May-August 2013 The following conversation trend charts show that social conversation was originally driven by traditional media. Figure 10 shows that the first peak of the conversation occurred on May 8, 2013, right after traditional media started to widely cover Jeffries’ comments. Figure 11 shows that the second peak, which is much more significant than the first, occurred on May 15, after traditional media started to widely cover the online campaign #FitchTheHomeless. Figure 10: First Peak of the #FitchTheHomeless Social Media Conversation 43 Figure 11: Second Peak of the #FitchTheHomeless Social Media Conversation The author used Radian6 to create a word cloud of the first conversation peak (Figure 12), showing that the most used words in social conversation on May 8, 2013 were Abercrombie, fitch, Jeffries, ceo and mike. This suggests that the conversation focus was mainly on the company and its CEO. According to a word cloud generated for the second conversation peak (Figure 13), the most used words in social conversation on May 15, 2013 include Abercrombie, brand, fitch, ceo, clothes, women, readjust, large, cool, greg and #fitchthehomeless. This shows that the conversation had shifted toward a different direction and people had been sharing more details of the story. 44 Figure 12: Word cloud of the First #FitchTheHomeless Conversation Peak Figure 13: Word cloud of the Second #FitchTheHomeless Conversation Peak In order to understand how people shared information about the #FitchTheHomeless campaign, the author further examined the conversation trend chart using #fitchthehomeless as the keyword. Figure 14 shows that there were a total of 48,763 posts regarding the #FitchTheHomeless campaign, of which 40,532 posts (83%) were Twitter posts. This suggests 45 that people preferred using Twitter as the platform for sharing the hashtag and information about the campaign. Figure 14: Total Number of Posts Regarding the #FitchTheHomeless Campaign The #FitchThehomeless campaign, change.org petition and “Attractive & Fat” blog post were the most discussed and shared on social media. The author analyzed the sentiment and content of the social posts in order to understand people’s perception toward each story and determine whether or not the campaigns were successful. Following are the four most influential social posts of each campaign from influencers with the largest number of followers: a) #FitchTheHomeless campaign (48,763 posts) 46 The tweets regarding #FitchTheHomeless were mostly in support of the campaign. Most tweets included the hashtag and a link to the video of the campaign. This campaign was most discussed on social media because it was interesting (rebranding A&F by giving fashionable clothes to the homeless), controversial (the risk of being accused of exploiting the homeless) and sharable (people like to share images and videos online). b) Change.org petition (592 posts) 47 The tweets regarding the change.org petition expressed more anger toward Jeffries and demanded A&F stop being exclusionary. c) “Attractive & Fat” blog post by “Militant Baker” (527 posts) Most people only shared the link to the blog post and did not include personal opinions in their tweets. This suggests that although people may have found the blog post interesting, they might not have completely agreed with it. 48 While the author did not code the sentiment of each social post, an informal analysis of posts from top influencers suggests that overall sentiment of social media conversation was likely to have been negative. A&F issued only two statements on its Facebook page in response to the negative news and social posts, which may not have been the best response strategy. While companies often do not respond to negative comments on social media, particularly when most of the social conversation is detrimental to the brand, ignoring negative comments or delaying communication with key stakeholders may only cause greater damage to the brand. Impact Corporate reputation is built over a long period of time by many elements, including the reputation of the leader, product quality, financial performance, consumer perception, and employee loyalty. Leadership reputation plays a very important role on the impact of a company’s reputation because the leader is the face of the company. At Toyota, for example, the chairman’s family name is on every vehicle the company sells. As the body and bones of the company, the quality of products and services is another crucial element that directly affects stakeholders’ perceptions toward the brand. For publicly traded companies, sales and stock performance is a key element of corporate reputation since investors tend to define a company’s success based on its financial performance. Today, consumer perception accounts for a huge part of a company’s reputation. This includes online comments, product reviews, tweets, images and videos regarding the company’s products or services. Employees are a fundamental element of corporate reputation management – they can either be a company’s ambassadors or potential liabilities to the organization’s reputation. According to Joonas Rokka, Assistant Professor of Marketing at Neoma Business School in France, companies should focus more on managing 49 employees as active reputation builders and brand ambassadors in social media instead of viewing them only as possible reputation risks (Amble). A&F has been one of the most popular clothing brands among teenagers for many years. Its success was due to a focused marketing strategy, high quality products, and strong brand identity and recognition. The company’s controversial marketing campaigns have generated success for many years, but controversy may also have been one of the reasons why it was relentlessly attacked after Jeffries’ comments resurfaced in 2013, and why A&F found it extremely difficult to recover from the crisis. Figure 15 is BrandIndex’s comparison of consumers’ perception toward A&F, American Eagle and H&M in 2013. Consumer feedback for A&F among people ages 18 to 34 went from neutral to negative at the beginning of May 2013, when Jeffries’ comments on only selling clothes to “cool and attractive” people resurfaced, and consumers’ perception became even worse after the #FitchTheHomeless campaign was launched on May 13. Figure 15: Comparison of Consumers’ Perception Toward A&F, American Eagle and H&M in 2013 (Source: BrandIndex) 50 After Jeffries’ comments on only selling clothes to “cool and attractive” people were widely covered by the media, A&F’s stock price dropped approximately 34% for the full-year 2013 (Figure 16). According to TheStreet.com, the controversy directly affected the company’s sales performance. A&F’s sales during the spring quarter, ending in May 2013, were down almost 10% from the same period a year ago, and the stock fell from $56 in late May to $43.50 by late June (Blankenhorn). Figure 16: ANF Stock Price from May-December 2013 (Source: Yahoo Finance) Forbes writer Roger Dooley, who originally supported A&F’s exclusionary marketing strategy in the 2013 article “The Perverse Brilliance Of Abercrombie & Fitch's CEO,” stated in another article that the outrage that A&F avoided six years ago had taken place in 2013 due to the ubiquitous use of social sharing tools. He suggested that the dislike of the company due to its controversial campaigns may have reached a tipping point, and that the teen market might favor other brands that better matched their personal image better (Dooley). In the digital age when anyone can tell a story, and any story can become newsworthy, businesses no longer have full control over their brands; their brands are instead owned by consumers. Consumers decide 51 whether a company’s marketing strategy fits their style and beliefs, and they determine whether a brand is loved or hated among their group. 52 Chapter Four: Corporate Reputation Management Today and in the Future: Facing a Global, Digital Audience Communication Challenges in the Digital Age Public relations practitioners are facing more communication challenges than ever. The hard-dollar impact of communications on business goals remains hard to calculate; consumers demand more transparency and engagement from companies and organizations; the reach and speed of communication have increased the risk of misinformation spreading; the differences in language and culture have brought numerous challenges to companies that market to global consumers; and it is extremely difficult to monitor the vast social space and almost unable to prevent negative online comments from occurring. When facing a global audience, monitoring and analyzing social conversation from a single country is no longer sufficient. Social media users in different countries have different habits and interests, and without a thorough understanding of their online behavior, it would be hard to establish a close relationship with them. For multinationals and companies that wish to expand globally, a deep understanding of the state of social media in different countries is the key to developing marketing campaigns and products that will appeal to consumers in different parts of the world. One of the greatest benefits of technology today is that it allows companies to track social conversation in real-time. Instead of focusing on news relevant only to a particular company, organizations should pay more attention to “why” people are saying, or not saying, certain things about the brand. Once companies have a thorough understanding of the interests and concerns of their consumers, they can know how to more effectively communicate their respective brand’s values. 53 Are Multinationals Prepared for Reputation Crises in the Digital Age? One lesson learned from A&F’s case is that stories never die on the Internet, and one never knows when something could become tweet-worthy and newsworthy. Companies have different approaches to crisis communications, and effective crisis communication plans require collaboration of many teams within any given company. The bigger the company gets, the more important internal communication becomes. Toyota Americas, for example, has a detailed crisis communications preparation guide and response plan, which includes guidelines for traditional and social media communications. According to Julie Hamp, CCO of Toyota Motor North America, Toyota sees everything through a global lens, and the company has very thorough global notification and coordination protocols in place to ensure that employees around the world are aware of emerging issues and the company’s response 2 . Reporters in different countries may cover stories differently due to the interests of readers, governmental regulations and journalism ethics. More specifically, when working with the media in different countries, the challenge surpasses only language and cultural barriers – it requires years of monitoring and analyzing to have a true understanding of what drives the news in a particular country. For global companies such as A&F, it is even more important to gain insight on how local consumers think and behave and where their values lie. Taiwanese media and consumers, for example, were more aggressive and showed more venom toward A&F. The reason behind this may be due to the fact that leadership reputation is highly scrutinized in Asian countries, and Asian consumers have high expectations of corporate leaders compared to those in the U.S. In Taiwan, for example, employees typically assume the leader has considered all relevant factors prior to making a decision (Dorfman, et al.). They tend to follow orders from 2 Personal interview with Julie Hamp, conducted via email, 25 November 2014. 54 leaders, and they seldom participate in decision-making processes. Therefore, when a company makes a mistake, the leader is expected to take full responsibility by either reducing their salary or resigning from the position (Davis). Although studies show that most companies still don’t have sophisticated social media crisis plans, many already have rich experience in working with global media. According to Emily Wang, VP and director of Marketing at East West Bank, the U.S. based East West Bank is prepared for handling crises in China because they have a strong bi-cultural, bi-lingual team that handles cross-cultural communications, and although there are tens of thousands of media outlets in China, East West’s team has established close relationships with select media over the years 3 . Toyota’s Hamp believes that although many crises have a social component, they are still driven by traditional media, thus a traditional media plan remains the most important element in maintaining a company’s reputation. However, she added, traditional media plans are now inherently digital if not social since most traditional publishing is done online. She says one of Toyota’s greatest challenges when communicating with a global audience is the misunderstanding over cultural and language differences. Although digital technologies allow companies to communicate with consumers in real-time, language and cultural barriers may still hinder communication. Talents Needed for Strategic Communications in the Digital Age East West Bank’s Wang believes that the ability to generate authentic, relevant content is the most important talent when facing a global, digital audience. She noted that people do not have much patience nowadays, and they expect consistent and interesting content from 3 Personal interview with Emily Wang, conducted via phone, 1 December 2014. 55 companies. Anyone can be a producer or publisher in the digital age, but companies are still struggling to generate good content every month, every week, or even everyday to meet people’s high demands. Hamp, on the other hand, believes that it is important for each team in the company, including the digital, communications and business team, to learn new skills that can help them adjust to the changing environment. In addition to learning and perfecting hard skills, communication experts also believe that soft skills are just as important in the digital age. Ron Ricci, Vice President, Executive and Customer Engagement at Cisco, believes that authentic communication is the key to obtain trust. John Rossant, Vice President of Communications and Public Affairs, Publicis Groupe, said, “In a globalized economy characterized by sharp and unpredictable change, the heroic model of leadership is dying. Corporate leaders need to be understanding and persuasive through much better communication, because the digital universe means that almost every business is an information business now.” Aravind Sitaraman, President, Inclusive Growth at Cisco Systems believes that the next generation leader will be one who performs her best without regard to outcome and because it is the right thing to do (USC Annenberg). Research conducted as part of The Third Space, a new communications initiative conducted by Annenberg School for Communication and Journalism at the University of Southern California, identified the following talents as crucial to successful leadership and communications in the digital age (USC Annenberg): 1. 360-Degree Thinking: The ability to take a holistic, multi-dimensional, analytical approach to problem solving. 2. Adaptability: Demonstrates mental agility and remains comfortable with ambiguity and flexible in the face of continual change. 56 3. Cultural Competency: Possesses emotional and cross-cultural intelligence and the ability to work inclusively and respectfully with others of various cultures and orientations. 4. Empathy: The ability to understand others’ priorities and perspectives, by engaging in active listening and focusing on reflective responses that clarify and strengthen dialogue. 5. Intellectual Curiosity: Possesses a hunger for knowledge that fuels ever-higher levels of learning and performance. 57 Chapter Five: Suggestions for Corporate PR leaders: How To Maintain Credibility from a Global, Digital Audience A&F’s case study shows that investment in crisis/risk communications has become a must in the digital age, and even a single statement from the CEO could destroy a brand if the company doesn’t react properly. If A&F had developed and maintained strong relationships with its online stakeholders before the incident, it likely would have had a better chance of working with its advocates to limit negative media coverage and rebuild its reputation. Although challenging, establishing and maintaining credibility when dealing with a cynical, creative, aggressive and constantly changing audience can be manageable. Based on Matthew W. Seeger’s 2006 “10 best practices of crisis communication”, the author proposes the following five best practices of social media risk/crisis communication: 1. Have a Social Media Team and Policy In Place Crisis and risk management should be an ongoing process. A company’s social media crisis policy should be developed before a crisis hits and consistently updated, and its social media accounts should be managed by experienced professionals that have a deep understanding of the company’s values. In addition, companies should educate employees on how to communicate and be clear on what they can and cannot share with the public. It requires a considerable amount of time and money to maintain a good social media presence, but considering the potential damage that can be caused by the lack of a sophisticated social media crisis plan, the investment is necessary. Proactive online reputation management includes consistent monitoring of social conversations relevant to the company, establishing official social accounts and an official website managed by professionals, the use of simple and clear messages and/or visuals, and consistent use of a two-way communication platform 58 that can help the company build trustful relationships with its stakeholders. 2. Build and Maintain Relationships with Online Influencers If employees were considered the ambassadors of a company, online communities and consumers could be living advertisements for a company’s products and services. A positive online review by a popular blogger can be far more influential than a $1 million commercial in the digital age. A study by BrightLocal showed that in 2014, 88% of consumers had read reviews to determine the quality of a local business, and 88% of consumers said they trust online reviews as much as personal recommendations (Anderson). Consumers seek authentic content and honest opinions, and commercials with glamorous TV stars and flawless lighting do not necessarily provide such values. When a company’s reputation is damaged, it no longer has the same amount of trust from its stakeholders. Therefore, even if the company were not liable in a particular situation, it would still be more convincing if a credible third-party supported the company. In the digital age, such credible sources include social media influencers, bloggers, YouTube stars, forum postings and product review websites, in addition to more traditional sources, such as regulatory officials and industry professionals. In order to gain trust from their digital publics, preferably before a crisis hits, companies should maintain open conversations with them, cultivate allies and be transparent and honest about their products, services and values. 59 3. Listen to Relevant Social Conversations and Be Present When a company is facing a crisis, consumers’ concerns and voices are the most valuable information because they can be the basis of realistic solutions. It is not easy for communication professionals in huge corporations to identify the real issue during a crisis, but they can gain insight from the public simply by listening. Companies should also understand the potential cultural differences in communication and leverage effective social media platforms in order to be more flexible in the digital age. A 2013 study from Pew Research Center showed that Facebook reaches far more Americans than other social media sites (Matsa and Mitchell), so companies could invest more in developing effective and timely messages in order to gain attention from Facebook users, promote the company’s value and protect its brand. Readers demand authentic content from traditional and social media, and companies are responsible for getting their part of the story out, in hope that media outlets accurately cover both sides of the story. This includes remaining accessible to reporters, being active on social media channels, and most importantly, providing relevant, authentic information to the public, preferably in the formats that their publics seek. According to Cisco, by 2017, videos will account for 69% of all consumers Internet traffic (Trimble). This suggests that videos should become a major part of all kinds of corporate messaging strategies. 4. Be Honest, Sincere and Transparent In order to gain trust from the public, companies must convey authenticity and sincerity in their messages. These messages must remain consistent across each platform and throughout 60 a prolonged period of time. It is similar to building a relationship with someone, but instead of one person, a company would have to gain trust from a community, a city or a country of people of different ages, genders, interests, beliefs, cultures and languages. The complexity of public views and influences in the digital age may be overwhelming, but these groups of people have one thing in common: they demand honesty, sincerity and transparency. Social media allows companies to show a more “personal” side and release sincere messages in various forms instead of cold, bureaucratic statements. Whether it is a Facebook post, short video or graphic, a message conveying genuine compassion, concern and empathy would be more likely to gain more positive feedback from the public. 5. Acknowledge Uncertainty and Maintain Open Communication with the Publics In terms of controlling communications messages and perceptions, the level of uncertainty and ambiguity is increasing each day in the digital age. Communications professionals should understand that there may be times when they do not know every detail of the situation nor have everything under control before they give an initial response to a crisis situation that is developing. Even though many times an issue may be amplified or distorted by social media, companies shouldn’t wait for all uncertainty to be reduced until they take action. Rather, they should acknowledge uncertainty, provide updates when possible, and maintain open communication with its stakeholders and employees. Providing recommendations that can help reduce the potential harm to affected parties will show that the company really cares and is committed to solving the problem. Companies must, however, deliver clear and consistent messages, because if people have confusion over 61 incomplete information, they might add in personal interpretations, and distorted information, especially on social media, may cause unexpected damage to the brand and its stakeholders. 62 Conclusion Most companies are prepared for operational issues but may be underprepared for communications during a crisis. However, once a crisis hits, it is too late to start developing communication strategies. Even companies with excellent reputations might lose brand reputation and the public’s trust if they communicate poorly during a crisis. Unfortunately, while most companies may understand the importance of crisis management, the vast reach and participation offered by social media means there is no such thing as a local crisis in this 24/7, digital news environment. The findings in the A&F case study show that, thanks to social media, a CEO’s mistake eight years ago may still resurface and escalate into a reputation crisis today. The CEO’s controversial statements in 2006 circulated much more in 2013 when social media were much more mainstream, and because the company did not respond properly, in not utilizing the social media channels that are so appealing to its young consumer base, it lost the public’s trust and suffered from reputational damage. Companies are often judged by how they handled a crisis, rather than by the crisis itself. No organization or leadership is perfect, and consumers in the digital age, although cynical, vocal and judgmental, have shown themselves to still be very forgiving and willing to give companies a second chance. In order to move fast and react properly during a crisis in the digital age, companies should have a full understanding of how to best use digital communication tools to listen to conversations relevant to their brands in real-time, immediately determine what to respond to and what to disregard, and build stronger and more positive long-term relationships with company stakeholders. Companies operating in consumer-driven industries must understand that open, timely, two-way communication between companies and consumers is required. For the first time ever, 63 companies can build “real” relationships with consumers online – by utilizing social platforms, they can engage with global consumers through visual storytelling and social conversations in real time. While communications in the digital age is faster, broader and more complex, the spirit has not changed. Consumers expect authenticity in the content produced by companies, and communication based on honesty and sincerity remains the key to building trustful relationships. Public trust may be the single best shield against crises. The A&F case underscores the importance of good crisis management on social media, and demonstrates that social media is a platform that should not be overlooked by companies but instead utilized as a channel to build trust with the publics. As Warren Buffet, the successful U.S. businessman, philanthropist and investor, once said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Considering the reach and speed of information in the digital age, companies must be prepared for unexpected incidents that may escalate through social media and potentially damage its reputation, because in the end, only those who properly respond and react to a crisis have the opportunity to regain trust from their stakeholders and rebuild better brands. 64 Bibliography “Abercrombie & Fitch Apology: Brand Issues Another Mea Culpa for CEO's Past Comments.” The Huffington Post. 23 May 2013. Web. 21 December 2014. <http://www.huffingtonpost.com/2013/05/23/abercrombie-and-fitch-apology_n_3323668.html>. “Abercrombie & Fitch CEO Mike Jeffries: Stop Telling Teens They Aren't Beautiful; Make Clothes for Teens of All Sizes!” Change.org. N.d. Web. 10 December 2014. <https://www.change.org/p/abercrombie-fitch-ceo-mike-jeffries-stop-telling-teens-they-aren-t- beautiful-make-clothes-for-teens-of-all-sizes>. “Abercrombie & Fitch Co. History.” FundingUniverse.com. N.d. Web. 9 December 2014. <http://www.fundinguniverse.com/company-histories/abercrombie-fitch-co-history/>. “Abercrombie & Fitch Employment Discrimination.” NAACP Legal Defense and Educational Fund. 17 June 2003. Web. 9 December 2014. <http://www.naacpldf.org/case-issue/abercrombie- fitch-employment-discrimination>. “Abercrombie & Fitch Pulls Racy Catalog from Stores.” USA Today. 3 December 2002. Web. 9 December 2014. <http://usatoday30.usatoday.com/money/industries/retail/2003-12-03-af- catalog_x.htm>. “ABERCROMBIE: How a Hunting and Fishing Store Became a Sex-Infused Teenybop Legend.” Business Insider. N.d. Web. 9 December 2014. <http://www.businessinsider.com/abercrombie-fitch-history-2011-4#it-was-reopened-after- going-bankrupt-in-1975-but-it-wasnt-working-as-a-sporting-goods-store-4>. Abraham, Tamara. “Parents' Fury as Abercrombie & Fitch Unveils Padded Bikinis for Girls as Young as Eight.” Daily Mail. 25 March 2011. Web. 9 December 2014. <http://www.dailymail.co.uk/femail/article-1369949/Parents-fury-Abercrombie--Fitch-unveils- padded-bikinis-girls-young-eight.html>. Amble, Brian. “Employee Wellbeing, Corporate Reputation and Social Media.” Management- Issues.com. 17 October 2013. Web. 8 January 2015. <http://www.management- issues.com/news/6778/employee-wellbeing-corporate-reputation-and-social-media/>. Anderson, Monica, and Andrea Caumont. “How Social Media is Reshaping News.” Pew Research Center. 24 September 2014. Web. 19 December 2014. <http://www.pewresearch.org/fact-tank/2014/09/24/how-social-media-is-reshaping-news/>. Anderson, Myles. “88% Of Consumers Trust Online Reviews as Much as Personal Recommendations.” SearchEngineLand.com. 7 July 2014. Web. 10 January 2015. <http://searchengineland.com/88-consumers-trust-online-reviews-much-personal- recommendations-195803>. 65 Apatoff, Alex. “Abercrombie's 'Exclusionary' CEO Responds to (But Doesn't Apologize for) the Controversy.” People.com. 17 May 2013. Web. 12 December 2014. <http://stylenews.peoplestylewatch.com/2013/05/17/abercrombie-controversy-apology/>. Baldoni, John. “Reputation Without Character is Worthless.” Inc.com. 24 May 2012. Web. 12 January 2015. <http://www.inc.com/john-baldoni/leadership-reputation-without-character-is- worthless.html>. Benoit, David. “Engaged Capital Tells Abercrombie: Replace CEO.” The Wall Street Journal. 3 December 2013. Web. 13 December 2014. <http://www.wsj.com/news/articles/SB10001424052702304355104579235882032904384>. Blankenhorn, Dana. “Abercrombie & Fitch Might Pay for CEO Jeffries' Sins.” TheStreet.com. 17 July 2013. Web. 12 December 2014. <http://www.thestreet.com/story/11976840/1/abercrombie- fitch-pays-for-mike-jeffries-sins.html>. Bracey, Leon. “The Importance of Business Reputation.” BusinessInFocusMagazine.com. October 2012. Web. 20 December 2014. <http://www.businessinfocusmagazine.com/2012/10/the-importance-of-business-reputation/>. Brooks, Chad. “Companies in Crisis Still Mostly Ignore Social Media.” Business News Daily. 8 August 2013. Web. 8 December 2014. <http://www.businessnewsdaily.com/4905-social-media- crisis-control.html>. Castro, Nicole. “Friday Five: Corporate Reputation and Brand Perception – Two Sides of the Same Coin.” PRSA.org. 3 August 2012. Web. 5 January 2015. <http://prsay.prsa.org/index.php/2012/08/03/friday-five-corporate-reputation-and-brand- perception-two-sides-of-the-same-coin/>. Caumont, Andrea. “12 Trends Shaping Digital News.” Pew Research Center. 16 October 2013. Web. 8 December 2014. <http://www.pewresearch.org/fact-tank/2013/10/16/12-trends-shaping- digital-news/>. “CEO Transitions.” FTI Journal. December 2011. Web. 9 December 2014. <http://www.ftijournal.com/article/ceo-transitions>. Chen, Joyce. “Abercrombie and Fitch CEO Mike Jeffries Apologizes for "Cool Kids" Comment.” Us Weekly. 17 May 2013. Web. 17 December 2014. <http://www.usmagazine.com/celebrity-news/news/abercrombie-and-fitch-ceo-mike-jeffries- apologizes-for-cool-kids-comment-2013175>. Chiu, Cindy, et al. “China’s Social Media Boom.” Mickinsey.com. May 2012. Web. 5 January 2015. <http://www.mckinsey.com/insights/marketing_sales/chinas_social-media_boom>. 66 Clifford, Stephanie. “Video Prank at Domino’s Taints Brand.” The New York Times. 15 April 2009. Web. 15 December 2014. <http://www.nytimes.com/2009/04/16/business/media/16dominos.html?_r=0>. “Containing a Crisis: Dealing with Corporate Disasters in the Digital Age.” Freshfields.com. N.d. Web. 10 January 2015. <http://www.freshfields.com/uploadedFiles/SiteWide/News_Room/Insight/Campaigns/Crisis_m anagement/Containing%20a%20crisis.pdf>. “Crisis Communications 2014: Social Media & Notification Systems.” CommunityInsights.com. N.d. Web. 8 December 2014. <http://www.continuityinsights.com/sites/continuityinsights.com/files/legacyimages/CIN419_Cri sisCommReportFinal.pdf>. “Crisis Preparedness Study 2011.” Burson-Marsteller. 2011. Web. 15 December 2014. <http://www.burson-marsteller.com/what-we-do/our-thinking/2011-crisis-preparedness-study/>. Crook, Jordan. “Snapchat Launches Discover.” TechCrunch.com. 27 January 2015. Web. 22 February 2015. <http://techcrunch.com/2015/01/27/snapchat-launches-discover/>. D’Souza, Barbara. “Why Fat Jokes Aren’t Funny.” USA Today. 20 June 2006. Web. 10 December 2014. <http://usatoday30.usatoday.com/news/opinion/editorials/2006-06-20-fat- jokes_x.htm>. Dao, James. “T-Shirt Slight Has West Virginia in Arms.” The New York Times. 23 March 2004. Web. 9 December 2014. <http://www.nytimes.com/2004/03/23/us/t-shirt-slight-has-west- virginia-in-arms.html>. Davis, Winston. Taking Responsibility: Comparative Perspectives. Virginia: The University Press of Virginia, 2011. Print. “Definition of Corporate Reputation.” Financial Times. N.d. Web. 9 December 2014. <http://lexicon.ft.com/Term?term=corporate-reputation>. Denizet-Lewis, Benoit. “The Man Behind Abercrombie & Fitch.” Salon. 24 January 2006. Web. 11 December 2014. <http://www.salon.com/2006/01/24/jeffries/>. Dooley, Roger. “This Abercrombie & Fitch Blowup Could Be Different.” Forbes.com. 24 May 2013. Web. 5 January 2015. <http://www.forbes.com/sites/rogerdooley/2013/05/24/abercrombie- fitch-different/>. Dorfman, Peter, et al. Leadership in Western and Asian Countries: Commonalities and Differences in Effective Leadership Processes Across Cultures. Leadership Quarterly, Volume 8, No. 3, 1997. Web. 10 January 2015. <http://www.researchgate.net/publication/223725466_Leadership_in_Western_and_Asian_count ries_Commonalities_and_differences_in_effective_leadership_processes_across_cultures>. 67 Driscoll, Marie. “Abercrombie & Fitch: Power Shopper.” Bloomberg BusinessWeek. 30 October 2006. Web. 11 December 2014. <http://www.businessweek.com/stories/2006-10- 30/abercrombie-and-fitch-power-shopperbusinessweek-business-news-stock-market-and- financial-advice>. Dumenco, Simon. “#FitchTheHomeless: Watch the Harsh (!) Anti-Abercrombie Video That's Gone Viral.” Adage.com. 17 May 2013. Web. 18 December 2014. <http://adage.com/article/the- media-guy/fitchthehomeless-watch-viral-anti-abercrombie-video/241547/>. “Ellen Eviscerates Abercrombie & Fitch CEO's Anti-Plus Size Stance Brilliantly (VIDEO).” The Huffington Post. 20 May 2013. Web. 15 December 2014. <http://www.huffingtonpost.com/2013/05/20/ellen-abercrombie-fitch-video_n_3307089.html>. “Exploring Strategic Risk: A South African Context.” Deloitte. 2014. Web. 10 January 2015. <http://www2.deloitte.com/content/dam/Deloitte/za/Documents/risk/ZA_StrategicRiskSurvey_0 6052014.pdf>. Fairchild, Caroline. “Abercrombie and Fitch's Semi-Apology Didn't Go Over Too Well (PHOTOS).” The Huffington Post. 16 May 2013. Web. 15 December 2014. <http://www.huffingtonpost.com/2013/05/16/abercrombie-fitch-ceo- controversy_n_3286502.html>. “Greg Karber vs Abercrombie & Fitch: The Viral Ingredients of a Serious Reputation Crisis – #FitchTheHomeless.” Reputation-Metrics.org. 15 May 2013. Web. 13 December 2014. <http://reputation-metrics.org/2013/05/15/greg-karber-vs-abercrombie-fitch-the-viral- ingredients-of-a-serious-reputation-crisis-fitchthehomeless/>. “History of Abercrombie & Fitch Company.” ReferenceForBusiness.com. N.d. Web. 9 December 2014. <http://www.referenceforbusiness.com/history2/98/Abercrombie-Fitch- Company.html>. Janofsky, Michael. “Reports of Needles in Soda Cans Climb.” The New York Times. 16 June 1993. Web. 18 December 2014. <http://www.nytimes.com/1993/06/16/us/reports-of-needles-in- soda-cans-climb.html>. Jurkowitz, Mark. “The Growth in Digital Reporting.” Pew Research Center. 26 March 2014. Web. 19 December 2014. <http://www.journalism.org/2014/03/26/the-growth-in-digital- reporting/>. Klein, Josh. “Reputation Economics.” Reputation-economics.com. N.d. Web. 21 December 2014. <http://www.reputation-economics.com/index.php#intro>. Kollewe, Julia. “Apple Stock Price Falls on News of Steve Jobs's Death.” TheGaurdian.com. 6 October 2011. Web. 3 January 2015. <http://www.theguardian.com/technology/2011/oct/06/apple-stock-steve-jobs>. 68 Kosoff, Maya. “Snapchat Wants to Change Online News and Save Respected News Brands from Dying.” Business Insider. 20 February 2015. Web. 22 February 2015. <http://www.businessinsider.com/evan-spiegel-on-snapchat-twitter-and-news-2015-2>. Levinson, Sean. “Abercrombie & Fitch CEO Explains Why He Hates Fat Chicks.” Elite Daily. 3 May 2013. Web. 11 December 2014. <http://elitedaily.com/news/world/abercrombie-fitch-ceo- explains-why-he-hates-fat-chicks/>. Lutz, Ashley. “Abercrombie & Fitch CEO Won't Apologize for Saying He Only Wants Cool Thin People to Wear His Clothes.” Business Insider. 16 May 2013. Web. 17 December 2014. <http://www.businessinsider.com/abercrombie-statement-on-controversy-2013-5>. Lutz, Ashley. “Abercrombie & Fitch Refuses to Make Clothes for Large Women.” Business Insider. 3 May 2013. Web. 6 December 2014. <http://www.businessinsider.com/abercrombie- wants-thin-customers-2013-5>. Matsa, Katerina, and Amy Mitchell. “8 Key Takeaways about Social Media and News.” Pew Research Center. 26 March 2014. Web. 19 December 2014. <http://www.journalism.org/2014/03/26/8-key-takeaways-about-social-media-and-news/>. “Measuring Tweets.” Twitter Blog. 22 February 2010. Web. 20 December 2014. <https://blog.twitter.com/2010/measuring-tweets>. Mireles, Allen. “Where Does Social Fit in Crisis Communications Planning?” Cision.com. 15 May 2014. Web. 20 December 2014. <http://www.cision.com/us/2014/05/where-does-social-fit- in-crisis-communications-planning/>. Mitchell, Amy, et al. “The Role of News on Facebook.” Pew Research Center. 24 October 2013. Web. 20 December 2014. <http://www.journalism.org/2013/10/24/the-role-of-news-on- facebook/>. “Newspaper Circulation Volume.” Newspaper Association of America. 4 September 2012. Web. 19 December 2014. <http://www.naa.org/Trends-and-Numbers/Circulation-Volume/Newspaper- Circulation-Volume.aspx>. “Nine PR Fiascos That Were Handled Brilliantly by Management.” Business Insider. 2011. Web. 15 December 2014. <http://www.businessinsider.com/pr-disasters-crisis-management-2011- 5#pepsicos-can-tampering-rumors-1993-2>. “Number of Daily Newspapers in the United States from 1985 to 2011.” Statista.com. N.d. Web. 19 December 2014. <http://www.statista.com/statistics/183408/number-of-us-daily-newspapers- since-1975/>. 69 O’Keefe, Brian. “Abercrombie & Fitch CEO Mike Jeffries: Stop Telling Teens They Aren't Beautiful; Make Clothes for Teens of all Sizes!” Change.org. N.d. Web. 3 January 2015. <https://www.change.org/p/abercrombie-fitch-ceo-mike-jeffries-stop-telling-teens-they-aren-t- beautiful-make-clothes-for-teens-of-all-sizes>. Olmstead, Kenneth, et al. “News Video on the Web.” Pew Research Center. 26 March 2014. Web. 19 December 2014. <http://www.journalism.org/2014/03/26/news-video-on-the-web/>. Parvaz, D. “Nudity, Sex Articles in Abercrombie & Fitch 'Magalog' Draw Fire.” Seattle Post- Intelligencer. 2 December 2003. Web. 9 December 2014. <http://www.seattlepi.com/lifestyle/article/Nudity-sex-articles-in-Abercrombie-Fitch- 1131136.php>. “Reputation Under Pressure.” Institute for Health and Human Potential. N.d. Web. 15 December 2014. <http://www.ihhp.com/reputation-under-pressure/#accordion_20593405781>. Roumelioti, Anastasia. “Reflecting on A&F's CEO and #Fitchthehomeless Campaign.” The Huffington Post. 16 May 2013. Web. 18 December 2014. <http://www.huffingtonpost.com/anastasia-roumelioti/marketing-lessons-from- af_b_3280784.html>. Seeger, Matthew. Best Practices in Crisis Communication: An Expert Panel Process. Journal of Applied Communication Research, Volume 34, Issue 3, 2006. Web. 5 January 2015. Sieczkowski, Cavan. “Kirstie Alley Slams Abercrombie & Fitch CEO for Anti-Fat Comments (VIDEO).” The Huffington Post. 16 May 2013. Web. 18 December 2014. <http://www.huffingtonpost.com/2013/05/16/kirstie-alley-slams-abercrombie- fitch_n_3285046.html>. “Statistical Report on Internet Development in China.” China Internet Network Information Center. 2011. Web. 5 January 2015. <http://www1.cnnic.cn/IDR/ReportDownloads/201209/P020120904421102801754.pdf>. Strasburg, Jenny. “ABERCROMBIE & GLITCH / Asian Americans Rip Retailer for Stereotypes on T-shirts.” San Francisco Chronicle. 18 April 2002. Web. 9 December 2014. <http://www.sfgate.com/news/article/ABERCROMBIE-GLITCH-Asian-Americans-rip- 2850702.php>. “Survey: Some Americans OK with Being Fat.” USA Today. 11 January 2006. Web. 10 December 2014. <http://usatoday30.usatoday.com/news/health/2006-01-11-weight- survey_x.htm>. “The Company Behind the Brand: In Reputation We Trust.” Weber Shandwick. 2011. Web. 15 December 2014. <http://www.webershandwick.com/uploads/news/files/InRepWeTrust_ExecutiveSummary.pdf>. 70 Trimble, Chris. “Why Online Video is the Future of Content Marketing.” TheGaurdian.com. 2 July 2014. Web. 12 January 2015. <http://www.theguardian.com/small-business- network/2014/jan/14/video-content-marketing-media-online>. “Twitter Usage Statistics.” InternetLiveStats.com. N.d. Web. 19 December 2014. <http://www.internetlivestats.com/twitter-statistics/#ref-3>. “USC Third Space.” USC Annenberg. 2014. Web. 3 January 2015. < http://uscthirdspace.com>. Utt, Jamie. “Giving Homeless Abercrombie & Fitch Gear After CFO 'Cool Kid' Scandal Won't Help, Activists Say.” The Huffington Post. 17 May 2013. Web. 18 December 2014. <http://www.huffingtonpost.com/2013/05/17/abercrombie-fitch-homeless_n_3293624.html>. “Weibo Reports Third Quarter 2014 Financial Results.” Weibo.com. 13 November 2014. Web. 22 December 2014. <http://ir.weibo.com/phoenix.zhtml?c=253076&p=irol- newsArticle&ID=1989701>. “What’s in a Name? Why Companies Should Worry Less About Their Reputations.” The Economist. 21 April 2012. Web. 19 December 2014. <http://www.economist.com/node/21553033>. Woodley, Kyle. “ANF Stock Soars as CEO Michael Jeffries Gets Pushed Toward Door.” Investorplace.com. 4 December 2013. Web. 12 December 2014. <http://investorplace.com/2013/12/anf-stock-michael-jeffries/#.VIkXWVqRMlJ>. Yandoli, Krystie. “Benjamin O'Keefe, 18-Year-Old Activist, Talks About Petition Against Abercrombie & Fitch on HuffPost Live (VIDEO).” The Huffington Post. 30 May 2013. Web. 21 December 2014. <http://www.huffingtonpost.com/2013/05/30/benjamin-okeefe- petition_n_3361388.html>. “YouTube Statistics.” YouTube.com. N.d. Web. 19 December 2014. <https://www.youtube.com/yt/press/statistics.html>. Yu, Louis, et al. “What Trends in Chinese Social Media.” Arxiv.org. 2011. Web. 20 December 2014. <http://arxiv.org/pdf/1107.3522.pdf>. 71 Appendix A: Interview guide Interview Questions: 1. What percentage of U.S. companies would you estimate already have sophisticated social media crisis plans? o Can you think of any companies that have conducted successful social media crisis plans in recent years? 2. What percentage of U.S. companies would you estimate already have sophisticated cross- cultural crisis communication plans? o Can you think of any companies that have conducted successful cross-cultural crisis communication plans in recent years? 3. How prepared do you think your company is to respond to traditional media if it faces a sudden reputation crisis? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) 4. How prepared do you think other multinational companies are when facing a reputation crisis in traditional media? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) 5. What platforms do you use to communicate with your target audience when facing a crisis? o Which do you think is more effective when promoting a product/service/event? (Traditional media or social media) o Which do you think is more effective when managing a crisis? (Traditional media or social media) 6. Which of the following do you think has the greatest impact on a company’s reputation? Leader’s reputation, product/service quality, product/service brand equity, stock/sales performance, employees. 7. What do you think is the most challenging when communicating in the digital age? (Global audience, speed of communication, “democratization” – everyone able to generate content, cultural issues, lack of digital talent, etc.) 8. What do you think is the most challenging when communicating with a global audience? (Language/cultural barriers, media culture, time difference, etc.) 9. How has the marketing/communications profession changed since you started? 72 10. What kind of talent do you think companies need the most when facing a global corporate reputation crisis? (Digital, language, communication, business, etc.) o Can you identify any missing talents/skills that companies need to better deal with these crises? 73 Appendix B: Industry Interviews Industry Interview: Julie Hamp, Chief Communications Officer, Toyota Motor North America Interview Questions: 1. How prepared do you think your company is to respond to traditional media if it faces a sudden reputation crisis? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) Toyota has prepared itself to respond to multiple types of crises – across multiple platforms and countries. We have a detailed crisis communications preparation guide and response plan, which includes guidelines for traditional and social media communications. Since we are a global company, everything we do needs to be seen through a global lens. For this reason, we have very thorough global notification and coordination protocols in place so that my colleagues around the world are aware of emerging issues and Toyota’s response. We have an experienced media relations team in place working on all recalls, and we also work closely with government affairs and legal which is crucial to our success in a crisis. That said, there are many challenges to responding to crises that cross borders and languages – as they often do in the auto industry. For example, ensuring that the company’s message is articulated accurately across multiple languages is critical. At the same time, there are always concerns about keeping regulators in various countries up to date on the company’s actions announced through social and other media. 2. How prepared do you think other multinational companies are when facing a reputation crisis in traditional media? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) Most multinational companies take crisis preparedness very seriously. They really have no choice – one misstep can be extremely damaging to a brand or company’s reputation. And while the specific media channel on which a company responds may vary depending on the issue, companies today need to be prepared to respond across all platforms – sometimes all at once. Many crises are not just social. They have a social component but are still driven by mainstream media. This means that having a mainstream media plan is the most important thing. That said, mainstream plans are now inherently digital if not social since most traditional publishing is done online. 74 3. What platforms do you use to communicate with your target audience when facing a crisis? o Which do you think is more effective when promoting a product/service/event? (Traditional media or social media) o Which do you think is more effective when managing a crisis? (Traditional media or social media) We use the platforms where our audience will see the information we need to impart. So that means traditional media, social media and in the case of some recalls, mailers to reach those who may not otherwise see the news. Depending on the type of announcement or issue that you’re communicating about, you may rely more heavily on one platform more than another. For example, for a political issue, you may use a more traditional media approach. For a grassroots issue, social media may be best. Again, it’s important to be prepared for all scenarios and to take an integrated approach to communications. It’s not necessarily an either/or thing. 4. Which of the following do you think has the greatest impact on a company’s reputation? Leader’s reputation, product/service quality, product/service brand equity, stock/sales performance, employees. They are all important. A leader’s reputation plays a very important role on the impact of a company’s reputation – after all, they are the face of our business. At Toyota, our chairman’s family name is on every vehicle we sell. At Toyota, we take great pride in the quality of our products and services. We have all seen in the auto industry how critical quality is to a company’s reputation and the brand equity of its products and services. We also believe that our sales and stock performance are important, but for us at Toyota, the best way to sell our vehicles and support our stock is to super serve our customers and build great vehicles that are innovative, safe and reliable. Our team members and associates are also critical to Toyota’s success. We look to them to keep improving how we work and how we develop new products. We take great pride in the quality of their work. Another critical key to a company’s reputation is corporate social responsibility. That means something different at each company, but generally a company’s contribution to society – beyond the bottom line – is also very important. It can range from how a company improves the environment, to its work in enriching the community, to how it 75 treats its employees. And, nowadays, more and more people are looking at this part of a company when deciding whether to do business with it. 5. What do you think is the most challenging when communicating in the digital age? (Global audience, speed of communication, “democratization” – everyone able to generate content, cultural issues, lack of digital talent, etc.) All present challenges in different ways, but speed of communication is the first challenge during a crisis. Of course, it seems like now everyone is a “citizen journalist,” so the risk of misinformation spreading is higher than ever. And, if you aren’t prepared to respond quickly, a minor issue can quickly escalate to something much bigger. It’s critical to stay on top of the social media conversation about your company and quickly head off any misinformation. If misinformation spreads too widely, the damage is done – even if you eventually get the truth out. Another challenge is deciding what is relevant when there is so much information flowing in. And vice versa, being able to control the message when there are so many floating around and being able to hold stakeholder attention. 6. What do you think is the most challenging when communicating with a global audience? (Language/cultural barriers, media culture, time difference, etc.) Again, the speed at which news travels is challenging. There is always the potential for misunderstandings over cultural and language differences. Plus time differences – something we know about between Japan and the U.S. – can lead to delays in finalizing responses. That’s why it’s important to approach all communications in an integrated fashion. Also, when dealing with a global audience, cultural misunderstandings are always a challenge. 7. What kind of talent do you think companies need the most when facing a global corporate reputation crisis? (Digital, language, communication, business, etc.) o Can you identify any missing talents/skills that companies need to better deal with these crises? All of these skill sets are important. You need: § A digital team to monitor and flag trends and potential issues; § A communications team to devise an appropriate response; § Language specialists to help understand an issue and respond effectively; and § Business teams to manage the product aspect of these issues or weigh in on the impact to the company’s bottom line. 76 It’s less about skills that are missing – and really about encouraging each respective group to learn new skills. And, everyone should understand that we live in a 24/7 world, where planning ahead as much as possible is crucial. 77 Industry Interview: Emily Wang, Senior Vice President, Director of Marketing and Community Development, East West Bank Interview Questions: 1. What percentage of U.S. companies would you estimate already have sophisticated social media crisis plans? o Can you think of any companies that have conducted successful social media crisis plans in recent years? Well, most sizable companies will have a social media policy. Within their policy, they probably will address which party or department in the company is responsible for responding to social media comments or inquiries. I don’t think they will put a crisis plan in their policy. Normally it’s called a contingency plan. I don’t think there will be companies that include social media crisis in their programs, but they most likely will have social media policies and procedures. 2. What percentage of U.S. companies would you estimate already have sophisticated cross-cultural crisis communication plans? o Can you think of any companies that have conducted successful cross-cultural crisis communication plans in recent years? Again, crisis is something that people wouldn’t really include in their written policies. I believe that the majority of big companies that sell products and services in different countries have well-established corporate communication plans, and they must have branch offices in different countries. I’d say that the majority of U.S. companies that sell products and services to different countries would have a corporate communications policy in place. 3. How prepared do you think your company is to respond to traditional media if it faces a sudden reputation crisis? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) I wouldn’t say we’re ready, but we have a process in place. Nobody knows what can happen during a crisis. I am the spokesperson and I handle media relations, so reporters will come to me. Our process includes certain things we don’t comment on, and certain things that I will consult with our legal counsel before I comment on behalf of the bank. So long story short, we have a process in place, and depending on the nature of the crisis, we have a process to handle it. How comfortable are we? How prepared are we? I think we are OK. But again, it depends on the case. On social media, you don’t know what can happen, but we’re not out there making a big splash over social media. We are being conservative on social media for several reasons. One, social media is new, and second, if 78 we’re out there, we’re not sure if we can handle any responses or comments from people who are really aggressive. I do believe that social media is a great opportunity for real-time engagement with consumers, but at the same time, you need to be able to handle the downsides. I think that’s the key. If you Google, you can see a lot of stories of companies that think they can handle social media, and they really wanted to engage customers. Traditional marketing and PR have a confined space and well-defined target; you go into a space and you already know that these people are sophisticated. You know their background and you have their profiles before you get into the same room with them. When you put yourself on social media, it’s a 360-degree difference! In the end, you won’t serve the purpose – maybe you went there to say something, but somehow ended up in responding to comments. 4. How prepared do you think other multinational companies are when facing a reputation crisis in traditional media? o What about on social media? o What about on traditional media/social media in a different country? (Specifically U.S. vs. China) We are prepared in China because we actually select our media. China is so big - there are tens of thousands of media out there. You must choose who you want to be in a relationship with. So far we don’t have any bad news out there that we have to go and fix. But in terms of crises, it really depends. I went through the 2008-2009 financial crisis, and even though it wasn’t a crisis we created, it affected us. 5. What platforms do you use to communicate with your target audience when facing a crisis? o Which do you think is more effective when promoting a product/service/event? (Traditional media or social media) o Which do you think is more effective when managing a crisis? (Traditional media or social media) What we did in the past and today is that we have our website and written documents ready, and we work with the media to get information out. That includes press events and anything you can think of. We utilize all sources. Sometimes taking a reactive approach is not a bad thing. You need to analyze the situation and decide which media to engage and how to respond. If it is a small event, such as a robbery, we won’t have to send out a press release. 6. Which of the following do you think has the greatest impact on a company’s reputation? Leader’s reputation, product/service quality, product/service brand equity, stock/sales performance, employees. In the financial industry, I think that leader reputation and brand equity have the greatest impact on a company’s reputation. 79 7. What do you think is the most challenging when communicating in the digital age? (Global audience, speed of communication, “democratization” – everyone able to generate content, cultural issues, lack of digital talent, etc.) I would say generate authentic relevant content. Many people on Facebook post Selfies, and maybe people get bored after a while. So generating interesting, relevant, authentic content is the most challenging thing. When I think about content, I think about one, what is the message? And two, how do we present it? You have about 20 seconds of patience, right? People don’t have time to read long content or watch long videos. 8. What do you think is the most challenging when communicating with a global audience? (Language/cultural barriers, media culture, time difference, etc.) Again, to make it relevant – to customize everything. There are Chinese people in the U.S., Hong Kong and China. Although they are all Chinese, they are all different. For East West Bank, we translate beyond simplified and traditional Chinese. We make sure we understand what people in different regions care about. We have to cater to each geographic. 9. How has the marketing/communications profession changed since you started? I think the spirit hasn’t changed. The tools and environment have changed a lot, including the reach and how the message is presented, but the spirit hasn’t changed. People are still hungry for information and interesting content. You can say its easier but you can also say its harder for us to produce and share content nowadays. Everyone thinks they can be a publisher or director. But it’s hard to produce relevant, authentic content and be consistent, and also meet people’s expectations. Can you produce good content every month? How about every week? Every day? 10. What kind of talent do you think companies need the most when facing a global corporate reputation crisis? (Digital, language, communication, business, etc.) o Can you identify any missing talents/skills that companies need to better deal with these crises? Skill sets such as writing and communication skills and digital skills are the basics so I’m not going to talk about that. Experience in dealing with crisis is absolutely important. Patience is important. Be understanding. The experience to develop strategic plans. Whatever you say today will have an impact tomorrow. You have to be very strategic and work as a team and be able to relate to and understand what the media wants. A person with experience will be able to stay calm. You can also learn from other companies that have faced crises. 80 1. MARKETING STRATEGY; Abercrombie & Fitch ditches displays, relies on brand loyalty; THEY DON'T DO WIN- DOWS The Patriot Ledger (Quincy, MA), December 22, 2006 Friday, Business; pg. ONE24, 732 words, STEVE ADAMS, The Patriot Ledger 2. HOLLISTER The Globe and Mail (Canada), June 10, 2006 Saturday, GLOBE STYLE; NOTICED; Pg. L3, 968 words, KAREN von HAHN 3. RISKY RETAIL - L&T BOSS CERTAIN TO FACE OBSTACLES The New York Post, June 25, 2006 Sunday, All Editions; Pg. 31, 422 words, RICHARD WILNER 4. If you're not cool, Abercrombie doesn't want you St. Petersburg Times (Florida), February 4, 2006 Saturday, BUSINESS; Pg. 3D, 397 words 5. Enough Enron? There's More The New York Times, February 4, 2006 Saturday, Section C; Column 1; Business/Financial Desk; WHAT'S ONLINE; Pg. 5, 669 words, By DAN MITCHELL. E-mail: whatsonline@nytimes.com. 6. Bite into it The Straits Times (Singapore), January 27, 2006 Friday, Life! - Life Music, 79 words 7. HOT STUFF; TUNES ON TAP; ON TV The Patriot Ledger (Quincy, MA), November 30, 2006 Thursday, Features; pg. ONE29, 291 words 8. MY BOOKMARKS ARE COOLER THAN YOUR BOOKMARKS Palm Beach Post (Florida), January 31, 2006 Tuesday, ACCENT; Pg. 1E, 2270 words, By FRED MARION Palm Beach Post Staff Writer Appendix C: Mike Jeffries and A&F Media Coverage in 2006 (LexisNexis Search Results) 81 1. FORM 8-K: ABERCROMBIE & FITCH CO /DE FILES Current report US Official News, August 27, 2013 Tuesday, 1565 words 2. Abercrombie & Fitch revises 'look policy' in settling Foster City woman's lawsuit San Jose Mercury News (California), September 23, 2013 Monday, BREAKING; Communities; News, 898 words, By Aaron Kinney akinney@bayareanewsgroup.com 3. Just in time for Christmas, Abercrombie & Fitch grows a heart It might (be) to too little, too late, but the controversial brand makes changes. YOUR STYLE St. Louis Post-Dispatch (Missouri), November 17, 2013 Sunday, HOME & AWAY; Pg. H3, 875 words, STYLE MAT- TERS o DEBRA D. BASS > dbass@post-dispatch.com > 314-340-8236 4. Abercrombie & Fitch revises 'look policy' in settling Foster City woman's lawsuit Contra Costa Times (California), September 23, 2013 Monday, BREAKING; News; Local, 898 words, By Aaron Kinney akinney@bayareanewsgroup.com 5. Abercrombie & Fitch Announces Anti-Bullying Initiatives India Retail News, October 1, 2013 Tuesday 6:30 AM EST, 480 words 6. Mike Jeffries wants no fat customers at A&F. Bad business?; Mike Jeffries, CEO of Abercrombie & Fitch, has been accused by critics of excluding plus-sized customers from his stores. Unapologetically targeting thin, attractive customers is nothing new for Jeffries and Abercrombie, but can retailers afford to ignore a growing number of plus-sized shoppers? The Christian Science Monitor, May 9, 2013 Thursday, Business, 839 words, Schuyler Velasco Staff writer 7. Abercrombie & Fitch only sells to 'cool, good-looking' people Deseret Morning News (Salt Lake City), May 11, 2013 Saturday, 888 words, Sarah Petersen Deseret News 8. The staff are all so gorgeous at Abercrombie I'm not sure Cara Delvingne would et job; SUN WRITER BRAVES TEMPLE OF 'GOOD-LOOKING COOL KIDS' The Sun (England), July 31, 2013 Wednesday, FEATURES; Pg. 30,31, 1124 words 9. The staff are so gorgeous at Abercrombie I'm not sure Cara Delevingne would get job; BROADCASTER BRAVES TEMPLE OF 'GOOD-LOOKING COOL KIDS' The Sun (England), July 31, 2013 Wednesday, NEWS; Pg. 30,31, 1139 words 10. The staff are all so gorgeous at Abercrombie I'm not sure Cara Delevingne would get job; SUN WRITER BRAVES TEMPLE OF 'GOOD-LOOKING COOL KIDS' The Sun (England), July 31, 2013 Wednesday, FEATURES; Pg. 30,31, 1117 words, ROD LIDDLE Appendix D: Mike Jeffries and A&F Media Coverage in 2013 (Lexis Nexis Search Results) 82 11. Eastern Daily Press, May 18, 2013 Saturday, ROP, 908 words, Shaun Lowthorpe 12. Forever 21 Field sounds like a good fit for FAU Palm Beach Post (Florida), August 29, 2013 Thursday, LOCAL & BUSINESS; Pg. 1B, 553 words, Frank Cerabino 13. Size, t-shirts and bad memes Gulf News (United Arab Emirates), May 14, 2013 Tuesday, 770 words, Scott Shuey, Business Editor 14. ABERCROMBIE & FITCH GROWS A HEART - AND ITS CLOTHING SIZES The Augusta Chronicle (Georgia), December 1, 2013 Sunday, YOUR LIFE; Pg. H5, 519 words, Debra D. Bass St. Louis Post-Dispatch 15. Abercrombie & Fitch: What's wrong with selling just to 'cool people'?; Abercrombie & Fitch CEO Mike Jeffries set off a cultural backlash when said that his company is primarily interested in 'good-looking people.' But the company is jealously guarding its brand, even as the market for plus-size teens grows. The Christian Science Monitor, May 23, 2013 Thursday, USA, 859 words, Mark Guarino Staff writer 16. Abercrombie &Fitch Q2 results miss expectations The Telegraph-Journal (New Brunswick), August 23, 2013 Friday, B; Pg. B4, 642 words 17. BUYERS: A&F-OFF Abercrombie posts ugly sales; stock drops 8% The New York Post, May 25, 2013 Saturday, All Editions; Pg. 21, 456 words, James Covert 18. UK buyers pay 40% more for US fashion The Sunday Times (London), July 28, 2013 Sunday, NEWS; Pg. 11, 804 words, Hannah Summers 19. UK buyers pay 40% more for US fashion The Sunday Times (London), July 28, 2013 Sunday, NEWS; Pg. 11, 804 words 20. Fashion store that wants thin and beautiful shoppers only The Express, May 9, 2013 Thursday, NEWS; Pg. 12, 464 words, Natalie Chalk 21. Abercrombie & stitching Denver Post, May 19, 2013 Sunday, DTW; Pg. 2B, 397 words, Ryan Parker 83 22. You Fitch! The case against Abercrombie; Retail The Independent (London), May 20, 2013 Monday, NEWS; Pg. 22, 395 words, GILLIAN ORR 23. Ha! That will bring you down a peg or two; US STARS ARE HITTING BACK AT A SNOOTY FASHION LABEL BY GIVING ITS CLOTHES TO THE HOMELESS The Sunday Times (London), June 16, 2013 Sunday, NEWS; Pg. 27, 455 words, John Harlow 24. ABERCROMBIE & FITCH PROVIDES BUSINESS UPDATE ANNOUNCES RESTRUCTURING PLAN FOR GILLY HICKS BRAND AMENDS CREDIT AGREEMENTS Daily The Pak Banker, November 9, 2013 Saturday, 850 words 25. FACE-OFF AT A&F Jettison Jeffries as CEO: investor The New York Post, December 4, 2013 Wednesday, All Editions; Pg. 35, 456 words, James Covert 26. L.A. filmmaker tries to re-brand Abercrombie and Fitch Deseret Morning News (Salt Lake City), May 16, 2013 Thursday, 554 words, Sarah Petersen Deseret News 27. Abercrombie's 'exclusion' draws acrimony Telegraph Herald (Dubuque, IA), June 2, 2013 Sunday, E; Pg. 1, 490 words, AMY GILLIGAN TH managing editor 28. An open letter from a dad to Abercrombie & Fitch CEO, Mike Jeffries Deseret Morning News (Salt Lake City), May 14, 2013 Tuesday, 569 words, Jason F. Wright For the Deseret News 29. The skinny mandate; Abercrombie & Fitch have recently come under fire for catering to alt145thin and beautiful' customers. Style experts give us their take DNA, May 15, 2013 Wednesday, 370 words, Sanaya Chavda 30. Pittsburgh Post-Gazette, December 10, 2013 Tuesday, BUSINESS; BUSINESS BRIEFS; Pg. A-8, 767 words, From staff and wire reports 31. WHY A&F'S IMAGE WILL HARM YOUNG The Sun (England), May 16, 2013 Thursday, FEATURES; Pg. 41, 507 words, NATASHA DEVON 32. Too cool feels the chill The Press (Christchurch, New Zealand), July 3, 2013 Wednesday, FEATURES; GENERAL; Pg. 18, 469 words, THE SUNDAY TIMES, LONDON 84 33. A&F is taken down a peg; US stars are hitting back at the preppy fashion label by giving its clothes to homeless people, writes John Harlow The Sunday Times (London), June 16, 2013 Sunday, NEWS; Pg. 24, 453 words, John Harlow 34. Abercrummy Fitch in a ditch & boss takes a hit Daily News (New York), May 25, 2013 Saturday, BUSINESS; Pg. 32, 200 words, BY ELIZABETH LAZAROWITZ NEW YORK DAILY NEWS WITH NEWS WIRE SERVICES 35. Abercrombie & Fitch sales in a ditch The New York Post, November 6, 2013 Wednesday, All Editions; Pg. 33, 313 words, James Covert 36. Company Makes a Business Of Selling Social Change The New York Times, June 6, 2013 Thursday, Section B; Column 0; Business/Financial Desk; YOU'RE THE BOSS; Pg. 6, 1058 words, By EILENE ZIMMERMAN 37. Abercrombie & Fitch CEO posts statement on Facebook, stores accused of being unfriendly to disabled Deseret Morning News (Salt Lake City), May 22, 2013 Wednesday, 640 words, Sarah Petersen Deseret News 38. It's 'cool' to stand up to the fashion gods; Consumers push back against name brands USA TODAY, June 6, 2013 Thursday, NEWS; Pg. 8A, 551 words, Lionel Beehner 39. An apparel failure Anger for A&F chief as net falls The New York Post, August 23, 2013 Friday, All Editions; Pg. 26, 503 words, James Covert 40. PAGE 3 PROFILE MIKE JEFFRIES ABERCROMBIE AND FITCH'S CEO; And in other news... i-Independent Print Ltd, May 9, 2013, NEWS; Pg. 3, 292 words, Oscar Quine 41. Forget Jeffries, His Is Only One Man's Opinion Intelligencer Journal/New Era (Lancaster, Pennsylvania), May 25, 2013 Saturday, A; Pg. 6, 841 words, Madysan Foltz, 18 / Freestyle 42. Style Notes: Ralph Lauren's Next Runway; Ellen vs. Abercrombie hollywoodreporter.com, May 21, 2013 Tuesday, NEWS; TAG, 398 words, Ashley Lee 43. A DAY IN THE LIFE OF ABERCROMBIE & FITCH The Australian, June 17, 2013 Monday, WORLD; Pg. 8, 227 words 85 44. News from the week that was SUNDAY TELEGRAM (Massachusetts), May 12, 2013 Sunday, LOCAL NEWS; DIANNE WILLIAMSON; Pg. B1, 641 words, Dianne Williamson 45. Brand backlash - THE MEN'S SPECIAL - Sunday Style, June 23, 2013 Sunday, MAGAZINE; Pg. 24, 863 words, SARRAH LE MARQUAND 46. Brand backlash - THE MEN'S SPECIAL - Herald Sun Sunday Style Magazine, June 23, 2013 Sunday, SUNDAY STYLE; Pg. 24, 863 words, SARRAH LE MAR- QUAND 47. Off Message Sunday Business Post, May 26, 2013, AGENDA, 897 words 48. WHY (AFTER FOUR OF THEM) I'VE FINALLY GROWN OUT OF DIVORCE DAILY MAIL (London), June 17, 2013 Monday, 1276 words 49. The winners and the losers Deseret Morning News (Salt Lake City), May 11, 2013 Saturday, 469 words 50. On second though . . . Deseret Morning News (Salt Lake City), May 20, 2013 Monday, 334 words, Jay Evensen Deseret News 51. HP: Abercrombie/Fitch sales plummet after CEO's comment only "cool, good-looking people" wear his brand El Paso Times (Texas), May 26, 2013 Sunday, NEWS, 136 words, Huffington Post 52. Abercrombie responds to size controversy; CEO counters claims of exclusivity as video urges people to 'Fitch the homeless' The Toronto Star, May 17, 2013 Friday, BUSINESS; Pg. B1, 445 words, Ashante Infantry Toronto Star 53. A&F's Jeffries finds his XXXL pay a nice fit The New York Post, December 10, 2013 Tuesday, All Editions; Pg. 35, 270 words, James Covert 54. Sense of the Markets: Tracking the 2014 takeout targets The Deal Pipeline, December 17, 2013 Tuesday, 700 words, by Jonathan Marino 55. Abercrombie fails to cut a fine figure The Times (London), May 25, 2013 Saturday, BUSINESS; Pg. 69, 187 words, Alex Ralph 86 56. Abercrombie fails to cut a fine figure The Times (London), May 25, 2013 Saturday, BUSINESS; Pg. 69, 187 words, Alex Ralph 57. Abercrombie fails to cut a fine figure The Times (London), May 25, 2013 Saturday, BUSINESS; Pg. 71, 187 words, Alex Ralph 58. Abercrombie and Fitch plunges after forecast The Irish Times, August 23, 2013 Friday, FINANCE; Pg. 7, 133 words 59. 9 noteworthy in-house career moves Inside Counsel (formerly Corporate Legal Times), December 2013, NEWS, 943 words, By Zach Warren 60. Abercrombie chief under fire from investors; IN BRIEF ; BUYOUTS Irish Independent, December 5, 2013 Thursday, BUSINESS; Pg. 2, 200 words 61. People in glass houses . . . Weekend Australian, June 8, 2013 Saturday, REVIEW; Pg. 20, 473 words, RUTH OSTROW 62. Abercrombie and Fitch Finally Apologizes for CEO's Awful Comments New York Observer, May 22, 2013 Wednesday, 179 words, Hugh Bassett 63. Brand earns Fitch slap MX (Australia), May 16, 2013 Thursday, NEWS; Pg. 8, 81 words 64. With tweens, you learn as you go Orange County Register (California), June 3, 2013 Monday, LIFE; Pg. E, 522 words, Jenny Sokol For The Register, The Orange County Register 65. Young stars a perfect fit for A&F Orange County Register (California), July 16, 2013 Tuesday, FASHION; Pg. FAS, 499 words, By JENNA SWEENEY, ORANGE COUNTY REGISTER 66. Brand earns Fitch slap HOMELESS PUSH Sydney MX (Australia), May 16, 2013 Thursday, WORLD; Pg. 9, 78 words 87 67. Brand earns Fitch slap MX Brisbane (Queensland, Australia), May 16, 2013 Thursday, MX; Pg. 9, 81 words 68. The Irish Times, May 25, 2013 Saturday, FINANCE; Pg. 18, 147 words, Reuters 69. ON THE MONEY A&F takes hit on fat CEO Jeffries' elitist 7-yr.-old quote bites back The New York Post, May 19, 2013 Sunday, All Editions; Pg. 34, 708 words, 70. The Fitching Paradox: How brands pitching for exclusivity get it wrong The Economic Times, May 30, 2013 Thursday, BRAND EQUITY, 568 words, Delshad Irani 71. The Fitching Paradox Economic Times (E-Paper Edition), May 29, 2013 Wednesday, BRAND EQUITY, 552 words, Delshad Irani 72. The Fitching Paradox Economic Times (E-Paper Edition), May 29, 2013 Wednesday, BRAND EQUITY, 552 words, Delshad Irani 73. Abercrombie out of fashion as share price falls 17pc Irish Independent, August 23, 2013 Friday, BUSINESS; Pg. 29, 102 words 74. THE WEEK'S WINNERS & LOSERS The New York Post, November 10, 2013 Sunday, All Editions; Pg. 38, 111 words, and 75. AND FINALLY Our pick of the weird, wacky and wonderful goings-on in our universe Sunday Style, June 2, 2013 Sunday, MAGAZINE; Pg. 6, 188 words, MEL EVANS 76. Worldwide laws against pudge The Times of India (TOI), July 24, 2013 Wednesday, HEALTH, 1210 words, Kritika Kapoor 77. When sorry seems to be the hardest corporate word The Bangkok Post, June 12, 2013 Wednesday, 932 words 78. Dita De Boni: Faithful falling out of love The New Zealand Herald, May 24, 2013 Friday, NEWS; General, 561 words 88 79. Price of snobbery South China Morning Post, June 13, 2013 Thursday, YOUNGPOST; young voices; Pg. 09, 149 words, Edward Mak, King George V School 80. Actor's pot sale idea a joke, right? Windsor Star (Ontario), May 18, 2013 Saturday, NEWS; Celeb News With Attitude; Pg. B6, 485 words, Doug Camilli, Postmedia News 81. Dempsey buys coffee shop chain The Leader-Post (Regina, Saskatchewan), May 18, 2013 Saturday, ARTS & LIFE; Doug Camilli; Pg. C2, 419 words, Doug Camilli, The Leader-Post 82. Big screw ups plentiful in 2013; Bad and Ugly: Lance Armstrong, Rob Ford and the Biebs made us grimace this year The Vancouver Province (British Columbia), December 31, 2013 Tuesday, ENTERTAINMENT; Pg. B3, 1286 words, Dana Gee, The Province 83. A special blend from Patrick Dempsey The Gazette (Montreal), May 18, 2013 Saturday, CULTURE; Doug Camilli; Pg. E11, 477 words, DOUG CAMILLI, The Gazette 84. Plus size doesn't mean a couch potato lifestyle; Exclusion Some companies admit they aim for thin customers The Gazette (Montreal), August 10, 2013 Saturday, EDITORIAL / OP-ED; Pg. B7, 618 words, NATALIE DZEPINA, The Gazette 85. THE WEEK'S WINNERS & LOSERS The New York Post, May 26, 2013 Sunday, All Editions; Pg. 32, 107 words, and 86. Prom pretty; As American youth get bigger, it's hard to find that special dress over size 12 thespec.com, May 27, 2013 Monday, GO; Pg. G5, 844 words, Elizabeth Wellington Philadelphia Inquirer 87. The ugly truth about looking good; We all know that it pays to look good in office. But how much? Radhika Bhatnagar finds that favouritism on the basis of one's appearances has become the elephant in boardrooms across the globe. We all see it, but no one wants to point it out DNA, August 4, 2013 Sunday, 880 words, Radhika Bhatnagar 88. Mirror, Mirror: Prom pretty; Shopping for the big night presents special challenges for those who wear larger sizes. Here's one girl's story. The Philadelphia Inquirer, May 15, 2013 Wednesday, FEATURES MAGAZINE; Inq Daily Magazine; Pg. C01, 1125 words, By Elizabeth Wellington; Inquirer Fashion Writer 89 89. The Western Star (Roma, Queensland), May 21, 2013, Pg. 8, 314 words 90. Fraser Coast Chronicle (Queensland), May 14, 2013 Tuesday, Pg. 19, 194 words 91. Glen Ellyn teen brings change in retailer Chicago Daily Herald, May 25, 2013 Saturday, NEWS; Pg. 1, 76 words, By Josh Stockinger jstockinger@dailyherald.com By Josh Stockinger jstockinger@dailyherald.com 92. H&M CEO says their models are 'too skinny,' 'should look sound and healthy' Deseret Morning News (Salt Lake City), June 5, 2013 Wednesday, 337 words, Sarah Petersen Deseret News 93. The world is running out of cool people Deseret Morning News (Salt Lake City), July 15, 2013 Monday, 861 words, Doug Robinson Deseret News 94. Laws of attraction The Sun (England), July 26, 2013 Friday, FEATURES; Pg. 36, 61 words 95. Laws of attraction The Sun (England), July 26, 2013 Friday, FEATURES; Pg. 34, 61 words 96. STARS AND DOGS The Globe and Mail (Canada), May 25, 2013 Saturday, REPORT ON BUSINESS: GLOBE INVESTOR SECURITIES; Pg. B11, 397 words, JOHN HEINZL 97. STARS AND DOGS The Globe and Mail (Canada), August 24, 2013 Saturday, REPORT ON BUSINESS: GLOBE INVESTOR SECURITIES; Pg. B12, 312 words, DAVID MILSTEAD 98. Ahead of the news The Deal Pipeline, December 9, 2013 Monday, 1240 words, Edited by Paula Schaap 99. Stumbles on the runway The Washington Post, December 24, 2013 Tuesday, STYLE; Pg. C01, 1868 words, Robin Givhan 100. Inside Story: Rites of passage Sunday Business Post, July 21, 2013, AGENDA, 3574 words 90 Appendix E: Mike Jeffries and A&F U.S. Media Coverage in 2013 (Google Search Results) 91

Abstract (if available)

Linked assets

University of Southern California Dissertations and Theses

Conceptually similar

PDF

A comparison of corporate PR practices in U.S. and China: a case study approach

PDF

Crisis communication for tourism destinations in the new media environment

PDF

Digital discourse in the fashion industry

PDF

The implementation of corporate social responsibility initiatives as a strategy for post-crisis rebuilding and renewal

PDF

Leadership corruption and the implications to the corporate brand

PDF

Comparative analysis of nuclear crisis communication: 2011 Fukushima nuclear crisis and 1979 Three Mile Island nuclear crisis

PDF

Volkswagen Dieselgate: an analysis of Volkswagen AG's crisis communication as a response to the emissions scandal from 2015

PDF

A study of the cultural environment of social media

PDF

A critical assessment of the uses and effectiveness of social media in investor communications

PDF

Developing a strategy for public relations practitioners at environmental nonprofits using insights from psychology

PDF

Conglomerate branding within the luxury goods sector

PDF

Utilizing brand personality while engaging Millennials on Twitter

PDF

Collegiate athletics in crisis: a new practical model for crisis communication/management

PDF

Crisis communication & natural disasters: communication plan for Rome, Italy in the case of an earthquake

PDF

Cultural differences in communication patterns of international B2C technology companies on Weibo and Twitter: an examination of effectiveness from a motivation perspective

PDF

Creating brand evangelists in the 21st century: using brand engagement through social media to develop brand loyalty in teens

PDF

The impact of personality on corporate reputation: recovery from crises as a function of the degree of overlap between corporate and individual personalities

PDF

Case study on Chinese heavy industry companies' community relations in U.S.: a comparison between corporate effort and media representation

PDF

Growth hacking: a deep look into online marketing for startups

PDF

60 years of magic: an in-depth look at Disneyland’s use of public relations strategies

Asset Metadata

Creator Perng, Carol (author)

Core Title Corporate reputation crisis in the digital age: a comparative study on Abercrombie & Fitch’s reputation crisis in the U.S., China and Taiwan

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Publication Date 04/22/2015

Defense Date 04/22/2015

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag corporate reputation,crisis communication,digital age,leadership reputation,media culture,OAI-PMH Harvest,reputation crisis,social media

Format application/pdf (imt)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor LeVeque, Matthew (committee chair), Brabham, Daren C. (committee member), Jackson, Laura Min (committee member)

Creator Email carolperng@gmail.com,cperng@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-c3-557316

Unique identifier UC11301778

Identifier etd-PerngCarol-3374.pdf (filename),usctheses-c3-557316 (legacy record id)

Legacy Identifier etd-PerngCarol-3374.pdf

Dmrecord 557316

Document Type Thesis

Format application/pdf (imt)

Rights Perng, Carol

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law. Electronic access is being provided by the USC Libraries in agreement with the a...

Repository Name University of Southern California Digital Library

Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA