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The Fight for Brand Equity in the Wake of a Discrimination Suit

January 29th, 2020 News & Politics 3 minute read
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The Fight for Brand Equity in the Wake of a Discrimination Suit

A discrimination suit of any kind - gender, sexual, racial, sexual orientation, ethnicity, age, etc. - is one of the many vulnerabilities a business entity may encounter and one that can potentially - and quickly - turn into a public relations nightmare. A media-savvy plaintiff’s attorney or an irate employee or consumer turning to social media can add a public relations challenge to the already grueling legal battle ahead. How both are handled can dramatically make a difference in how a brand survives the aftermath.To counteract this, businesses need to be armed not only with strong legal counsel, but also trusted and experienced public relations counsel with sophisticated digital tools to monitor traditional and social media in real time. For many business leaders, a discrimination charge takes them by surprise. While company leaders may understand cultural diversity and follow proper human resources procedures, any business is only as strong as its weakest employee. That means if a supervisor or manager uses improper and/or discriminatory language - or turns a blind eye to other employees doing so - or treats employees in a manner that is not fair, equal and respectful, your brand can be jeopardized and judged solely on that one employee’s actions. A business owner may instinctively want to fight it out in court if strongly convinced that the company has been unfairly accused of discrimination and has followed all proper procedures. Many attorneys also may advise to fight it out in court, without taking into consideration the potential damage and cost of lost brand equity. Confidence of innocence does not guarantee winning in court or winning back brand equity. It may be engaging in a no-win situation. Equally, many business owners who feel strongly they have been wrongly accused will circle the wagons and “go dark” - not responding to either traditional or social media - hoping to ride out the storm stemming from a discrimination suit. Maybe even worse are those who go rogue without professional public relations counsel or a crisis communications plan in place and start fighting back through media channels. Both methods are bound to backfire. While the legal battle is going on in court, the real fight is for the hearts and minds of consumers. Negative press and social media can evoke emotional responses that severely damages brand equity and ultimately the company’s bottom line. A well-orchestrated media attack on a brand involving such allegations creates a scenario where a decision has to be made: is it a legal battle to be fought out in the courts or is it a battle to be fought in the court of public opinion?

Marx Layne logo; courtesy of Marx Layne.Marx Layne logo; courtesy of Marx Layne.

About Marx Layne: Marx Layne & Company was established in 1987 by Michael Layne and the late Fred Marx with a very specific mandate for establishing and growing a premiere suburban Detroit public relations agency: Offer clients unparalleled responsiveness, personalized service, greater industry knowledge, attention to detail, creativity, accountability and measurable results. As we’ve grown over the years, the same degree of dedication, drive, competitiveness and focus on results has become the guiding legacy by which the Marx Layne team operates. Our capable executives, whether seasoned veterans or the newest agency colleague, continue to maintain and cultivate the tradition of excellence set by the agency founders.
Michael Layne

About Michael Layne

Michael Layne, president of Marx Layne & Company, has more than 30 years of marketing and public relations experience. Layne began his marketing career at a Detroit-based public relations firm where his first account was a national law firm opening offices in Detroit. 

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