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Examples of Reputational Risk Kendall Jenner and PepsiCo Reputation risk arising from your company’s direct actions and company practices. Soft drinks company PepsiCo released an ad with American celebrity Kendall Jenner last year. In the ad, Jenner attends a protest and hands a police officer a can of Pepsi as a peace offering. Consumers were immediately outraged because they felt the ad trivialized the Black Lives Matter movement and the widespread protests against police brutality that took place that year.
Many interpreted the ad to mean that all we need to get along is to share a can Phone Number List of soda, ignoring the systemic oppression marginalized communities have felt for years. Pepsi pulled the ad and apologized, but it damaged their reputation and standing with American consumers as the brand experienced nine months of its lowest awareness levels in eight years. In addition, support among millennials, who have strong purchasing power, has also declined. Jenner experienced similar consequences as consumers deemed her apology insincere. Nearly six years later, her involvement in the ad is still mentioned frequently on social media channels and has become something of a meme.
Even published an article titled This is why Kendall Jenner will never escape the backlash from her Pepsi ad. McDonald's and Straleyback's reputational risks arising from external factors and direct business actions. In 2011, 20-year-old Straley Baker bought a cup of coffee from fast food chain McDonald's and spilled it on her leg, causing third-degree burns. Liebeck sued McDonald's in court for damages, putting the company's reputation at risk as the lawsuit became public. During the trial, McDonald's admitted it was aware of the risks posed by the high temperatures in its coffee but took no action.
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