3 What could Nike have done if anything to prevent the damag

3) What could Nike have done, if anything, to prevent the damages to its corporate reputation? What steps should Nike take in the future? (8 Points)

Solution

ANSWER:

Reputation is breakable and must be maintained. When the reputation of a business is damaged, the goodwill, assets, and a value of that organisation are not the only elements that are affected. The ripples may include the broken supply chains, loss of jobs, dropping prices of share and underperforming pension funds. Thus reputation is a Nike’s most valuable intangible asset. Effective communication management can help a Nike to overcome a crisis more quickly and with lesser negative consequences in terms of talent retention, market capitalization, and consumer preference. It is always good to have a well-thought-out plan for handling a reputation crisis. Nike should know their weaknesses and vulnerabilities. With such factors in mind, they will be able to outline a crisis prevention and management plan that will permit them to minimize the impact of a difficult time that could cause them to lose the trust of key stakeholders, be they consumers, investors, or employees. Moreover it is always beneficial to show customers that Nike is social responsible company which running business not merely for profit however also for providing customers more for nothing.