Wednesday, October 17, 2012

They will always have Paris


Sometimes it is best to just say goodbye. Nike proactively and responsibly dropped Lance Armstrong this week after his doping controversy. This did not necessarily come as a surprise as ethical companies tend to do what is needed to protect their values.

Nike is at the forefront of the sports world and wouldn't want to sacrifice that by hanging onto an athlete tied to doping charges. Nike made a smart public relations move by eliminating the threat of any criticism bound to come their way by keeping Armstrong around.

According to Chicago Tribune’s article, Nike initially fought for Armstrong’s contract. It was not until United States anti-doping officials released a detailed report on Armstrong’s drug use that Nike finally had no choice to let him go.

 “Due to seemingly insurmountable evidence that Lance Armstrong participated in doping and misled Nike for more than a decade, it is with great sadness that we have terminated our contract with him,” Nike said.

As sad as it may have been for Nike to see Armstrong leave, it had to be done. The 45 sponsors that dropped Rush Limbaugh last spring can attest to that.

Limbaugh was dropped after dropping the “s-word” on his radio program. In March, he called a Georgetown law student a “slut” on air. The result: 45 of his show’s sponsors abandoning him. Obviously the Girl Scouts of America wouldn't stick around to support him after that. Other notable sponsors who left included: Capitol One, American Heart Association, AOL, Allstate Insurance, Goodwill Industries and Geico.

Limbaugh issued an apology, but by that time it was too late. Although it couldn't save him, the apology was necessary from an ethical standpoint.

Last week three sponsors turned down a huge advertising opportunity as they dropped their support of the 2012 presidential debates. Philips Electronics, BBH New York and the YWCA all cut their contracts with the debates after third party candidate Gary Johnson was excluded. More than 67 million people watched the first 2012 presidential debate. These three companies opted out of this enormous advertising opportunity to stick to their values.

The fact of the matter is, some endorsements or situations are decidedly too risky to stick to. Some celebrities or athletes become risky in the sense that they can potentially harm their sponsors’ credibility. The Girl Scouts of America did just what Nike did when they said goodbye to Lance Armstrong. Both companies wanted to protect their values. They did so by cutting ties.

"Nike Drops Sponsorship of Lance Armstrong 'with Great Sadness'" Chicagotribune.com. Reuters, n.d. Web. 17 Oct. 2012. <http://www.chicagotribune.com/business/breaking/chi-nike-drops-sponsorship-of-lance-armstrong-20121017,0,5087363.story>.

Lee, MJ. "Rush Limbaugh Loses 45 Advertisers." POLITICO. N.p., Mar.-Apr. 2012. Web. 17 Oct. 2012. <http://www.politico.com/news/stories/0312/73675.html>.

McDuffee, Allen. "Presidential Debate Sponsors Drop over Exclusion of Gary Johnson."Washington Post. N.p., 3 Oct. 2012. Web. 17 Oct. 2012. <http://www.washingtonpost.com/blogs/thinktanked/wp/2012/10/03/presidential-debate-sponsors-drop-over-exclusion-of-gary-johnson/>.

"Nielsen Offers Presidential Debate Viewership Stats." The Fourth Branch. N.p., 5 Oct. 2012. Web. 17 Oct. 2012. <http://www.collegian.psu.edu/blogs/the_fourth_branch/2012/10/05/nielsen_offers_presidential_debate_viewership_stats.aspx>.




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