
It was a rough start to 2018 for H&M, and other retailers are paying attention, knowing that their brand could easily come under fire next. Reputation management consulting firms are seeing increased interest from retailers eager to avoid, and prepare for, any controversy similar to the H&M debacle.
After the Swedish apparel seller posted an ad of a black child wearing a hoodie reading “Coolest monkey in the jungle” earlier this month, global protests, both in person and on social media, have erupted, calling the 4,133-unit chain racist. Recent developments in the two-week-old backlash include store closures following violent demonstrations in South Africa, and the relocation of the child model and his mother from their home in Stockholm due to security concerns.
In an age of hyper-awareness of potential racism and sexism, business is booming for firms like Reputation Institute, a Boston-based outfit that has roughly 350 global clients such as Kroger and Procter and Gamble. The 20-year-old company, which has eight offices outside North America, added a Chicago office last month, and plans to open two additional U.S. locations later this year. It’s also offering more products and services, such as the ability to measure corporate responsibility and certain public opinion.
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