Reputation on the line: the Starbucks cases

Abstract

Purpose

The paper aims to increase the understanding of reputational-risk management by examining company responses to potentially reputation-damaging incidents.

Design/methodology/approach

Incidents with potential for damaging Starbucks Corporation’s reputation were described and summarized as were the company’s responses to those incidents.

Findings

It was observed that the complexity of resolving a reputation-damaging incident was inversely related to its closeness to the company’s core business. Also, the longevity of incidents suggests the persistent influence of past events.

Research limitations/implications

Limitations are that findings are not generalizable beyond this case study and that the bulk of the information collected pertained to one of the five incidents examined. Potential hypotheses for future research are suggested.

Practical implications

Findings provide reference points and a context for managers responding to reputation-damaging incidents.

Originality/value

The paper illustrates how reputation-damaging incidents can be complex and difficult to resolve the more removed they are from the company’s core business.

Citation

Hutt, R.W. (2016), "Reputation on the line: the Starbucks cases", Journal of Business Strategy, Vol. 37 No. 1, pp. 19-26. https://doi.org/10.1108/JBS-11-2014-0134