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This study aims to examine the effects of celebrity negative publicity on attitude towards brand, corporation, brand reputation and corporate reputation, both directly and through the moderating effects of social media involvement, brand commitment, identification and attribution (both types). Associative network theory has been used to explain these effects.

A quantitative survey of 550 respondents was carried out in London and surrounding areas. Structural equation modelling was used to analyse the data.

The findings suggest that celebrity negative publicity affects brand reputation and corporate reputation. Further, the moderating effects of social media involvement and brand commitment on attitude towards brand and corporation, identification on attitude towards brand, attribution types on attitude towards corporation were not found.

To the best of the authors’ knowledge, this is the first paper to examine the effects of celebrity negative publicity on attitudes towards brand, attitude towards corporation, brand reputation and corporation reputation, directly, and through the moderating effects of attribution (both types), identification, commitment and social media. Findings from this study will minimise the gap in the literature on the topic and will help managers and policymakers to understand the effects of celebrity negative publicity in detail.

In writing this case, the research team used secondary resources such as academic journals, trade magazines and websites to inform and verify the information.

January 7, 2021, was not a good day for Goya Foods CEO Robert Bob Unanue, who has been at the helm of Goya since 2004. On that day, the nine-member board of directors of Goya censured Unanue for publicly questioning the legitimacy of the 2021 United States Presidential election. A day before, on January 6, a mob “trapped lawmakers and vandalized the home of Congress in the worst desecration of the complex since British forces burned it in 1814” (Hockstein, 2021).

Unanue was considered a follower of former president Trump and has expressed that “the country was […] blessed to have a leader like President Trump, who is a builder” (Hawkins, 2020). In January 2021, Unanue appeared on Fox News and said a “ war was coming,” as Joe Biden’s election was “unverified.” These, among other words, motivated the censured by the board of Goya Foods, Inc. (Santana and Isidore, 2021).

Students are asked the following questions for discussion: Did the board of directors of Goya Foods carry its role too far by openly censuring Unanue? Did Unanue go too far by openly expressing subjective opinions and thus influencing how people view the election results? Should he have remained as CEO of Goya Foods after his words on Joe Biden’s election?

One of the authors has taught the case in the Strategic Management course for MBA students. In addition, graduate students of corporate governance, business ethics, social responsibility and leadership, among other classes, will be the target segments for the case.

1. Recognize the effects on brand image and sales when CEOs participate in political arenas and publicly discuss social issues.

2. Understand the dynamics behind ethnic family businesses, such as their governance and conflict resolution approach.

3. Assess the value of the corporate board’s management of corporations.

CCS11: Strategy