In June’s Reputation Report, our team of experts share their analysis on what reputation management lessons can be taken from this month’s biggest news stories. We look at Air India’s communications following the tragedy that impacted Flight 171. We review Amazon founder Jeff Bezos’ wedding celebrations, as well as the news that Glastonbury founder Michael Eavis is allegedly leaving his fortune to his daughter in a bid to avoid inheritance tax. What does this decision mean for his and the UK’s reputation?
Glastonbury and the perils of perceived hypocrisy:
Tim Jotischky, Divisional Managing Director, Reputation
The revelation that Michael Eavis, Glastonbury founder and avowed Socialist, has made tax arrangements to protect a large chunk of his fortune from HMRC’s clutches prompted gleeful media reporting on the eve of the festival.
There is nothing new in pop royalty protesting about progressive taxation – the Beatles wrote a song about their 95% supertax back in the days of the Wilson government – and some might see Rachel Reeves as a modern-day incarnation of Labour’s “Squeak the rich until the pips squeak” rhetoric.
But because of his repeated public pronouncements about social justice and support for Corbynism, Eavis was invariably going to be teased for implementing sensible tax planning. Given his family could save up to £80m in inheritance tax, if reports are to be believed, he probably feels it’s a price worth paying.
However, it’s a reminder that a carefully cultivated public image can be shattered by perceptions of hypocrisy. David Beckham finally reached the end of a long and winding road to his knighthood in the King’s Honours, having been famously red flagged by HMRC for his involvement in a dubious tax scheme in 2018 that ended in a £700m court case.
The tall poppy syndrome is alive and well. And never more so than when it comes to the super-rich.
Analysing Air India’s public apology:
Neil McLeod, Divisional Managing Director, Corporate
Air India is in a fight for its survival following the crash of its Flight 171.
It appears to be unable to provide the key thing everyone affected is seeking – answers to what happened.
This has made it even more vulnerable as others fill the void of information, ranging from critical passengers of previous flights, videos of execs partying days after the crash, air accident experts giving opinions and theories, and regulators issuing demands on safety checks and flight rostering.
In the aftermath of such appalling tragedy, and with the eyes of the world upon it, the airline has had key opportunities to start to show what it stands for and that it is in control.
Unfortunately, one of these moments was CEO Campbell Wilson’s public apology, which looks like a carbon copy of a statement issued by American Airlines boss Robert Isom from five months earlier. This quite simply is unforgiveable – a complete communication and leadership failure.
Air India has fluffed its lines in the key test – that of authenticity. This leads to serious questions over empathy and capability. It will mean passenger numbers will fall – while calls for Campbell to go will only amplify.
The Amazon flows through Venice – Bezos’ wedding takeover:
Mimi Brown, Director of Corporate
Jeff Bezos, a multi-billionaire and now figure of ridicule as the details of his Venice nuptials were revealed in the run up to the weekend.
It’s been a busy few months for Bezos’ sparking environmental outrage, with the Blue Origin space launch and now what equates to a Hollywood takeover of Venice – a ‘sinking’ city already struggling with overtourism.
The wedding events caused uproar with residents, religious figures, activist groups and campaigners, as well as making most consumers around the world feel quite frankly, ‘icky’.
It’s hard to quantify the uncomfortable impact that photos of Bezos at a foam party on a $500m yacht can have, but we’ll just leave that visual there….
A rumoured protest of inflatable crocodiles may not have made an appearance in the end, but banners across the city of Venice last week – protesting tax evasion, environmental damage and arrogance – made sentiment clear. Meanwhile Bezos was increasingly looking like a caricature of the ultra-rich. The wedding as a projection of his personal reputation is for many, unpalatable.
Meanwhile, Amazon just announced a hugely significant a £40bn investment into the UK. But what’s the betting that the headlines this week will still be rolling about this wedding’s extravagance and environmental damage, not Amazon’s economic impact.