The name of the oem american figure in the revelations on tax evasion, published on 5 November. But, it will take more than that to tarnish the brand.
Nike does not excel only in the manufacture of the sneakers. Since the revelations of “the Paradise Papers”, the general public now knows that the american brand also masters to the perfection of the mechanical, often subtle, of the tax optimization. For more than ten years, the group has made financial arrangements to be exempt from taxation.
like, Apple, Starbucks, Tesla, or Whirlpool, the name of the manufacturer of footwear is as well associated to a resounding international affair. Interviewed by Radio France, which had jointly conducted the survey with l es German journalists of the Süddeutsche Zeitung and the international consortium of investigative journalists (ICIJ), the direction of Nike has merely said that it “fully respected the applicable tax regulations, and [ensured] that his taxes are fully in compliance with the management of [the] business and investments”.
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“His name is running, but his image will remain intact’
A technical defense and lapidary, who, despite the flood of articles, has no special signs of crisis communication. “For the moment, they are a political response and legal, but absolutely not for the public opinion, decrypts Jean-Michel Boissière, at the head of the agency MC2 (Media Coaching Communication), and author of the blog The Company and the media. Because that is all the paradox of this case: the name of the brand comes back in a loop, but its image, it will remain intact.”
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The expert sees three explanations for this. First, the complexity of the topics covered, which may put off a good part of public opinion. “These tax arrangements very arid are difficult to deal with,” continues Jean-Michel Boissière. Not to mention that it is located in a grey area and fuzzy, can not be very ethical nor very moral, but not necessarily illegal.” Not offensive to the crowds, so, who know already more or less consciously, that large groups seek to evade the tax and are helped by specialist firms.
Not enough to renounce to buy a pair of sneakers
For a brand, the “bad buzz” only happens when it is a question of thematic closer to consumers. “It is necessary that there is a dimension of near psycho-emotional for the public opinion to react,” continues the expert. Mistreatment of workers, child labour or pollution, are some of the scandals that may adversely affect the reputation of a brand.”
In June 1998, it has soon 20 years, the image of a child in the process of sewing a ball Nike had provoked a global outcry. A scandal that forced the brand to make efforts to improve working conditions in its factories. But matters related to the sub-contractors had again broken out, particularly in factories producing Converse, belonging to the group Nike since 2003.
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With nearly 31 billion turnover, and a logo identified around the world, Nike has a capital huge in the eyes of consumers. “It is a brand that is very strong, which is deeply rooted in the habits of the people, concludes Jean-Michel Boissière. Let’s assume that some consumers are shocked by the extent of evasion, it would take more than that for what they give up to buy a new pair of sneakers.”