Absolut Screw-up and Corporate Accountability

Often in the world reputations play a big part in peoples decisions. When it comes to who marry, you are not going to marry the town peeping tom. When it comes to friends, you’re not going to pick the guy who tells the world every word you say.

This works the same for corporations and businesses. Often small businesses like landscaping businesses use their reputation to get more work. We call that word to mouth. National and international brands come from this. When people go to a McDonald’s in Maine, the expect the same quality and relative item as one in Arizona.

The picture above is an instance where a corporation can hurt its reputation. This map has obviously made many Americans mad. It supposedly wasn’t mean for U.S. markets. Duh!

Some people have now said they have poured their Absolut bottles down the sink and have called for a boycott of the Swedish company.

What does this mean for the Common Economist? This goes to show you that you do not need government to regulate businesses. That if the screw up bigger or smaller people will take action.

The marketplace has been a democracy, way before Greece, Rome, and the 13 colonies were ever around. You voted with your dollar. Just like when you vote that iPod beat out many other MP3 players or that Blu-Ray Disc is better than HD-DVD.

Marx and others didn’t get this. They believed both workers and consumers were exploited, but they weren’t and this is why.

Published in: on April 9, 2008 at 2:42 am  Leave a Comment  

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