Restoring Brand Trust After Missteps. In today’s episode Judith Germain speaks to Shailendra (Shelly) & Shalini Jain about their book on managing brand transgressions. Shelly is a professor of marketing and international business, while Shalini is an associate professor researching social issues in management. They have co-authored a book on brand transgressions and crisis management.
You can listen to Episode 456 on any of the popular podcast platforms or apps (including Spotify, and Audible). If you prefer to listen to your browser you can do that below. Enjoy!
Key Takeaways
- The authors introduce 8 principles for transforming brands after transgressions, emphasising rapid, transparent responses focused on doing the right thing
- Brand transgressions can range from minor to severe, but even seemingly small issues can have major consequences in today’s digital age
- Leadership plays a critical role in both preventing transgressions and effectively responding when they occur
- There’s a growing demand, especially from younger generations, for brands to demonstrate authentic values and social responsibility
Topics
Introduction of Guests
- Shelly (Shailendra Pratap Jain) and Shalini Jain, married for 32 years
- Both professors at different University of Washington campuses
- Collaborated on book about brand transgressions over 4 years
Book Overview: “Managing Brand Transgression”
- Full title: “Managing Brand Transgression: Eight Principles to Transform Your Brand”
- Covers range of brand transgressions from minor to severe
- Distinguishes between transgressions and general brand crises (e.g. falling profits)
Examples of Brand Transgressions
- United Airlines: Destroyed customer’s guitar, initially dismissed complaint. Video went viral, causing significant financial impact.
- Boeing 737 MAX: Crashes led to 346 deaths, $30B in fines/fees, $60B in cancelled orders
- Tylenol: 1982 poisoning incident, handled as gold standard response
- Volkswagen: Emissions scandal affecting “Made in Germany” brand reputation
Key Principles for Managing Transgressions
- Do the right thing (prioritise customers/stakeholders)
- Take accountability (without necessarily admitting fault)
- Act with lightning speed
- Communicate transparently
- Choose principle over profit
- Treat each life with dignity
- Leadership sets the tone
- Build brand authenticity
Importance of Rapid Response
- Digital age amplifies impact of transgressions
- Delayed responses allow alternative narratives to develop
- Example: Boeing’s 26-day delay in acknowledging issues after second 737 MAX crash
Role of Leadership
- Leadership often sets tone leading to transgressions
- Need for “inner revolution” among leaders to prioritise social value
- Importance of non-financial metrics in leadership evaluation
Changing Consumer Expectations
- Gen Z and Millennials demanding social contributions from companies
- Growing emphasis on sustainability and aligned values
- Example: Patagonia’s focus on sustainability leading to business success
In this conversation Shelly and Shalini explain that “brand transgressions” refer to when a brand is perceived to have violated expectations or norms, which can lead to brand crises. They distinguish transgressions from other business challenges like declining profits or market share.
The speakers emphasise that a brand’s response to transgressions is heavily influenced by the tone set by its leadership. They discuss how leaders who prioritise short-term profits over stakeholder interests often contribute to transgressions.
Shailendra Pratap Jain is Bret Wheat Endowed Professor of Marketing and International Business at the Foster School of Business., University of Washington, Seattle. Dr Jain has extensive publishing and editorial experience in top marketing journals and has won many executive and MBA teaching awards.
Shalini Sarin Jain is Associate Professor of Management and the inaugural Director of DEI at the Milgard School of Business, University of Washington, Tacoma. She has published articles on gender representation and compensation parity in top management, allegations of sexual misconduct sustaining livelihoods or saving lives during Covid.
Shailendra (Shelly) Jain can be found on LinkedIn here.
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