Lars Voedisch, Founder and Managing Director of PRecious Communications was featured in Marketing Interactive’s ‘Branding News’ section on May 31, 2019, in an article titled ‘YG Entertainment’s alleged sex scandal unlikely to impact artistes’ sponsorship dollars.’ Generally, most South Korean companies have always maintained a dignified image of their K-pop idols. Recently, there was an alleged sex scandal reported surrounding YG Entertainment’s founder that has negatively impacted this pristine image of the industry.
Here is Lars’ comment as featured in Marketing Magazine’s article ‘YG Entertainment’s alleged sex scandal unlikely to impact artistes’ sponsorship dollars.’
“While the buzz around YG is only allegations based on one report, it might have already formed a perception in consumers’ minds, and as the saying goes, perception is the reality.
From a reputation management perspective, the tricky part is that the more they would now try to deny the allegations, the more guilty it might make them look. So the response strategy has to stick to facts and possibly share more about their general code of conduct.”
Why Are We Talking About YG Entertainment’s Alleged Sex Scandal?
Any brand controversy that comes up is most likely to be discussed on social media and the web, and at such times, negative reviews can create a sentiment of hate and mistrust among people. Sometimes, companies are subject to attacks that include false statements that are all about online defamation. To combat this, it is best to take the help of both the PR and legal counsel to provide an effective solution.
During a PR crisis, it is important to remember that no one expects a brand to be perfect, but they expect a certain level of humanity. Once the PR team has gained all the facts regarding the incident, it is important how they frame the response that will go out in the public domain. It is best to address the situation transparently and take accountability of what the company has done without blaming anyone else. So, even if the opposing party has said something that is entirely false, it is best not to respond negatively or blame any external source for the situation.
If a brand is open and honest with their audience and apologizes for their mistake, people will forgive you faster. But remember, the faster you handle the problem, the faster you can do some damage control on social media.
After all, handling a PR crisis all comes down to timing. You don’t have to give out a premature response, nor do you need to delay it for too long. Hitting the sweet spot is all that matters!