The biggest reputation wrecks of 2024

If there was an awards ceremony for brand blunders, this year’s field would be up there with history’s most extensive. Public tantrums, radio silence in crises and arrogance before government inquiries – 2024 has had it all.

Supermarket slide 

While a story about price gouging was never going to be pretty, Woolworths’ then CEO Brad Banducci showed what not to do in a pressure situation when he infamously walked out of a TV interview.

The CEO’s dummy spit summed up a disastrous year for the reputations of both Woolworth and Coles, kicking off with the government’s announcement of a year-long inquiry into the supermarket sector and its pricing.

Banducci continued to make headlines when he appeared before senators in Canberra, copping a threat of prosecution for failing to answer questions.

Things only got worse with news of the ACCC taking court action against both giants for misleading customers about discounts. There was final insult in the countdown to Christmas, with industrial action leaving Woolies with bare shelves.

Market researcher Roy Morgan’s annual brand trust rankings laid it bare; the two big supermarket players plunged more than 200 places in 2024.

Bank backflip

A late award contender has to be the Commonwealth Bank for its hasty walk-back – or “pause”, in its own lingo - of plans to start the new year by charging some customers a $3 fee to withdraw their own money at branches and other sites.

The embarrassing move meant double trouble for the bank’s reputation; they managed to look mean one day, incompetent the next.

Businesses sometimes have to make tough decisions their customers won’t like. It’s crucial these are communicated clearly and sensitively, with a keen eye on the best timing.   

Airline agony

Bonza might have used cheery ockerisms in its branding, but these rang hollow for staff and passengers when the airline stopped all flights and entered voluntary administration.

More than 300 employees, stood down and later sacked, reportedly learned of their plight via the media. Poor communication in a crisis is risky. Failing to communicate with those most impacted is inexcusable.

In contrast, Rex Airlines - another regional player in financial turbulence - released clear information on its website and in proactive emails.  Rex’s planes continue to fly and its bruised reputation survives.

Meanwhile, trust in Qantas barely got off the ground this year with the Federal Court ordering the airline to pay $100 million in penalties for misleading consumers over “ghost flights” and cancellations.

Cap that off with an outburst of media coverage over cosy relationships between Qantas and various politicians and you can be sure airline leaders are looking forward to the departure of 2024.

Government gaffes

Changes to national vaping laws were announced with great fanfare, but key groups instrumental in making the legislation work seemed a long way from getting on board.

Squabbles between regulators and strong opposition from pharmacies heralded a rocky start, with public communication creating more confusion than clarity.

And while all tiers of government had their share of public stutters during the year, it was hard to compete with the outcry over the Prime Minister’s purchase of a $4.3 million coastal cliff-top home during the double whammy of a cost of living and housing crisis.

What will our leaders learn?

Sadly, not much. When it comes to tattered reputations, history tends to repeat itself even in the face of financial and electoral consequences. Those who genuinely want to do better in 2025 would be wise to focus on these areas:

1.        When you have negative news, tell it straight. Even if they don’t like what’s unfolding, people want certainty about what’s happened and what the next steps are. Serve your customers rather than defending your position.

2.        Lead with your key message. Many leaders approach crises like they’re facing a firing squad, in reactive mode rather than taking the initiative with their strongest message. Know the one piece of information you must convey and say it up front.

3.        Sincerely acknowledge any human impacts. When nerves kick in under pressure, some leaders come across like heartless robots. Don’t just talk about facts and figures if staff have been laid off and the public inconvenienced.

4.        Embrace tough questions. If you’re delivering unwelcome information, hard questions shouldn’t be a surprise. Answer as openly as you can without sugar-coating – and avoid blaming the person asking the question.

This piece was also published by the wonderful folk at Mumbrella - read it here.