The Issues Affecting Goodwill And Its Effect On A Business Financially
Favourable or unfavourable PR can affect a business financially. Supermarkets are learning to make the most from any advantage they have. Tesco and Sainsbury’s have been very proactive in their royalty card schemes and giveaways, PR campaigns, celebrity ambassadors (Jamie Oliver, David Beckham), community/charity projects and premium high visibility events. In recent years both companies have achieved positive PR and increased goodwill towards their brand by their involvement in a series of campaigns including: Active Kids / Sainsbury’s Ebooks / Comic Relief / the 2012 Olympics (and paralympics) / Royal Jubilee celebrations / Royal British Legion sponsorship / Million Meals Appeal / Race to Rio / Active Kids (School Games / Computers for Schools).
On the flip side of this – recent years have seen several negative issues, events occur which have negatively impacted on the revenues of supermarkets. Issues such as:
• The perceived level of UK corporation and stamp duty tax avoidance or lack of support for ‘green taxes/policies’ such as waste food, recycling, renewable energy, water saving, bag tax etc
• Issues of common consumer concern now such as: environmental impact, worker rights, local produce sourcing etc
• The dairy product price fixing scandal in 2007.
• The EU-wide horsemeat adulteration scandal in 2013.
• The collapse of the Savar Clothing Factory in Bangladesh in 2013.
• The Thai fishing industry slave scandal in 2014.…