When You’re Dealing with a “Toxic” Brand

Gawker recently published a memo from AIG Corporate Security outlining “certain protective measures all employees can take in order to increase their overall safety and security.” The #1 measure? Don’t showcase the AIG logo.

A few days later, the insurance giant removed its corporate logo from one of its New York buildings, replacing AIG with AIU. In Nashville, an AIG subsidiary was renamed American General Life and Accident (AGLA).

"Moving to a brand that the company built its reputation on and that doesn't immediately bring to mind AIG certainly helps with new business sales," said Shayna Schulz, an AIG spokesperson.

Ouch.

A strong brand — including the corporate name and logo — is an essential element of a company’s public face. Lots of brands weighed down with negative attributes reinvented themselves, including Enron (renamed CrossCountry), Kentucky Fried Chicken (KFC), WorldCom (MCI) and Philip Morris (Altria). The time has come for AIG to begin to distance its insurance businesses from the financial products unit that helped tank the company and the economy. It’s time for AIG to shape its new corporate identity.

A Reputational Roller Coaster Ride for Accountants

The accounting industry has successfully redeemed its reputation from its rock-bottom low in 2002, according to Gallup’s most recent Business & Industry Sector Ratings. But even now, complacency represents a serious threat … witness the effect of the subprime mortgage scandal on Bear Stearns. While the reputation of its management may have been besmirched, the credibility of its independent auditor, Deloitte & Touche, was not … largely because its statements, in an audit released last year, warned investors of the potential problem, according to WebCPA, citing a BusinessWeek story on the topic.

It’s my view that every accounting firm PR program should have a strong component dedicated to highlighting ethical standards. After all, do any of us truly believe — to the extent that we did seven years ago — that accountants provide a rock-solid guarantee of the honesty and accuracy of the financial statements that they audit? Enron was a watershed in this respect, and public relations must take this into account.