A brand does not only have to know how to sell itself; He also has to cover his back to avoid splashing the problems of others. It has happened this week to Inditex, the textile empire that owns Zara, in Hong Kong.

The workers in four of the 14 stores they have there opened later than usual because of the prodemocracy protests that were on the streets that day, which prevented them from arriving on time due to transportation problems.

A local newspaper said that the closure of four stores of the brand in the financial center demonstrated Inditex's support for the strike called by the students, and thus, without eating or drinking it, Inditex was supporting a foreign cause that he had never imagined .

"Zara has never made any comment, nor adopted any action related to a strike in Hong Kong, " "Zara has never backed a strike and supports the model of a country, two systems," the textile group reacted.

When a company is as global as Galician (with stores in more than half of the countries in the world) it has a presence in countries of all kinds: some in conflict, others with a dubious democracy or failed governments.

How it is managed

"The management and position of a brand in the face of an economic and socio-political issue that requires a significant and influential decision making in its environment and community will always depend on how faithful it is to its purpose and how integrated its positioning and ethical perspective " , says Rubén González-Román, of 21grams, an agency specializing in branding, communication and sustainability.

Industry sources close to the company explain that "no brand, except Inditex, is positioned in the face of such conflicts, because a company wants to sell."

However, "the case of Zara and its attitude towards the revolts in Hong Kong makes us reflect on the social and environmental role of brands and their direct involvement in the main political issues of a community or country. What position should choose companies? "González-Román wonders.

"The variety of factors of a conflict, and the different nature of each company and its function in the local economy makes it impossible to arrive at a unique criterion of operating -or not- in an area of ​​conflict," state public affairs & corporate experts. reputation of Burson Conh & Wolfe, global communication agency.

There is no manual type

There is no manual for these reputation management cases because "each CEO will decide how his brand will act and what risks to take despite being able to directly or indirectly influence its benefit and image," says González-Román.

"Consumers are demanding brands more than ever a social role," says Rubén González. According to the II Study of Brands With Values ​​promoted by this agency, 60% of Spaniards declare that they reward or prefer a brand that cares about nearby social aspects or that takes care of their workers.

Under normal conditions, the private company generates employment, fiscal contribution, and the delivery of services and goods (which may or may not be critical for well-being) and in conflict zones, companies "can be important elements of stability for these reasons, and a cessation of operations can lead to greater instability, "they point out in Burson Conh & Wolfe.

If the conflict worsens and results in a war crisis, companies usually opt for prudent withdrawal. This is what happened, for example, when war broke out in Syria. Not only Inditex closed its stores; so did the brands that were in the area.

"Companies that operate in areas of instability should open consultation processes - before there is an open conflict - with governments and NGOs to understand the possible scenarios that could come up and design consensus on criteria of how to act," they point out in Burson.

It should also be determined "in which cases it would be necessary to close operations, what would be the consequences of such a decision, and the measures to reduce impacts."

According to the criteria of The Trust Project

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  • Zara
  • Inditex Group
  • Hong Kong
  • Syria
  • economy

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