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LUSEM Thesis Template Brand Hostage How NGOs achieve their Strategic Goals on a Reputational Battlefield by Allan Su & Stefanie Wolff May 2017 Master’s Programme in International Marketing & Brand Management Supervisor: Mats Urde Examiner: Veronika Tarnovskaya Abstract Title: Brand Hostage - How NGOs achieve their Strategic Goals on a Reputational Battlefield Authors: Allan Su and Stefanie Wolff Course: BUSN39 Degree project in Global Marketing Date of Seminar: 2017-05-31 Supervisor: Mats Urde Purpose: The purpose of the study is to explore the phenomenon of brand hostage, with the aim to develop a framework and a definition for a deeper understanding of its modus operandi. Relevance: Over the past two decades, disruptive and successful NGO campaigns have increasingly targeted corporations, which makes the topic a major concern for managers. Nevertheless, both from an academic and practitioner's perspective the phenomenon remains elusive and neither well understood nor described in theory or practice. Methodology: A qualitative multiple-case study with a constructionist and interpretivist stance has been chosen to follow the inductive approach. For the data collection and analysis of that data, a grounded theory approach was applied. The selected NGO cases encompass three Greenpeace campaigns as well as one campaign each from the Organic Consumer Association against Starbucks and Green America against General Mills. Findings: The research findings indicate that the phenomenon of brand hostage is significantly more complex than stated in current literature, as demonstrated in the developed NGO brand hostage framework resulting from the case analyses. Furthermore, there exists the possibility of a continuing partnership after the resolution. Contributions: The research contributes to NGO, reputation management and crisis communication theory by providing a framework and definition of the brand hostage phenomenon. These insights can be of relevance for managers who either aim to manage or prevent a brand hostage, as well as for NGOs for their future campaign planning. Keywords: Brand hostage, reputation, reputational battle, NGO, NGO campaigns i Abbreviations APP Asia Pulp and Paper CEO Chief Executive Officer CSR Corporate Social Responsibility FMCG Fast-Moving Consumer Goods FSC Forest Stewardship Council GMO Genetically Modified Organism IT Information Technology MNE Multi-national Enterprise NGO Non-Governmental Organisation OCA Organic Consumers Association rBGH recombinant bovine growth hormone SAS Scandinavian Airlines System SCCT Situational Crisis Communication Theory SEC Security and Exchange Commission SPF Svensk Pilotförening ii Table of Contents 1 Introduction ...................................................................................................................... 1 1.1 Research Aim ............................................................................................................. 2 1.2 Research Questions .................................................................................................... 3 1.3 Delimitations .............................................................................................................. 4 2 Literature Review ............................................................................................................. 6 2.1 The Phenomenon of Brand Hostage ........................................................................... 6 2.1.1 Scapegoating .......................................................................................................... 7 2.1.2 Culture Jamming .................................................................................................... 8 2.2 Examples of Hostage Situations ................................................................................. 9 2.2.1 Hostage in Retail .................................................................................................... 9 2.2.1 Hostage in Franchising Business ............................................................................ 9 2.2.2 Ransomware ......................................................................................................... 10 2.3 Preliminary Framework ............................................................................................ 10 2.3.1 Derivation of Framework Components ................................................................ 11 2.3.2 Hostage Taker ...................................................................................................... 11 2.3.2.1 NGO Legitimacy .......................................................................................... 11 2.3.2.2 NGO Accountability .................................................................................... 12 2.3.2.3 Reputation Trap of NGOs ............................................................................ 14 2.3.3 Demand ................................................................................................................ 15 2.3.3.1 NGO-Corporate Engagement ....................................................................... 16 2.3.3.2 NGO Engagement Modes ............................................................................ 17 2.3.4 Hostage ................................................................................................................. 18 2.3.4.1 Corporate Reputation ................................................................................... 18 2.3.4.2 Situational Crisis Communication Theory ................................................... 19 2.3.5 Resolution ............................................................................................................. 21 2.4 Positioning ................................................................................................................ 23 3 Methodology ................................................................................................................... 24 3.1 Research Philosophy ................................................................................................ 24 3.2 Research Approach .................................................................................................. 25 3.3 Research Strategy ..................................................................................................... 26 3.4 Research Design ....................................................................................................... 27 3.4.1 Multiple-Case Study ............................................................................................. 28 3.4.2 Argumentation for the Case Selection ................................................................. 28 iii 3.4.3 Data Collection ..................................................................................................... 29 3.4.4 Secondary Data .................................................................................................... 29 3.4.5 Data Analysis ....................................................................................................... 30 3.4.6 Credibility and Validity ........................................................................................ 31 3.4.7 Biases ................................................................................................................... 33 4 NGO Case Analysis ........................................................................................................ 34 4.1 LEGO ....................................................................................................................... 34 4.1.1 Background .......................................................................................................... 34 4.1.2 Framework Application ........................................................................................ 37 4.1.2.1 Hostage Taker .............................................................................................. 38 4.1.2.2 Demand ........................................................................................................ 39 4.1.2.3 Hostage ......................................................................................................... 40 4.1.2.4 Resolution ..................................................................................................... 43 4.2 Mattel ....................................................................................................................... 44 4.2.1 Background .......................................................................................................... 44 4.2.2 Framework Application ........................................................................................ 46 4.2.2.1 Demand ........................................................................................................ 46 4.2.2.2 Hostage ......................................................................................................... 48 4.2.2.3 Resolution ..................................................................................................... 49 4.3 Kimberly-Clark ........................................................................................................ 50 4.3.1 Background .......................................................................................................... 50 4.3.2 Framework Application ........................................................................................ 54 4.3.2.1 Demand .......................................................................................................
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