By Shivaji Dasgupta
There is a raging social media movement to boycott brands endorsed by Saurav Ganguly, notably Fortune Oil, to protest his public observations on the R G Kar intern murder. US-based SpottedRisk’s pioneering ‘Disgrace Insurance’, protecting businesses against endorser indiscretions, is surely due for an India debut. Ideally, in a two-way format, also protecting endorsers from dilettante brands.
Jared Fogle, famously the Subway Guy, is currently serving a 15-year prison sentence. Within a fortnight after Tiger Woods’ ‘DUI’ arrest in 2017, sponsors lost more than 2% of market value, including Nike and PepsiCo. Madonna, O.J. Simpson and Michael Vick endured scuttled endorsement contracts for ‘disgraceful’ acts.
Salman Khan’s association with Thums Up ended soon after his suspected involvement in a hit and run case. Snapdeal snapped ties with Aamir Khan, apparently due to his comments on ‘perceived’ intolerance. Vinesh Phogat may emerge stronger after the Olympics fiasco, only because cheating has been ruled out. While Ganguly’s endorsements may be rescued by short public memory and long-term affections.
The flip side of disgrace is when brands play truant, affecting the reputation of endorsers. In 2001, the fraudulent Home Trade was launched with Sachin Tendulkar and Hrithik Roshan as ambassadors. MS Dhoni’s impeccable credentials are still mired by the Amrapali Group scandal. Genelia D’Souza was once judicially summoned in connection with an Andhra Real Estate project called ‘Anjaniputra’. Priyanka Chopra, in the case of Nirav Modi, and the Gitanjali Gems endorsers, Kangna Ranaut and Bipasha Basu, suffered undeservingly.
From being a superficial association driven by emotional imagery, the brand-celebrity handshake is now co-created credibility. For lesser-known entities, stars take on excess load while for established brands, endorsers can benefit disproportionately. Deepika Padukone’s venture firm Ka Enterprises has backed Epigamia, BluSmart and Mokobara, adding deeper layers of association.
For an emerging economy like India, cash-rich founders often consider the celebrity as a shortcut to reputation, often without the ability or intent to play long-term. While in the kangaroo courts of social media, celebrities are on non-stop trial, being censured for the smallest profligacies.
Two-way Disgrace Insurance will surely be appropriate for India to partially secure both celebrities and brands from the transgressions of each other. In tandem with a stricter Due Diligence regime, involving accountants, lawyers and allied adjudicators.
Fortune’s fortunes may or may not dip due to Ganguly. But it’s surely a wake-up call for every graceful stakeholder.
The author is an autonomous brand consultant and writer