Warren Buffet, the world famous investor and philanthropist once said: "It takes 20 years to build a reputation and five minutes to ruin it, and if you understand this, you will do things differently".

This is a quote I like to use when explaining to clients the importance of reputation management and the need to control your brand’s image domestically as well as internationally.

Every branch of your company must be intrinsically aware of every culture that your brand operates within, to effectively communicate and identify any risks or issues that could eventuate. 

A recent example of how an organisation can damage its own brand’s reputation is fashion power-house Dolce&Gabbana (D&G), who are currently embroiled in a PR disaster in the People’s Republic of China.

Last Sunday, more than 1,000 people demonstrated outside the Italian brand’s flagship store on Canton Road in Hong Kong forcing the luxury clothing store to shut. 

The Wall Street Journal reported:

The rally was organized on Facebook after local newspaper Apple Daily reported that Hong Kong citizens were banned from taking pictures of window displays, even if the photos were taken from the public street. Apple Daily also posted a video that showed security guards telling journalists to stop snapping pictures from the sidewalk.

According to the report, representatives of the retailer allegedly defended its policy, arguing that it was trying to protect its intellectual property even though the pictures were taken from the public street. However, the defence was undercut further when the company said foreign and mainland Chinese tourists were exceptions to the photo ban.

Why the company’s security drew the line between local Hong Kongers and mainland tourists is not exactly clear, but some have speculated it has less to do with copyright infringement and more to with placating high-rollers from China.

While some have called the incident an overreaction, academics say that the large turnout on Sunday underscores the continuing struggle among Hong Kongers to protect against infringements to freedoms and rights they are afforded as a special administrative region of China.

Since the city’s handover to China in 1997, Hong Kong people have faced a lot of setbacks in their fight for democracy and freedom. As there is no universal suffrage and other political rights, they cling very hard on to what is left for them, such as the fundamental right to enjoy public space,” said Chung Kim-wah, director of Hong Kong Polytechnic University’s Centre for Social Policies Studies.

D&G should have foreseen an issue such as this arising in Hong Kong due to the volatile political climate and worked to ensure the company’s core values which (I hope) clearly state that D&G do not support any infringement of human rights in any form.

Managing a company’s global presence can be challenging when faced with different cultures. It must be made a priority to ensure your organisation is not put in a damaging situation such as this.

Unfortunately, this was not the first time D&G’s communications choices have come under attack. 

In August last year, the D&G Facebook page deleted 30,000 comments posted on their wall by members of the public who wanted the company to stop sandblasting their jeans (a technique used to distress denim), because it severely damages the health of its workers. The move to censor their Facebook page was viewed by some social media bloggers on sites such as Social Vixen as a risky decision: “Censorship from companies is one of my least favourite things. D&G, stop before all your fans abandon you.”

Once again it appears as if the brand’s guardians have failed to appreciate the possible consequences before taking a highly visible, and risky, public stand. Their reputation has suffered as a result.

So how do you feel D&G are handling their Hong Kong situation? What brands in your opinion are managing their international brands successfully? Feel free to include resources like a great book, article, blog or video you think explores this area further.