The Ethics of CelebrityAthlete Endorsement

What Happens When a Star Steps Out of Bounds?

Felicia M. Miller Marquette University felicia.miller@ marquette.edu Gene R. Laczniak Marquette University eugene.laczniak@ marquette.edu

Celebrity athletes are a mainstay of popular culture and an increasingly important part of the marketing ecosystem. As product endorsers, they can influence brand attitudes and sales but also have broader societal implications for the firm. The recent string of bad behavior by celebrity athletes raises important ethical questions about firms that use the famous and infamous to endorse branded products. The conceptual framework presented in the current study provides a theoretical approachbased on virtue ethicsfor evaluating the retention of tainted celebrity affiliates. This framework is applied to three well-known situations to examine the ethical implications of what initially were good choices for firms, their brands, and their consumers. The overarching goal of this article is to stimulate managers to think more deeply about the interconnections between their core company values, the athlete endorsers they select, and the ultimate effect of those decisions on their brands in the marketplace if things go wrong.

INTRODUCTION Celebrities seemingly are everywheretelevision, magazines, newspapers, radio, and the Internet. Celebrities, broadly dened, are well-known individuals who receive signicant media attention (McCracken, 1989). These public gures include actors, athletes, musicians, models, and even chefs, authors, journalists, and politicians. They are created, promoted, and sold to us through the mass media. As consumers, we buy celebrities by going to their movies, watching them play a sport, and listening to their music, insights, or witticisms. In addition to selling themselves, celebrities also endorse goods, services, and ideas. In this function, they lend their name, their image and, most important, their personal meaning to the brands they promote. Using a celebrity athlete to endorse a product is a tempting strategic proposition for advertisers and marketers because it holds the promise of higher awareness (Carison and Donavan, 2008) and greater consumer loyalty (Bush, Martin, and

Bush, 2004). In 2009, sports sponsorship spending was $11.2 billion (Fitch, Ozanian, and Badenhausen, 2010). Nike, for instance, spent more than $4 billion in 2009 for the privilege of having the worlds greatest athletes represent its products (Kaplan, 2010). As witnessed by the recent scandal surrounding Tiger Woods, however, these types of investments have downside risks. In addition to disappointing nancial returns, the selection of an athlete also can raise questions about a rms ethical standards and judgment. Of course, some rms actively seek a bad-boy endorser who can appeal to a particular target demographic (Burton, Farrelly, and Quester, 2001); others nd themselves saddled with an endorser who gets caught behaving badly. In either case, rms can jeopardize their ethical reputation (and more) when they enter into an endorsement relationship with a well-known athlete (Laczniak, Burton, and Murphy 1999). The conceptual commentary presented here develops a virtue-ethics-based framework for

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Celebrity athletes are a mainstay of popular culture and an increasingly important part of the marketing ecosystem.
examining the use and retention of celebrity athletes to endorse branded products. It begins with a review of the endorsement literature. This is followed by a discussion of virtue-based ethics and its relevance for advertising professionals. This results in a general framework that can be adopted by rms that aspire to a higher and more consistent standard of morality in their advertising practices. The framework is then used, post facto, to examine rm decisions regarding the continued use of three celebrity athletes after questionable offthe-eld behavior. In the end, this article helps illuminate some of the potential benets, risks, and ethical implications of choosing and keeping an athlete endorser. This issue is discussed at the rm, brand, and consumer levels and provides managers with a novel, ethics-based perspective for analyzing such endorsement decisions. THE CELEBRITY ENDORSER The use of celebrity endorsers can be traced back to the late 1800s (Erdogan, 1999). Each year, marketers spend billions of dollars on celebrities who endorse everything from athletic shoes to vacation destinations. McCracken, in the pages of the Journal of Consumer Research, dened the celebrity endorser as any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken 1989, p. 310). The denition includes the following: Explicit endorsement (I recommend this product) This denition clearly includes both the celebrity athlete who is an expert in the product category (e.g., Phil Mickelson and Callaway Golf) or has a signicant, longterm association with the brand (e.g., Jeff Gordon and DuPont). Athletes represent a signicant portion of overall celebrity endorsements (Bush et al., 2004). Allowing a celebrity athlete to represent a brand is a high-risk/high-reward proposition and is becoming more perilous (Brodesser-Akner, 2007). Advertisers are more cautious than ever with endorsement deals because of the ongoing barrage of counterproductive pairings. In extreme instances of endorsements gone awry, the sponsoring rm may receive negative publicity and social pressure to respond to the actions of their paid afliate. A companys image can also be negatively affected by the rms decision to retain an endorser who is involved in a negative event for which he is to blame (Louie and Obermiller, 2002). In addition, the surge in negative attention can have a short-term effect on a rms stock price (Knittel and Stango, 2010). The conventional academic approach to researching celebrity effects has focused on endorsers characteristics that will likely result in more positive (or negative) attitudes toward an endorsed brand (Dholakia and Sternthal, 1977; Kamins, Brand, Hoeke, and Moe, 1989; Sternthal, Dholakia, and Leavitt, 1978). Implicit endorsement (I use this product) Co-present endorsement (I merely appear with this product).

Findings suggest that these characteristics include the following: Attractiveness (Kamins, 1990) Expertise (Till and Busler, 2000) Trustworthiness (Ohanian, 1990). Empirical results are strongest when the celebrity is judged to match with the product, particularly when the endorser is perceived as an expert on the product or product category (Kamins and Gupta, 1994). For example, in one study, more positive attitudes were attributed toward a ctitious product (Laparo sport drink) when it was paired with a celebrity athlete (Michael Jordan) than when it was matched with a non-athlete celebrity (Pierce Brosnan) (Till, Stanley, and Priluck, 2008). Other research, however, has found that an expert celebrity athlete does not always produce positive outcomes for a well-known brand (Koernig and Boyd, 2009). From a consumer culture perspective, the process that drives celebrity endorsement success has been explained as meaning transfer (Langmeyer and Walker, 1991; Levy, 1959; McCracken, 1989; Mick, 1986). In 1989, McCracken described how celebritiesincluding athletesobtained and transferred cultural meaning to the brands they endorsed. In such cases, it is the celebritys cultural meaning and the transfer of that meaning that inuence effectiveness as an endorser. This process evolves in three stages: Stage 1: The athlete acquires meaning from his or her public roles on and off the eld. Stage 2: The athletes meaning is instilled in a given product through the advertising system. (In this stage, the choice of celebrity should be based on what meaning the marketer wants to instill in their product.)

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From a consumer culture perspective, the process that drives celebrity endorsement success has been explained as meaning transfer.
Stage 3: The consumer appropriates the products new meaning into her or his life. This process occurs through ritualistic use, exchange, and care for the product. In North America, McCrackens threestage process occurs within the larger cultural context of a celebrity world that seems to fascinate many people. This preoccupation with the famous (and the infamous) is consistent with consumer efforts to continually redene themselves with respect to the culture in which they live. As McCracken has noted, North Americans are not star crazy but merely active consumers of the meanings that are made available by the celebrity world (McCracken, 2005, p. 113). One study used a 25-item semantic differential scale to assess celebrity and product meaning before and after endorsement (Walker, Langmeyer, and Langmeyer, 1992). The research found that a celebritys meaning does affect the meaning of a generic product. More recently, in a direct test of the second stage of McCrackens model, research disclosed that celebrity meaning is transferred to the brand (Miller and Allen, under review). Specically, the Gap brand was paired with a trio of controversial female celebrities (Britney Spears, Paris Hilton, and Jessica Simpson). After the pairing, beliefs about the brand were more consistent with the beliefs about each celebrity (i.e., controversial, trashy, and cheap). This shift, in fact, produced a more negative attitude toward the brand. Logic suggests that this same sort of meaning-transfer VIRTUE-BASED ETHICS Virtue ethics is a comprehensive theory of ethics based on the notion that persons (and organizations) have an obligation to aspire to noble ideals so that, when encountering a difcult situation with moral implications, they will be disposed out of habit to do the right thing (Laczniak and Murphy, 1993). The ancient Greeksand Aristotle, in particularmaintained that individuals had a duty to improve their character to contribute to the community of which they were a part. The idea was that in subscribing to characteristics that had been broadly acclaimed as good and noblevirtues such as courage, justice, temperance (i.e., self control), and prudencethe community would ourish in a more effective and equitable manner. An underlying and important assumption behind the virtues approach was that personal contribution to the betterment of the communitythrough individual selfimprovementwas an understood obligation of good citizenship (Solomon, 1999). The Roman Cicero, in fact, used appeals to virtue to argue that business practices such as price gouging and the non-disclosure of signicant property defects were unethical because they would be destructive to the trust necessary for future commercial transactions (MacIntyre, 1984). Interestingly, there has been a modern revival of virtue-based ethics as an approach to business mission and management. Many organizations list assorted process occurs for celebrity athletes who endorse products.

values as part of their formal mission statements and code of ethics. Such corporate values can be readily seen as a modern day synonym for the more classical terminology of virtues. For example, GSD&M, an Austin, Texas, advertising agency, actually carved its guiding its valuesincluding headquarters integrity (Murphy, and responsibilityinto the foyer of corporate Laczniak, Bowie, and Klein, 2005). The corporate popularity of the servantleadership model might also be viewed through a virtue-ethics lens whereby the servant leader foregoes the more bombastic leadership characteristics of dynamism and high visibility for the (more virtuous) person-centered ones of empathy, loyalty and trust-building (Greenleaf, 1977). Polls of managers consistently have revealed a certain set of virtues that tend to be associated with effective and fairminded business leaders (Laczniak and Murphy, 1993). Such lists have typically included decisiveness, efciency, integrity, independence, and trust. Although the virtue-ethics approach is not composed of specic decision rules, it nevertheless possesses its own internal logic, including the following: The virtues that should be emulated often are found in role models thought by society to be moral exemplars. In a business context, this might involve benchmarking the practices of other business organizations that have been acclaimed as virtuous for their superior product innovations, long-term social responsibility, and exceptional customer loyalty. Virtue is developed over time by repetition. Just as a person becomes a good chess player by studying and playing that game for thousands of hours, businesses develop virtue by habitually satisfaction or employee

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cultivating the critical characteristics of trustworthiness, integrity, responsibility, and so forth. Virtue ethics requires an inherent recognition of the importance of balance, sometimes referred to as the ethic of the mean. Typically, virtuous behaviors involve striking just the right balance of a certain quality at the right time. For example, companies must be courageous in seizing economic opportunity, but such economic courage also requires being neither too risk averse nor too overly aggressive in their strategies. The consequence of subscribing to these three dimensions is to create managers or even entire corporate culturesthat are rich in practical wisdom. Such practical wisdom (or praxis) is the gold standard of virtue ethics; it is the possession of the essential qualities necessary to make wise and dependable judgments on a consistent and ongoing basis. VIRTUE ETHICS AND ADVERTISING PRACTICE For advertisers, it is through the cultivation of practical wisdom that the ancient concept of virtue ethics becomes truly meaningful (Williams and Murphy, 1990). What is more valuable to the twenty-rstcentury enterprise than the likelihood that its key decision makers will respond appropriately when facing complex advertising issues? Virtue ethics makes compelling sense because it provides a normative ethical template against which advertising practices can be tested. Without some standard to arbitrate the consistency of advertising messages being sent (including reevaluations of a campaign when circumstances change), advertisers are left with only ethical relativism (i.e., to each her own).

For advertisers, it is through the cultivation of practical wisdom that the ancient concept of virtue ethics becomes truly meaningful.
In practice, the advertiser that aspires to a virtue-ethics standard of morality should generally adhere to the following procedures: Identify the key virtues that embody the companys philosophy. In some instances, as suggested earlier, certain values will have already been articulated by the rms mission statement and perhaps ingrained into the very DNA of the corporate culture over time. In other cases, new values essential to the rms evolving self identity will be added. In the absence of explicit corporate values, the American Marketing Association (AMA) provides a set of values that ought to be seriously considered as central virtues to be embraced as a matter of course. For those few rms that do not have their own distinct corporate culture or statement on ethics, the AMA Code can serve as a default template for dening ideal virtues. The six foundational values set forth in the AMAs Statement on Ethics (2008) are as follows: Honesty Responsibility Fairness Respect Transparency Citizenship. Unlike other sets of virtues, these six values are designed specically and discussed in sufcient business detail for purposes of helping shape admirable Monitor whether the central and professed virtues of the enterprise are followed with sufcient constancy. When the implied values of the rm are inconsistent with the good of the community, the rm may be in ethical jeopardy. Like any audit, value-driven positioning requires tracking to establish whether the business values espoused by the Operationalize these key characteristics into the marketing strategy and tactics of the organization. Case in point: PepsiCo lists Care for Our Customers, Our Consumers and the World We Live in as one of its guiding principles. Consistent with this mission, the company was an early participant in the Childrens Food and Beverage Advertising Initiative (Ward and Grant, 2005). Since 2007, PepsiCo has fullled its commitment to advertise and market to children only those products that meet specic nutrition criteria intended to encourage the consumption of healthier food and beverage products. In addition, the rm has worked with the Alliance for a Healthier Generation to eliminate the sale of its high-calorie beverages in United States elementary, middle, and high schools. PepsiCo recently announced the launch of a similar program outside the United States (Associated Press, 2010). To integrate this mission into its endorsement practices, PepsiCo should select athletes who embody its core values. marketing behavior consistent with societal expectations and professional norms.

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organization hold up through all kinds of marketing communications. To this end, many companies experiment with a triple-bottom-line approach to assessing the effectiveness of their operations (Elkington, 1998). In addition to the standard nancial metrics, other measures include the following: Environmental impactconditions

intentionally trying to shape the meaning of their brand such that it is more consistent with that of the characteristics embodied by the athlete. At the outset, the values or virtues between the sponsor and its celebrity athlete endorser should be harmonious. In other words, marketers and their advertising agencies initially must select athlete endorsers who seem to represent the qualities the brand aspires to. If at some point, however, the endorsers cultural meaning or essential qualities conict with the central values of the rm, an ethical transgression has likely occurred. In such instances, the enterprise must reassess the endorsement relationship considering the costs and benets of continuing to allow the celebrity athlete to represent the brand. And, in these instances, the rms own mission statement, its code of ethics, or even a restatement of the AMAs Statement of Ethics can provide a lens through which marketers can assessand reassesstheir decisions with respect to celebrity endorsements.

To illustrate the usefulness of this framework and the complexity of ethical transgression, we examine the endorsement relationships of three well-known celebrity athletes: Kobe Bryant, Michael Phelps, and Tiger Woods. These three were selected for discussion because they have represented the highest level of achievement in their respective sports. In addition, each has amassed lucrative product endorsements that they subsequently lost owing to their negative off-the-eld behavior. In the material that follows, the authors provide a brief background for each athlete, with notation of his indiscretions and the rms he represented before and after the incident. This is followed by an assessment of the rms reaction to the athletes behavior based on its professed corporate values and public statements. Through the lens of an ethical framework, the authors conclude with rmlevel implications and recommendations on how to manage an athlete endorser before and after his fall from grace.

that are increasingly required by law in certain industries (e.g., energy, heavy manufacturing, mining) Social sustainabilitythe attempt to measure the social impact of doing business on all societal stakeholders. Such a metric necessarily includes explicit reference to the values that the company claims to hold central. Since the marketing function of an enterprise is fundamentally consumer-oriented , values concerned with elevating customer relationships are of particular interest. In this regard, a case has been made in the literature that the virtue of trust is the primary quality in the enhancement of customer relationships (Murphy, Laczniak, and Wood, 2007). Because economic institutions are an important part of the larger social fabric of a community, however, corporations also have a vital role and responsibility to promulgate healthy values in their promotional campaigns to the society at largebeyond simply customer trust. Continually vetting celebrityathlete endorsers for their continued congruence with company values would seem a logical extension of such thinking. The procedure described above provides an ethical framework for evaluating endorsement decisions (See Figure 1). When considering this framework, it is important to recall that the meaningtransfer model of celebrity endorsement is based on the idea that rms are

Identify

Review corporate values and principles. Adapt values from AMA Statement of Ethics.

Operationalize

Ensure that celebrity athlete matches the firms espoused values at the time of selection. Consider the likelihood of negative off-the-field behavior.

Monitor

Reassess endorsement relationship if there are changes in the athletes meaning. Understand the implications of discontinuing, continuing or deferring an endorsement relationship.

Figure 1Virtue Ethics Framework for Celebrity Athlete Endorsers

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THE CELEBRITYATHLETE ENDORSER: THREE TRANSGRESSORS Kobe Bryant: 20032009 The Los Angeles Lakers won three NBA championships (20002002) during Kobe Bryants rst seven seasons with the team. During that time, Bryant received four All-NBA honors and made All-Star game appearances. In June, 2003, Bryant signed a 4-year, $40 million endorsement deal with Nike (Staff Reporter, 2003) and was also representing McDonalds, Nutella, and Coca-Cola (Sprite). In July 2003, Bryant was charged with felony sexual assault in Eagle, Colorado. In a tearful press conference with his wife, Bryant admitted that he had had sex with a 19-year old hotel employee but claimed it was consensual (Surico, 2003). After more than a year of media coverage and public speculation, the criminal case was dismissed in September 2004 (Saporito, 2004), and a civil lawsuit was settled the following March (Staff Reporter, 2005). Throughout the legal process, Bryant maintained his innocence and continued to be an active member of the Lakers. He signed a 7-year contract extension 2 months before the criminal case was dismissed. McDonalds, Nutella, and Coca-Cola (Sprite) opted not to renew endorsement deals with Bryant shortly after he was charged with felony sexual assault. By contrast, Nike kept Bryant under contract but did not feature him in any advertising or promotional materials until February 2006, when he appeared in a controversial set of television advertisements (Mahoney, 2006)a series of deant, provocative Love Me or Hate Me commercials that did not directly address the sexual assault case but clearly spoke to mixed fan reaction. Since 2006, Bryant has been featured in numerous Nike television campaigns and, in January 201, the brand launched Bryants fth signature shoe. Bryant also has

several other smaller endorsement deals including one with Coca-Cola (Vitamin Water). Michael Phelps: 20082010 At the 2001 Spring Nationals, 15-year-old Michael Phelps became the youngest male ever to set a world record in swimming (Phelps and Cazeneuve, 2008). He went on to win a gold medal at the 2001 World Championships, three gold medals at the 2003 World Championships and, at the age of 19, became the rst athlete to win eight medals (six gold and two bronze) at a fully attended Olympics. In 2008, he became the rst athlete to win eight gold medals at a single Olympic games. After the 2008 Olympics, Phelps signed endorsement deals with Kelloggs (August) and Subway (December). Kelloggs featured Phelps on several product packages; Subway planned television advertisements that were to air in early 2009 (Anonymous, 2009; Jack, 2008). Phelps also represented Speedo, Omega watches, Hilton Hotels, and Visa. In January 2009, Londons News of the World published a picture of Phelps in which he appeared to be smoking from a bong, a device commonly used to inhale marijuana (York and Mullman, 2009). Phelps conrmed that the photograph was a picture of him at a party in November 2008. He also apologized for using bad judgment and vowed not to make this mistake again (Crouse, 2009). Phelps was suspended from competition for 3 months by USA Swimming, the sports national governing body, and did not return to competition until May 2009 (York and Mullman, 2009). After Phelps acknowledgment of his transgression, Kelloggs announced that it would not renew his contract, which was set to expire at the end of February. The company spokesperson indicated that Michaels most recent behavior is not

consistent with the image of Kelloggs (Vranica and Futterman, 2009). Subway, Phelps newest partner, initially was hesitant to address the issue but eventually decided to keep him under contract but delay the advertising campaign (York, 2009). Speedo, Omega, Hilton, and Visa also continued their relationship with Phelps. In July 2009, Subway began airing a series of ads entitled Be Yourself featuring Phelps and long-time brand spokesman Jared Fogel (Heil, 2009). In September, Speedo extended its partnership with Phelps through 2013 (Associated Press, 2009). Tiger Woods: 20092010 In 1978, at the age of two, Eldrick (Tiger) Woods showcased his golf skills against comedian Bob Hope on The Mike Douglas Show. By the time he became a professional golfer in 1996, he had amassed an unprecedented three U.S. Junior Amateur Championships and three U.S. Amateur Championships. He won two tournaments in his rst year on the PGA tour and was named Rookie of the Year and one of the most renowned sports runsof any kindwas on. To date, Tiger Woods has won 95 tournaments including 14 major championships. By September 2009, Fortune magazine reported that his career earnings had reached 10 gures (Badenhausen, 2009). Contributing more than $100 million per year to his on-the-course earnings were lucrative endorsement relationships that included Nike, AT&T, Accenture, and Gillette. On November 27, 2009, Woods reportedly was involved in a one-car automobile accident just outside his home in a Florida gated community. Two days later, in an Internet post, Woods took responsibility for the accident, praised his wifes attempts to aid him after the crash, and asked for privacy. In the weeks to come, an

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array of sordid details focusing on numerous extramarital affairs began to emerge. On December 2, 2009, Woods posted another statement on his Web site acknowledging that he has not been true to his values and expressing regret for his transgressions. Just a little more than a week later, Woods announced he was taking an indenite leave from the game of professional golf to focus on being a better husband, father and person. After his self-imposed exile, the media restorm grew, epitomized by The New York Posts Tiger Woods Babes: 2010 Calendar and reported Tiger sightings at a Mississippi clinic that specializes in the treatment of sex addition (Martinez, 2010). Woodss actions and his unexpected hiatus from golf gave his endorsement partners an opportunity to reevaluate their relationship with him: Accenture, a global business consultancy whose long-running advertising campaign featured Woods golf course judgment as a surrogate for its wise counsel, dropped him as an endorser on December 13, 2009 (McCarthy, 2010). AT&T announced that it would no longer sponsor Tiger Woods on the golf course; the AT&T logo had been emblazoned on Woods golf bag during the 2009 season (Vranica, 2010). Gillette (razors) and Tag Heuer (watches) announced that they would limit the use of Woods image in future advertising. Gillette characterized its actions as a long timeout (Dorman, 2009). Nike, the golf pros biggest endorsement partner, announced its support for Woods, as did EA Sports (golf video game) and Upper Deck (Tiger Woods action gure). Woods returned to competition in April 2010 at the Masters, where he nished in fourth place. On the rst day of

competition, Nike ran a television advertisement featuring Woods and the voice of his late father, who is credited with cultivating his sons golf talent and mental toughness from an early age. The elder Woods speaks to his son and says, I want to nd out what your thinking was what your feelings are, and did you learn anything. LESSONS IN ETHICAL DECISION MAKING Looking across the three celebrity athletes situations, clear themes emerge related to the rms actions after the scandal. These themes are not specic to any one athlete or one enterprise; instead, they are a function of the rms actions and their ethical implications. The companies that sponsored the endorsements can be grouped into three categories (See Figure 2): Those that decided to discontinue the endorsement relationship Those that decided to continue the relationship

Those that deferred their decision. (This last group includes rms that kept the athlete under contract but explicitly indicated that they would limit or delay using the athletes image for some period of time.) Discontinued Relationship The strongest lessons came from those organizations scandal. For these enterprises, there appeared to be a clear connection between living their professed ethical values and their business strategy, which likely motivated their actions. For example, Accentures success as a global consultancy rm is based on a core Code of Business Ethicsvirtues that included integrity, respect, and fairness. Accenture relies on these virtues to distinguish itself from its competitors and to establish long-term partnerships with their clients. When considered together, these core values go a long way to creating practical wisdomthat characteristic of good that discontinued their endorsement relationship in the wake of

Kobe Bryant
McDonalds Sprite Nutella

Michael Phelps

Tiger Woods
Accenture AT&T

Discontinue

Kelloggs

Firm Actions

Continue

Nike

Speedo Omega Hilton Hotels Visa

Nike EA Sports Upper Deck

Defer

Subway

Gillette Tag Heuer

Figure 2Summary of Firm Actions

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judgment so essential to a respected organization and the gold standard virtue ethics. A business consulting rm that tries to operate without perceived integrity and sound judgment may as well dissolve itself. An examination of the Accenture print and television ads clearly suggests that these virtues also played an important role in the 6-year campaign that featured Tiger Woods. When Woods behaved in a way that was contrary to the rms values, however, Accenture was compelled to discontinue its relationship with him. As Accenture states, For the past six years, Accenture and Tiger Woods have had a very successful sponsorship arrangement and his achievements on the golf course have been a powerful metaphor for business success in Accentures advertising. However, given the circumstances of the last two weeks the company has determined that [Tiger Woods] is no longer the right representative for its advertising. Like Accenture, McDonalds, Nutella, and Kelloggs consider themselves brands whose imagery is closely tied to their corporate values. In addition, their focus on products for children and families has heightened their need to maintain an image consistent with the values they espouse. Kelloggs corporate values include integrity, humility, and accountability. These values are represented in the companys decision to end their endorsement relationship with Michael Phelps after his drug related incident. As a corporate spokesperson unambiguously stated, Michaels most recent behavior is not consistent with the image of Kelloggs. Although the decision to discontinue the endorsement relationship appeared to be rooted in the rms ethical values, there may have been other motivations. As

discussed earlier, a celebritys meaning is an important factor in his or her success as an endorser. For each of these celebrities, questionable behavior changed that meaning. And although the change was unique for each athlete, they all gained an element of controversy as well as public disgrace that was not previously part of their meaning prole. For the rms that discontinued the relationship, this change in meaning made the athletes endorsement signicantly less appealing for their brand. Continued Relationship For those rms that decided to keep their endorsements in place even in the face of presumed scandal, it seems clear that the celebritys meaning was still valuable to the brandmore so than acting in accordance with the ethical values they espoused. Nikes Inside the Lines Code of Ethics, for instance, uses sports terminology to describe the companys core values: honesty, loyalty, trustworthiness, fairness, concern for others, and accountability. As a matter of policy, Nike employees are required to review Inside the Lines annually and acknowledge their understanding of the policies. Despite this strong internal stance, Nikes decision to keep Bryant under contract was clearly a move to retain the option to capitalize on his powerful meaning in the future. When asked about their newly signed celebrity athlete shortly after he was charged with sexual assault, a Nike spokesperson declined to comment on the legal case but offered, We are pleased to have a relationship with Kobe Bryant. He is a great player. Nikes reaction to Tiger Woods alleged serial indelity was similar. Company cofounder Phil Knight commented, Obviously, he was one we checked out and he came out clean, and I think hes been really great. When his career is over, youll look back on these indiscretions as a

minor blip, but the media is making a big deal out of it right now (Mickle, 2009). In both cases, Nike decided that adultery an offense that both Woods and Bryant both admitted todid not violate its corporate values. Finally, the companies that continued their endorsement relationship undoubtedly considered the celebritys post-scandal meaning in their ultimate decision. It is reasonable to assume that Nike, Speedo, EA Sports, and other rms that continued with associations with the athletes heavily weighted the athletes sports-related associations, which remained intact after the scandal, against their corporate values. Speedo, for instance, lists honesty, fairness, and respect for people among its corporate values. In a statement of support for Michael Phelps, the company said, Speedo would like to make it clear that it does not condone such behavior and we know Michael truly regrets his action Michael is a valued member of the Speedo team and a great champion. We will do all that we can to support him and his family. Hilton Hotels Corporation issued a similar statement: We continue to support Michael Phelps as an athlete whose numerous athletic feats outshine an act of regrettable behavior. For these companies, the exceptional performance and talent of the athlete in his sport was clearly more relevant than his out-of-the-pool indiscretions. Deferred Endorsement Decisions Like the rms that continued the relationships, the rms that deferred their decision also sought to protect the long-term potential of the endorsement. The actions of these rms, however, also seemed to express ambivalence toward their corporate values.

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On the one hand, these rms seemed to be aware of the risks (ethical, nancial, etc.) associated with their athlete-endorser but were unwilling to take a denitive stance at the time of the incident. For example, Procter & Gambles Gillette walked a ne line in its statement regarding its relationship with Woods: In the midst of a difcult and unfortunate situation, we respect the action Tiger is taking to restore the trust of his family, friends and fans As Tiger takes a break from the public eye we will support his desire for privacy by limiting his role in our marketing programs. This moderate response for the leading consumer packaged-goods company seemed to y in the face of its professed corporate values of trust, integrity, leadership, and a passion for winning. Subway took a similar middle-of-theroad position with Michael Phelps when it removed his image from its Web site and delayed his television campaign for 6 months. In a statement, the company noted, Like most Americans and like Michael Phelps himself, we were disappointed in his behavior Also like most Americans, we accept his apology. Moving forward, he remains in our plans. IMPLICATIONS FOR CELEBRITYENDORSEMENT MANAGEMENT What strategic propositions can be inferred from all of the foregoing? Based on an analysis of the three situations, there are some important recommendation for advertising managers as an extension of our virtue ethics framework. Although legally actionable morality clauses in endorsement contracts allow marketers to terminate endorsement relationships, such language provides little protection from the negative effects

Based on an analysis of the three situations, there are some important recommendation for advertising managers as an extension of our virtue ethics framework.

the celebrity endorsers unacceptable behavior can have on the brand. Given this, virtue ethics, as discussed earlier, should be used as an essential rst screen for the selection of ethically appropriate brand-athlete pairings. Of equalif not greaterimportance is the need to consider the likelihood that, at some point in the future, the athlete could acquire meaning that would conict with the rms espoused values. Guarding against this possibility begins with continually vetting all endorsers. Although some may opine that a sponsoring rm could not have known about Woods secret life, ongoing due diligence may have uncovered this character defect years before his fateful car accident (Barra, 2010). In addition to monitoring endorser behavior, rms should develop an exit strategy that clearly delineates what actions will be taken if the endorsers meaning shifts away from the rms espoused values. Rather than waiting for a restorm to erupt, the savvy advertiser should have a plan for distancing itself and its brands from a tainted endorser. Advertisers must respond promptly when there is a real or perceived tension between achieving commercial success and adhering to its professed values to protect its social reputation. Consumer responses to advertising communications using celebrities (e.g., Subway/ Michael Phelps) can (and often does)

result in increased product consumption (e.g., sandwiches) but may also reinforce messages that are not socially desirable (e.g., it is sometimes permissible to use illegal drugs). In these instances, a rm that is slow to react can be cast as socially irresponsiblea perception that can have a negative, longterm impact on company reputation, brand evaluation, and sales. In an increasingly crowded marketplace and challenging economic environment, more consumers have turned to corporate reputation (e.g., community involvement, green marketing) as a means to differentiate brands and guide purchases (Sen and Bhattacharya, 2001). In this manner, virtue matters, both intrinsically and to the extent it may affect the bottom line. The common use of athletes in promotional campaigns seems to be a reection of the celebrity culture in which we live. Stipulating that meaning transfer transpires when sponsors select a celebrity endorser, it can be argued that they not only are shaping brand meaning but are creating social messages for which they bear some responsibility. Whether intentional or not, certain endorsement choices send troubling social and cultural messages. For example, Danica Patricks sexually provocative ads for GoDaddy.com gained signicant media attention for the brand. For some, however, they also reinforced stereotypes

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Celebrity endorsements undoubtedly will continue to be an important part of advertising practice.

ANONYMOuS. Hes Gr-r-r-eat! U.S. Olympian Michael Phelps to be Featured on Packages of Kelloggs Frosted Flakes and Kelloggs Corn Flakes Cereal. PR Newswire, August 19, 2009. Retrieved February 21, 2010. [URL http:// proquest.umi.com/pqdweb?did=1534703451&F

of women as sex objects. Given this, rms should be very aware of the secondary messages they send in their choice of celebrity endorser and how such impressions can affect its stakeholders and society at large. CONCLUSION Celebrity endorsements undoubtedly will continue to be an important part of advertising practice. In the current consumer culture, the good will of celebrity athletes obviously can be an effective tool for generating awareness and sales for a brand. At the same time, using an athlete to promote a brand can have unanticipated negative effects on that brand given the unpredictable nature of their off-the-eld behavior. Understanding this, marketers must nd ways to mitigate the risks of using a celebrity athlete as an endorser. Virtue ethics, linked to the core values professed by each individual rm, is put forward here as a useful conceptual framework to help analyze whether a celebrity athlete should be retained after engaging in negative behaviors. As more rms experience the dysfunctions of an athletic endorsers bad behavior, there may well be an increase in corporations using an entire team or sports league to endorse their product rather than linking their brand image to the likeness and image of a single, unpredictable individual. In the nal analysis, companies must think more deeply about how they can avoid disconnects between their espoused corporate virtues and the brand meanings that athlete endorsers gone bad may foment in a ckle marketplace.

Felicia M. Miller is an assistant professor of marketing at Marquette University. Her research focuses on brand management issues, particularly the co-creation of brand meaning and the evolution of consumerbrandrelationships. Dr. Miller co-authored achapter inthe most recent edition of the Handbook of Consumer Psychology and the forthcoming Consumer Brand Relationships. Her research interests and classroom insights are informed by a decade of work experience in the brand management organization at the Procter & Gamble Company. Miller holds a PhD in marketing from the University of Cincinnati.

mt=7&clientId=1953&RQT=309&VName=PQD] ASSOCIATED PRESS. Speedo Re-Signs Phelps. New York Times, September 10, 2009: 19. ASSOCIATED PRESS. Pepsi Says No To Soda Sales at School. Wall StreetJournal.com, March 17, 2010. Retrieved July 8, 2010. [URL http:// online.wsj.com/article/SB100014240527487037 34504575125933541574988.html] BADENhAuSEN, K. Sports First Billion-Dollar Man. Forbes.com, September 29, 2009. Retrieved February 4, 2010. [URL http://www. forbes.com/2009/09/29/tiger-woods-billionbusiness-sports-tiger.html] BARRA, A. Tigers Limited Hangout. Wall Street Journal, February 20, 2010: W14. BIALIk, C. Lights, Camera, Calculator! The New Celebrity Math. Wall Street Journal, February 27, 2010: A2. BRODESSER-AkNER, C. Naughty Can Still Pay Nicely. Advertising Age, 78, (2007): 3/23. BuRTON, R., F. J. FARRELLY, and P. G. QuESTER.

Gene R. Laczniak is a professor of marketing at Marquette University. From 1998 to 2002, Laczniak was the associate vice president/provost for academic affairs at the university. He has also been a visiting professor of management at the University of Western Australia (Perth) on several occasions. Dr. Laczniaks research focuses on the influence of competitive strategy upon society and especially the question of marketing ethics. He has published more than 100 scholarly articles in outlets such as the Journal of Public Policy & Marketing, Business Ethics Quarterly, and Long Range Planning. Laczniak holds a PhD in marketing from the University of Wisconsin-Madison.

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