The Ethics of Celebrity–Athlete Endorsement

What Happens When a Star Steps Out of Bounds?

Felicia M. Miller Celebrity athletes are a mainstay of popular culture and an increasingly important part of
Marquette University
the marketing ecosystem. As product endorsers, they can influence brand attitudes and
felicia.miller@
marquette.edu 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
Gene R. Laczniak
Marquette University famous and infamous to endorse branded products. The conceptual framework presented
eugene.laczniak@ in the current study provides a theoretical approach—based on virtue ethics—for evaluating
marquette.edu
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 Bush, 2004). In 2009, sports sponsorship spend-

Celebrities seemingly are everywhere—television, ing was $11.2 billion (Fitch, Ozanian, and Baden-
magazines, newspapers, radio, and the Internet. hausen, 2010). Nike, for instance, spent more than
Celebrities, broadly defined, are well-known indi- $4 billion in 2009 for the privilege of having the
viduals who receive significant media attention world’s greatest athletes represent its products
(McCracken, 1989). These public figures include (Kaplan, 2010).
actors, athletes, musicians, models, and even chefs, As witnessed by the recent scandal surrounding
authors, journalists, and politicians. They are cre- Tiger Woods, however, these types of investments
ated, promoted, and sold to us through the mass have downside risks. In addition to disappointing
media. As consumers, we “buy” celebrities by financial returns, the selection of an athlete also
going to their movies, watching them play a sport, can raise questions about a firm’s ethical stand-
and listening to their music, insights, or witticisms. ards and judgment. Of course, some firms actively
In addition to selling themselves, celebrities also seek a “bad-boy” endorser who can appeal to a
endorse goods, services, and ideas. In this func- particular target demographic (Burton, Farrelly,
tion, they lend their name, their image and, most and Quester, 2001); others find themselves sad-
important, their personal meaning to the brands dled with an endorser who gets caught “behaving
they promote. badly.” In either case, firms can jeopardize their
Using a celebrity athlete to endorse a product ethical reputation (and more) when they enter into
is a tempting strategic proposition for advertis- an endorsement relationship with a well-known
ers and marketers because it holds the promise of athlete (Laczniak, Burton, and Murphy 1999).
higher awareness (Carison and Donavan, 2008) The conceptual commentary presented here
and greater consumer loyalty (Bush, Martin, and develops a virtue-ethics-based framework for

DOI: 10.2501/JAR-51-3-499-510September 2011 JOURNAL OF ADVERTISING RESEARCH 499

The Ethics of Celebrity–Athlete Endorsement

Celebrity athletes are a mainstay of popular Findings suggest that these characteris-
tics include the following:
culture and an increasingly important
• Attractiveness (Kamins, 1990)
part of the marketing ecosystem. • Expertise (Till and Busler, 2000)
• Trustworthiness (Ohanian, 1990).

examining the use and retention of celeb- • Implicit endorsement (“I use this Empirical results are strongest when the
rity athletes to endorse branded products. product”) celebrity is judged to “match” with the
It begins with a review of the endorsement • Co-present endorsement (“I merely product, particularly when the endorser
literature. This is followed by a discussion appear with this product”). is perceived as an expert on the product
of virtue-based ethics and its relevance for or product category (Kamins and Gupta,
advertising professionals. This results in This definition clearly includes both the 1994). For example, in one study, more
a general framework that can be adopted celebrity athlete who is an expert in the positive attitudes were attributed toward
by firms that aspire to a higher and more product category (e.g., Phil Mickelson and a fictitious product (Laparo sport drink)
consistent standard of morality in their Callaway Golf) or has a significant, long- when it was paired with a celebrity ath-
advertising practices. The framework is term association with the brand (e.g., Jeff lete (Michael Jordan) than when it was
then used, post facto, to examine firm deci- Gordon and DuPont). Athletes represent matched with a non-athlete celebrity
sions regarding the continued use of three a significant portion of overall celebrity (Pierce Brosnan) (Till, Stanley, and Priluck,
celebrity athletes after questionable “off- endorsements (Bush et al., 2004). 2008). Other research, however, has found
the-field” behavior. Allowing a celebrity athlete to repre- that an expert celebrity athlete does not
In the end, this article helps illuminate sent a brand is a high-risk/high-reward always produce positive outcomes for a
some of the potential benefits, risks, and proposition and is becoming more peril- well-known brand (Koernig and Boyd,
ethical implications of choosing and keep- ous (Brodesser-Akner, 2007). Advertisers 2009).
ing an athlete endorser. This issue is dis- are more cautious than ever with endorse- From a consumer culture perspective,
cussed at the firm, brand, and consumer ment deals because of the ongoing barrage the process that drives celebrity endorse-
levels and provides managers with a of counterproductive pairings. In extreme ment success has been explained as mean-
novel, ethics-based perspective for analyz- instances of endorsements gone awry, the ing transfer (Langmeyer and Walker, 1991;
ing such endorsement decisions. sponsoring firm may receive negative Levy, 1959; McCracken, 1989; Mick, 1986).
publicity and social pressure to respond In 1989, McCracken described how celeb-
THE CELEBRITY ENDORSER to the actions of their paid affiliate. A rities—including athletes—obtained and
The use of celebrity endorsers can be traced company’s image can also be negatively transferred cultural meaning to the brands
back to the late 1800s (Erdogan, 1999). Each affected by the firm’s decision to retain they endorsed. In such cases, it is the celeb-
year, marketers spend billions of dollars on an endorser who is involved in a negative rity’s cultural meaning and the transfer of
celebrities who endorse everything from event for which he is to blame (Louie and that meaning that influence effectiveness
athletic shoes to vacation destinations. Obermiller, 2002). In addition, the surge in as an endorser. This process evolves in
McCracken, in the pages of the Journal negative attention can have a short-term three stages:
of Consumer Research, defined the celebrity effect on a firm’s stock price (Knittel and
endorser as “any individual who enjoys Stango, 2010). • Stage 1: The athlete acquires meaning
public recognition and who uses this rec- The conventional academic approach from his or her public roles on and off
ognition on behalf of a consumer good by to researching “celebrity effects” has the “field.”
appearing with it in an advertisement” focused on endorsers’ characteristics that • Stage 2: The athletes’ meaning is
(McCracken 1989, p. 310). The definition will likely result in more positive (or nega- instilled in a given product through the
includes the following: tive) attitudes toward an endorsed brand advertising system. (In this stage, the
(Dholakia and Sternthal, 1977; Kamins, choice of celebrity should be based on
• Explicit endorsement (“I recommend Brand, Hoeke, and Moe, 1989; Sternthal, what meaning the marketer wants to
this product”) Dholakia, and Leavitt, 1978). instill in their product.)

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 The Ethics of Celebrity–Athlete Endorsement

From a consumer culture perspective, the process values as part of their formal mission state-
ments and code of ethics. Such “corporate
that drives celebrity endorsement success values” can be readily seen as a modern
day synonym for the more classical termi-
has been explained as meaning transfer. nology of “virtues.”
For example, GSD&M, an Austin, Texas,
advertising agency, actually carved its
• Stage 3: The consumer appropriates the process occurs for celebrity athletes who guiding values—including “integrity”
product’s new meaning into her or his endorse products. and ”responsibility”—into the foyer of
life. This process occurs through ritu- its corporate headquarters (Murphy,
alistic use, exchange, and care for the VIRTUE-BASED ETHICS Laczniak, Bowie, and Klein, 2005). The
product. Virtue ethics is a comprehensive theory corporate popularity of the “servant-
of ethics based on the notion that persons leadership” model might also be viewed
In North America, McCracken’s three- (and organizations) have an obligation to through a virtue-ethics lens whereby the
stage process occurs within the larger aspire to noble ideals so that, when encoun- servant leader foregoes the more bombas-
cultural context of a celebrity world that tering a difficult situation with moral impli- tic leadership characteristics of dynamism
seems to fascinate many people. This cations, they will be disposed “out of habit” and high visibility for the (more virtuous)
preoccupation with the famous (and the to do the right thing (Laczniak and Mur- person-centered ones of empathy, loyalty
infamous) is consistent with consumer phy, 1993). and trust-building (Greenleaf, 1977).
efforts to continually redefine themselves The ancient Greeks—and Aristotle, in Polls of managers consistently have
with respect to the culture in which they particular—maintained that individuals revealed a certain set of virtues that tend
live. As McCracken has noted, “North had a duty to improve their character to to be associated with effective and fair-
Americans are not star crazy but merely contribute to the community of which they minded business leaders (Laczniak and
active consumers of the meanings that are were a part. The idea was that in subscrib- Murphy, 1993). Such lists have typically
made available by the celebrity world” ing to characteristics that had been broadly included decisiveness, efficiency, integrity,
(McCracken, 2005, p. 113). acclaimed as “good” and “noble”—virtues independence, and trust.
One study used a 25-item semantic dif- such as courage, justice, temperance (i.e., Although the virtue-ethics approach is
ferential scale to assess celebrity and prod- self control), and prudence—the commu- not composed of specific decision rules,
uct meaning before and after endorsement nity would flourish in a more effective and it nevertheless possesses its own internal
(Walker, Langmeyer, and Langmeyer, equitable manner. logic, including the following:
1992). The research found that a celeb- An underlying and important assump-
rity’s meaning does affect the meaning tion behind the virtues approach was that • The virtues that should be emulated
of a generic product. More recently, in a personal contribution to the betterment of often are found in role models thought
direct test of the second stage of McCrack- the community—through individual self- by society to be moral exemplars. In a
en’s model, research disclosed that celeb- improvement—was an understood obliga- business context, this might involve
rity meaning is transferred to the brand tion of good citizenship (Solomon, 1999). benchmarking the practices of other
(Miller and Allen, under review). Spe- The Roman Cicero, in fact, used appeals to business organizations that have been
cifically, the Gap brand was paired with virtue to argue that business practices such acclaimed as “virtuous” for their supe-
a trio of “controversial” female celebrities as price gouging and the non-disclosure of rior product innovations, long-term
(Britney Spears, Paris Hilton, and Jessica significant property defects were unethi- social responsibility, and exceptional
Simpson). After the pairing, beliefs about cal because they would be destructive to customer satisfaction or employee
the brand were more consistent with the the trust necessary for future commercial loyalty.
beliefs about each celebrity (i.e., “con- transactions (MacIntyre, 1984). • Virtue is developed over time by rep-
troversial,” “trashy,” and “cheap”). This Interestingly, there has been a mod- etition. Just as a person becomes a good
shift, in fact, produced a more negative ern revival of virtue-based ethics as an chess player by studying and playing
attitude toward the brand. Logic suggests approach to business mission and man- that game for thousands of hours, busi-
that this same sort of meaning-transfer agement. Many organizations list assorted nesses develop virtue by habitually

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The Ethics of Celebrity–Athlete Endorsement

cultivating the critical characteristics of For advertisers, it is through the cultivation of

trustworthiness, integrity, responsibil-
ity, and so forth. practical wisdom that the ancient concept of
• Virtue ethics requires an inherent rec-
ognition of the importance of balance, virtue ethics becomes truly meaningful.
sometimes referred to as the “ethic of
the mean.” Typically, virtuous behav-
iors involve striking just the right bal- In practice, the advertiser that aspires marketing behavior consistent with soci-
ance of a certain quality at the right to a virtue-ethics standard of morality etal expectations and professional norms.
time. For example, companies must should generally adhere to the following
be courageous in seizing economic procedures: Operationalize these key characteristics
opportunity, but such economic cour- into the marketing strategy and tactics of
age also requires being neither too risk Identify the key virtues that embody the the organization.
averse nor too overly aggressive in their company’s philosophy. Case in point: PepsiCo lists “Care for
strategies. In some instances, as suggested earlier, Our Customers, Our Consumers and the
certain values will have already been World We Live in” as one of its guiding
The consequence of subscribing to these articulated by the firm’s mission state- principles. Consistent with this mission,
three dimensions is to create managers— ment and perhaps ingrained into the very the company was an early participant in
or even entire corporate cultures—that are DNA of the corporate culture over time. the Children’s Food and Beverage Adver-
rich in practical wisdom. Such practical In other cases, new values essential to tising Initiative (Ward and Grant, 2005).
wisdom (or praxis) is the gold standard the firm’s evolving self identity will be Since 2007, PepsiCo has fulfilled its com-
of virtue ethics; it is the possession of the added. mitment to advertise and market to chil-
essential qualities necessary to make wise In the absence of explicit corporate val- dren only those products that meet specific
and dependable judgments on a consistent ues, the American Marketing Association nutrition criteria intended to encourage
and ongoing basis. (AMA) provides a set of values that ought the consumption of healthier food and
to be seriously considered as central vir- beverage products.
VIRTUE ETHICS AND ADVERTISING tues to be embraced as a matter of course. In addition, the firm has worked with
PRACTICE For those few firms that do not have their the Alliance for a Healthier Generation to
For advertisers, it is through the cultiva- own distinct corporate culture or state- eliminate the sale of its high-calorie bev-
tion of practical wisdom that the ancient ment on ethics, the AMA Code can serve erages in United States elementary, mid-
concept of virtue ethics becomes truly as a “default” template for defining ideal dle, and high schools. PepsiCo recently
meaningful (Williams and Murphy, 1990). virtues. announced the launch of a similar pro-
What is more valuable to the twenty-first- The six foundational values set forth in gram outside the United States (Associ-
century enterprise than the likelihood the AMA’s Statement on Ethics (2008) are ated Press, 2010).
that its key decision makers will respond as follows: To integrate this mission into its
appropriately when facing complex adver- endorsement practices, PepsiCo should
tising issues? • Honesty select athletes who embody its core values.
Virtue ethics makes compelling sense • Responsibility
because it provides a normative ethi- • Fairness Monitor whether the central and pro-
cal template against which advertising • Respect fessed virtues of the enterprise are fol-
practices can be tested. Without some • Transparency lowed with sufficient constancy. When
standard to arbitrate the consistency of • Citizenship. the implied “values” of the firm are incon-
advertising messages being sent (includ- sistent with the “good” of the commu-
ing reevaluations of a campaign when Unlike other sets of “virtues,” these nity, the firm may be in ethical jeopardy.
circumstances change), advertisers are six values are designed specifically and Like any audit, value-driven positioning
left with only ethical relativism (i.e., “to discussed in sufficient business detail requires tracking to establish whether
each her own”). for purposes of helping shape admirable the business values espoused by the

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 The Ethics of Celebrity–Athlete Endorsement

organization hold up through all kinds of intentionally trying to shape the meaning To illustrate the usefulness of this frame-
marketing communications. of their brand such that it is more consist- work and the complexity of ethical trans-
To this end, many companies experiment­ ent with that of the characteristics embod- gression, we examine the endorsement
with a “triple-bottom-line” approach to ied by the athlete. relationships of three well-known celeb-
assessing the effectiveness of their opera- At the outset, the values or virtues rity athletes: Kobe Bryant, Michael Phelps,
tions (Elkington, 1998). In addition to the between the sponsor and its celebrity and Tiger Woods.
standard financial metrics, other measures athlete endorser should be harmonious. These three were selected for discussion
include the following: In other words, marketers and their because they have represented the high-
advertising agencies initially must select est level of achievement in their respec-
• Environmental impact—conditions athlete endorsers who seem to repre- tive sports. In addition, each has amassed
that are increasingly required by law in sent the qualities the brand aspires to. If lucrative product endorsements that they
certain industries (e.g., energy, heavy at some point, however, the endorser’s subsequently lost owing to their negative
manufacturing, mining) cultural meaning or essential qualities “off-the-field” behavior.
• Social sustainability—the attempt to conflict with the central values of the In the material that follows, the authors
measure the social impact of doing busi- firm, an ethical transgression has likely provide a brief background for each ath-
ness on all societal stakeholders. Such a occurred. In such instances, the enterprise lete, with notation of his indiscretions and
metric necessarily includes explicit ref- must reassess the endorsement relation- the firms he represented before and after
erence to the values that the company ship considering the costs and benefits the incident. This is followed by an assess-
claims to hold central. of continuing to allow the celebrity ath- ment of the firm’s reaction to the athlete’s
lete to represent the brand. And, in these behavior based on its professed corporate
Since the marketing function of an enter- instances, the firm’s own mission state- values and public statements.
prise is fundamentally consumer-oriented­, ment, its code of ethics, or even a restate- Through the lens of an ethical frame-
values concerned with elevating customer ment of the AMA’s Statement of Ethics can work, the authors conclude with firm-
relationships are of particular interest. In provide a lens through which marketers level implications and recommendations
this regard, a case has been made in the can assess—and reassess—their decisions on how to manage an athlete endorser
literature that the virtue of trust is the pri- with respect to celebrity endorsements. before and after his “fall from grace.”
mary quality in the enhancement of cus-
tomer relationships (Murphy, Laczniak,
and Wood, 2007). Because economic insti-
tutions are an important part of the larger • Review corporate values and principles.
social fabric of a community, however, Identify • Adapt values from AMA Statement of Ethics.
corporations also have a vital role and
responsibility to promulgate healthy val-
ues in their promotional campaigns to the
society at large—beyond simply customer • Ensure that celebrity athlete matches the firm’s
espoused values at the time of selection.
trust. Continually vetting celebrity–athlete Operationalize
• Consider the likelihood of negative
endorsers for their continued congruence “off-the-field” behavior.
with company values would seem a logi-
cal extension of such thinking.
• Reassess endorsement relationship if there are
changes in the athlete’s meaning.
The procedure described above provides
Monitor • Understand the implications of discontinuing,
an ethical framework for evaluating continuing or deferring an endorsement
endorsement decisions (See Figure 1). relationship.

When considering this framework, it

is important to recall that the meaning-
transfer model of celebrity endorse- Figure 1 Virtue Ethics Framework for Celebrity Athlete
ment is based on the idea that firms are Endorsers
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The Ethics of Celebrity–Athlete Endorsement

THE CELEBRITY–ATHLETE ENDORSER: several other smaller endorsement deals consistent with the image of Kellogg’s”
THREE TRANSGRESSORS including one with Coca-Cola (Vitamin (Vranica and Futterman, 2009).
Kobe Bryant: 2003–2009 Water). Subway, Phelps’ newest partner, ini-
The Los Angeles Lakers won three NBA tially was hesitant to address the issue but
championships (2000–2002) during Kobe Michael Phelps: 2008–2010 eventually decided to keep him under con-
Bryant’s first seven seasons with the team. At the 2001 Spring Nationals, 15-year-old tract but delay the advertising campaign
During that time, Bryant received four Michael Phelps became the youngest male (York, 2009). Speedo, Omega, Hilton, and
All-NBA honors and made All-Star game ever to set a world record in swimming Visa also continued their relationship with
appearances. In June, 2003, Bryant signed (Phelps and Cazeneuve, 2008). He went Phelps. In July 2009, Subway began air-
a 4-year, $40 million endorsement deal on to win a gold medal at the 2001 World ing a series of ads entitled “Be Yourself”
with Nike (Staff Reporter, 2003) and was Championships, three gold medals at the featuring Phelps and long-time brand
also representing McDonald’s, Nutella, 2003 World Championships and, at the age spokesman Jared Fogel (Heil, 2009). In
and Coca-Cola (Sprite). of 19, became the first athlete to win eight September, Speedo extended its partner-
In July 2003, Bryant was charged with medals (six gold and two bronze) at a fully ship with Phelps through 2013 (Associated
felony sexual assault in Eagle, Colorado. attended Olympics. In 2008, he became the Press, 2009).
In a tearful press conference with his wife, first athlete to win eight gold medals at a
Bryant admitted that he had had sex with a single Olympic games. Tiger Woods: 2009–2010
19-year old hotel employee but claimed it After the 2008 Olympics, Phelps In 1978, at the age of two, Eldrick (“Tiger”)
was consensual (Surico, 2003). After more signed endorsement deals with Kellogg’s Woods showcased his golf skills against
than a year of media coverage and public (August) and Subway (December). Kel- comedian Bob Hope on “The Mike Doug-
speculation, the criminal case was dis- logg’s featured Phelps on several prod- las Show”. By the time he became a profes-
missed in September 2004 (Saporito, 2004), uct packages; Subway planned television sional golfer in 1996, he had amassed an
and a civil lawsuit was settled the follow- advertisements that were to air in early unprecedented three U.S. Junior Amateur
ing March (Staff Reporter, 2005). Through- 2009 (Anonymous, 2009; Jack, 2008). Championships and three U.S. Amateur
out the legal process, Bryant maintained Phelps also represented Speedo, Omega Championships. He won two tourna-
his innocence and continued to be an watches, Hilton Hotels, and Visa. ments in his first year on the PGA tour and
active member of the Lakers. He signed a In January 2009, London’s News of the was named Rookie of the Year and one of
7-year contract extension 2 months before World published a picture of Phelps in the most renowned sports runs—of any
the criminal case was dismissed. which he appeared to be smoking from a kind—was on. To date, Tiger Woods has
McDonald’s, Nutella, and Coca-Cola bong, a device commonly used to inhale won 95 tournaments including 14 major
(Sprite) opted not to renew endorsement marijuana (York and Mullman, 2009). championships.
deals with Bryant shortly after he was Phelps confirmed that the photograph was By September 2009, Fortune magazine
charged with felony sexual assault. By a picture of him at a party in November reported that his career earnings had
contrast, Nike kept Bryant under contract 2008. He also apologized for “using bad reached 10 figures (Badenhausen, 2009).
but did not feature him in any advertising judgment” and vowed not to make this Contributing more than $100 million per
or promotional materials until February mistake again (Crouse, 2009). Phelps was year to his on-the-course earnings were
2006, when he appeared in a controversial suspended from competition for 3 months lucrative endorsement relationships that
set of television advertisements (Mahoney, by USA Swimming, the sport’s national included Nike, AT&T, Accenture, and
2006)—a series of defiant, provocative governing body, and did not return to Gillette.
“Love Me or Hate Me” commercials competition until May 2009 (York and On November 27, 2009, Woods report-
that did not directly address the sexual Mullman, 2009). edly was involved in a one-car automo-
assault case but clearly spoke to mixed fan After Phelps’ acknowledgment of his bile accident just outside his home in a
reaction. transgression, Kellogg’s announced that Florida gated community. Two days later,
Since 2006, Bryant has been featured in it would not renew his contract, which in an Internet post, Woods took responsi-
numerous Nike television campaigns and, was set to expire at the end of February. bility for the accident, praised his wife’s
in January 201, the brand launched Bry- The company spokesperson indicated that attempts to aid him after the crash, and
ant’s fifth signature shoe. Bryant also has “Michael’s most recent behavior is not asked for privacy. In the weeks to come, an

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 The Ethics of Celebrity–Athlete Endorsement

array of sordid details focusing on numer- competition, Nike ran a television adver- • Those that deferred their decision.
ous extramarital affairs began to emerge. tisement featuring Woods and the voice (This last group includes firms that kept
On December 2, 2009, Woods posted of his late father, who is credited with the athlete under contract but explic-
another statement on his Web site cultivating his son’s golf talent and men- itly indicated that they would limit or
acknowledging that “he has not been true tal toughness from an early age. The elder delay using the athlete’s image for some
to his values” and expressing regret for his Woods speaks to his son and says, “I want period of time.)
“transgressions.” Just a little more than a to find out what your thinking was…
week later, Woods announced he was tak- what your feelings are, and did you learn Discontinued Relationship
ing an indefinite leave from the game of anything.” The strongest lessons came from those
professional golf to focus on being “a bet- organizations that discontinued their
ter husband, father and person.” After his LESSONS IN ETHICAL DECISION MAKING endorsement relationship in the wake of
self-imposed exile, the media firestorm Looking across the three celebrity athletes’ scandal.
grew, epitomized by The New York Post’s situations, clear themes emerge related to For these enterprises, there appeared to
“Tiger Woods’ Babes: 2010 Calendar” and the firm’s actions after the scandal. These be a clear connection between living their
reported Tiger sightings at a Mississippi themes are not specific to any one athlete professed ethical values and their busi-
clinic that specializes in the treatment of or one enterprise; instead, they are a func- ness strategy, which likely motivated their
sex addition (Martinez, 2010). tion of the firm’s actions and their ethical actions. For example, Accenture’s success
Woods’s actions and his unexpected hia- implications. as a global consultancy firm is based on a
tus from golf gave his endorsement part- The companies that sponsored the core Code of Business Ethics—virtues that
ners an opportunity to reevaluate their endorsements can be grouped into three included integrity, respect, and fairness.
relationship with him: categories (See Figure 2): Accenture relies on these virtues to dis-
tinguish itself from its competitors and to
• Accenture, a global business consul- • Those that decided to discontinue the establish long-term partnerships with their
tancy whose long-running advertising endorsement relationship clients. When considered together, these
campaign featured Woods’ golf course • Those that decided to continue the core values go a long way to creating prac-
judgment as a surrogate for its wise relationship tical wisdom—that characteristic of “good
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 embla-
Kobe Michael Tiger
zoned on Woods’ golf bag during the Bryant Phelps Woods
2009 season (Vranica, 2010).
• Gillette (razors) and Tag Heuer (watches) McDonald’s
Accenture
announced that they would limit the use Discontinue Sprite Kellogg’s
AT&T
of Woods’ image in future advertising. Nutella
Firm Actions

Gillette characterized its actions as a

long “timeout” (Dorman, 2009). Speedo
Nike
Continue Nike Omega
• Nike, the golf pro’s biggest endorse- EA Sports
Hilton Hotels
Upper Deck
ment partner, announced its support Visa
for Woods, as did EA Sports (golf video
game) and Upper Deck (Tiger Woods Gillette
Defer Subway
action figure). Tag Heuer

Woods returned to competition in

April 2010 at the Masters, where he fin-
ished in fourth place. On the first day of Figure 2 Summary of Firm Actions
September 2011 JOURNAL OF ADVERTISING RESEARCH 505
The Ethics of Celebrity–Athlete Endorsement

judgment” so essential to a respected discussed earlier, a celebrity’s meaning is minor blip, but the media is making a big
organization and the gold standard virtue an important factor in his or her success as deal out of it right now” (Mickle, 2009). In
ethics. A business consulting firm that tries an endorser. For each of these celebrities, both cases, Nike decided that adultery—
to operate without perceived integrity and questionable behavior changed that mean- an offense that both Woods and Bryant
sound judgment may as well dissolve ing. And although the change was unique both admitted to—did not violate its cor-
itself. for each athlete, they all gained an element porate values.
An examination of the Accenture print of controversy as well as public disgrace Finally, the companies that continued
and television ads clearly suggests that that was not previously part of their mean- their endorsement relationship undoubt-
these virtues also played an important ing profile. For the firms that discontinued edly considered the celebrity’s “post-scan-
role in the 6-year campaign that featured the relationship, this change in meaning dal” meaning in their ultimate decision. It
Tiger Woods. When Woods behaved in a made the athlete’s endorsement signifi- is reasonable to assume that Nike, Speedo,
way that was contrary to the firm’s values, cantly less appealing for their brand. EA Sports, and other firms that continued
however, Accenture was compelled to dis- with associations with the athletes heavily
continue its relationship with him. Continued Relationship weighted the athlete’s sports-related asso-
As Accenture states, For those firms that decided to keep their ciations, which remained intact after the
endorsements in place even in the face of scandal, against their corporate values.
For the past six years, Accenture and Tiger presumed scandal, it seems clear that the Speedo, for instance, lists “honesty,”
Woods have had a very successful sponsor- celebrity’s meaning was still valuable to “fairness,” and “respect for people”
ship arrangement and his achievements on the brand—more so than acting in accord- among its corporate values. In a statement
the golf course have been a powerful meta- ance with the ethical values they espoused. of support for Michael Phelps, the com-
phor for business success in Accenture’s Nike’s “Inside the Lines” Code of Eth- pany said,
advertising. However, given the circum- ics, for instance, uses sports terminology
stances of the last two weeks… the com- to describe the company’s core values: Speedo would like to make it clear that it
pany has determined that [Tiger Woods] “honesty,” “loyalty,” “trustworthiness,” does not condone such behavior and we
is no longer the right representative for its “fairness,” “concern for others,” and know Michael truly regrets his action…
advertising. “accountability.” As a matter of policy, Michael is a valued member of the Speedo
Nike employees are required to review team and a great champion. We will do all
Like Accenture, McDonald’s, Nutella, “Inside the Lines” annually and acknowl- that we can to support him and his family.
and Kellogg’s consider themselves edge their understanding of the policies.
brands whose imagery is closely tied to Despite this strong internal stance, Hilton Hotels Corporation issued a
their corporate values. In addition, their Nike’s decision to keep Bryant under similar statement: “We continue to sup-
focus on products for children and fami- contract was clearly a move to retain the port Michael Phelps as an athlete whose
lies has heightened their need to main- option to capitalize on his powerful mean- numerous athletic feats outshine an act of
tain an image consistent with the values ing in the future. When asked about their regrettable behavior.” For these compa-
they espouse. Kellogg’s corporate values newly signed celebrity athlete shortly after nies, the exceptional performance and tal-
include integrity, humility, and account- he was charged with sexual assault, a Nike ent of the athlete in his sport was clearly
ability. These values are represented in the spokesperson declined to comment on the more relevant than his “out-of-the-pool”
company’s decision to end their endorse- legal case but offered, “We are pleased to indiscretions.
ment relationship with Michael Phelps have a relationship with Kobe Bryant. He
after his drug related incident. As a corpo- is a great player.” Deferred Endorsement Decisions
rate spokesperson unambiguously stated, Nike’s reaction to Tiger Woods’ alleged Like the firms that continued the relation-
“Michael’s most recent behavior is not serial infidelity was similar. Company co- ships, the firms that deferred their deci-
consistent with the image of Kellogg’s.” founder Phil Knight commented, “Obvi- sion also sought to protect the long-term
Although the decision to discontinue ously, he was one we checked out and potential of the endorsement. The actions
the endorsement relationship appeared he came out clean, and I think he’s been of these firms, however, also seemed to
to be rooted in the firm’s ethical values, really great. When his career is over, you’ll express ambivalence toward their corpo-
there may have been other motivations. As look back on these indiscretions as a rate values.

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 The Ethics of Celebrity–Athlete Endorsement

On the one hand, these firms seemed to Based on an analysis of the three situations, there
be aware of the risks (ethical, financial, etc.)
associated with their athlete-endorser but are some important recommendation for advertising
were unwilling to take a definitive stance
at the time of the incident. For example, managers as an extension of our virtue ethics framework.
Procter & Gamble’s Gillette walked a fine
line in its statement regarding its relation-
ship with Woods:

In the midst of a difficult and unfortunate

situation, we respect the action Tiger is tak- the celebrity endorser’s “unaccept- result in increased product consump-
ing to restore the trust of his family, friends able” behavior can have on the brand. tion (e.g., sandwiches) but may also
and fans … As Tiger takes a break from the Given this, virtue ethics, as discussed reinforce messages that are not socially
public eye we will support his desire for pri- earlier, should be used as an essential desirable (e.g., it is sometimes per-
vacy by limiting his role in our marketing first screen for the selection of ethically missible to use illegal drugs). In these
programs. appropriate brand-athlete pairings. instances, a firm that is slow to react can
• Of equal—if not greater—importance is be cast as socially irresponsible—a per-
This moderate response for the lead- the need to consider the likelihood that, ception that can have a negative, long-
ing consumer packaged-goods company at some point in the future, the athlete term impact on company reputation,
seemed to fly in the face of its professed could acquire meaning that would con- brand evaluation, and sales.
corporate values of trust, integrity, leader- flict with the firm’s espoused values. • In an increasingly crowded marketplace
ship, and a passion for winning. Guarding against this possibility begins and challenging economic environ-
Subway took a similar “middle-of-the- with continually vetting all endors- ment, more consumers have turned to
road” position with Michael Phelps when ers. Although some may opine that a corporate reputation (e.g., community
it removed his image from its Web site sponsoring firm could not have known involvement, green marketing) as a
and delayed his television campaign for about Woods’ secret life, ongoing due means to differentiate brands and guide
6 months. In a statement, the company diligence may have uncovered this char- purchases (Sen and Bhattacharya, 2001).
noted, “Like most Americans and like acter defect years before his fateful car In this manner, virtue matters, both
Michael Phelps himself, we were disap- accident (Barra, 2010). intrinsically and to the extent it may
pointed in his behavior… Also like most • In addition to monitoring endorser affect the bottom line.
Americans, we accept his apology. Moving behavior, firms should develop an “exit • The common use of athletes in promo-
forward, he remains in our plans.” strategy” that clearly delineates what tional campaigns seems to be a reflec-
actions will be taken if the endorser’s tion of the celebrity culture in which we
IMPLICATIONS FOR CELEBRITY- meaning shifts away from the firm’s live. Stipulating that “meaning transfer”
ENDORSEMENT MANAGEMENT espoused values. Rather than waiting transpires when sponsors select a celeb-
What strategic propositions can be inferred for a firestorm to erupt, the savvy adver- rity endorser, it can be argued that they
from all of the foregoing? tiser should have a plan for distanc- not only are shaping brand meaning but
Based on an analysis of the three situ- ing itself and its brands from a tainted are creating social messages for which
ations, there are some important recom- endorser. they bear some responsibility.
mendation for advertising managers as an • Advertisers must respond promptly
extension of our virtue ethics framework. when there is a real or perceived tension Whether intentional or not, certain
between achieving commercial success endorsement choices send troubling
• Although legally actionable “morality and adhering to its professed values to social and cultural messages. For exam-
clauses” in endorsement contracts allow protect its social reputation. Consumer ple, Danica Patrick’s sexually provocative
marketers to terminate endorsement responses to advertising communica- ads for GoDaddy.com gained significant
relationships, such language provides tions using celebrities (e.g., Subway/ media attention for the brand. For some,
little protection from the negative effects Michael Phelps) can (and often does) however, they also reinforced stereotypes

September 2011 JOURNAL OF ADVERTISING RESEARCH 507

The Ethics of Celebrity–Athlete Endorsement

Celebrity endorsements undoubtedly will continue Anonymous. “He’s Gr-r-r-eat! U.S. Olympian
Michael Phelps to be Featured on Packages of

to be an important part of advertising practice. Kellogg’s Frosted Flakes and Kellogg’s 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, firms Felicia M. Miller is an assistant professor of marketing mt=7&clientId=1953&RQT=309&VName=PQD]
should be very aware of the secondary at Marquette University. Her research focuses on
messages they send in their choice of brand management issues, particularly the co-creation Associated Press. “Speedo Re-Signs Phelps.”
celebrity endorser and how such impres- of brand meaning and the evolution of consumer- New York Times, September 10, 2009: 19.
sions can affect its stakeholders and soci- brand relationships. Dr. Miller co-authored a chapter
ety at large. in the most recent edition of the Handbook of Consumer Associated Press. “Pepsi Says No To Soda
Psychology and the forthcoming Consumer Brand Sales at School.” Wall StreetJournal.com, March
CONCLUSION Relationships. Her research interests and classroom 17, 2010. Retrieved July 8, 2010. [URL http://
Celebrity endorsements undoubtedly will insights are informed by a decade of work experience online.wsj.com/article/SB100014240527487037
continue to be an important part of adver- in the brand management organization at the Procter & 34504575125933541574988.html]
tising practice. In the current consumer Gamble Company. Miller holds a PhD in marketing from
culture, the good will of celebrity athletes the University of Cincinnati. Badenhausen, K. “Sports’ First Billion-Dol-
obviously can be an effective tool for gen- lar Man.” Forbes.com, September 29, 2009.
erating awareness and sales for a brand. At Retrieved February 4, 2010. [URL http://www.
Gene R. Laczniak is a professor of marketing at Marquette
the same time, using an athlete to promote forbes.com/2009/09/29/tiger-woods-billion-
University. From 1998 to 2002, Laczniak was the
a brand can have unanticipated negative business-sports-tiger.html]
associate vice president/provost for academic affairs
effects on that brand given the unpredict-
at the university. He has also been a visiting professor
able nature of their off-the-field behavior. Barra, A. “Tiger’s Limited Hangout.” Wall
of management at the University of Western Australia
Understanding this, marketers must Street Journal, February 20, 2010: W14.
(Perth) on several occasions. Dr. Laczniak’s research
find ways to mitigate the risks of using a
focuses on the influence of competitive strategy upon
celebrity athlete as an endorser. Virtue eth- Bialik, C. “Lights, Camera, Calculator! The
society and especially the question of marketing ethics.
ics, linked to the core values professed by New Celebrity Math.” Wall Street Journal, Feb-
He has published more than 100 scholarly articles
each individual firm, is put forward here ruary 27, 2010: A2.
in outlets such as the Journal of Public Policy &
as a useful conceptual framework to help
Marketing, Business Ethics Quarterly, and Long Range
analyze whether a celebrity athlete should Brodesser-Akner, C. “Naughty Can Still Pay
Planning. Laczniak holds a PhD in marketing from the
be retained after engaging in “negative” Nicely.” Advertising Age, 78, (2007): 3/23.
University of Wisconsin-Madison.
behaviors.
As more firms experience the dys- Burton, R., F. J. Farrelly, and P. G. Quester.
functions of an athletic endorser’s bad “Exploring the Curious Demand for Athletes
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