Lance Armstrong finally confesses to the world that he is a user of performance enhanced drugs. Oprah Winfrey’s interview with Lance says it all.
With Nikes continued support, the Livestrong Foundation will be able to stand on its own. Both the brands have positive futures with their decisions to drop Lance. This will enable continued sales for Nike and fundraising for the cancer cause. The foundations supporters and the consumers of Nike are glad that the two have displayed strong ethical behavior with their recent decisions. The result of great ethical behavior (dropping Lance) will be strong financial return and strong social return for both brands. People today still see the Livestrong Foundation as a cancer charity that stands strong, separate from its founder. Livestrong has a lot of opportunities with Nikes continued support. It is the right move by Nike to drop their sponsorship deal with Lance as Nike “does not condone the use of illegal performance enhancing drugs in any manner.” Nike has avoided what could’ve been a huge loss in sales with their products. Nike has strong value-based marketing with the ability to understand its customers. Nike products with the Livestrong emblem on some of their products accounts for nearly 100 million in revenue. Nike demonstrates corporate social responsibility and strong ethics supporting the cancer foundation. The company is mindful that their consumers don’t value figures like Lance Armstrong. An important take away is that anyone in marketing must recognize the ethical implications of their actions. Every company must be cautious about what they stand for, and who they support.
For more information on the Livestrong foundation and Nikes contribution, check out the Livestrong corporate partner page.
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