Ethical Issue – Lance Armstrong and Livestrong

Lance Armstrong’s recent confession that he used performance-enhancing drugs throughout his cycling career has major implications for the Livestrong Foundation.  Armstrong has since resigned from his position as chairman of the foundation, in which he developed to inspire people in the fight against cancer.  The Livestrong image has been closely tied to the Lance Armstrong name and now it must separate itself from his tarnished reputation.  Livestrong’s credibility is being questioned now that its founder has been caught cheating and lying for several years.

To counteract the negative publicity, Armstrong stepped down as chairman and later cut all ties to Livestrong.  He also publicly admitted to using EPO, blood doping, and various hormones during all of his Tour de France victories in his interview with Oprah Winfrey.  The foundation relies on donations, but the allegations surrounding Armstrong did not seem to affect donation levels in October 2012.  However, these statistics came before the report released by the United States Anti-Doping Agency.

To distance itself from Lance Armstrong, Livestrong must promote itself through its mission to fight cancer and away from Armstrong’s individual story.  It officially changed its name to Livestrong, as formally, it was still called the Lance Armstrong Foundation.  A new vice president of marketing has also been appointed.  By focusing on Livestrong’s successes in its own right, it may be able to overcome this setback to attract donors.  Livestrong’s reputation must be restored as a worthy charitable organization to support and inspire those living with cancer.  It will be interesting to see if the foundation can fully recover from this challenge.

Lance Armstrong also lost sponsorship contracts from Nike, Anheuser-Busch, and Trek bicycles.  Interestingly, Nike continued its contract with Tiger Woods after his personal scandal in 2009.  There appears to be a danger in sponsoring individuals in marketing campaigns.  The take- home message is that the mission of organizations must become larger than the individuals involved.

Sources:

http://www.forbes.com/sites/darrenheitner/2013/01/18/livestrongs-challenges-as-a-consequence-of-lance-armstrongs-confession/

http://theconversation.edu.au/spin-lance-armstrongs-confession-and-livestrongs-future-11616

http://www.cbc.ca/sports/cycling/story/2013/01/17/sp-lance-armstrong-oprah-winfrey-interview-live-tweets.html

http://www.nbcnews.com/business/lance-armstrong-steps-down-livestrong-loses-nike-bud-contracts-1C6512991

http://allthingsd.com/20130120/how-nike-revives-a-fallen-sports-star/

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