For the last decade, Lance Armstrong has been the most respected and the most talked athlete in the world. Earlier this year in January, his highly-respected status suddenly plummeted as he was caught doping by the USADA. This didn’t only affect Lance himself, but also all of the organization and large companies sponsors such as such as Nike, Trek Bicycles, Oakley, etc. that were associated with him. Lance might suffered an approximately only $150million, while his sponsoring companies had to face even more complicated problems, not only these companies had to endure some financial loss, but they also need to take care of the problem and deal with the consumers. This was one of the time where business ethics had to take place in order to survive, as these companies had to apologize to public and drop their sponsorship with Lance, to convince consumers that they do not support or even associated with any improper behavior. In my opinion, these companies have taken a great step to move forward to benefit all the stakeholders as they are maintaining their positive account. Trust and well-kept reputation will benefit the stakeholders, and satisfied stakeholders will generate good businesses.
Source: http://www.telegraph.co.uk/sport/othersports/cycling/lancearmstrong/9626597/Drug-cheat-Lance-Armstrong-facing-financial-meltdown.html