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What do Volks, Patagonia, and Unilever have in common?

What do Volks, Patagonia, and Unilever have in common?

Learnings 😅

Manuella Borges
December 01, 2024

_{Dear Reputation Builder,}

In the corporate world, reputation and identity can be powerful forces—but confusing the two can lead to issues. While reputation is about how the world sees you, identity is about who you truly are at the core.

When these two forces diverge, the consequences can be catastrophic, as we are going to discuss in this edition with companies like Volkswagen. However, when identity and reputation are perfectly aligned, they build a legacy of trust and respect, as you can also see in the following lines through brands like Patagonia and Unilever.

This time of year allows us to think about how we want to align our identity with the reputation we project to the world. As we step into 2025, may we strive to live authentically, letting our true values shine through in every interaction—whether personal or professional.

2025 offers each of us a fresh start, a chance to build or rebuild trust, and the opportunity to create a lasting legacy of respect and integrity. Let’s carry the lessons so far forward and remember that while reputations may come and go, our identity is the foundation we stand on.

Wishing you all a prosperous, meaningful, and authentic new year!
Cheers! 🥂

Here is a little brief of what you are about to find today:

How Volkswagen’s emissions scandal demonstrates the fragility of reputation and the costly consequences of misalignment between identity and public image.
Why Patagonia’s unwavering commitment to its environmental mission shows that a strong identity can shield a brand through difficult times and build long-lasting trust.
Practical tips from Unilever’s balanced approach to sustainability show how aligning your actions with your core values strengthens reputation and identity in the long run.
Actionable takeaways on building, protecting, and balancing reputation and identity for your personal brand.

Goal: Be aware of the risks and consequences of misalignment.

1. Believe me, it's fragile

We already know that reputations are built over time, right? But despite the fact that they can be destroyed in an instant, my experience tells us that people usually don't take them seriously enough.

Trust me, one misstep, one crisis, and the trust you’ve cultivated can evaporate. This chapter examines the case of Volkswagen and how a single scandal undid decades of reputation. We’ll explore the fallout of the emissions scandal, the financial consequences, and the ongoing battle to rebuild trust.

In your own life, reputation is no different—it’s earned daily but can be quickly lost.

THE CASE

Scandal
Over the decades, Volkswagen has built a reputation as a reliable, environmentally conscious automotive brand. However, the 2015 emissions scandal severely damaged that reputation when it was revealed that Volkswagen falsified emissions data to appear greener than it was. Despite their strong reputation, one corporate misstep led to widespread public distrust.

This shows how fragile a reputation can be if it's backed by something other than authentic identity.

Financial impact
Below is a comprehensive view of Volkswagen’s stock price, revenue loss, fines, and consumer trust before, during, and after the emissions scandal.

Sources: Volkswagen Stock Price History: Yahoo Finance, Bloomberg, Reuters | Fines and Legal Costs: Reuters - Volkswagen's total costs related to the emissions scandal | Revenue Impact: Volkswagen Annual Reports - Volkswagen's Financial Performance | Consumer Trust Data: Edelman Trust Barometer - Volkswagen Trust Data

Takeaways:

Reputation can be fragile
Volkswagen’s emissions scandal reminds us that even a well-established reputation can be shattered by a single crisis. Decades of trust were undone when the public discovered that the company's actions did not align with its environmentally conscious brand image.
Misalignment between identity and actions is costly
The scandal demonstrated the importance of aligning company actions with core identity values. Volkswagen promoted itself as eco-friendly, but its emission deception exposed a misalignment, leading to significant financial and reputational damage.
Financial impact reflects reputational damage
The billions of euros lost in revenue and fines and the sharp drop in stock price highlight how reputational crises directly affect a company’s financial health. The damage extended beyond legal costs—consumer trust was severely diminished, leading to a long and expensive road to recovery.
Rebuilding trust takes time and action
Even after the scandal, Volkswagen has had to work hard to restore its reputation, which is ongoing. By focusing on a shift towards electric vehicles and sustainability, Volkswagen is attempting to realign its identity with more responsible environmental practices. However, regaining consumer trust takes time and effort.
Authenticity is key to long-term success
The Volkswagen case underscores the importance of authenticity. Companies that fail to live their values authentically risk severe long-term consequences. Identity should not just be a marketing narrative; it must be reflected in every aspect of the company’s operations and decision-making processes.

Goal: Learn how to build a reputation using identity as a foundation

2. Identity as a shield

While reputation may be vulnerable to external forces, identity is internal and resilient. When a company’s identity is deeply integrated into its actions, its reputation naturally reflects those values. Patagonia has shown that a strong, unwavering identity can protect a brand, even in difficult times.

In this chapter, we’ll see how Patagonia’s dedication to its environmental mission has made its reputation unshakable.

The same holds true for your personal brand—when you stand firm in your values, your reputation will follow.

THE CASE

Patagonia’s purpose-driven business

Patagonia, an outdoor clothing brand, has always been clear about its identity. Their mission—"We're in business to save our home planet"—drives every aspect of their operations, from product development to corporate activism. Over the years, they have developed a reputation for environmental advocacy grounded in their core identity. Even during turbulent market conditions, they’ve remained unwavering in their mission, making their reputation an extension of their identity.

Looking to be more "Patagonia" in your industry
and life? Here are some how-to steps

Build your reputation on a solid identity
Action Step: Clearly define what you stand for—whether it's your values, beliefs, or mission. Ensure your decisions, behaviors, and communication consistently reflect this identity. People will recognize your brand's authenticity when your actions align with who you are.
Stay consistent with your mission
Action Step: Identify your core mission or purpose and stay true to it, even when external circumstances change. When faced with challenges, ask yourself if your decision aligns with your core values. Over time, this consistency builds trust and strengthens your personal brand.
Use your identity as a shield in tough times
Action Step: During difficult moments—whether in your career or personal life—rely on your well-defined identity to guide your actions. Stay grounded in your values, and you’ll find it easier to maintain your reputation when under pressure. Your integrity will shield you from the negative impacts of external forces.
Let purpose drive loyalty
Action Step: Identify a greater purpose beyond personal or financial gain. Whether in business or daily life, let this purpose guide your decisions. As Patagonia’s customers advocate for their mission, those around you will respect and support you if they see you are driven by something meaningful.
Align your personal "culture" with your values
Action Step: Your daily actions—how you treat others, make decisions, and present yourself—are part of your personal "culture." Ensure that this culture consistently reflects your values. Living your identity daily reinforces your brand, just as Patagonia's internal culture reflects its values.

A Conversation About the Future of Business with Patagonia CEO Ryan Gellert and Katie Couric / Image: SXSW YouTube Channel

To understand more about them, it's interesting to understand their culture. For that, I highly recommend watching Patagonia's CEO, Ryan Gellert, at SXSW 2023.

I had the privilege of being in the audience that day, and I assure you, it was very inspiring.

🎦 Worth watching here :)

Whether it is a well-built narrative or strong values, the critical point here is that, at least, it should be combined to grow solid and relevant.

Got this from someone else? Don't be shy 😎

Goal: Maintaining and balancing identity and reputation, ensuring they remain aligned over time.

3. A little from here, a little from there

Balancing reputation and identity is no easy feat, but it’s critical for long-term success. Unilever has managed to do just that, blending a strong identity with a public image that resonates deeply with customers.

In this chapter, we’ll explore how Unilever’s focus on sustainability and social responsibility has allowed it to strike the perfect balance between identity and reputation. For your personal brand, finding harmony between how you see yourself and how others perceive you is key to building lasting trust.

THE CASE

Unilever’s sustainable business approach Unilever has successfully balanced its reputation and identity by focusing on sustainability and social responsibility. With brands like Dove and Ben & Jerry’s, Unilever’s identity is making sustainable living commonplace. Campaigns such as Dove’s “Real Beauty,” which promotes body positivity, and Ben & Jerry’s commitment to social causes reflect their deep commitment to societal impact. Their reputation as a purpose-driven company is not just a marketing tactic—it demonstrates their core identity, which has helped them gain consumer trust over the years.

Get prepared to balance reputation and identity

Align Your Actions with Your Core Values
Tip: Start by identifying the key values that define you. Make sure that every decision you make reflects those values, just as Unilever’s brands prioritize sustainability and social impact. The clearer your values are, the easier it is to ensure that your public image mirrors your true self.
Focus on Consistency, Not Perfection
Tip: Building trust doesn’t mean always being perfect—it means being consistent. If you make a mistake, own it and correct it in line with your values. Unilever has built trust by sticking to its sustainability mission, even through challenges. Apply this to your personal brand: consistency over time will build the most lasting reputation.
Be Transparent About Your Purpose
Tip: Just as Unilever is transparent about its commitment to sustainability, you should openly communicate your purpose and goals. Let others know what drives you in your personal life or career. Transparency helps people see your intentions, which strengthens your reputation.
Adapt Without Compromising Your Identity
Tip: The business landscape—and life—can change, but your identity should remain stable. Unilever has adapted to market demands without losing sight of its core mission. Similarly, you can adjust to new situations without losing the essence of who you are. Stay flexible, but never compromise your values.
Engage with Causes You Believe In
Tip: Unilever actively engages in social causes that align with its identity. For your personal brand, participate in causes or communities that resonate with your values. This strengthens your reputation and deepens the connection between your identity and how others perceive you.

❝

A single lie destroys a whole reputation of integrity.

Baltasar Gracian, Jesuit and Spanish writer

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🧠 Keep in mind!

In this edition, you had a better understanding about:

Reputation is fragile and can be damaged quickly, as seen with Volkswagen—but it can be rebuilt with consistent action.
A strong identity, like Patagonia’s, is the foundation of a resilient reputation. Standing by your values builds long-term trust and credibility.
As Unilever has done, balancing reputation and identity requires consistency, transparency, and adaptability. Aligning your actions with your values over time fosters a strong reputation that endures.
For your brand, aligning identity and reputation is crucial to building trust and lasting impact in every interaction.

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