We are all innocent until proven guilty. Correct? No. This is not always the case when it comes to celebrity endorsers and the perception of credibility and trustworthiness. Accusations that damage the reputation of an endorser can be as damaging as a guilty verdict. This can cost a company millions of dollars. Because of this companies are depending more and more on a moral clause to protect them in endorsement contracts.
The use of professional athletes for marketing endorsements has become a sophisticated science that cribs its rules and equations from classic consumer marketing. There are several rules that sports agents suggest on how effectively to use sport celebrities in endorsements, but one that has the solo power of breaking a deal is the overindulgence in sex, drugs, and violence.
Credibility and trustworthiness are everything when it comes to marketing effectively using celebrity role models. Fact is the image of a celebrity can be tarnished within a matter of minutes. Take for instance the latest events concerning Kobe Bryant. While by law he is innocent until proven guilty companies are quickly pulling endorsement deals from the bargaining table. The companies fear the bad publicity and the image that consumers will now associate with Kobe Bryant.
The most recognized way that agencies evaluate a celebrity's ability to be an endorser or spokesperson is source credibility. We must recognize that consumers are individuals and the majority of them are responsible for forming personal opinions, however lets not discount the affect that media plays on that formation.
That is why over 75% of endorsement contracts today contain a moral clause that allows companies to exit without penalty in the event of an incident by the celebrity that greatly damages the company's reputation. Often the "incident" is limited to criminal activity and previously it was not uncommon for the legal language within the clause to even mandate that an actual conviction of a crime be present before the deal is terminated. However, this is quickly changing.
Truth is when a popular athlete such as Kobe Bryant makes a mistake or is even just faced with accusations of a crime these moral clauses are revisited extensively, because the end results and affects of such a marketing campaign that includes a celebrity endorsement can be detrimental to a company's image. This is their way of looking for any and every means to protect themselves.
Let's not downplay that current market situations indicate that celebrity endorsement advertising strategies can indeed justify the high costs under the right circumstances. However, lets not forget the importance of a company and the duty that it has to protect its image and reputation that solidifies its brand. By ignoring allegations and credibility issues that are raised by the public regarding a specific celebrity endorser a company does their brand a disservice that can easily affect their bottom line and their message. That is why a company often does not differentiate between an accusation or a guilty verdict when it comes to the credibility of their endorser.
