Past Wrongs, Present Fallout: Why Old Brand Scandals Still Hurt—and How to Heal
This research explores how consumers react when they learn that a brand did something unethical in the distant past—like supporting a dictator or profiting from slave labor—and what companies can do to lessen the negative impact. These are called Historical Brand Transgressions (HBTs)—bad actions from a brand’s past that only recently came to light.
You might think that because these wrongdoings happened long ago, they wouldn’t matter anymore. But this study finds that’s not the case. Across five experiments, people still judge brands harshly for past misdeeds—even when those actions happened decades ago. Why? Because learning about these past actions makes people think the brand is less warm, meaning less kind, honest, and socially responsible. That lower sense of warmth leads to worse attitudes and lower interest in buying from the brand.
In one study, people were less likely to buy from a bank when they learned it had used slave-like labor decades ago. Another study found that consumers were turned off by IKEA when told about its founder’s Nazi affiliations. But interestingly, not all consumers reacted the same way in every situation.
The researchers also tested ways brands could soften the blow. One strategy involved showing that the brand was under high institutional pressure at the time—like political or wartime pressures. This helped somewhat. Consumers were more forgiving if they believed the brand had no real choice back then.
What about brand responses? Just admitting to the wrongdoing didn’t help much. Apologizing helped a little more, but the best results came when companies apologized and offered compensation—like donating money or making amends. This combination restored some warmth and improved how people viewed the brand.
The big takeaway is that time doesn’t erase past wrongs—not if people are just learning about them now. To win back trust, brands need to go beyond basic acknowledgments. They must show sincere remorse and take action to make things right. Otherwise, they risk losing consumer trust and business, no matter how old the scandal is.
For marketers and business leaders, this study is a warning: If your brand has skeletons in the closet, be prepared to deal with them openly and meaningfully when they come to light. People care about ethics, and past mistakes still influence present-day decisions.
Pecot, F., Lunardo, R., Chaney, D., & Eugene Y, C. (2025). Why and When Do Historical Brand Transgressions Matter?. (external link, opens in new window) Journal of Business Ethics, 1-17.
