Your Fraud, Our Country: Impacts on National Brands and Reputations

The most comprehensive impacts of environmental fraud are discussed in this chapter. More specifically, the association of fraudulent companies with their countries of origin is approached as a risk to the activities of compatriot organizations. In this sense, the intrinsic value of “Made In” brands (e.g. Made in Germany, Made in France, Made in Italy) is addressed, with the disclosure of environmental frauds—as well as other types of immoral conducts—being treated as a potential trigger to a chain reaction. The dissemination of negative event is broached as a harmful mechanism that can result in reputational contamination for other companies. Given the relevancy of environmental fraud cases in the automobile industry (e.g. Volkswagen Dieselgate), the use of national reputation by carmakers is assessed in more detail. Beyond offering a technical vision on the subject, this discussion offers the bases to the understanding of associated risks in anti-ethical management practices, which are often neglected. The chapter contributes to a broader perception on the consequences of corporate scandals, while this debate can be extended to other kinds of crises.