Barclays Bank: How (Not) to Communicate with Stakeholders
BARCLAYS BANK: HOW (NOT) TO COMMUNICATE
WITH STAKEHOLDERS
Corporate Communication Case study 1.1 09-17-2013 Josine Kremer - 414794
CASE STUDY 1.1
BARCLAYS BANK: HOW (NOT) TO COMMUNICATE WITH STAKEHOLDERS
QUESTIONS FOR REFLECTION 1. Discuss each image crisis for Barclays.
- Image crisis no. 1: ‘A world needs a big bank’ campaign vs. closing 170 branches in the UK. In 2000 Barclays launched a ‘Big’ campaign with the slogan: ‘a big world needs a big bank’. Barclays wanted to be seen as an ‘big’ bank by its important stakeholder groups. The adverts were slick and had received good pre-publicity, but it turned into a communication disaster. Because Barclays was spreading the word that is was a big bank, while closing 170 branches in the UK. Barclays started to lose more reputation when it was revealed that the new Chief Executive had been paid £1.3 million for just 3 months’ work. The situation was further aggravated by the arrogance with which Barclays announced and justified the decision of closing all the branches in the rural areas. - Image crisis no. 2: ‘‘Children; do not pile up debts on your credit cards.’’ Another image crisis occurred in 2003 when the CEO of Barclays, Matthew Barret, said that he did not borrow on credit cards because they were too expensive and that he has advised his four children not to pile up debts on their credit cards. Since Barclays is the biggest credit card company of the UK, the CEO stunned his customers with what appeared to be a similar vote of no confidence in his own product. - Image crisis no. 3: ‘‘Excessive risk taking’’ In 2008, at the height of the global financial crisis, a third image occurred. Many banks turned to the government for cash injections. Barclays, however, raised billions from investors in Qatar and Abu Dhabi. The reason for this was that it would allow the bank to retain ‘complete control’ over running their business, like paying the bonuses to its top executives and investment bankers. Although some
WITH STAKEHOLDERS
Corporate Communication Case study 1.1 09-17-2013 Josine Kremer - 414794
CASE STUDY 1.1
BARCLAYS BANK: HOW (NOT) TO COMMUNICATE WITH STAKEHOLDERS
QUESTIONS FOR REFLECTION 1. Discuss each image crisis for Barclays.
- Image crisis no. 1: ‘A world needs a big bank’ campaign vs. closing 170 branches in the UK. In 2000 Barclays launched a ‘Big’ campaign with the slogan: ‘a big world needs a big bank’. Barclays wanted to be seen as an ‘big’ bank by its important stakeholder groups. The adverts were slick and had received good pre-publicity, but it turned into a communication disaster. Because Barclays was spreading the word that is was a big bank, while closing 170 branches in the UK. Barclays started to lose more reputation when it was revealed that the new Chief Executive had been paid £1.3 million for just 3 months’ work. The situation was further aggravated by the arrogance with which Barclays announced and justified the decision of closing all the branches in the rural areas. - Image crisis no. 2: ‘‘Children; do not pile up debts on your credit cards.’’ Another image crisis occurred in 2003 when the CEO of Barclays, Matthew Barret, said that he did not borrow on credit cards because they were too expensive and that he has advised his four children not to pile up debts on their credit cards. Since Barclays is the biggest credit card company of the UK, the CEO stunned his customers with what appeared to be a similar vote of no confidence in his own product. - Image crisis no. 3: ‘‘Excessive risk taking’’ In 2008, at the height of the global financial crisis, a third image occurred. Many banks turned to the government for cash injections. Barclays, however, raised billions from investors in Qatar and Abu Dhabi. The reason for this was that it would allow the bank to retain ‘complete control’ over running their business, like paying the bonuses to its top executives and investment bankers. Although some