The Looking Glass

The Dangers Of Risking A Lie & The Rewards For Brands That Fear No Truth

Gordon Gerard McLean

Send A Review By Text

This episode explores the critical role of transparency for contemporary brands. It argues that brands risk severe consequences, including loss of consumer trust, legal repercussions, and reputational damage, by failing to be truthful, citing examples like Volkswagen and Wells Fargo. Conversely, it highlights the substantial rewards of embracing transparency, such as building stronger customer loyalty, achieving market differentiation, and fostering improved stakeholder relationships, as seen with Patagonia and Johnson & Johnson. Ultimately, it emphasizes that honesty enables brands to navigate challenges, learn from mistakes, and achieve sustained long-term success.






SPEAKER_01:

Welcome to the Deep Dive. We're here to cut through all that noise, look at the sources and really pull out the key insights you need to get properly well informed.

SPEAKER_00:

Yeah. Digging deep.

SPEAKER_01:

Exactly. And today we're diving headfirst into something huge in this world where, let's be honest, almost nothing stays hidden forever. How does a brand actually build success that lasts?

SPEAKER_00:

Or maybe more to the point, how does it crash and burn?

SPEAKER_01:

Right. That's what we're unpacking today. The critical importance of transparency for brands right now. We're drawing a lot from the unveiled brand. Truth, Trust, and Triumph.

SPEAKER_00:

Great book. Really lays it out.

SPEAKER_01:

It does. And our mission here is to show you why dodging the truth. Well, it's not just a mistake. It can be a complete catastrophe waiting to happen.

SPEAKER_00:

Absolutely. But also the flip side.

SPEAKER_01:

Yes. And how embracing like radical honesty can actually lead to, well, triumph, like the title says. So what are the real hard risks for brands playing hide and seek with the truth?

SPEAKER_00:

And what are the rewards, maybe surprising rewards, for being radically open?

SPEAKER_01:

Okay, let's unpack this.

SPEAKER_00:

Let's do it.

SPEAKER_01:

So starting with the dangers. What happens when a brand tries to hide the truth? the fallout can be just devastating,

SPEAKER_00:

right? Oh, definitely. The first thing that usually goes is trust.

SPEAKER_01:

That fragile bridge with the customer. We all know trust is important, but when it's broken through deception.

SPEAKER_00:

It shatters. And you don't just lose one customer.

SPEAKER_01:

No, you gain someone who's going to tell everyone. And deal with social media today.

SPEAKER_00:

Oof, yeah. That betrayal goes global instantly. It just eats away at your foundation.

SPEAKER_01:

Think about Dieselgate. Volkswagen, you know, a brand that basically meant reliability.

SPEAKER_00:

German engineering. Solid stuff.

SPEAKER_01:

And they get caught red-handed, deliberately cheating on emissions tests. The fallout wasn't just like a slap on

SPEAKER_00:

the wrist. Billions in fines. But more than that.

SPEAKER_01:

Exactly. Their reputation, their legacy, just irrevocably stained. Such a clear example of how fast public opinion can sour.

SPEAKER_00:

And how long those consequences stick around. It's fascinating, isn't it? Beyond the immediate cash hit, the speed, the perception just hardens. It's not a quick dip in recovery. It's this deep, lasting scar on goodwill. It could take decades to fade if it ever truly does.

SPEAKER_01:

Right. Look at VW. The fine was huge. Sure. But that lingering distrust, that might be the more damaging thing long term.

SPEAKER_00:

That's a really key point. It makes you wonder, is there a point of no return? Can a brand actually recover from something like that?

SPEAKER_01:

Or are some wounds just permanent? And it's not just losing customers, is it, when trust goes?

SPEAKER_00:

The lawyers often get involved.

SPEAKER_01:

Yeah, the legal battles. Regulatory bodies everywhere are getting tougher on transparency.

SPEAKER_00:

They really are.

SPEAKER_01:

So brands being deceptive aren't just facing bad PR. They're looking at real fines, lawsuits, serious legal trouble.

SPEAKER_00:

Which costs money, obviously, but also damages the reputation even further, sometimes maybe beyond repair.

SPEAKER_01:

Look at the Wells Fargo fake accounts scandal. Remember

SPEAKER_00:

that? Well, yeah, huge.

SPEAKER_01:

Employees are under crazy pressure, so they created millions of accounts customers never asked for just to hit targets.

SPEAKER_00:

Unbelievable, really.

SPEAKER_01:

And the consequences? Massive fines, billions, legal battles that just dragged on and on.

SPEAKER_00:

Top executives had to go.

SPEAKER_01:

Yeah, resignations. It just screams, you know, this is the severe legal and professional disaster you court when you hide the truth.

SPEAKER_00:

And it's not just the giants like Wells Fargo anymore. We see scrutiny increasing everywhere. Data privacy, where ingredients come from.

SPEAKER_01:

Everything.

SPEAKER_00:

The legal landscape is almost daring brands not to be up front. It makes you ask, is hiding the truth just kicking the can down the road?

SPEAKER_01:

Usually towards a much bigger, more expensive explosion.

SPEAKER_00:

Pretty much. Often at a much higher cost later.

SPEAKER_01:

Exactly. Which leads to a third risk, maybe less obvious, but still really significant.

SPEAKER_00:

Which is?

SPEAKER_01:

Missing out on the chance to learn and grow. When a brand hides its mistakes, it's not just covering up. It's actively avoiding learning from what went wrong.

SPEAKER_00:

That's a good point. Stagnation through secrecy.

SPEAKER_01:

Right. Acknowledging errors, taking steps to fix things that can turn a negative into a huge positive. It shows you actually care about getting better.

SPEAKER_00:

Demonstrates integrity. Shows you value feedback, even the tough stuff.

SPEAKER_01:

For a really powerful contrast, think back to Johnson& Johnson in the 80s, the Tylenol tampering crisis.

SPEAKER_00:

A classic case study. An absolute nightmare scenario.

SPEAKER_01:

Unthinkable crisis. But what did they do? They didn't duck and cover. They pulled everything off the shelves nationwide.

SPEAKER_00:

Cost them a fortune, didn't it?

SPEAKER_01:

Millions. But they communicated openly, constantly with the public. Total transparency.

SPEAKER_00:

And it worked. Yeah. They didn't just restore trust.

SPEAKER_01:

They actually reinforced their commitment to safety, set a whole new standard for crisis response.

SPEAKER_00:

That Tylenol case is practically a masterclass in managing crisis through transparency. It really proves that gut reaction to hide. It's usually wrong long term.

SPEAKER_01:

Yeah.

SPEAKER_00:

Confronting the problem head on, being open, Johnson& Johnson showed that can actually strengthen your brand's integrity, not destroy it.

SPEAKER_01:

Turned a potential catastrophe into like a defining moment of building trust.

SPEAKER_00:

Exactly. It's a

SPEAKER_01:

powerful lesson, isn't it? Because on the flip side of all these dangers, there's this huge potential upside.

SPEAKER_00:

Right, the opportunities.

SPEAKER_01:

So what happens if a brand actually dares to be open? What are the promises of embracing that radical transparency?

SPEAKER_00:

The first big one is building that deep loyalty.

SPEAKER_01:

Yeah. Transparency fosters serious brand loyalty. It makes sense, right? Consumers stick with brands they feel are being straight with them about products, practices.

SPEAKER_00:

Their values even.

SPEAKER_01:

Totally. Look at Patagonia. They're not just selling you a jacket.

SPEAKER_00:

No, it's much more than that.

SPEAKER_01:

They sell this whole commitment to the environment, to sustainability, and they're incredibly open about all of it, the good and the bad.

SPEAKER_00:

Their supply chain, their impact.

SPEAKER_01:

And that approach. It hasn't just built loyalty. It's created this like tribe a dedicated following of people who really care about those issues

SPEAKER_00:

people who connect deeply with that mission

SPEAKER_01:

okay so that's loyalty second big reward getting a real competitive edge

SPEAKER_00:

standing out from the crowd

SPEAKER_01:

especially in industries where maybe the competitors are a bit cagey being open makes you different immediately

SPEAKER_00:

think about everlane The clothing retailer.

SPEAKER_01:

Their whole thing is radical transparency.

SPEAKER_00:

Exactly. They tell you about their factories, how much things actually cost to make.

SPEAKER_01:

Like leaving their price mark up. They just lay it all out there.

SPEAKER_00:

And that level of honesty. It hits home for consumers who care about ethical practices, who want to know where their money is going.

SPEAKER_01:

Yeah, it really resonates.

SPEAKER_00:

And if you connect that to the bigger picture, this isn't just some niche ethical play.

SPEAKER_01:

No.

SPEAKER_00:

It's a core strategic differentiator. The market's crowded. People are skeptical. So trust, authenticity, that becomes incredibly valuable.

SPEAKER_01:

Like a currency.

SPEAKER_00:

Precisely. It attracts a certain kind of customer, often really engaged, who might even pay more for that transparency.

SPEAKER_01:

That makes sense. And building on that. How do brands like Everlane see that edge play out beyond just initial sales? Because that connects to the third reward.

SPEAKER_00:

Turning customers into advocates.

SPEAKER_01:

Exactly. Turning them into your biggest cheerleaders. When people genuinely appreciate a brand's honesty, they don't just buy again. They talk about it.

SPEAKER_00:

Word of mouth. Yeah. Still so powerful.

SPEAKER_01:

Incredibly. Recommendations from friends, family, that carries way more weight than some slick ad campaign.

SPEAKER_00:

Right. Absolutely. And even if problems pop up, transparent brands often find those customers stick by them.

SPEAKER_01:

They become advocates, almost like a defense force spreading positive messages.

SPEAKER_00:

It builds resilience.

SPEAKER_01:

Definitely. And it's not just customers. Fourth reward. Stronger relationships across the board.

SPEAKER_00:

With all stakeholders.

SPEAKER_01:

Yeah. Employees, investors, partners. When a brand is honest, even about challenges.

SPEAKER_00:

It builds trust internally too. Creates a better culture.

SPEAKER_01:

Employees feel more connected, more motivated. Working for a company they feel has integrity.

SPEAKER_00:

Makes sense. And investors.

SPEAKER_01:

They're more likely to back a company that's open about finances, strategy. They see it as less risky, better governed.

SPEAKER_00:

Right. Transparency signals stability. And partners appreciate the clarity, too. Makes collaboration easier, more reliable.

SPEAKER_01:

It all ties together, which brings us to the fifth and maybe ultimate reward, long-term resilience and growth.

SPEAKER_00:

The big picture outcome.

SPEAKER_01:

Brands that are consistently honest build this really solid reputation over time, one that can actually handle scrutiny.

SPEAKER_00:

And bounce back stronger from crises.

SPEAKER_01:

Exactly. And this constant honesty. It fits perfectly with what consumers are demanding more and more now.

SPEAKER_00:

Corporate social responsibility. CSR.

SPEAKER_01:

Yeah. People want to know how stuff is made, who made it, what values the company really lives by.

SPEAKER_00:

It's not just about a good product anymore. Not by a long shot.

SPEAKER_01:

So transparency becomes this key factor driving long-term success, helping brands not just survive, but actually thrive for the long haul.

SPEAKER_00:

It's really shifted, hasn't it? Transparency isn't just some optional policy. It's becoming a core expectation. It's shaping the very definition of what a successful, responsible brand is in the 21st century.

SPEAKER_01:

So let's quickly recap this deep dive then. The risks for brands hiding the truth. They're huge. Losing trust, legal nightmares, missing chances to improve.

SPEAKER_00:

Significant dangers.

SPEAKER_01:

But the rewards for embracing transparency, also huge and maybe more lasting. Building that deep trust, getting ahead of competitors.

SPEAKER_00:

Turning customers into fans, strengthening all your relationships.

SPEAKER_01:

And achieving that real long-term resilience and growth.

SPEAKER_00:

Substantial benefits.

SPEAKER_01:

It really shows us transparency isn't just, you know, a tactic. It's fundamental to building brands today.

SPEAKER_00:

Absolutely the foundation. It

SPEAKER_01:

really makes you think, doesn't it, about the brands you deal with every day. So maybe next time you're choosing something, the question isn't just what am I buying? It's also what kind of brand am I actually choosing to connect with here?

SPEAKER_00:

And what values are they genuinely living by? Right. It definitely raises an important question for all of us, really, as consumers. What kind of relationship do we actually want to have with the brands that are part of our lives?

People on this episode

Podcasts we love

Check out these other fine podcasts recommended by us, not an algorithm.

Uncensored CMO Artwork

Uncensored CMO

Jon Evans
On Strategy Showcase Artwork

On Strategy Showcase

Fergus O’Carroll
HBR On Strategy Artwork

HBR On Strategy

Harvard Business Review