Buzz
Mentioning a corporation often brings to mind a cold, unfeeling entity focused solely on protecting its own interests, often at the expense of others. While companies like Monsanto, Chiquita, and various pharmaceutical giants frequently take the spotlight during corporate scandals, it’s disheartening to realize that even well-known household brands aren’t exempt from such behavior. What makes it worse is that these are the very companies we’ve grown to trust and admire.
10. Starbucks (Reportedly) Hindered Ethiopia’s Attempt to Trademark Its Coffee
Coffee became a hot topic in 2006 when the National Coffee Association opposed Ethiopia’s effort to trademark three of its renowned coffee varieties in the US, claiming it would “harm” their economy.
As the controversy began to draw public interest, Oxfam—a UK-based organization fighting poverty—alleged Starbucks was the driving force behind the NCA’s decision. The group highlighted how Ethiopian farmers earned just one dollar per pound of coffee, while Starbucks sold it for up to $26 per pound. Amid the uproar, Starbucks denied influencing the NCA and maintained its commitment to supporting farmers’ welfare.
Unlike many corporate scandals, this story concluded positively. In 2007, Starbucks and the Ethiopian government came to a mutual agreement, granting Ethiopia trademark rights for its three coffee varieties. In return, Starbucks was acknowledged as a preferred purchaser of Ethiopian coffee.
9. Coca-Cola Attempted to Market Coke as a Health Drink
While Coca-Cola’s goal to boost sales is no surprise (the company even developed an online guide for restaurants to increase Coke sales), its aggressive marketing crossed a line with the 2008 “Motherhood and Myth-busting” campaign in Australia. Featuring actress Kerry Armstrong, the campaign aimed to convince mothers that Coke was healthy by debunking “myths” about its effects. The infographic claimed Coke didn’t contribute to childhood obesity, damage teeth, or contain harmful levels of caffeine.
Unsurprisingly, outraged parents, consumers, and dental professionals flooded the company with complaints about its deceptive campaign. Ultimately, Coca-Cola withdrew the advertisements and issued an apology. Additionally, Australian authorities compelled the company to launch a “Setting the Record Straight” campaign in 2009 to correct its previous misleading claims.
8. Nestle’s Aggressive Marketing of Infant Formula in Developing Nations
Before fast food’s health impacts became a contentious topic, infant formula was at the center of a major scandal in the 1970s. Reports revealed how Nestle and other multinational food companies aggressively marketed infant formula in developing nations. The company used dubious tactics, such as dressing saleswomen as nurses to promote their products to new mothers in hospitals and clinics.
These “milk nurses” encouraged mothers to use the formula by distributing free samples, which often reduced their ability to breastfeed. As a result, mothers had no choice but to purchase the formula, often unaware of the consequences. Activists argue this led to a decline in breastfeeding and a sharp rise in infant malnutrition and mortality.
While Nestle attempted to defend itself by filing a lawsuit against its primary critic, the activist group War on Want, a widespread, long-term boycott across multiple countries pressured the company to revise its marketing strategies and limit the promotion of infant formula.
7. Cadbury Reduced the Size of Its Creme Eggs (While Claiming They Stayed the Same)
Cadbury, the confectionery giant, angered chocolate enthusiasts worldwide when it falsely claimed its iconic Creme Eggs hadn’t shrunk. Taking advantage of the product’s seasonal nature and consumers’ short memories, Cadbury quietly reduced the size of the eggs and insisted they hadn’t gotten smaller—they had simply “grown up.” The deception might have gone unnoticed if not for actor B.J. Novak.
A devoted Creme Egg fan, Novak compared a 2005 egg with one from 2007 during an interview with Conan O’Brien. The comparison revealed that rising sugar costs in 2006 had led Cadbury to downsize the eggs. Rather than admitting the mistake, Cadbury later claimed it had introduced a new size range to cater to diverse global preferences.
6. Mattel’s 1965 Barbie Doll Promoted Unattainable Weight Standards
While it’s not accurate to claim Mattel deliberately encouraged young girls to develop anorexia, the company did release a Barbie doll that subtly promoted unhealthy weight loss. The 1965 Slumber Party Barbie included a scale set to 110 pounds and a book titled How To Lose Weight, which bluntly advised, “don’t eat.”
In contrast, the Ken doll featured a glass of milk and a pastry. Although the full impact of this doll on young girls at the time remains unclear, Slumber Party Barbie emerged during an era when eating disorders and weight-related issues were poorly understood and rarely discussed. Two years later, Mattel introduced Sleepytime Barbie, which removed the scale but kept the problematic weight-loss book.
5. Abercrombie & Fitch’s Clothing Exclusively Targets the Attractive
While Abercrombie & Fitch is known for targeting a younger, more attractive demographic, CEO Mike Jeffries stirred controversy in a 2006 interview by openly stating the brand’s preference for customers who are “cool, popular, and good-looking.”
For those who didn’t fit this image, Jeffries made it clear they weren’t welcome, even defending the absence of larger sizes by stating the brand didn’t cater to overweight individuals. His remarks resurfaced years later with the rise of social media, sparking outrage. Angry consumers organized boycotts and encouraged buying Abercrombie & Fitch clothing to donate to the homeless. The backlash led to Jeffries’ resignation, accompanied by a lukewarm apology, while the new leadership pledged to make the brand more inclusive and considerate of all customers.
4. IKEA Exploited Forced Labor During the 1970s and 1980s
Although DIY furniture is among the least likely products to be linked with slavery, IKEA acknowledged this dark chapter in its history when a 2012 report by Ernst and Young exposed the use of forced labor from East German political prisoners by the company’s subcontractors. While IKEA did not directly employ these prisoners, its suppliers in East Germany did.
IKEA employees aware of the practice remained silent or actively concealed the truth. Former prisoners recounted how prison authorities imposed strict production quotas, with failure resulting in at least 10 days of solitary confinement. They also revealed that they were fully aware they were producing parts for IKEA, as prison guards didn’t hide the company’s logos on storage boxes. Following the revelations, IKEA’s German head issued an apology, and the company is working with victims to reach a fair resolution.
3. McDonald’s Impractical Budget Advice for Low-Income Employees
Given McDonald’s status as one of the world’s most recognizable and wealthiest brands, it’s somewhat understandable that its executives might be slightly disconnected from the realities faced by their lower-wage employees. This disconnect became glaringly apparent when McDonald’s, in collaboration with Visa, released a sample budget guide titled “Practical Money Skills Budget Journal.”
Although the budget plan had been in use since 2010, it gained widespread criticism in late 2013 during nationwide strikes by workers demanding higher wages. Critics slammed the budget as unrealistic and demeaning, particularly for suggesting employees work a second job and spend only $20 monthly on health insurance. While McDonald’s CEO Ben Thompson argued the budget was designed for a two-person household, critics countered that it only highlighted how difficult it is for minimum-wage workers to survive.
2. Mitsubishi Concealed Product Defects for Three Decades
While often overshadowed by scandals involving General Motors and Toyota, Mitsubishi’s corporate misconduct stands out due to its deliberate concealment of vehicle defects for an astonishing 30 years.
Employees routinely hid customer complaints in lockers and conducted repairs in secret, following company directives. The practice might have continued indefinitely if not for a police investigation into a 2002 incident where a pedestrian was killed by a detached wheel from a Mitsubishi truck.
Further investigations revealed past incidents and accounts of Mitsubishi representatives secretly negotiating with vehicle owners to keep the issues under wraps. The scandal forced Mitsubishi’s executives to admit to the decades-long cover-up and recall nearly a million vehicles. Despite the severity of the misconduct, the company faced only a $37,000 fine and the resignation of its CEO.
1. Kellogg’s Offered to Feed Hungry Children in Exchange for Re-Tweets
While feeding hungry children is a noble cause, leveraging it as a marketing strategy is bound to backfire. Kellogg’s UK learned this the hard way in November 2013 when it faced widespread backlash for promising to provide free breakfast to a child in need—but only if people re-tweeted the company’s post.
Unsurprisingly, Kellogg’s “1 RT = 1 free breakfast” campaign sparked widespread outrage, as it appeared to exploit the plight of hungry children for promotional purposes. Critics accused the post of resembling a threat (“re-tweet or no food for the kids”) rather than a genuine appeal for support. Following the backlash, Kellogg’s removed the post and issued a sincere apology for the misstep.
