Here’s an example of reputation risk. As I have written, reputation risk is a second order risk which only occurs when some other first order risk manifests its ugly head. This is a type of outsource risk. While Easyjet may not have been responsible for what happened, they are accountable.
Easyjet has apologised after fashion photographs shot at the Holocaust Memorial in Berlin were published in its in-flight magazine.
In the pictures, models pose in designer clothes among the concrete blocks of the “Field of Stelae”.
The budget airline says it was unaware of the images until they appeared in the magazine, which is published by a company called INK.
Easyjet said that it was now reviewing its relationship with the publisher.
The memorial commemorates the six million Jewish victims of the Nazi genocide.
In a statement, Easyjet said it “profusely apologises” to anyone who was offended by the “inappropriate” shoot and said it would withdraw this month’s issue from all flights.
“Easyjet prides itself on bringing together a wide range of cultures and beliefs and is appalled by this insensitive and inconsiderate photoshoot,” the Easyjet statement said.
INK did not seek permission from the Foundation for the Memorial to the Murdered Jews of Europe to shoot the pictures.
The foundation only became aware that the photographs existed when contacted by the New Statesman magazine, which discovered the pictures.
Courtesy: http://news.bbc.co.uk/2/hi/business/8371208.stm