The severity of a crisis often escalates when mistakes are repeated. This was evident in the controversy surrounding Starbucks Korea's 'Tank Day.' Initially perceived as a minor social media marketing blunder, the situation intensified as police investigations began and political figures launched widespread criticism, transforming the issue into a societal debate. President Lee Jae-myung referenced Starbucks Korea's release of the 'Siren Classic Mug' during the 10th anniversary of the Sewol ferry disaster on May 23, amplifying the situation.
The President described the incident as the 'immoral behavior of a ruthless businessman,' indicating that it was not merely a practical error but a reflection of a lack of historical awareness. He specifically connected the 'Tank Day' controversy with the marketing during the Sewol memorial period, asserting that it was difficult to view it as an accidental occurrence.
This situation raises uncomfortable questions for corporations. To what extent should a corporate leader be held accountable for all marketing incidents that occur within the organization? This question transcends Jeong Yong-jin's individual responsibility and reflects a structural issue faced by all large corporations in the social media era.
In the past, corporate crises often stemmed from factory-related issues such as product defects, safety accidents, and accounting fraud. However, today’s crises emerge on digital platforms, where a single phrase, image, or event name can shake an entire corporation. The fast-paced nature of social media marketing is driven by operational teams, making organizations sensitive to clicks, virality, and engagement time. The problem is that social context and historical sensitivity can easily be overlooked in this process.
It is essential to approach this matter with a level-headed perspective. Based on the facts available so far, there is no evidence that Chairman Jeong directly instructed the controversial wording. In a large organization with thousands of employees, it is unrealistic to expect the leader to approve every digital marketing phrase.
However, it cannot simply end with 'I didn’t know.' Ultimately, the corporate leader must take responsibility for what occurs within the organization. It is crucial to distinguish between accountability and punishment. In South Korea, these two concepts are often conflated. Accountability refers to being the final manager of organizational operations, while punishment pertains to discussions of direct illegal actions or proven intent.
For instance, during a major recall crisis, Akio Toyoda, the chairman from the founding family of Toyota, appeared before the U.S. Congress. Although he did not design every defect, he demonstrated accountability as the CEO. Legal and criminal responsibilities were assessed separately.
The Tylenol crisis at Johnson & Johnson, often cited as a textbook case in crisis management, illustrates a similar principle. Despite the high likelihood of external criminal involvement in the tampering, the company initiated a full recall and engaged in open communication, refusing to evade responsibility.
A corporate leader cannot prevent every mistake within the organization. However, they must bear ultimate responsibility for how the organization operates. The core of this controversy lies in understanding why such wording was allowed to pass without checks. Why did internal voices warning that 'this is risky' fail to resonate? Why was there a lack of systems to review historical and social contexts?
Those who must answer these questions are ultimately the top executives.
It is also important to avoid interpreting this incident solely through a political lens. Jeong Yong-jin has previously been associated with strong political imagery due to past controversies, such as the 'anti-communism' debate, which has drawn this incident into a larger political narrative.
However, a clear-eyed view reveals that the core issue is organizational culture rather than politics. German philosopher Hannah Arendt stated, 'Evil arises not from monstrous intentions but from a failure to think.' This suggests that organizational insensitivity and complacency can be more dangerous than grand conspiracies.
The modern platform economy is an 'attention economy.' Companies sell not just products but also interest. Clicks, trends, fandoms, and endorsements drive sales. Starbucks Korea has evolved beyond a simple coffee brand to a platform centered on merchandise and events. The challenge arises when speed begins to overshadow philosophy.
Originally, Starbucks founder Howard Schultz described Starbucks as a 'third place,' a space for people to relax and connect between home and work. However, today, Starbucks has become a brand where fandom, scarcity, and merchandise consumption are central to its revenue structure. While this is not inherently wrong, modern consumer capitalism operates this way, with Nike and Apple also leveraging fandom and emotional marketing.
Yet, when the speed of events and trends takes precedence over brand philosophy, organizations become increasingly sensitive to 'what is trending' rather than 'what is right.' This controversy serves as a warning.
What Jeong Yong-jin needs to focus on now is not expressing grievances or crafting political defenses. The critical issue is how to transform the organization. Why have these incidents recurred? How did the review systems function? Was there a framework for assessing historical and social sensitivity? What are the ethical standards for digital marketing? What changes will be implemented moving forward?
These are the questions that must be addressed. This incident underscores that 'businesses exist within society.' Corporations do not only engage with the market; they are also connected to history, culture, and social memory, especially large corporations.
However, society must also maintain a level of rationality. It is dangerous to immediately equate every organizational failure with the personal crimes or malice of the leader. This conflates accountability with punishment. While corporate criticism is necessary, it should not devolve into a witch hunt.
Friedrich Nietzsche said, 'He who fights with monsters should be careful lest he thereby become a monster.' This is a sentiment needed in South Korean society today. Corporate insensitivity must be criticized, but a society that seeks to resolve every issue through political retribution is also unhealthy.
Ultimately, the key is the ability to manage crises. Great companies return to their essence in times of crisis, and great leaders do not shy away from those moments. What Jeong Yong-jin must do now is not merely repeat apologies but acknowledge the organizational failures, rectify the systems, and rebuild social trust. That is the responsibility of a corporate leader.
* This article has been translated by AI.
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