What happens when the public has a loss of trust in your company. Traditionally we have been taught that trust and reputation are key brand values.

The departure of Barclays Bob Diamond and COO Jerry del Missier for whole Libor rigging scandal has no doubt planted the seeds of distrust in the Barclays brand. Tax avoidance schemes, the credit crunch, and subsequent government bailouts has made the public become suspicious of all banks.

The fallout begins

With Bob Diamond due to appear before a select committee this week, and already threatening to fight back, the evidence could only be more public humiliation and embarrassment for Barclays.

Related to Libor scandal Boris Johnson has come under increasing pressure to scrap the Barclays sponsorship of London’s Boris Bikes.

Jenny Jones the Green mayoral candidate said “They are not the sort of people we want to be associated with. It would have been good to set up smaller sponsors who were ethically in line with the concept.”

TfL seem to be saying they could break the contract with Barclays and find a new sponsor.

Barclays a brand in crisis

Trust in a brand is very hard to define. In most cases it directly relates to customer satisfaction or ethical alignment. In Barclays case they have built a strong brand strategy as secure and trustworthy. They have been forced to engage with their customers and have adopted a friendlier tone in their communications.

If indeed this whole debacle has damaged Barclays, it will be interesting in the months or years to come what crisis plan or strategy they employ to repair the brand. In Bob Diamond own words “Banks must win back trust from the public and be better citizens.”

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