With friends like these…

If the last few weeks have taught us anything, it is to be careful who you outsource or subcontract any pieces of your business to.

News Corporation and phone hacking, and Walmart, Target and slave labour, are the tip of a very big iceberg.

And despite the outrage reflected in the blanket coverage of the recent events, this is not a new issue. Back in the late 90s, Nike, the oracle of empowerment, found themselves in the middle of a number of child labour scandals that caused customer outcry and a world of bad PR that dogged them for years.

As the saying goes “when things are good they are very, very good” – saving resources, focusing on core business, all the benefits, “but when they are bad they are horrid” – public enquiries, falling share prices, customers and advertisers running for the hills.

So what’s a business (and brand) to do? There are often real and necessary advantages to outsourcing certain aspects of operations. Forming partnerships is a key part of doing business in today’s world and surely a business can’t be held responsible for the work practices of those it chooses to partner with?

Sure they can!

After all, they chose to work with those specific companies or individuals over others. If appropriate due diligence and ongoing monitoring isn’t practiced then they get what they get. And often, what they get is a whole world of brand blow back.

“I didn’t know” might satisfy an English Parliamentary enquiry but it doesn’t cut it many other places (such as with customers). There is of course a whole other discussion about what you are outsourcing and why, but for today’s purposes I’ll stick with who.

The key thing to remember when outsourcing or subcontracting any aspect of a business is you are also outsourcing that part of your brand to them. And in the blink of a news cycle, what they do can become what you are known for.

So choose carefully. Do your homework. Ensure they share your values and goals. That the only criteria isn’t price. That their brand won’t undermine your brand. That you have appropriate and robust checks and balances in place. That the very gains outsourcing or subcontracting should give you in the short-term don’t become a burden in the long-term.

Brands are built on action and decision at a time and are the result of the promises you keep – even when the promises you make have to be kept by others.

See you next week.

Michel Hogan is an independent Brand adviser and advocate. Through her work with Brandology here in Australia and in the United States, she helps organisations make promises they can keep and keep the promises they make, with a strong sustainable brand as the result. She also publishes the Brand thought leadership blog – Brand Alignment. You can follow Michel on Twitter @michelhogan