Vulnerabilities Carnival has a reputation problem. It is perceived outside of its enthusiastic customer base as lacking integrity and transparency. The reputation ranking available showed Carnival ranked on a list of brands most targeted by activist groups (Ranking the Brands, 2019). Top complaints of activist groups were environmental abuses and labor/wage practices. There is also negative visibility as a result of Carnival ships lying to US government agencies, not protecting passenger safety and not paying taxes in the US. There are sensational stories of crimes, accidents, and passenger deaths that have resulted in lawsuits and congressional investigation. Carnival does not have a reputation as an honest and transparent company, and its silence about issues has caused further damage to its reputation.
Current Risks to Reputation Environmental Record In 2016, Carnival incurred the largest ever criminal penalty for environmental violations: $40 million (Geeky Explorer, 2020). In 2019, Carnival violated the correctional conditions of the 2016 mandate and incurred an additional $20 million in penalties (MacDonald, 2019). Carnival is known as a frequent polluter among environmental activist groups. In its 2020 Cruise Ship Report Card, Friends of Earth reported “All Carnival Corporation companies committed criminal environmental violations from 2017 to 2020.” Greenwashing Environmental statements are made only on websites. The absence of this conversation on social media indicates a lack of conviction. Claims of environmental concern or progress feel dubious when considering the body of evidence of environmental violations. Pandemic and Illness Cruise ships have a reputation for spreading illness onboard. Carnival exacerbated this reputation by mishandling coronavirus outbreaks on ships in the early days of the pandemic. 7
