Who is Telling the Truth: Racism in Business and 'Unlawful Retaliation'
Entertainer and businessman Sean Combs and liquor brand Diageo claim a different set of facts
Who's telling the truth or much more of it? And what does the reputation risk landscape look like now and moving forward?
Headline, The Daily Beast
Diddy Sues Liquor Giant Diageo for ‘Unlawful Retaliation’ Following Racial Discrimination Suit (see the link to the story: here)
by Decca Muldowney, reporter and researcher
Sean “Diddy” Combs and liquor company Diageo are not getting along, at all. It’s an ugly divorce as divorces often can be over failed expectations, feelings of betrayal and of course, money. The two sides are now neck deep in the thick of it, a legal battle.
The relationship, in pieces and irretrievably broken.
Regardless, work has to be done to untangle themselves from one another.
Combs says the brand is unethical and practicing “unlawful retaliation” against him by putting an end to their business relationship — surprise (!) — for filing a lawsuit against it for what he says is a “pattern of racial discrimination.”
The two parties worked together for 15 years, until June of 2023, a month after a lawsuit was filed. The relationship soured when Combs noticed that Diageo neglected or rejected continued support of his Cîroc Vodka and DeLeón Tequila brands.
Combs says in the petition that Diageo has “done all it can to retaliate” against him, including “blackballing Mr. Combs in the spirits industry.”
Combs and his attorneys say in the lawsuit that he is a victim of Diageo’s power and abuse, writing that the company is “doing everything it can to send a message, not only to Mr. Combs but to others like him: Speak up and you will be punished.”
Observers and critics know this type of behavior happens. A lot. On the regular, as some people are fond of saying.
So let’s ask question that can be asked in conflict situations like this that is worthy of pondering: How did we get here? First, what sort of behavior did Combs notice, experience and find hurtful and offensive? Then, let’s see what Diageo asserts.
“Diageo representatives began cancelling meetings and failing to timely respond to communications written by Combs Wines’ representatives, which was out of the norm," says Robert T. Chin, Head of Spirits at Combs Wines and Spirits. “And, for the first time, Diageo took the position that Mr. Combs was not allowed to attend meetings with Diageo about DeLeón.”
That communicates something powerfully negative to people in a relationship.
Of course, it’s respectfully important to learn what the company claims.
“This is yet another attempt by Mr. Combs to extract funds from Diageo after the organization has invested tens of millions of dollars in the marketing and development of DeLeón, in contrast to Mr. Combs’ total investment of $1,000,” A Diageo spokesperson told The Daily Beast.
Notice the picture that Diageo is trying to paint. The company is claiming they are the doing everything, as the good guy, for Combs, with very little effort, commitment and responsibility on his behalf in return. The company is painting Combs as ungrateful and entitled. That’s a seed being planted in the media as much as for the courts.
“We are disappointed that Mr. Combs continues to damage the DeLeón brand while attempting to litigate a business dispute resulting from his own inability to effectively collaborate and sufficiently contribute. These allegations are completely without merit, and we will defend against them.”
Another haymaker and a typical corporate, dismissive approach. The two parties clearly are not in a collaborative negotiating frame of mind to move on from what they want to be the end of their relationship.
Instead, they are playing legal system heavyweight fight.
Combs has communicated that Diageo has been “proven unwilling to treat its Black partners equally,” and “treated Mr. Combs and his brands worse than others because he is Black.” Combs says his products have been called “Black brands” by the company, and only marketed to “urban customers.”
If his legal team can provide credible, clear evidence of this, it might be a wrap in favor of the petitioner in this case. That will be a high bar to meet yet one would have to assume that Combs and his lawyers have facts, evidence and proof to make the claims that they are making and that what’s transpired is much more than feelings.
What Combs is saying is plausible. In business, he might be a credible person. Is what he is saying truthful? Mostly so? Somewhat? Or not at all?
It would be smart of Diageo to realize that if what Combs is stating did indeed take place and therefore is factual, that negotiating in good faith with him and his attorneys is a smart play.
If however, if the facts Combs are claiming are not fully factual, then Diageo should still consider negotiating in good faith, yet assertively, as an act of risk mitigation. This is not to say to give in to someone or some group that is morally bankrupt. It’s recommending to keep the big picture in mind and conduct helpful forward thinking.
“Combs alleged that Stephen Rust, Diageo’s President of Reserve and New Business, told him in 2019 that Combs’ race was the reason the company limited the neighborhoods where the products were sold, and that if Combs were ‘Martha Stewart’ it would be different, according to the suit,” Muldowney reports.
Diageo says that’s hogwash and countering that it was Combs who communicated, “this wouldn’t be happening if I were Martha Stewart.” The company additionally claims that Combs “asked to be paid millions of dollars more under threat of publicly accusing Diageo of racism.”
Uh oh. Did Combs communicate it? Was there a witness or more than one, credible? Can the quote be otherwise proven? If so, that is a big dent, if not a hole, in the case.
That doesn’t mean that Combs lied about everything or that he can’t emerge with a favorable judgment and financial compensation.
It does show what Combs or people are willing to do sometimes when they feel the other party is not being honest about what happened and is refusing to do the right thing or try hard to show character and problem solve.
Who is telling the truth or much more of it: Combs or Diageo?
Michael Toebe is a reputation consultant, advisor and communications specialist at Reputation Quality, assisting individuals and organizations with further building reputation as an asset or ethically protecting, restoring or reconstructing it.
Subscribe for free or become a paid subscriber to receive and access “extras,” whichever works best for you.