Abstract : On July 5, 2025, Lorenzo Bertelli, head of Corporate Social Responsibility at Prada Group, an Italian luxury fashion house, faced a growing controversy after the federation of Kolhapuri artisans in India filed a Public-Interest Litigation (PIL) in the Bombay High Court. The petition alleged that a sandal presented in Prada’s Spring–Summer 2026 menswear show closely resembled the Geographical Indication (GI)-protected Kolhapuri chappal. The design triggered widespread social media criticism and public debate about cultural attribution. Prada acknowledged that the company was inspired from traditional Indian footwear, and began discussions with industry representatives regarding possible collaboration.

With the immediate reputational pressure stabilizing, Prada now confronted a broader decision about its response and future positioning in India. The company had to determine whether to withdraw the design and disengage, defend the sandal as an independent reinterpretation, or pursue a structured collaboration with Kolhapuri artisans through co-branding or a limited collection.

Learning Objectives

The case allows students to analyze how organizations respond to reputational controversies involving cultural heritage, intellectual property, and global market expansion. It presents a situation in which, students must identify the managerial challenge faced by a company, where legal exposure, stakeholder expectations, and strategic growth considerations intersect.

After working through the case and assignment questions, students should be able to:

• Diagnose the managerial challenge a firm faces during a reputational controversy, and determine what decision the leadership must address.
• Analyze the roles, interests, and influence of multiple stakeholders, including consumers, artisan communities, regulators, and the media.
• Assess the strategic risks and opportunities a public controversy creates for brand positioning, market entry, and long-term reputation.
• Evaluate alternative response strategies, including withdrawal, defense, and collaboration, and consider their implications for organizational legitimacy and stakeholder relationships.