The issue did not go away. As U.S. leaders in Congress began to learn about this very offensive logo and name, the pressure on Colgate mounted. Interestingly, however, the value of Colgate’s stock...

The issue did not go away. As U.S. leaders in Congress began to learn about this very offensive logo and name, the pressure on Colgate mounted. Interestingly, however, the value of Colgate’s stock increased throughout this period of controversy. Wall Street seemed oblivious to the charges against Colgate, and this was another reason why Colgate took no action. Colgate management believed that an issue about overseas products should not have a negative effect on the company’s domestic image. However, pressures continued from groups such as the Congressional Black Caucus, a strong political force. Colgate finally began to waver, but because of its agreement with Hawley and Hazel, it felt helpless. As one Colgate executive remarked, “One hates to let exogenous things drive your business, but you sometimes have to be aware of them.”