They could have kept Galliano on board and made him issue a public apology, but I don't think that would have been as effective. I'm sure a PR team weighed all their options and told management that the only way to put out the fire was to terminate Galliano.
The fact that this happened in Paris, which was occupied by Nazis during the war, is astonishing. It just goes to show how racism and/or persecution still survives in Europe. If I was on the PR team for Dior I might also have done some sort of donation campaign. What I mean by that is I would have donated clothes to families that had ancestors in the holocaust or a Jewish organization. This would emphasize their remorse for the situation. Obviously companies, don't want to throw away money at every crisis, but in the long run it may brought back unhappy customers.
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