| Crisis Communication - Case Study #1 - *This is a true | | | | sabotaged the production line? Was the company |
| case study and all details are correct, except the | | | | operated by dishonest people? The rumor mill started. |
| names have been changed to protect the identities. | | | | All of the company's meat products were withdrawn |
| Frank* grew up on an apple and orange orchard in the | | | | from sale. |
| riverland where his parents owned a small fruit juice | | | | The media themselves decided that maybe there was |
| manufacturing plant. Antonio* grew up in the city | | | | more to the story than met the eye. Why wouldn't the |
| where his parents ran a popular small goods shop | | | | company talk? They must be hiding something. Maybe |
| selling their own meat products such as salami and | | | | a disgruntled employee would spill the beans? Several |
| prosciutto. Both men loved their family businesses, and | | | | reporters decided they might be on to a scoop and |
| both men went to University to gain qualifications to | | | | set about unearthing information. Antonio and his family |
| grow their burgeoning empires. Frank attracted some | | | | were repeatedly contacted. But they remained silent, |
| venture capital to grow further and re-named the | | | | hoping the problem would just go away. |
| company 'The Nipped in the Bud Fruit Juice Company'*. | | | | Frank reported back to a media gathering that the |
| Antonio relied on family money to expand and his | | | | factory had been fully investigated and nothing |
| 'Meat Me in St Louis'* brand attracted a big following. | | | | improper could be found. He offered the media a |
| Both companies were very successful, and Frank and | | | | guided tour of the factory and provided them with |
| Antonio were proud of their achievements. They both | | | | inspection reports, a diagram of the factory and it's |
| lived in the same city, but didn't know each other. | | | | work processes, and provided a list of relevant |
| However, something was to happen that would affect | | | | suppliers. He even asked a government health official |
| forever the future fortunes of these two successful | | | | and the local Mayor to provide testimonials as to the |
| entrepreneurs. First one little girl got sick. Then another | | | | company's compliance and high standards. |
| child and another and another. Many residents in an | | | | After many weeks of open communication the sales |
| aged care home suddenly started falling sick with | | | | of Frank's fruit juice very slowly started to increase. |
| serious gastroenteritis. Investigations showed that | | | | Then it was revealed that the source of the |
| some people had drunk contaminated orange juice | | | | contamination was from a batch of oranges sourced |
| from The Nipped in the Bud Fruit Juice Company. | | | | from another supplier. The public trust surrounding |
| Other investigations found that some different people | | | | Frank's company gradually started to increase. More |
| had eaten contaminated salami and metwurst | | | | retailers than before wanted to stock Frank's fruit juice |
| produced by 'Meat Me in St Louis'. In total, 260 people | | | | because of the positive media that had been |
| were very sick, and then the ultimate tragedy occurred | | | | generated from the crisis. Two years later, Frank |
| - a six year old girl died. | | | | launched a new blended fruit juice and it was very |
| Frank and Antonio were devastated. Frank | | | | warmly received; their best launch ever. |
| immediately called a media conference and expressed | | | | Antonio never returned to his factory. All the meat |
| his sincere sympathy to all the families and promised | | | | products were destroyed and the factory was closed |
| that he would do everything he could to get to the | | | | down. Antonio's father died of what some people said |
| bottom of this tragedy. He told the media, and | | | | was a broken-heart. The family business, and |
| therefore the public, that he couldn't be sure the | | | | reputation, was destroyed. And the reason for the |
| contamination came from his manufacturing plant, but | | | | contamination was never revealed. |
| he would leave no stone unturned in finding the truth. | | | | These are two different reactions to a very similar |
| He promised to report back his findings within 48 hours. | | | | crisis, with vastly different outcomes. Frank had a |
| Sales of his fruit juice plummeted. | | | | Crisis Communication Plan; Antonio did not. Frank knew |
| The media turned their attention to Antonio. What | | | | what he had to do to protect the image and reputation |
| would he say? What would he do? He said nothing. | | | | of his company; Antonio did not. |
| He did nothing. Publicly. In private, Antonio was very | | | | What are your crisis communication skills? Would you |
| upset. He told his family that he was very concerned | | | | know exactly what to say, to whom, and when? Did |
| about the family of the little girl who had died and | | | | you know it's not just the media you have to deal |
| everyone who had suffered from eating their product. | | | | with? How will you investigate a crisis? Or should you |
| He felt that if he said nothing publicly then maybe the | | | | leave it to the 'experts'. How will you win back |
| fuss would die down. He didn't want to draw attention | | | | customers, and their trust? Do you know why you |
| to himself. He hoped another bigger story would soon | | | | NEVER let lawyers run your crisis communication |
| come along and that people would forget about the | | | | planning? Do you know what to give the media and |
| contaminated products. A health department | | | | what to hold back? Do you know exactly how to |
| spokesperson said the factory would be thoroughly | | | | retain the image and reputation of YOUR business |
| inspected. Was there reason to believe the factory | | | | without spending thousands of dollars? We do. |
| didn't comply with health regulations? Had an employee | | | | |