A great deal of PR activity goes on behind the scenes, undetected by the general public. Crisis management, however, is one of the most recognized areas in the industry and often criticised. The word ‘spin’ comes to mind, as companies often wish to downplay an incident but instead get accused of spinning the truth.
The case of Odwalla is a notable CSR example from the late 90s. Odwalla positioned itself as a health-conscious beverage and had established a strong brand with increasing customer loyalty. However, when health officials in Washington state confirmed a link between Odwalla’s apple juice and several cases of E. coli 0157:H7, the company was faced with a serious crisis. After it was released that a child had died and 60 people in the Western United States and Canada became sick, sales fell a massive 90%.
Odwalla juice products
Upon learning of the crisis, Odwalla’s CEO immediately ordered a complete recall of all products at risk for contamination. The recall was completed over the course of 48 hours, involving 4,600 retail outlets in 7 states at a cost of around $6.5 million. Within 24 hours of the crisis, the company had set up an explanatory website that received 20,000 hits in 48 hours. They expressed sympathy and regret, and didn’t avoid responsibility in any way.
In the end, opinion of the business itself still varies but when it comes to crisis management, Odwalla’s case study shows a prime example of best practice. Accepting responsibility, keeping people informed, and adhering to honesty are crucial for businesses when handling a crisis and Odwalla ticks all those boxes without a doubt.
Tylenol handled their crisis similarly in 1986 when the outside contamination of their product led to multiple deaths. The voluntary recall of their product from every outlet, and not just those in the state where the tampering occurred, showed their concern for the well-being of their customers. Their honesty and quick action paid off in the long run, and the “lost revenues were easily compensated for in the long term by the preservation of brand value.” (Guardian, 1999)
Crisis management seems difficult to prepare for as a PR professional in that each situation is different and how the crisis is handled depends on the details of the crisis. One important element seems to be sticking to the facts and not making any assumptions as they could later turn out to be incorrect. Taking responsibility where responsibility is due is also very significant. In general, as in the Tylenol case, people will understand if the crisis was caused by an external factor so long as you accept what responsibility you can. Tylenol recognised that their packaging allowed for the product to be contaminated, and only released their product again once they had created a tamper-resistant bottle. Trying to absolve themselves of any responsibility in all likelihood would not have worked out in the same way.
