Not to make light of the horrendous human and environmental tragedy in Japan, but Toyko Electric Power isn’t the only company suffering a meltdown of late.
Right here in Wisconsin in recent weeks we’ve been treated to a catastrophic case of corporate miscommunication – one that should really go into somebody’s textbook.
Contaminated Products
The company involved bills itself as one of the nation’s largest suppliers of medical prep pads used in hospitals, medical clinics, and even households to prevent infections. It also makes children’s cold medications, nasal sprays, suppositories, acne pads and other health-related products – many sold in drug stores and found in bathroom medicine cabinets nationwide.
The company’s very public troubles began when a Texas couple filed a lawsuit alleging that their two-year-old son died from a bacterial infection following a routine medical procedure in which one of the company’s alcohol wipes was used – a wipe that the lawsuit contends was contaminated.
After news of the possible contamination spread, more cases of infection surfaced, though none, so far, was fatal. One Colorado hospital that reportedly used more than 2,500 of the company’s sterilization pads a day tested their supply and found two-thirds of the pads contaminated.
The company has denied all wrongdoing. It has voluntarily recalled three products, but declined a Food and Drug Administration request to stop production of all products after an agency inspection found contaminated products and unsanitary working conditions in the company’s plant. Only when federal marshals arrived at the plant to seize $6 million in products – to prevent the company from distributing them – did the company “voluntarily” shut down.
Communciations Catastrophe
So what has the company’s communication strategy been during this crisis? Primarily to not return reporters’ phone calls and be unavailable for comment – both of which often lead readers to conclude that somebody is guilty of something, that someone has something to hide, or both.
This week, the co-owner and chief operating officer of the company granted a newspaper interview for a story that included comments from former employees – three of whom agreed to be named in the story – blasting the company for unsanitary practices, forcing supervisors to falsify training results, and threatening anyone who raised a red flag.
Incredibly, the co-owner somehow managed to make the gathering communications catastrophe even worse with comments such as:
- “We would not be manufacturing for more than 30 years if we did not take quality seriously.”
- “We have customers saying, ‘We will wait for you. We like your products, we know they are safe, and we want you to come back.’”
- “I don’t believe they occurred,” referring to the numerous allegations from former employees (a comment that is most revealing in terms of understanding how the company ever got to this point)
The co-owner went on to say how they’re working to improve their operations and learn from their mistakes.
What's Missing?
Noticeably:
- Any expression of sympathy for the family of the dead child (you don’t have to take responsibility to show empathy and compassion for parents who have lost a child)
- Any indication that the company takes the allegations seriously and honestly wants to determine if its products harmed people
- Any hint that the company has any interest other than circling the wagons, issuing blanket denials that anyone did anything even remotely wrong, and hoping to fool anyone who can be fooled into believing that this is all one, big mistake and that they are the real victims in all of this
A Better Approach
So how could they have handled this in a more effective way? Well, how about following the example set by Johnson and Johnson, the makers of Extra Strength Tylenol – one of the truly classic case studies of how to get crisis communications right.
In 1982, seven people died from taking Extra Strength Tylenol that had been laced with cyanide. To this day, no one knows how the poison got into the capsules, and no one was convicted of the murders – though a prime suspect spent 15 years behind bars for trying to extort the company out of a million bucks “to stop the killing.”
More than 180,000 news stories told the entire world that if you took Tylenol, you might die. All Tylenol products were removed from store shelves nationwide. It cost the company $100 million.
Yet Tylenol eventually regained 100% of the market share it had enjoyed prior to the crisis. A big part of the reason was the triple-safety-seal packaging the company introduced when it put products back on store shelves.
But the company’s communications strategy from day one also played a critical role. Johnson and Johnson is given credit for:
- Making its number one priority protecting the public – not defending its brand, avoiding blame, or even shielding itself from lawsuits – but protecting the public, period
- Being totally open, honest and accessible with the news media – not unavailable for comment, or unwilling to do anything other than repeat ridiculous talking points over and over again
- Expressing sincere concern and sympathy for the victims
And this was at a time when companies – including Johnson and Johnson – hadn’t even heard the words “crisis communications plan,” much less developed one.
Imagine what a company could accomplish today with just a little bit of planning, preparation and practice.
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