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Bad Bite To Reputation

In industries of high public trust reputation is of critical importance. The food industry is a prime example. Food poisoning is on a very steep rise. It is estimated that it has leapt almost 80 percent in a decade. And it can impact any part of the food industry – from restaurants to food processors and manufacturers – all are vulnerable to reputational damage. With schools and businesses now coming back on stream there is heightened potential for damage.

Each year an estimated 5.4 million Australians are affected by food poisoning, including 120 deaths and more than 1.2 million visits to doctors. The estimated annual cost of food poisoning is $1.25 billion and the number of lost work days is 2.1 million.

In OzFoodNet’s most recent nine-year survey period they linked 68 food poisoning outbreaks to eggs alone with 1404 Australians ill, 322 hospitalised and two deaths.

And in the current three-months period – the Christmas/holiday season – there have been 14 food recalls, ranging from Mexican Salsa Peanuts to pancakes, hash browns, cider, cheese, biscuits, bread, beans and beetroot.

Behind each of these is a company whose reputation is now damaged. The consumer has doubts about the veracity of the product, as well as the hygienic nature and standards of the manufacturing process.

History is littered with companies which have collapsed because they have not managed the situation, nor their reputation effectively.

This is where token food recall crisis management ‘on the fly’ and ‘let’s keep our heads down’ attitudes can do irreparable damage to a company. This approach does not ‘cut it’ in today’s media and voracious social media world.

The traditional media, now often led by social media, can become a nightmare for unprepared companies. A single tweet can turn an issue into a full-blown crisis of global proportions.

Companies have no basis to think they can get away with it. Unfortunately, investment in preparedness is still neglected today, despite the facts.

The adage “fail to prepare, prepare to fail” is typical of many companies. They are paying lip service to having a crisis plan, having it tested and having it maintained for currency.

But doing ‘the right thing’ by consumers and the community, plus putting ‘reputation goodwill in the bank’ can only be achieved by an effective crisis plan and preparedness for an issue.

RMK+A has more than 30 years’ experience in preparing companies for crises and in dealing with  issues, as well as developing and testing crisis plans.

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