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as published in the Moncton Times and Transcript August 29, 2008
At the time I am writing this 15 deaths have been attributed to a strain
of bacteria called listeria that has been traced to meat products from
a Maple Leaf Foods plant in the Toronto area. Dozens others are sick.
I mention this because by the time this shows up in print the fatality
and illness count could well have increased. For those who have lost
loved ones, it’s as tragic as it gets.
For someone like me who works in the field of crisis communications
though, my attention is drawn to how the company is handling what amounts
to any company’s worst public relations nightmare. Watching this
unfold is a fascinating case study in crisis communications.
What is rare, and decidedly refreshing, is the unconditional apology
and unequivocal responsibility Maple Leaf Foods has offered and assumed
through company president Michael McCain. While almost any other CEO
facing this situation would be doing and saying everything possible
to avoid responsibility in this kind of circumstance, McCain isn’t
even allowing any wiggle room. There’s no weasel words about no
solid proof the plant was totally to blame, no trying to shift responsibility
to federal food inspectors or suppliers or anyone else, and no hiding
behind the need for a full investigation before commenting. Rather,
a sincere apology and a frank admission it is Maple Leaf’s responsibility.
To quote “This week, it’s our best efforts that failed,
not the regulators or the Canadian food safety system. I emphasize this
is our accountability and it’s ours to fix, which we are taking
on fully.”
I expect this position is driving Maple Leaf lawyers crazy. Usually
in crisis situations, it is the lawyers who talk the CEO out of apologizing,
or taking any measure of responsibility. The reason is that they feel
such an admission will hurt them later in court. I’m no lawyer,
but I do know crisis communications, and there are a growing number
of case studies that show that such actions do not lead to more lawsuits
or larger payouts. They will be sued anyway. In fact in this case there
are, as of this writing, no fewer than four legal firms who have already
contacted victims and have announced intentions to proceed with class
action suits.
Will the fact McCain has stepped up to say he’s sorry and assume
responsibility cost them financially? It will be years before we know
the answer to that, but in crisis communications, there is an amazing
link that shows that the morally right thing to do is inevitably the
right thing to do for the company.
Consider that McCain instead had refused to comment, or his statements
were legally coached “safe” comments. Even if this meant
a legal victory in the courts of law, the price Maple Leaf would pay
in court of public opinion would be too high. But far too often, this
is a mistake companies in crisis make.
There are notable exceptions though. When a Swiss Air plane crashed
off Peggy’s Cove a few years ago, the CEO defied company lawyer’s
advice and immediately provided money to families to travel to Nova
Scotia. He did it because it was the right thing to do. Did it hurt
them? Legally, who’s to say, but from a public relations point
of view it positioned the company as caring and responsible. In crisis
communications, there is nothing more important. And that is exactly
the way McCain is positioning Maple Leaf Foods in the current situation.
These days these public relations battles are fought out as much on
the Internet as they are in the conventional media. That’s where
much of the public register what they think, on various blogs, on everything
from Facebook to You-tube. It has become the battleground where companies
in crisis situations can make it or break it. For Maple Leaf Foods,
it has become one of the fronts where they are fighting for their survival.
I have been monitoring some of these on-line forums and what strikes
me is the kudos the company is receiving for the way it is handling
this. Words like “surprising” and “refreshing”
come up repeatedly. It appears the vast majority of people see the company’s
response as sincere and responsible, and most add that Maple Leaf Foods
is a good company, well managed, and some add that once this is over
they will go back to purchasing its products.
It’s fair to speculate that if the company response was less than
what it has been, the blogs, and by extension the reaction of the Canadian
public, wouldn’t be nearly as positive.
Maple Leaf Foods stock is tumbling, the lawyers for claimants are circling
with class action suits that promise to keep them in the courts for
years, their plant in question is closed, the direct costs from the
recall, the PR effort, lawyers and regaining public confidence will
easily go into the tens of millions of dollars, and we don’t even
know yet how much worse this will get as far as illnesses and fatalities
are concerned. But the company has no choice. It is fighting for its
very survival.
So will the company survive given that one of its products is linked
to the deaths of at least 15 consumers? For a food company this is about
as bad as it gets and while I have no crystal ball, my best guess is
yes they will. And a big part of the reason will be the way Michael
McCain has stepped up with a timely, sincere apology and a no nonsense
assumption of responsibility.
The way Johnson & Johnson handled the Tylenol crisis of 1982 has
been hailed as the definitive example of good crisis communications.
It’s in all the crisis textbooks. Truth be known, J&J has
perhaps benefitted more from clever post-crisis PR than from the way
in which they actually handled the crisis, but regardless, it’s
the standing example. It’s way too early to say how history will
look back on the Maple Leaf Foods crisis, but I dare say that Michael
McCain has raised the bar.
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Duncan Matheson is president of Bissett Matheson Communications,
a Fredericton, Saint John and Moncton based firm that specializes in
crisis communications.
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