News that Nestle USA today was cooperating with a Food and Drug Administration recall of its Toll House cookie dough wasn't enough. A visit just now to www.nestle.com simply has a headline "Toll House Cookie Dough" halfway down the page..not exactly an urgent matter to the corporation. And, unless you click through, you'd never know there was a recall that might be connected to E.coli.
This is called burying the bad news. In a crisis, it's best instead to get the bad news out early, anticipate all questions and concerns, and start addressing them early on with consumers and other stakeholders.
Nestle USA's current public statement said it was cooperating in the recall but then said:
"...as soon as the situation has been clarified, Nestlé USA will put this much-loved product back on the market."
I'm betting that consumers right now aren't really interested about cookies that might be contaminated will be back on the market. It would have been better if the company explained everything it was doing to keep customers safe and how exactly it is cooperating with the FDA and other officials.
I've long stressed here that companies must stop hiding the bad news. If people start getting seriously ill or die, the company could be accused of not being honest enough in its communications about the potential dangers of its products.
It reminds me of when another food company, Taco Bell (subsidiary of Yum! Brands) promoted a college football sponsorship on its homepage in late 2006, rather than notify people about the fact thatt 22 people in multiple states had fallen ill because of E.Coli, primarily at three New Jersey restaurants.
The Internet allows companies to communicate effectively in a crisis. However, all too many companies risk their reputations by hiding the bad news and not using their websites, blogs and social networking sites to alert concerned consumers. And that's a good way to lose business over the long term.
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