Resting on Your Reputation
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The Gold Standard for crisis communications is the 1982 response by Johnson & Johnson to tainted bottles of Tylenol. However, the company's leaders apparently forgot the standard they set as they dragged their feet for 20 months before recalling several hundred lots of moldy-smelling bottles of pain relief medicine. The company's Web site section dealing with the recall is hard to navigate and doesn't say what to do with the recalled product. And company officials have been unresponsive to emails and social media comments.
The Food and Drug Administration sent a letter January 15 claiming Johnson & Johnson failed to conduct a timely, comprehensive investigation of consumer complaints, identify the source of the problem and notify federal authorities. A few cases have been reported of the over-the-counter drugs causing temporary digestive problems and vomiting. Decomposing storage pallets have been blamed.
On the same day, Johnson & Johnson faced federal charges in Massachusetts, accusing it of paying kickbacks to a nursing home pharmacy that allegedly promoted its prescription drugs to elderly patients.
Marketing and communications experts say this conduct is out of step with Johnson & Johnson's high standards.
Ironically, the lead suspect in the 1982 incident when seven people in the Chicago area died from cyanide-laced Tylenol appeared in court this month, an eery reminder of the panic that surrounded the deaths and Johnson & Johnson's breathtaking response of pulling 31 million bottles of Tylenol from retail shelves.
Most people think the 1982 product recall by Johnson & Johnson was the main element of the crisis response. Actually, it was just the beginning of what became a textbook model for responding to a serious crisis. Here are some of the other actions Johnson & Johnson took, which helped to retain consumer confidence and loyalty in Tylenol:
- The crisis response effort was overseen directly by Johnson & Johnson CEO James Burke, who after retiring, led the Business Enterprise Trust, an association created to foster strong business ethics.
- The company's response was constantly assessed against its credo, written in 1935, of putting customers first.
- Employees were mobilized to make an astounding 1 million direct contacts with doctors and hospitals to reassure them of the quality of Tylenol and its commitment to patient safety.
- Reporters following the case were talked to on a one-on-one basis.
- Within six weeks, Johnson & Johnson introduced tamper-proof bottles.
Not surprisingly, Tylenol reclaimed 95 percent of its market share within three months of the recall.
Preserving your reputation involves more than just pulling your products off the shelf. It requires bold action tied to your core beliefs. Saving a brand means putting your customers' interests and concerns first.
You never can rest on your reputation. That's a lesson even the venerable Johnson & Johnson needs to remember.
Learn more about CFM's Reputation Management services.
Learn more about CFM's Crisis Communications services.
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