In August, 2008, listeria, one of food poisoning bugs, was found in a food product of a food company in Canada. This resulted in over 20 deaths and tens of people were taken to the hospital.
At this critical moment which would decide the fate of the company, the CEO of the company announced an apology, admitting full responsibility of the company despite the lawyer and accountant’s advice against it. Not only did he recall all their products, but he also closed down the plants. He also had his apology played on TV during the prime time. He also kept the information about the outbreak posted on the company’s website, and filed a petition to the government to raise the safety standards of food companies. Like this, he focused on restoring consumers’ confidence instead of calculating the profit and loss of the company.
Three months after the outbreak, the consumers’ confidence in this company increased dramatically from 60% to 91% in the Canada’s business confidence survey. The CEO of the company was selected as the “CEO of the Year,” and the following year, the company’s sales were restored. The CEO’s sincere apology and responsible behavior moved the hearts of the customers and saved the company from the crisis.
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