History of crisis: how bad things happen to good companies
Saturday, 18 August 2007
l Johnson & Johnson, the healthcare products group, is still cited as a case of how to get it right. In 1986 it was discovered that some bottles of its Tylenol painkiller had been laced with cyanide. Although Tylenol contributed to 15 per cent of its profits, J&J ordered a recall and did not return the product to the shelves until tamper-proof packaging had been devised.
l Ford Motor and Firestone blamed each other after evidence emerged in 2000 that defective Firestone tyres had contributed to accidents involving Ford Explorer sport utility vehicles. Firestone tried to wash its hands of the problem by citing incorrect tyre pressure and maintenance procedures. The saga left Firestone vulnerable to its subsequent takeover by Japan's Bridgestone.
l Air France won praise for its response to the crash of a supersonic Concorde jet shortly after take-off from Paris in 2000. The airline grounded its other Concordes immediately. Jean-Cyril Spinetta, its chief executive, adopted a high profile. He attended victims' funerals and offered compensation to their families even before a formal agreement had been concluded.
l Ford Motor and Firestone blamed each other after evidence emerged in 2000 that defective Firestone tyres had contributed to accidents involving Ford Explorer sport utility vehicles. Firestone tried to wash its hands of the problem by citing incorrect tyre pressure and maintenance procedures. The saga left Firestone vulnerable to its subsequent takeover by Japan's Bridgestone.
l Air France won praise for its response to the crash of a supersonic Concorde jet shortly after take-off from Paris in 2000. The airline grounded its other Concordes immediately. Jean-Cyril Spinetta, its chief executive, adopted a high profile. He attended victims' funerals and offered compensation to their families even before a formal agreement had been concluded.