Volume 7

Issue 2

February 2016

Coming Clean

Businesses are often told to be transparent--to focus on being honest, open, and accountable for their actions--and customers couldn't agree more. While businesses have adjusted their practices to become more transparent, and to meet and align with their customers' ever-changing expectations, something continues to be lacking. Being transparent about external practices is great and all, but what is going on behind closed doors? Having ethical internal practices that consumers can trust in wholeheartedly is what matters.

Good Intentions
Mexican food chain restaurant, Chipotle--which prides itself on using only the very best local, organic ingredients--has left some customers feeling queasy with its recent E. coli outbreaks. The World Health Organization indicates that, because organic produce is often fertilized with manure, it's more prone to fecal contamination. This process, in addition to improper food preparation procedures, creates a higher chance of food-borne illnesses. According to a New York Times article, 87% of organic recalls since 2012 were for bacterial contamination, such as salmonella and listeria, and the recall of organic produce continues to be on the rise.

As of February 1, 2016, the CDC determined the Chipotle E. coli outbreak to be over. However, despite extensive investigation, the CDC was unable to identify the source of the contamination. Whether it was due to the restaurant's food supply chain, or improper food preparation, Chipotle is sure to be more mindful of its operations going forward. To ensure safe practices going forward, Chipotle temporarily shut all 1,900 store locations on February 8, 2016 to hold a company-wide food-safety meeting.

Out from Under the Rug
While some business practices have had slip-ups along the way, other businesses have swept their indiscretions under the rug until admission was absolutely necessary, doing more harm than good for the brand's reputation. Food and beverage company Nestlé knows this all too well.

In November 2015, Nestlé, whose slogan is, "Good Food, Good Life," came under fire after admitting to using forced labor in its Thailand seafood supply chain. Verité, an organization that serves to help companies comprehend and handle labor issues, conducted a year-long investigation on behalf of Geneva-based Nestlé. While Nestlé has launched an action plan to counteract the problem, many customers feel outraged and state they wouldn't have bought the products if they knew they were tied to slave labor. Nestlé is currently being sued by pet food customers for use of the seafood's inclusion in its Fancy Feast cat food. Unfortunately, this is not the first time Nestlé has come under fire for its unethical practices. The company has been involved in several controversies, from baby formula to bottled water, and is currently involved in a lawsuit for child labor on its Ivory Coast cocoa farms.

Whether controversy is due to unintentional outcomes like Chipotle's, or a conscious mishandling like Nestlé's, no company is perfect; however, if a business runs into a problem, admits its indiscretions, and figures out an ethical solution, customers will be more willing to stay loyal to the business. If problems are handled improperly, customers could begin to hesitate on the support they show, and we all know public opinion spreads like wildfire. Keep your focus on honesty and accountability to help carry your company through controversy.

Sincerely,

Mona Graham

Monogram Communication Services
798 University Avenue
Sacramento, CA 95825
Phone: 916.922.0930
Fax: 916.922.0929

www.monogramcommunications.com

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