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Maple Leaf Foods

Decent Essays

In the summer of 2008 there was a widespread outbreak of listeriosis linked to deli meats produced in a Maple Leaf Foods, Inc. (Maple Leaf) plant in Toronto, Canada. The outbreak claimed over 20 lives and sickened hundreds. This reaction paper will take a deeper look at the crisis, analyze the company’s response, and address ethical issues related to the case such as responsibility, honesty, and transparency. Similar cases involving recalls made by Menu Foods, Tylenol and Mattel will be discussed as a contrast. Listeriosis is an infection caused by the bacterium Listeria monocytogenes. Listeria is a common bacterium found in all sorts of food plants but is dangerous at high levels, especially for adults over fifty, pregnant …show more content…

Rather the CEO tried to portray the company as a victim. Ultimately, the recall cost Menu Foods an estimated $53.8 million and the company faced multiple lawsuits. The company’s stock price fell as much as 91% within a year of the recall and was eventually purchased by Simmons Pet Food in August 2010.

In 1982, several people died as a result of taking Tylenol, which was contaminated with cyanide. After investigation it was discovered that the Tylenol were tampered with. Johnson and Johnson, the parent company, recalled all 31 million bottles and created a tamper-proof bottle. The recall and the new bottle design cost Johnson and Johnson over $100 million. It was a costly move for the company in the short-run but it was a smart and ethical strategy in the long-run as it helped rebuild costumer confidence in the company’s products.

Similarly in August 2007, Mattel recalled 20 million Chinese manufactured toys that had potentially toxic lead paint and magnets that could be dislodged. Mattel’s CEO took personal responsibility and the company aggressively notified the public about the recall. Mattel handled the recall quite well and was able to maintain a good brand reputation.

From the three examples provided above, the observation can be made that consumers react much more favourably to companies that take full responsibility when they make a mistake, work quickly to resolve the problem, compensate those affected fairly, and act in an

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