Crisis Management

The public opinion has a strong focus on the companies that do not fulfil their social responsibilities. The consumers feel disappointed when it suddenly appears, that a product is being manufactured by children or produced under conditions that are dangerous to the workers because of insufficient personal protective equipment, heavy block of stone, dangerous machinery or other hazards.

In most cases the problem lies with the suppliers or sub-suppliers - maybe even if they have signed your Code of Conduct or other documents requiring social responsibility. But although the problem arises from your suppliers, the criticism will de directed at your company who is seen to be responsible for this. For this reason it will be necessary for your company to control your suppliers if you will avoid public criticism.

Should it, however, happen that the media can document serious problems by one of your suppliers, the only reasonable response is to commit the casualties at once - and to explain what you will do to avoid that kind of problems in the future.

Do not hide anything in that kind of situations, but put your cards on the table and give an excuse. If the media finds out that a company has not been honest from the beginning it will hit very hard later on. So make a realistic planning of how to improve the bad conditions as fast as possible - if necessary you must cancel the supplier - and try to communicate your plan to the media and to follow up on this communication afterwards when the plan is implemented.

Ethical Trade Solutions can assist in creating a crisis- and communication plan, which presents realistic actions to solve the problem, if such a situation should happen. But of cause it is much better to prevent such critical issues by addressing the social responsibility of your suppliers in due time - and to secure that you make systematic follow up to control them.

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