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ListenLogic - Wall Street Journal Enteprise Social Risk Lessons

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Review of the corporate social risk lessons ListenLogic's analysis report of the Chobani mold crisis commissioned by The Wall Street Journal.

Published in: Business, Economy & Finance
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ListenLogic - Wall Street Journal Enteprise Social Risk Lessons

  1. 1. The Wall Street Journal: Five Critical Corporate Lessons In Managing Social Threats
  2. 2. Overview: Situation Timeline September 5: Chobani issues a nationwide “voluntary withdrawal” of yogurt with apparent mold issues. September 6: WSJ commissions ListenLogic to conduct in-depth social universe analysis of the issue. September 9: ListenLogic delivers initial report to WSJ with analysis of the crisis and key takeaways for corporations. September 17: WSJ releases findings in their Risk & Compliance Journal entitled „Chobani Gets Lessons in Power of Social Media.’ Here is a review of five major lessons from the crisis…
  3. 3. Lesson 1: Advanced Warning Critical Chobani issues a “voluntary withdrawal” on 9/5/13, however open social universe analysis reveals increased mold discussion volume starting on 8/19/13 weeks prior to Chobani‟s reaction. 0 5 10 15 20 25 Chobani Mold Social Discussion Volume Lesson: Engage advanced real-time detection of emerging social threats to immediately get ahead of issues.
  4. 4. Lesson 2: Proactive Communication Key On 8/30/13 a grocery store employee tweets Chobani issues a “recall.” Chobani responds saying “we…assure you we haven‟t issued a recall.” Chobani later tells WSJ they issued a “voluntary withdrawal,” not a “recall,” but did not clarify this in their response, and initially indicated all was well with their product which caused further confusion and frustration. Lesson: Adopt a 4C crisis communication approach that is clear, concise, consistent and credible.
  5. 5. Lesson 3: Scope Understanding Important Chobani admits they were unprepared for the volume of consumer mold inquiries. As Chobani told WSJ, “We‟ve seen people frustrated online because they can‟t get through to our customer loyalty team…in a typical week we might see a couple thousand emails; now we‟re seeing multiples far greater than that.” Chobani‟s response issues have competitors and activists to pouncing. Lesson: Engage advanced social threat tracking technology/expertise to deliver clear understanding of the scope and complexity of the issue for more effective, timely response. John Stamos, Oikos Spokesman
  6. 6. Lesson 4: Risk Connection Crucial The delayed response in concert with Chobani‟s repeated use of what some consumers have called “canned responses” to health and issue inquiries indicates a seemingly lack of direct connection with their internal crisis experts (e.g. General Counsel, Chief Compliance Officer, etc.) and the issue. In this example the consumer states she does not feel safe eating Chobani, and Chobani‟s response Focus is on getting her new yogurt. Lesson: Develop a response strategy driven by crisis experts with genuine, direct responses on addressing consumer concerns.
  7. 7. Lesson 5: Smart Evolution Necessary Chobani admittedly has had clear multidimensional issues in identifying and addressing this crisis, but indicates they are looking to stay the course in their social strategy which they view as neither a marketing nor a risk- management function. As Chobani told WSJ, “It‟s not a marketing vehicle, it‟s an engagement vehicle…we wouldn‟t…put it under the risk function.” Lesson: Social media does not need to be solely under the risk function, but detecting threats and tracking risks from the open social universe is critical to protecting the enterprise and customers. Detecting these social risks should be directly connected to the enterprise’s risk stewards to not only immediately identify and mitigate these threats, but also provide a better, safer experience for customers.
  8. 8. Protect Your Brand For a complimentary review of your organization‟s social risk vulnerabilities as well as an analysis of the top five social threats currently facing your company, contact: Mark Langsfeld ml@listenlogic.com 215.283.6393 x102 Are you a professional who manages enterprise risk in Corporate Communications, Legal, Compliance, Finance or another discipline? Request your complimentary copy of the industry‟s first executive handbook on social risk at: ListenLogic.com/risk/enterprise-social-risk-book/

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