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

1. The Wall Street Journal:
Five Critical Corporate
Lessons In Managing
Social Threats

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. 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. 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. 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. 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. 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. 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/