A company must maintain open communication with the public at all times.  In a crisis situation, executives will be accountable for what they say and the actions that they take (or do not take).

The Tylenol Crisis

In October 1982, Tylenol Brand faced crisis when seven Chicagoans died after taking Extra-Strength Tylenol capsules.    It was reported that someone tampered with the products once they reached the shelves.  Large amounts off cyanide were found in the affected Tylenol capsules.  

Once the deaths were linked to Tylenol, Johnson & Johnson took action.  They made a national statement to warn Americans not to consume the product.  Johnson & Johnson then pulled more than 31 million bottles of Tylenol from shelves nationwide and ceased advertising for the brand.  

Although this action cost the company more than $100 million dollars, Johnson & Johnson recognized the importance of responsibility and the need to take immediate action.   

In February 1982, Tylenol made a second complete recall when another woman was reported dead after consuming cyanide tainted Tylenol.  

 This total accountability approach to crisis management was risky, but saved Tylenol’s brand in the long run.   Johnson & Johnson followed the Golden Rule of Public Relations:  Put people first, property second.

Chaos and the risk of irreparable damage can be reduced with implementation of a solid crisis management plan.   Do you have a crisis management plan in place?

Take Action!  Read Wednesday to learn how Johnson & Johnson rebuilt the Tylenol brand.