AWB turns crisis into a scandal: Honesty really can be the best policy

Abstract

Purpose

The purpose of this paper is to highlight the circumstances in which a crisis-response strategy can compound a crisis. The paper focuses on AWB Ltd, Australia, where the organizational damage of a “cover-up” caused additional damage to the company.

Design/methodology/approach

It provides an insight into the application of theories and research on crisis and reputation management and the specific challenges and risks of corporate scandals.

Findings

It demonstrates that corporate scandals can easily descend into a secondary or “double crisis” if incorrectly managed, or even mismanaged.

Practical implications

Examines the initial failed response strategy and the more appropriate response eventually undertaken by the company.

Originality/value

Offers the additional insights of the author, as a former member of the management team at the company.

Citation

Pollitt, D. (2014), "AWB turns crisis into a scandal: Honesty really can be the best policy", Human Resource Management International Digest, Vol. 22 No. 7, pp. 18-20. https://doi.org/10.1108/HRMID-10-2014-0136