AWB turns crisis into a scandal: Honesty really can be the best policy. Issue 7 (13th October 2014)

• Record Type: Journal Article
• Authors: Pollitt, David
• Is Part Of: Human resource management international digest. Volume 22:Issue 7(2014)
• Page Start: 18
• Page End: 20
• Publication Date: 2014-10-13
• Subjects: Corporate governance -- Risk management -- Change management -- Corporate communications -- Crisis management; Personnel management -- Periodicals; 658.3124
• DOI: 10.1108/HRMID-10-2014-0136
• Languages: English
• ISSNs: 0967-0734

Abstract

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.