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May 5, 2008
Protecting reputation
Some companies seem to be moving more quickly now days to protect they their reputations. Take, for example, the response to the bisphenol A (BPA) controversy as noted in this weekend's Washington Post - Speeding Up Safety:
After a government panel said there was "some concern" that the chemical bisphenol A could be harmful to infants and small children, it took less than a week for Wal-Mart and Toys R Us to announce that they would stop selling baby bottles that were made with it.
The swift response stood in stark contrast to the drawn-out reaction to concerns about another chemical, polyvinyl chloride, or PVC, that go back to the 1970s. Ikea came up with a plan to remove PVC from its products and packaging in the early 1990s. Sears Holdings, the parent company of Sears and Kmart, pledged to do so just last December.
The actions of Wal-Mart and Toys R Us were also notable for what the companies didn't do: wait for lawmakers or federal regulators to step in or for scientific consensus about bisphenol A's negative health effects. In fact, they chose to disregard the Food and Drug Administration's position that food containers made with BPA were safe.
Maybe it helps that both Wal-Mart and Toys-R-Us have gone through the PR wars before. In this case, they want to be ahead of the curve.
In any event, this case illustrates the value of reputation and brand. Brand is not an asset that hangs out there by itself. The brand is only as good as the products/services/actions that back it up. Increasing your reputation for safety is one way to improve your brand -- especially if your primary market are parents of small children (ala Toys-R-Us).
Posted by Ken Jarboe at May 5, 2008 8:59 AM
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