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Dealing with Products and Managers that Fail: Corporate Cyanide and Executive Suicide

Other 'celebrated' cases of product recalls

What would you do if a health scare affected your firm? © Photolibrary Group

Perrier provided a classic example of a firm failing to be open with its public and suffering the consequences. When traces of benzene were found in their bottled water, the company appeared to put their financial results first, but ended up causing more long-term damage to their reputation than if they had taken full responsibility from the outset.

Perrier is a French national icon which is now owned by Nestle. In 1990 authorities in North Carolina, USA, reported finding low levels of benzene, (a carcinogen), in the firm's bottled water. The company, which was then known as Source Perrier, claimed that the contamination was an isolated incident, caused by an operator error at an American filling plant. A limited number of bottles of Perrier water were recalled in North America and the firm hoped that no lasting damage to its reputation had been caused.

But Perrier's hopes were dashed when it emerged that benzene was also present in its bottled water in Europe. Source Perrier had to face the anger of European consumers who, after all, were faced with the fact that they had been drinking contaminated water for several months. Highly embarrassed, the firm recalled products worldwide.

The media savagely criticised the company, saying they had shown a shocking disregard for consumer safety.

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