Date Published: 
11/19/2011

In early November, sparking a full blown crisis response, a video surfaced from a ‎group called Mercy for Animals, showing workers at a Sparboe Farms hatchery ‎abusing animals. The video was announced by ABC news.  The FDA is ‎investigating.  As a result of the controversy, McDonald’s has dropped the ‎supplier.  Target has also dropped the supplier.

The company launched a full on investigation, has fired the staff, and is working ‎to recuperate its reputation.  A Quote from the President on their website says:‎‎
“Regrettably, these incidents should never have happened in the first ‎place—but they did and we accept that responsibility. We were not as ‎vigilant as we should have been…”‎

The company, on its website, indicates that it is “strongly committed to egg ‎safety” and that “nobody does more for our animal’s care and welfare than we ‎do.” The company posts an Animal Care Code of Conduct on its website. The response by the company has included hiring 3rd party auditors, identifying ‎the individuals in the video and dismissing them, reinforcing animal welfare ‎policies, interventions with managers and staff, and a host of other responses, ‎including dealing with the FDA investigation.

 

Risk Management Perspective: 

The cost and consequences are substantial when a major incident like this ‎occurs. In many “status quo” production situations it is easy to become a little ‎lax in oversight exposing firms to big operational risks.

 

Industry Group: 
Large Enterprises
Industry: 
Food Manufacturers
Country: 
United States
Risk Class: 
Strategic
Risk Class: 
Operational
Risk Type: 
Reputation
Risk Type: 
Core Operations Failure
Risk Type: 
Quality Management
Risk Type: 
Compliance

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