BulletProofBlog the blog on crisis communications

Each week, Bulletproof Blog features exclusive interviews with thought leaders on issues of critical importance to companies and countries. This week, with high-profile recalls of peanuts, pistachios, and countless other food and consumer products making headlines, we interview Brett Berty and Mike Rozembajgier, the Senior Recall Strategist and Director of Recalls, respectively, for Stericycle Expert RECALL services.

Together, Mr. Berty and Mr. Rozembajgier, who lead Stericycle' s industry-leading Expert RECALL team, have guided companies through the complex logistical, regulatory, and communications challenges associated with product recalls more than 1,300 times over. At a time when increased regulation and a renewed public focus on product safety have raised the stakes in any recall situation - and in advance of their much-anticipated presentation at the Directorship NACD Global Forum on June 9, 2009 - they shared their insights with Bulletproofâ„¢:

How can companies experiencing a high-profile recall best protect both the corporate reputation and consumer trust in affected brands?

Brett Berty and Mike Rozembajgier: We advise clients that there are two primary goals in every recall situation: protect the public and protect the brand. The key to achieving both is fast action - so that affected products come off the shelves as quickly and efficiently as possible, and so the associated reputational damage is limited by turning what could be a month-long story into one that fades in just a matter of days.

Of course, the ability to act fast is entirely dependent on what the company has done to prepare in advance of the recall. Any company with recall liability needs to build its recall team, establish standard operating procedures, and practice those procedures thoroughly long before problems arise. If you' re not prepared, you' ll be flying blind at the moment of truth and unable to communicate the fact that safety is your top priority through both deed and word.

In almost every recall we' ve been called upon to manage, the company is remembered more for how it handled the recall than it is for what made the recall necessary in the first place. That fact underscores the importance of preparation. Without it, fast action and quick decision-making simply aren' t possible.

With the Consumer Product Safety Improvement Act taking effect in 2010, what can companies do to prepare for a new era in recall regulation?

Brett Berty and Mike Rozembajgier: The Consumer Product Safety Improvement Act has raised the stakes dramatically. Now, if a company fails to adequately protect the public during a recall situation, $15 million dollar fines and even 5 years of jail time are in the offing. What drives the stakes even higher is the reality that the plaintiffs' bar is always watching to see if a company falls short of its government mandated responsibilities - as this is a sure sign that a big class action award or settlement could be right around the corner.

First and foremost, companies need to understand how new regulation affects their industry and company. In most cases, "sourced components" - or the materials that a company buys to manufacture its own products - are going to be a prime area for increased due diligence. Understanding how your retailers are affected will also be important, as the new liabilities they face could lead them to simply remove all your products from the shelves - instead of only the affected ones - should your recall response not be up to snuff.

Once the Consumer Product Safety Improvement Act becomes enforceable in 2010, the government will be looking for message cases that burnish its watchdog credentials. Companies will either plan accordingly, or fail do so at their own peril.

What' s next with respect to product recalls? Are there issues emerging on the horizon that companies with recall liability need to be aware of?

Brett Berty and Mike Rozembajgier: It goes without saying that the new administration is monitoring product safety pretty closely, so we can expect even more recalls in the future. Simply put, 2007' s Year of the Recall was likely only the beginning.

Also - and this is a relatively new phenomenon - companies really have to keep an eye on the Web in recall situations these days. Not only because it provides a source of intelligence as to where the next recall might hit; but because digital technologies and social media have opened new channels for consumer groups, plaintiffs' attorneys, and government regulators to spread their own recall messages. If you don' t want your adversaries telling your recall story for you, you need to be ready to engage your audiences in these same online venues.

Larry Smith is Senior Vice President of Levick Strategic Communications and a contributing author to Bulletproof Blog.