World Continuity Congress conference on 7th October 2015 at Pullman Putrajaya Lakeside by BCM Institute

2. Product Tampering: Business
Continuity and Regaining Trust
MOHD SYAMSYUL SHUIB
ZETI SUHANA ZAINUDIN

3. Contents
5. Business Continuity
1. Problem Statement
2. Product Tampering & Product Recall
3. Example Cases
4. Business Impact: External & Internal
6. References & Conclusion

4. How can companies optimize their business
continuity plan to regain consumers’ trust
from product tampering threats?
Problem Statement

5. WHO
Companies, Manufacturer,
factories
Product tamperingWHAT
HOW
Regain trust through Business
Continuity
Problem Questions

6.  Refers to intentional modification of
products after they have been
manufactured in order to make it
harmful to consumers. [1]
 Nonphysical damage crisis
 Human caused hazard
[1] USLegal.com from http://definitions.uslegal.com/t/tampering/
Product Tampering

7. A recall plan should strive to achieve the following
goals:
 Protect consumer health
 Comply with existing rules and regulations
 Minimize the cost of the recall
 Regain and improve the company’s reputation
The removal from distribution, sale, or consumer
use of a product that does not comply with
legislation in Malaysia and due to the discovery of
safety issues.
Product Recall

8. • Company’s voluntary product recall
program (Positive response)
• Government agency force to recall the
product (Negative response)
Product Recall

9. From the Advisen database: A look at product recall cases by Chad Hemenway on June 19, 2014
Product Recall

10. Statistic Verification
Source: US Consumer Product Safety Commission
Research Date: 4.28.2013
2124
Malaysia Taiwan United
States
China
23
299
685
FranceS’porePortugal
21
66
Japan
70
Number of Product Recalls by Country of Origin
Product Recall

11.  23 May 2014
– Cadbury chocolates analysed by the Ministry of Health tested
positive for traces of porcine DNA.
• Cadbury Dairy Milk Hazelnut 175g
• Cadbury Dairy Milk Roast Almond 175g
 24 May 2014
– Voluntary nationwide recall of the affected batches.
– without actual laboratory test results for verification.
 26 May 2014
– JAKIM's monitoring and halal enforcement team
collected samples at the factory.
 2 June 2014
– JAKIM verified that test results for
both affected batches are halal.
Example Case: Cadbury

12. 4 August 2013
 Danone Dumex (Malaysia) Sdn Bhd
• recall certain of its milk products such as Dumex
Dupro, Mamex Cherish, Mamex Explore and
Bebelac
 The measure was taken in lieu of the warning by New
Zealand authorities related to a whey protein
concentrate (WPC) product manufactured by Fonterra.
 Clostridium botulinum contamination which can cause
food poisoning or botulism.
Example Case: Dumex

13. Business External Impact

14. 1
Drop in sales &
financial
performance
Experience brain
drain
Massive cost of
product recall
Managing May
Be Weakened
Infighting within
management
Concerns from creditors
and shareholders
2
3
5
6
4
Business Internal Impact

15. • Safety (Injury)
• Health (Illness / Death)
Consumer/User Impact

16. Cost, Health & Safety Impact

17. Crisis Management – defined as actions taken by
the company in response to an emergency
situation in an effort to minimize injury or loss of
life.[1]
Crisis Communication – refers to the public
relations aspect of crisis management,
communicating both internally and externally
about what happened and what the company is
doing to manage the crisis.[1]
[1] Principle of Incident Response and Disaster Recovery,
Michael E.Whitman & Herbert J.Mattord 2007
Business Continuity

18. PRE -
CRISIS
DURING-
CRISIS
POST -
CRISIS
Crisis Management

19. Pre-Crisis
1. Objective: Manage perceptions & combat
rumours
2. Plan / protocol / method
3. Procedures / manual
4. Team (Spokesperson)
Crisis Management

20. 5. Training & Testing
– Desk Check
– Talk- throughs
– Walk-throughs
– Simulation
* To help organization prepare for the crisis.
Crisis Management

21. 6. Insurance
7. Tamper proof label
Crisis Management

22. During crisis
1. Take charge quickly.
2. Establish facts: Assess crisis situation
3. Tell the company’s version of the
story: Holding statements
4. Fix the problem
5. Key messages
Crisis Management

23. Crisis communications: Managing Corporate Reputation in the court of public opinion (Ivey Business Journal)
Crisis Communication

24. Guide to use social media in crisis
management
1. Timing is everything
2. Own the conversation
3. Stick to a designated source
4. Give a call to action
5. Don’t lash out
Crisis Communication

25. Post-crisis (crisis under control)
1. Recoup losses
2. Evaluation of crisis handling & Effectiveness
of execute plan.
3. Revise the crisis plan / procedures if need to
4. Evaluate effectiveness of executed plan
5. Initiatives to give consumers a reason to
trust again e.g. crisis preventive measures
Crisis Management

26. Post Crisis Management

27. Post Crisis Management

28. Post Crisis Management

29. Post Crisis Management

30. Conclusion
1. Contingency plan need to be prepared in
advance
2. Appoint dedicated spokesperson
3. Act fast
4. Crisis management consultants
5. Accurate information
6. Short term and long term effects

31. References
1. USLegal.com from http://definitions.uslegal.com/t/tampering/
2. http://mystandard.kpdnkk.gov.my/mystandard_portal2014/index.php?r=column/cfiv
e&id=67
3. Ohio State University Extension Fact Sheet, Understanding the
Recall Concept in the Food Industry; Gönül Kaletunç, Ferhan
Özadali; http://ohioline.osu.edu/aex-fact/0251.html
4. Crisis communications: Managing Corporate Reputation in the court
of public opinion (Ivey Business Journal)
http://iveybusinessjournal.com/topics/the-workplace/crisis-communications-
managing-corporate-reputation-in-the-court-of-public-opinion
5. The 5 Step Guide To Using Social Media in Crisis Management
http://www.jeffbullas.com/2014/06/26/a-5-step-guide-to-using-social-media-in-
crisis-management/

32. 6. Crisis Management Planning and Execution by Edward S. Devlin, 2007.
7. Marketing Interactive Advertising, marketing, media, PR & events
news from SG, Malaysia, Hong Kong & Asia. http://www.marketing-
interactive.com/cadbury-malaysia-invites-religious-leader/
8. Product Recall Management for Halal Product , Middle-East Journal of
Scientific Research 13 (Research in Contemporary Islamic Finance and
Wealth Management), 2013.
9. Product Recall Statistics Statistic Brain
http://www.statisticbrain.com/product-recall-statistics/
10. Principle of Incident Response and Disaster Recovery, Michael
E.Whitman & Herbert J.Mattord 2007
References

33. Thank
You