Originally from Alternatives to the High Cost of Litigation

PAGE PREVIEW

In Part I last month, the authors dissected the nature of apology, why it works, and how it can be dangerous to your case. This month, they use high-profile examples to discuss how a conciliatory approach can affect reputation and stature.

* * * 

Let’s look at one entity’s conciliatory handling of a crisis. In 1981, Johnson & Johnson’s sales from all varieties of Tylenol were estimated at more than $400 million, and expected to reach $500 million by 1983. But on Sept. 29, 1982, the first of seven deaths occurred in the Chicago area, all attributed to tainted bottles of Tylenol. 

After the deaths, the nonaspirin drug’s share of the $1.2 billion painkiller market fell from to 7%, from 35%. In one poll, a majority of Tylenol users said they probably would never return to the capsules. “Tylenol’s ‘Miracle’ Comeback,” Time (Oct. 17, 1983). A year after the poisonings, public confidence was restored.