Corporate Responsibility in Crisis: What Did We Learn from Muji and Nongfu Spring?

Recently, Nongfu Spring (HK 09633) has found itself in a media storm after its bottled water was found to contain bromate levels exceeding the permissible limits. This incident reminded me of a similar situation in 2019, when Muji had to recall its mineral water due to the same issue. The responses of these two renowned brands to such crises were starkly different, offering a thought-provoking comparison.

In 2019, Muji's mineral water sold in Japan was detected to have excessive bromate levels. According to Jiemian News, Muji promptly took transparent and decisive actions to address the sudden crisis. The company immediately issued a public announcement, informing consumers about the issue and initiating a global recall of the affected products. Additionally, Muji clarified that these problematic products were not sold in mainland China, alleviating consumer concerns. The company also actively cooperated with relevant authorities in the investigation and implemented corrective measures. This swift response and sincere attitude garnered consumer appreciation and helped the company restore some of its reputation.

In contrast, Nongfu Spring's reaction to the recent bromate issue has been much more confrontational. The company not only denied any problems with its products but also questioned the accuracy of the Hong Kong Consumer Council's (香港消委会) report and demanded a public apology. This aggressive stance has led to consumer skepticism: Why was the company so eager to disassociate itself from the issue? Is the company more concerned about its image than the safety of its products? Does such a crisis management approach truly work? Nongfu Spring’s response has not only failed to quell public concerns but has also led to a larger public relations crisis.

In dealing with crises, there might be better ways than simply dismissing the critics. The different responses of Muji and Nongfu Spring to their respective crises highlight the contrast in their corporate cultures and sense of responsibility. Muji prioritized consumer health and safety, taking responsibility and promptly implementing corrective measures, showcasing a high level of corporate social responsibility. Nongfu Spring, on the other hand, focused more on protecting its image, channeling efforts into questioning the report and countering public opinion, which overlooked consumer concerns and exposed a lack of responsibility.

Ultimately, a company's crisis management approach not only impacts its image but also reflects its sense of social responsibility. I am not favoring foreign products; in fact, I prefer domestic products under equal conditions. However, in the face of public crises and trust issues, a company should courageously assume responsibility, prioritize consumer interests and public health, actively take measures to resolve problems, reduce product risks, and improve product quality and processes. This proactive approach can indeed win consumers' trust and respect, can't it?

It's important for companies to recognize that their reactions to crises can significantly impact their long-term reputation and consumer trust. When faced with public scrutiny, taking responsibility and prioritizing consumer health can strengthen the company's relationship with its customers and build a stronger, more resilient brand.

(Note: The views expressed in this article are solely those of the author. Comments, critiques, and discussions are welcome.)

Written by Shen Yihang 

Edited by Daisy

References:

Jiemian News: Muji Recalls Bottled Water Due to Excessive Bromate: Not Sold in Mainland China https://finance.sina.cn/2019-02-27/detail-ihrfqzka9643759.d.html

OceanWetlands: Bromate Testing Controversy: Behind Nongfu Spring’s Confrontation with the Hong Kong Consumer Council, Can Consumers Question Water Safety? https://mp.weixin.qq.com/s/nf8d53lTVEapj6JZ4jHM8Q

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