One example of a big brand that has survived a reputation crisis is Johnson & Johnson. In 1982, the company faced a crisis when several people died after taking Tylenol, a popular over-the-counter pain medication produced by the company. At the time, Tylenol accounted for nearly one third of Johnson & Johnson’s profits.
Instead of trying to cover up the problem or blame others, Johnson & Johnson took swift and decisive action. The company immediately recalled all Tylenol products from store shelves, even though it cost the company millions of dollars. The company also launched an extensive investigation to determine the cause of the problem and took steps to prevent similar incidents from occurring in the future.
As a result of its quick and transparent response, Johnson & Johnson was able to repair its reputation and regain the trust of its customers. The company’s swift and decisive action in the face of the crisis is often cited as an example of how a company can effectively manage a reputation crisis.