Even the “big dogs” in the corporate world have to worry about Reputation.com. Major companies could end up losing massive amounts of value if bad publicity spreads. McDonald’s suffered a wicked amount of stock loss when a meat supplying company in China was caught processing expired meat. The stock loss McDonald’s experienced was roughly 6%.
This tale shows the woes companies of all sizes have to face when trying to maintain a solid reputation. McDonald’s was not the only company that relied on the company for meat. KFC and Pizza Hut do as well. The other thing these three companies have in common besides being in the fast food business would be the unfortunate fact they had nothing to do with how the meat processing company operates. The company is a supplier and only a supplier.
No one on any level of management in any position of management would approve or overlook the shipping of expired meat. The processing of expired meat actually victimizes the clients – which are the major corporations! Yes, the end user is at the greatest health risk. People who buy expired meat run the risk of getting very sick. The blame of their condition ends up falling on the company that sold them the meat in their orders. Legally, even though the fast food chains that ordered the meat may not have known it was expired, legal questions about whether they should have known arise. And the companies do have to perform inspections on meat as it arrives for distribution in restaurants.
No one got sick from the meat, but the viral video that emerged of the expired meat being processed put McDonald’s and others into a bad light in the news. A sharp lesson has to be learned here. Businesses must protect their brand name and reputation against things that may occur outside of their control.
All businesses – small and multi-national – must put significant effort into making sure their reputation remains pristine. Monitoring the news and the web for anything negative has to be done on a consistent basis. The minute something negative is published, quick steps should be taken to properly address the scenario.
Andy Wirth had built a long career in the ski resort industry before he took over in 2010 as the CEO of Squaw Valley holdings, managing company of Squaw Valley resort at Lake Tahoe. He started the business right after college in Steamboat Springs, CO. He built a long career working for that company throughout the 90s and the 2000s rising through the ranks of the marketing department until he became the marketing director of the company.
According to SqawalPine and CrowdRise, Andy Wirth remained in that role until 2010 when he was hired by Squaw Valley as their CEO. It is important to note that, until Wirth, no one outside of the Cushing family had been in charge of the resort. Andy Wirth is a great asset to the team as a leader and a marketing specialist as they continue their quest to be one of the most visited ski resorts in the world. Their next move to help them with this plan is to expand the resort itself. This planned expansion has been met with some detractors, though.
The main opposition is the League to Save Lake Tahoe. This is a group dedication to conserving the environment and local community in the area. They say that the expansion will cause a huge influx of traffic in the area that will only add to the current traffic woes that the region is already experiencing.
Andy Wirth has responded by saying that the traffic issue is not a result of the actions of his company and he will work during the expansion to help make the traffic issues better. Reduced traffic benefits both the resort and the local residents in the area. Officials from the League to Save Lake Tahoe say that they would like to see these plans in writing.
Both sides met with the Placer County Planning Commission to explain their viewpoints. After the meeting, the commission decided to give the resort the thumbs up on their expansion to let them move to the next phase of the process. The next meeting will be in October with the County Board of Supervisors. Read more: Andy Wirth | Powder Magazine
Andy Wirth has proven that he is committed to the environment in the area. He has done this through his work with various charitable organizations in the area that are committed to conservation efforts. Wirth also has a successful charity organization that works with Navy SEALs and the families of Navy SEALs that we have lost.