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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Consequences of Reputational Damage

06/01/2021

Evidence of misrepresentation or unethical practice can destroy the reputation of a company and brand.  The latest example is Belcampo Foods that markets premium meat to a high-income demographic based on local sourcing, selected quality and organic status. The Company suffered serious damage when these claims were refuted by an ex-employee who posted on social media that some products were imported from Australia and did not conform to advertised attributes and stating that irregularities were over a long duration.

 

The revelations by the ex-employee resulted in an apology by the management of Belcampo Farms confirming “mislabeling at one location” but an admission sufficient to question integrity.

 

It is anticipated that Belcampo Farms will lose custom and given the highly litigious environment in California, will lead to class action claims alleging misrepresentation that will be expensive for Belcampo Farms to defend or to settle. The second takeaway is that to avoid disgruntled employees it is necessary to keep them fully ‘gruntled’ or to be honest with customers.


 
Copyright © 2024 Simon M. Shane