McDonalds Does Crisis Management the Right Way
David E. Johnson, CEO, Strategic Vision PR Group
McDonalds stands out for handling its latest crisis with former CEO Steve Easterbrook right. The fast food giant let Easterbrook go last year after discovering that he had had a consensual relationship with an employee. When McDonalds terminated Easterbrook last year it said it had evidence of only of a non-physical, consensual relationship, consisting of intimate text messages and video calls. The company agreed to terminate Easterbrook “without cause” fearing a protracted legal battle with him over his severance package. Normally that would have been the end of the story.
Yet in July, following a tip from an employee, , McDonalds started a second investigation, which uncovered "undisputable evidence" of three other sexual relationships. Investigators found nude photographs sent from Easterbrook's company email account as well as messages showing that he approved a grant of company shares worth hundreds of thousands of dollars to one of the employees "shortly after their first sexual encounter". Today, McDonalds announced that it was suing Easterbrook to recover its payout of reportedly $40 million.
McDonalds actions shows the new environment that we are operating under in the aftermath of the #metoo movement. The aftermath also calls for brands to take a different approach in dealing with any form of misconduct and managing the crisis.
The new rules for brands in dealing with a crisis dealing with issues of sexual misconduct are:
- A full and transparent investigation of the allegations
- Making a swift decision on how to act based upon the findings
- Being proactive in getting the story out first
- Being totally transparent with the findings of the investigation
- Announcing the path forward
McDonalds has handled its crisis out. By dealing with the allegations that surfaced in a swift manner and announcing this lawsuit, McDonalds has set a standard that other companies are sure to follow.
About the Author: David E. Johnson is the CEO of Strategic Vision PR Group. Additional information on him and his company may be obtained at www.strategicvisionpr.com
