Companies are mandated to improving the lives of those living in the societies in which they operate. Most of them are required by law to routinely engage in corporate social responsibility and support-worthy causes in society. Most importantly, organizations are mandated to respect their customers and the broad consumer base and not utter any statements or engage in actions that might demean the society.
When companies engage in unethical practices, not only do they reduce their popularity among consumers but also lose the vast majority of their clients. One such firm that suffered significant blow due to managerial mishap was the world leading pizza giant Papa Johns. The company’s woes have indeed cost it considerable damage, with most entities that were previously associated with them distancing themselves from the pizza maker.
For instance, some of the sporting entities that have had to distance themselves from Papa John’s include Cardinal Stadium, the Baltimore Orioles, the Kansas City Royals, the Atlanta Falcons, and the New York Yankees. Additionally, Olson Engage also ended their PR contract with the company.
Apology by New CEO Steve Ritchie
Although the PR damage dealt a significant blow to Papa Johns, their CEO, Steve Ritchie, moved in swiftly to save them from further damage. He issued a press statement stating that their company is more significant than one individual and cannot be directly associated with one person’s comments or sentiments. Additionally, he also said that Papa Johns would never tolerate any racial slurs or other forms of insensitive language from anyone.
Solving the Problem
He went further to say that their company was founded on the principles of inclusion, equity, and diversity. Henceforth, he revealed that Papa Johns and all their staff should embark on a process that will bring everyone together and promote inclusion and tolerance in the company. Apart from the involvement of employees and stakeholders, Steve Richie also stated that they should bring in auditors to streamline the process.
The auditors will put the organizations on a path to audit all their existing systems, policies and processes and weed out anything that may cause future instability in the company. They shall lay more emphasis on diversity, supplier engagement and inclusion regardless of age, gender or racial background. E