People's feelings about a company govern the extent to which they'll "forgive" its transgressions.
On Monday 5 March 2018 the CEO of Tiger Brands, Lawrence MacDougall, spent an hour insisting its subsidiary, Enterprise, was not responsible for the listeriosis outbreak that claimed 180 lives. Yet by 15:00, the business's market capitalisation had fallen by R5.7-billion and the share price by 7.9% to R391.47.
People's feelings about a company govern the extent to which they'll "forgive" its transgressions. The Facebook post of a man from Kimberley cataloguing Tiger Brands' sins -- which included bread price-fixing and carcinogens in Tastic rice -- was typical of a growing public outcry against the accounting and operational "irregularities" that big businesses like Steinhoff are seen as getting away with. Last year, Tiger Brands' black woman ownership was at 4.56%, prompting a post by a black mother to fellow black mothers:
"We can't achieve Radical Economic Transformation without you as a consumer and it starts with you loving only the brands that love you."
The CEO of Tiger Brands refrained from apologising for legal reasons. It's probably just as well: the bottom line linked to Tiger Brands' social capital faces a terrible prognosis because this crisis...