John G. Knight, Bradley S. Mitchell and Hongzhi Gao
Published
Feb, 2009
The publication in 2006 by a Danish newspaper of cartoons depicting the prophet Muhammad had international ramifications. Companies from a number of nations found themselves being boycotted by Muslim consumers protesting at their countries’ stances regarding the cartoons.
This paper looks at the approaches by two different companies to avoid the damage boycotts would inflict. For Arla Foods, the Danish dairy giant, at the height of the boycott in February 2006 it was losing €1.3 m a day. It tried to stem the crisis, but by being seen to ally itself with the stance of the Danish government, it further alienated its Middle Eastern consumers.
In contrast, when Fonterra, one of the top New Zealand dairy companies which accounted for 70 per cent of New Zealand exports to the Middle East, saw that its country was being drawn into the international controversy, it remained silent for fear of becoming unnecessarily embroiled. It drew on existing relationships with intermediaries, and left it up to these local agents to reassure retailers and therefore consumers.
The analysis of the cartoons crisis in this paper aims to provide guidance for companies facing such situations in future as well as contributing a new dimension to crisis management literature.
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