Home Library Translate
A A A
Share »
Follow us on Facebook Follow us on Twitter Follow us on LinkedIn
Connect »

Blog: Crisis Management

Menu

  • This Blog's Home
  • Guest Writer Submissions
  • Policies
  • To Subscribe to a Blog
  • About
  • Feedback

Tesco Financial Scandal Leads to Reputation Crisis

By Jonathan & Erik Bernstein on October 9, 2014

Already hurting, new scandal puts grocer in dangerous position

UK-based grocer Tesco is under the microscope of investors and regulators, as well as being lambasted by the public, following the revelation that some seriously shady accounting had been going on.

Business Matters summed the situation up:

Tesco was once the darling of the high street but now the 95-year old supermarket chain is facing its worse crisis ever as it admitted to inflating its accounts by £250 million last week. This wiped more than £2 billion off its market value, saw shares drop by 40% and put them at the bottom of the FTSE 100.

As a result, four senior executives were suspended, including finance director, Carl Rogberg, with UK managing director Chris Bush also thought to be one of the four, whilst an investigation takes place into what has been going on. Questions will also be asked of former chief executive, Philip Clarke, and Laurie McIlwee, the chief financial officer who left last week.

Tesco said it discovered the overstatement of its figures, made as part of an August 29 profit warning, during its final preparations for its forthcoming interim results. It then announced that full-year trading profits could be as low as £2.4billion – some £400million lower than expected – after ‘challenging trading conditions’.

Scandalous as it is, this is the type of issue that a well-prepared business should have crisis management plans for, although the sheer magnitude of the executive’s deceit will make recovery a slow road. After all, while it’s a great asset to a rapid comeback, no amount of planning will instantly put £2 billion back into your coffers.

——————————-
For more resources, see the Free Management Library topic: Crisis Management
——————————-

[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

– See more at: http://managementhelp.org/blogs/crisis-management/2014/10/03/crisis-management-case-study-digiornos-social-media-mistake/#sthash.U9llTzw7.dpuf

 

« Previous Next »

Search Our Site

Meet this Blog’s Co-Hosts

Jonathan L. Bernstein, founder and Chairman of Bernstein Crisis Management, Inc. has more than 25 years of experience in all aspects of crisis management – crisis response, vulnerability assessment, planning, training and simulations.[Read more ...]


Erik Bernstein is president of Bernstein Crisis Management. Erik started with BCM in 2009 as a writer and subsequently became social media manager for the consultancy itself as well as for a number of BCM clients before moving to the president position. [Read more ...]

Recent Blog Posts

  • Digital and Online Now Main Source Of News
  • Are You Prepared For 2021? New Crisis Management Survey Out Now
  • Crisis Preparedness and Response Is About To Get Tougher
  • How to Create a Crisis Management Plan to Respond to a Cyber Breach
  • Audi’s ‘Insensitive Ad’, or Why you always ask how else an image could be interpreted.
  • The Road To Crisis Recovery
  • Preparing DURING The Pandemic
  • Coronavirus: What You CAN Control
  • Southwest’s COVID-19 Crisis Communications And What You Need To Be Doing
  • Crisis Manager On The Spot…Quick Coronavirus Crisis Communications Tips

Categories of Posts

  • Avoid the Apology
  • college crises
  • communications
  • conflict resolution
  • Crisis Assessment
  • Crisis Avoidance
  • crisis communications
  • crisis management
  • Crisis Management Quotables
  • crisis planning
  • crisis preparedness
  • Crisis Prevention
  • crisis public relations
  • Crisis Response
  • crisis training
  • customer service
  • cyber attacks
  • cyber bullying
  • cybersecurity
  • data breach
  • Dealing With Media
  • Digital Media Law Project
  • disaster crisis management
  • disaster prevention
  • Disaster Response
  • disease crisis management
  • emergency management
  • Erik Bernstein
  • ethics
  • Facebook
  • food industry crisis management
  • hackers
  • hacking
  • Higher Education
  • hospitality
  • HR
  • information security
  • Internal Communications
  • internet crisis management
  • internet security
  • Jonathan Bernstein
  • Journalistic ethics
  • Law
  • Litigation PR
  • litigation-related crisis management
  • Media Relations
  • media training
  • online crisis management
  • Online Reputation Management
  • political crisis management
  • PR
  • preventable crises
  • privacy breach
  • privacy violation
  • Public Relations
  • recall crisis management
  • Reputation Management
  • Risk Management
  • SEO
  • social media
  • social media crisis management
  • social media policy
  • social media reputation management
  • sports crisis management
  • violence prevention
  • vulnerability audit
  • Weiner Awards
  • workplace violence

Blogroll

  • Bernstein Crisis Management Blog
  • Jonathan Bernstein's HuffPost Blog
  • The Crisis Show

Related Library Topics

  • Assessments
  • Business Insurance
  • Computer Security
  • Coordinating Activities
  • Crisis Management
  • Employment Laws
  • Ethical Analysis
  • Lawyers (Using)
  • Managing Change
  • Marketing
  • Media Relations
  • Organizational Communications
  • Planning
  • Public Relations
  • Risk Management
  • Safety in Workplace
  • Bernstein Crisis Management Blog

Library's Blogs

  • Boards of Directors
  • Building a Business
  • Business Communications
  • Business Ethics, Culture and Performance
  • Business Planning
  • Career Management
  • Coaching and Action Learning
  • Consulting and Organizational Development
  • Crisis Management
  • Customer Service
  • Facilitation
  • Free Management Library Blogs
  • Fundraising for Nonprofits
  • Human Resources
  • Leadership
  • Marketing and Social Media
  • Nonprofit Capacity Building
  • Project Management
  • Quality Management
  • Social Enterprise
  • Spirituality
  • Strategic Planning
  • Supervision
  • Team Building and Performance
  • Training and Development
About Feedback Legal Privacy Policy Contact Us
Free Management Library, © Copyright Authenticity Consulting, LLC ®; All rights reserved.
  • Graphics by Wylde Hare LLC
  • Website maintained by Caitlin Cahill

By continuing to use this site, you agree to our Privacy Policy.X