AWB turns crisis into a scandal : Honesty really can be the best policy

Purpose – The purpose of this paper is to highlight the circumstances in which a crisis-response strategy can compound a crisis. The paper focuses on AWB Ltd, Australia, where the organizational damage of a “cover-up” caused additional damage to the company. Design/methodology/approach – It provides an insight into the application of theories and research on crisis and reputation management and the specific challenges and risks of corporate scandals. Findings – It demonstrates that corporate scandals can easily descend into a secondary or “double crisis” if incorrectly managed, or even mismanaged. Practical implications – Examines the initial failed response strategy and the more appropriate response eventually undertaken by the company. Originality/value – Offers the additional insights of the author, as a former member of the management team at the company.