A tale of two companies. A tale of business ethics. A tale of core values. A tale of different outcomes. The question at the heart of this article is one of the seed of corporate culture and business ethics. It’s easy to talk ethics, to sign ethics and compliance 
agreements, but it’s far more difficult to live those ethical principles and that could not be more evident that what we’ve seen with Blue Bell and Peanut Corporation of America.
When Ethics Fail: Peanut Corporation of America
A jury in Georgia convicted Stewart Parnell and his brother and food broker, Michael Parnell, with 76 federal counts linked to intentionally shipping out salmonella-laced peanut products. This verdict marks the first federal felony conviction for a company executive in a food safety case.
According to CNN:
A federal judge handed Parnell a 28-year prison sentence, the toughest penalty ever for a corporate executive in a food poisoning outbreak. Parnell is 61 and unless he wins an appeal, he will have to serve out most of his term.
His brother and food broker Michael Parnell received a 20-year sentence, and the plant’s quality assurance manager, Mary Wilkerson, was given five years.
The 2008 salmonella outbreak traced back to peanut butter paste manufactured by PCA killed nine people and sickened 714 others, some critically, across 46 states. It was the deadliest salmonella outbreak in recent years and resulted in one of the largest food recalls in American history — from Keebler crackers to Famous Amos cookies to the snack packets handed out on airlines.
The salmonella outbreak was traced to the Georgia plant in 2009 by federal regulators who found a leaky roof, roaches and evidence of rodents at the plant. Furthermore, they discovered emails and records showing food confirmed by lab tests to contain salmonella was shipped to customers anyway. Other batches got shipped with fake lab records showing negative for salmonella screenings.
Peanut Corporation closed after declaring bankruptcy in 2009.
A different approach at Blue Bell
Blue Bell Ice Cream issued a voluntary recall for all of its products because of a possible health risk found in half-gallon containers of Chocolate Chip Cookie Dough ice cream produced on March 17 and March 27, 2015.
According to a USAToday article:
The FDA released its investigations into Blue Bell’s plants in Oklahoma, Texas and Alabama after a Freedom of Information request by The Associated Press. The most extensive violations were found in Oklahoma, where the FDA released 16 separate positive tests for listeria on equipment and in ice cream from March 2013 through January 2015.
Violations in the Oklahoma plant include dirty equipment, inadequate food storage, food being held at improper temperatures and employees not washing hands adequately.
There were also violations at the Texas and Alabama plants. In Alabama, FDA investigators observed at least two employees working with the food wearing soiled clothing. In Texas, investigators saw condensation dripping directly into food and onto surfaces that came directly in contact with food. In all of the plants, the FDA found dirty equipment and infrastructure that made cleaning difficult.
“Several swab tests did show the presence of listeria on non-food surfaces in Blue Bell’s Broken Arrow plant in 2013,” the company said in an email. “As is standard procedure for any such positive results, the company would immediately clean the surfaces and swab until the tests were negative. We thought our cleaning process took care of any problems, but in hindsight, it was not adequate, which is why we are currently conducting such a comprehensive re-evaluation of all our operations.”
CEO and President Paul Kruse, facing concerns of listeria contamination shut down operations stating, “We are working closely with the appropriate federal and state regulatory agencies and our microbiology experts, and we are mapping out the many details of returning to production and distribution as soon as we can do so with confidence.”
Blue Bell ice cream returned to store shelves (Aug. 31) after a months-long recall. Blue Bell said the Broken Arrow (OK) plant will start producing on a “limited basis” until extensive testing shows ice cream made there is safe to eat. The company said it wants to confirm new procedures, facility upgrades and employee training have been effective.
Contrast the Differences
Stewart Parnell and team tried to cover up the problem preferring to ship tainted products and roll the dice rather than incur the costs (substantial business costs) that are involved in shutting down to prevent further issues with contaminated products.
Parnell, age 61, has effectively been given a life sentence in federal prison – 28 years. Peanut Corporation of American is no longer in business – a permanent loss for many whose livelihood was derived from employment there.
Blue Bell on the other hand, is still in business. Yes the closure of multiple locations was incredibly costly. Yes they likely lost market share to other brands. Yes, some customers might have concerns about the quality of the product moving forward. But, when it’s all said and done, taking the ethical high road (perhaps something they could have done sooner), has numerous advantages.
Act ethically and good things happen! According to Fortune:
Sid Bass, a Texas investor worth an estimated $1.7 billion, has become an investor and partner with Blue Bell, which has been closed since April and hasn’t set a date for when it will begin selling ice cream once again.
“We are pleased Sid Bass has made a significant investment with our company. The additional capital will ensure the successful return of our ice cream to the market and our loyal customers,” said Paul Kruse, Blue Bell CEO and president, in a statement.
Every Choice has a Consequence! Bravo Blue Bell and, well, Mr. Parnell perhaps we need to talk as I can help you prepare for federal prison.
YOUR COMMENTS ARE WELCOME!
