AEM 240 9.5 - 9/5/07 AEM 240 Aftermath of PrimeTime Value...

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9/5/07 AEM 240 Aftermath of PrimeTime Value of food lion stock dropped 1.3B in week after broadcast (1.5B more after the next 6 months) o Sales declined 10% in months following o FL closed 100 stores Address substance, not PR spin o Food safety programs o Correct the record Root Problems? Pressure for profits… at any costs? Whose ethics are in question here? o Food lion senior management? o Employees who followed unethical direction? o What about ABC’s use of hidden cameras, lying, airing program during “sweeps”? Food Lion Response… cont FL sued ABC for: o Fraud o Breach of duty of loyalty (FL/ABC employee) o o NOT libel, did Not question truth of report o NC jury fined ABC $5.5 M (4 yrs after), but federal court reduced the fine to $2! o After suit was filed ABC was acquired by Disney and FL was acquired by Delhaize LE Lion o FL now presents itself as a high quality seller of fresh foods Social Responsibility in Marketing
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AEM 240 9.5 - 9/5/07 AEM 240 Aftermath of PrimeTime Value...

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