In March 2013, Lululemon Athletica removed its inventory of women’s black yoga pants from its stores because recent shipments of the product were “too sheer.”
For a company reliant on a reputation for quality, the news was devastating. Worse, the recall set off a series of PR related disasters that were largely of the company’s own making.
We examine these events in greater detail, and ask:
- Why are companies so ill-prepared to manage risk?
- How can companies develop a reliable way to track and respond to risk?
- How can companies better manage social media risk?
- When do risk-related matters become a board-level issue?