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Does Your Company Face Reputation Risk If It Prepares for the Flu?

November 04, 2009

A recent survey from the Chartered Institute of Logistics and Transport in the UK (CILT) shows that in 2009, 68% of major logistics and supply chain operations have specific plans in place for dealing with the possibility of a flu pandemic as part of their overall disaster recovery strategy—that’s up from  43% in last year’s survey.

Of those companies with specific flu plans, almost two-thirds (63%) include counter measures, such as face masks, gloves and anti-viral medications, in addition to the use of schedule changes, overtime, agency staff, and other arrangements.

After all, as Steve Agg, Chief Executive of CILT said, when it comes to the flu, “Crossing fingers and hoping for the best is not a viable operational strategy.”

Now, though, some companies that took extraordinary precautions are coming under fire from critics.

On Friday, the Boston Globe reported that federal and state health officials say that, in some cases, stockpiling the antiviral Tamiflu runs counter to US Centers for Disease Control guidelines that the drug be reserved for seriously ill flu patients and people at risk of dangerous complications.

The article singles out the Boston-based law firm Ropes & Gray, which made arrangements this month for hundreds of its 1,900 employees and their families to obtain Tamiflu. Ropes & Gray defended their actions, saying “There is no higher priority at Ropes & Gray than the health and safety of the firm’s employees.”

According to the article, Roche, which manufactures Tamiflu, promoted stockpiling programs at hundreds of other companies.

But, will these companies now face a new risk –the risk of a tarnished reputation –for their flu precautions?

Note: This year’s CILT annual benchmarking survey runs counter to an earlier study that showed most U.S. businesses are unprepared for widespread employee absenteeism in the event of a swine flu outbreak.

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