Dive Brief:
- At Mondelez International's annual meeting, CEO Irene Rosenfeld took questions from a crowd that included employees recently laid off from the company's Chicago bakery for the first time since announcing the job cuts last summer.
- Rosenfeld said she and the company recognize the impact the layoffs have on employees and their families. But she maintained the position that the layoffs were a business decision that the company had to make "in the context of a global business that needs to remain competitive."
- "Chicago will continue to be a cornerstone of our manufacturing assets in this country," Rosenfeld said. "... But we did make a decision that was predicated on our ability to make quality products at an affordable price for our consumers."
Dive Insight:
Rosenfeld held her ground when questions became more personal and emotional. Brandon Rees, deputy director for the American Federation of Labor and Congress of Industrial Organizations, held up photos of his daughters and asked how he should explain to them Mondelez's decision to move jobs needed in Chicago to the Mexico plant.
"My suggestion to you is to explain to them that business decisions are often difficult and good companies take into account a variety of factors to make those decisions," Rosenfeld said in response. "And when they make difficult decisions, if they treat those who are affected with dignity, respect and fairness, then that's what you can hope for from a quality company."
Rather than ignore public sentiment or speak only through news releases, executives can opt to take this straightforward no-frills, no-pandering approach when defending business decisions that the general public doesn't readily agree with or understand.
Rosenfeld fielding questions from laid-off employees was a bold but smart move for the company at a time when even presidential hopefuls have publicly taken up the issue.