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Corporate Target Selection in Cases of Malicious Contamination

Wed, Nov 16, 8:00 to 9:20am, Hilton, Grand Salon 7, 1st Level

Abstract

It has previously been stated that, in cases of extortion by product contamination, those companies which are identified as ‘market leaders’ are likely to be particularly attractive targets for perpetrators of such crimes (Cremin, 2001). However, it has also been hypothesised that smaller companies could be targeted as they may be less prepared to handle an extortion threat, and as such could be seen as more likely to agree to the demands of extortionists. Regardless of the size of the company targeted, threats or attacks of this nature could cause financial losses through the cost of a recall, payments to any victims, and loss of revenue due to diminished consumer confidence in the brand. Despite the potential for considerable costs to the companies selected, very little research has been conducted in this area previously. As such, this paper will examine some of the factors which may be important in the selection process for corporate victims by those who threaten or attack the supply chain. The implications will be discussed, along with recommendations for corporations.

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