BP continues to spill oil and credibility

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Bp BP continues to get hammered for the devastating oil spill in the Gulf of Mexico. The spill, which is on its way to becoming the worst in U.S. history, has irreparably harmed the company's carefully cultivated image of environmental responsibility. Louisiana and federal officials in the U.S. have described the company's cleanup efforts as being 'not adequate'. No kidding.
 
Rather than taking responsibility for the disaster, BP Group Chief Executive Tony Hayward has tried to position BP as being among a group of organizations fighting a common enemy (the spill). Some could argue that this was a bit of clever positioning, but in the end, it risks making the company's executives look like weasels trying to avoid a mess they helped to create.
 
Hayward also channeled Winston Churchill in a recent interview, saying, "We are determined to fight this spill on all fronts, in the deep waters of the gulf, in the shallow waters and, should it be necessary, on the shore."
 
The Churchill-esque quote just seems a bit contrived for such a serious environmental catastrophe, especially since the company has admitted it lacks the resources to stop the leak and clean up the mess.
 
Thanks to its lacklustre efforts (both in the water and in the media), the company's market cap has plummeted by more than $25 billion since the spill began more than two weeks ago. And the oil continues to flow...
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How the TTC mishandled the media in the 'case of the snoozing worker'

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How the TTC mishandled the media in the 'case of the snoozing worker'

The Toronto Transit Commission (TTC) faced a PR challenge last month after a cellphone picture of a sleeping worker went viral on the Internet. For the TTC...

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Using Google Trends to measure the effectiveness of crisis communications

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It's generally accepted that crisis communications is a worthwhile pursuit. But in a world where executives want to measure the effectiveness of everything, how do you know if your crisis communications plan actually worked?
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David Letterman gives a lesson in crisis management

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David Letterman gives a lesson in crisis management
Even if you didn't watch the Late Show with David Letterman last Thursday night, you've likely seen the news coverage that followed it. Letterman used 10 minutes of his show on October 1st to tell millions of people about an alleged extortion plot against him. If you're unfamiliar with the story...
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Globe and Mail's Salutin takes cheap shot at PR

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In his column in the Globe and Mail this morning, Rick Salutin reveals a serious bias against the PR industry. What's that, you say? A reporter who's got an axe to grind against PR?

Everyone (particularly a newspaper columnist, who's paid to fan the flames of controversy) is entitled to his/her opinion. On that note, here's mine. This column is an unwarranted cheap shot at the PR profession.

Salutin uses the Michael Bryant affair as his platform (the recent case in which a former Ontario politician, in the car with his wife, was involved in an altercation with a bike courier which resulted in the courier's death). After noting that the media coverage of the event has served the public well, Salutin writes, "But there's one element that irritates me severely. It's the presence, since very early, of a public-relations firm aiding Mr. Bryant."

The rest of the column doesn't seem to have a clear point. It just rehashes journalism's old disdain for PR. He also suggests that the other problem at play is that many journalism grads end up in public relations. And that a "depressing quantity of news stories, especially in areas such as medicine, now come from well-produced PR packages sent on behalf of pharmaceutical firms and the like."

He bemoans the fact that PR people "may put words in client's mouths, vet their ideas and advise on whether to speak at all".

Is this guy for real? Salutin has been at this game a long time. His feigned naivete on the role of PR comes off more like a columnist's device than genuine concern. If a prominent public figure gets tangled up in a situation like Bryant did recently, their first two phone calls should be to their lawyer and a PR firm. The man's career, reputation and freedom are on the line. And given the media's love of 'David versus Goliath' stories, the bicycle courier starts out as the clear favourite in the court of public opinion, even though the truth has yet to emerge. Bryant likely has a million things going through his mind. Hiring experienced professionals for council on how to handle his one shot when the TV cameras are shoved in his face is not shocking, insulting, or devious. It's common sense. And if Salutin happened to be the unfortunate individual in the car that night, I'll bet he would have the Globe and Mail's PR firm (that's right, the Globe and Mail has a PR firm) on speed dial - pronto.

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Maple Leaf recall handled well: survey

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Saw this story in the Edmonton Sun today. It refers to a recent survey that found 70% of consumers think Maple Leaf Foods did a good job of managing the listeriosis crisis crisis that killed 21 Canadians last summer. And while a quarter of people who had Maple Leaf products in their homes prior to the recall say they have not eaten the company's products since, I think the really important point is that three quarters have. I also believe we'll see those numbers improve in the months/years to come.

The fact that 70% of those surveyed thought the company did a good job managing the crisis and ensuing recalls serves to underscore the importance of a sound PR approach that's based on doing the right thing for your customers.

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Really, AIG?

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$165 million in bonuses to your employees? Really?

In the wake of the $170 billion government bailout the company has received, this move defies reason and only serves to underscore the prevailing greed that has created this global financial disaster.

The best quote I've seen so far was from New York attorney general Andrew Cuomo, who said, "A.I.G. made more than 73 millionaires in the unit which lost so much money that it brought the firm to its knees, forcing a taxpayer bailout. Something is deeply wrong with this outcome."

The company says these bonuses are needed to persuade employees to stay on with the company. Where else are they going to go and work? The companies that haven't imploded are significantly impaired. These folks are lucky they still have jobs at all.

It is shocking to think that no one at A.I.G. saw the awarding of these bonuses as an impending PR or business disaster. But apparently sound judgment is not something the company is flush with.

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The cost of the listeriosis crisis

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Maple Leaf Foods Inc. has reached a $27 million nationwide settlement with plaintiffs in a class action lawsuit resulting from last summer's listeriosis outbreak, which was responsible for at least 20 deaths. The company (and in particular CEO Michael McCain) was applauded for its frank, open communications approach throughout the crisis. At the time, McCain was quoted as saying, "Lesson number one is focus on doing what's right for your customers and don't focus so much on the accountants and the lawyers." The company's PR approach, ably handled by Toronto's Fleishman-Hillard, was a modern take on Tylenol's handling of its product tampering scare back in 1982. Threatened with the potential demise of its company, Tylenol pulled all of its product from every shelf in the United States, putting the public's best interests before the bottom line. That crisis changed the way over-the-counter drugs were packaged, leading to the introduction of the tamper-proof plastic wrap on the caps of such bottles. Maple Leaf's response was bang on, both from an operational and PR standpoint. The $27 million dollar settlement sounds significant, but bear in mind this is a company with 2007 sales of $5.2 billion. And because it responded decisively, the company has solidified its future, having regained the trust of many Canadians who might have had temporary doubt about the safety of the company's products. Read more about the settlement on the CBC's website.

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