Tuesday, February 5, 2008

Crisis PR takes a bad Spin

When a Siberian tiger leapt out of her enclosure and killed a 17 year old boy at San francisco Zoo on Christmas Day, crisis PR stepped onto the scene immediately.  Heavy heat has been put on the zoo regarding this incident and how this escape was able to happen.  Apparently, the wall of the tigers enclosure, as well as others in that area, is 4 feet less than recommended. The fact that this could have been avoided puts added pressure on the zoo and creates greater frustration within the public.  In order to maintain a positive image and defer the accusations, the Zoological Society hired Sam Singer, a public relations and crisis communications consultant.

As with any tragedy, this is a touchy situation.  A 17 year old was mauled to death in front of his 2 friends that watched in horror close by.  It seems to me that a crisis PR consultant would handle this subject carefully, with much respect and sympathy.  What appears to be happening, however, is that Sam Singer has chosen to spread rumors to the press that places the blame on these victims.  He is acting as an unidentified source, claiming that the boys provoked the tiger with slingshots.  Singer adds that evidence of drinking and pot smoking were found in the boys car.  

This is unprofessional and puts a bad name on public relations, which is meant to be credible and honest.  Instead of working to rebuild the zoo's reputation and sympathizing with the victims, Singer has focused on encouraging the hurtful rumors.  Now, the heat is on him.  Not only is the public finding this outrageous, but in addition, bad press for Singer could mean even more bad press for the zoo he's supposed to be helping.  Mark Geragos, an attorney for the 2 friends who witnessed the act, now plans to file a lawsuit for intentional infliction of emotional distress that Singer and the rumors have caused.

I'll give him one thing - Singer is effectively taking the heat off the zoo and diverting the media's attention elsewhere.  This proves that his strategy is certainly working, so he must deserve his $350/hour he charges for his services.  Thus, it could be argued that he is simply taking advantage of the common tricks of the trade.  However, the question remains, is he being ethical?  Is he following the golden rules of public relations?  It doesn't look that way.  


PR professionals have the duty and responsibility of earning credibility, primarily by telling the truth.  This is especially important in a crisis situation when communication to the public must be fast and accurate.  Instead of putting a positive 'spin' on the zoo, it was chosen to put a negative 'spin' on the victims.  It is unsure how this will ultimately play out for the zoo, but one thing I'm sure of, this can't end well for Sam Singer.
  
    

Thursday, January 31, 2008

Slow Economy add Pressure to Companies

The stock market closed on a sour note today making the first month of 2008 a miserable one on Wall Street.  With the economy down, fear and panic overcome the public.  While customer spending slows, it seems that the reputation of businesses means more now than it ever has. Well-known companies that now find themselves hurting turn to public relations to help overcome this struggle.  

The loss of customer loyalty and huge drops in stock prices make it appear as though successful companies such as Starbucks and Circuit City are out of strategies.  Kasper Nielsen, from Reputation Institute, is one advisor to offer advice.  It is important for any business and especially CEO to understand that building and sustaining corporate reputation in hard times such as these is no easy feat.  Nielson stresses that, "mending reputations can't be done overnight."  

Reputation Institute's process involves a seven-step analysis of why the companies image has deteriorated, who is affected by it, what they want, and lastly what must be fixed.  Nielson explains that although it is common for a business to focus on their image only following a crisis, it should actually be on the forefront of the mind constantly in order to build a "reputation platform."

Although rebounds are not immediate following a slump, it is crucial to keep employee morale high.  Crisis public relations can only do so much to improve a companies image, but morale is up to top management and CEO's.  

In times like these when reputation can fade so quickly, a comeback is a slower process. However, with good use of PR, cooperation from CEO's, and support from employees and others affected, success is attainable in time.





Tuesday, January 29, 2008

Toy Crazy

For a few years now, the toy industry has been under scrutiny and skepticism due to the seemingly endless product recalls.  According to the U.S. Consumer Product Safety Commission, toy hazard recalls as of January 22, 2008 include Cranium Cadoo Board games, toy wagons, Tot Tower Blocks, Super Magnet Toys, Curious George Plush Dolls, and the list keeps going!  Affecting even the largest brands, Mattel being the most popular, consumers have been losing trust and faith in these companies.  Instead of bringing joy to children, it has caused agony, anxiety, and hassles for parents.  Consequently, it has resulted in company hearings, stricter regulations, and significant drops in stock prices. 

One thing is for sure, this is a crisis situation that these companies must work desperately to solve.  Brian Dobson, president of Dobson Communications, inc. specializing in crisis communication, discusses how, "preparation helps companies avoid, or better, manage crisis if it hits."  Although much of the blame for the issues, most notable violations of lead paint standard, has been placed on quality control in China, consumers ultimately blame the marketers.  

In hopes of retaining loyal customers, companies have recalled millions of products and offered full refunds.  They don't seem well equipped for a crisis though, seeing as this isn't enough.  Even after a few years, the problems are not being solved which is nothing short of frustrating to consumers and concerned parents.  


Most recently, and in my opinion most astonishing, is the recall of Aqua Dots distributed by Spin Master.  In late November, it was discovered that the coating on the beads contains a chemical that converts into the familiar and toxic "date rape" drug GHB when ingested!  There have been reported cases of children vomiting, going comatose, and requiring hospitalization after swallowing some of the beads.  This was absolutely appalling to me.  If GHB is found in toys, I feel as though someone must not be doing their job, and something must change immediately.  This makes the company appear irresponsible and unprofessional.

An effort is being made by retailers including Walmart, Target, and Toys 'R' Us, who have begun to initiate their own testing in order to protect consumers, their image, and avoid the negative association.  However, with the continuation of problems such as violation of lead standards, choking hazards, and now the "date rape" drug, I am unsure if any amount of crisis PR will be able to restore the publics confidence in the toy industry.