Tag Archives: #Negative Publicity

First Aid for Media Burn

breaking-news-2Regardless of how well a company communicates with the press, it stands a good chance of being “burned” on occasion. From minor misquote to major hatchet-job, these real and perceived offenses occupy the attention of senior managers and their advisors, whose polite clarifications and outraged denials fill the “Letters to the Editor” section of every business and trade publication.

Unfortunately, no standard methodology exists for redress of grievances with the press. In the business of keeping everyone else honest, the news media is “one of the worst sectors in keeping themselves accountable,” according to American Lawyer editor Steven Brill.

There are, however, several field-tested procedures and certified blunders that can serve as a rudimentary first aid manual for companies. Initial triage for media burn—the decision about whether to act at all—should involve an objective appraisal of the injury’s potential for actual long-term damage, rather than a knee-jerk mission to set the record straight.

Some facts, figures and quotes, although they may be wrong or misleading, are just not worth squawking about in public. First City Bancorporation of Texas’ clarification in Business Week regarding the date of its chairman’s law degree (1956, not 1969) served only to portray that company as a nagging nitpicker. On the other hand, silence can be viewed as tacit approval of what has been reported, and misinformation no longer simply fades away. Electronic data retrieval systems, which store nearly every piece of print or broadcast information, now ensure that a news story, regardless of its accuracy, will have a life of its own.

Most reporters research current story assignments by reviewing what has been previously reported. In a classic case of this media “snowballing,” facts and opinions expressed by a California newspaper regarding Pacific Lumber Company’s tree harvesting practices—which cast the company as an environmental villain—eventually turned up in another Business Week article. Two years later, that same information provided the hook for a Fortune piece, which subsequently spawned a Reader’s Digeststory and “20/20” TV documentary.

Once the decision has been made to correct a misrepresentation in the media, a company should act quickly to document and state its case. Don’t be afraid to make some noise. A letter sent to an appropriate editor, rather than the reporter involved, should present extremely specific objections and clarifications. Very often, says Newsweek senior writer Jonathan Alter, “these letters start out, ‘There are so many errors that I can’t begin to list them…’ Right away my eyes glaze over.”

Pen Is Still Mightier Than Sword

If warranted, an initial complaint letter may be prepared by legal counsel; however, sabre-rattling at this early stage is often counterproductive. This letter should propose a reasonable solution to the problem, ranging from a mention in a corrections column to a full-scale retraction. But unless an error or bias can be proven conclusively, as most never are, an editor will stand by the story and consider the case closed. This is where more sophisticated remedies for media burn may be appropriate.

One very effective means of counteracting negative media exposure is to address the matter in head-on fashion by taking opposing viewpoints directly to target audiences. In response to a Consumer Reports article on home water filters which it considered incorrect and misleading, National Safety Associates distributed to its sales force a copy of its president’s letter to the editor of that publication; thereby helping company reps to handle the negative publicity about their products. If the stakes are high enough, direct communication with employees, shareholders and customers is in order.

Display ads with a message, a common device in proxy battles, can also be used to rebut negative editorial coverage. More often, however, companies withhold or withdraw advertising to punish “unfriendly” media outlets. The best known example involves Mobil Oil and the Wall Street Journal, but the tactic is still used frequently, with far less fanfare than the Mobil incident. Economic blackmail often backfires, however, as editors assume an even tougher reporting edge in order to demonstrate that their opinion cannot be purchased.

Boycotting relationships with the media provides a small measure of short-term gratification, yields no beneficial change, and displays an unhealthy level of arrogance. The traditional “Letter to the Editor” is often the least effective means of expressing an opposing viewpoint. Although this is a well-read section, most letters are boring, overly self-serving, assume that readers remember the original article, and can confuse the matter further. Additionally, publications such as Barron’s and the Harvard Business Review provide journalists with an opportunity to respond in elaborate fashion to the objections of letter writers.

Seasoned politicians appreciate the futility of debating anyone who controls the microphone; most rebuttal letter writers learn that lesson the hard way. A more effective use of the “Letter to the Editor” platform is to request support from a friendly, credible third party. This technique was applied by Safeway Stores Inc. following negative front-page coverage in a national newspaper. By no coincidence, the rebuttal from it s CEO was accompanied by supportive letters from company suppliers such as Sunkist Growers Inc. and Kellogg Co., an employee, a competitor, and even the chairman of the National Easter Seal Society, who confirmed Safeway’s generosity. In most cases a single letter should do the trick.

As a rule, companies prone to media burn display a chronic reluctance to announce bad news, and refuse to admit error. Chrysler Corporation’s guilt in a car odometer resetting scandal was defused effectively by chairman Iaccoca’s immediate apology and personal assurance that the mistake would not be repeated.

Que Sera, Sera

First aid for media burn calls for gracious acceptance of two important facts of business life: That an unflattering or dead wrong portrayal in the press should be viewed as an ongoing and acceptable risk when running a company; and second, that for better or worse, your firm’s long-term reputation with reporters, editors, and other important audiences is influenced by how well you manage the trauma of media burn, not simply by how adept you are at avoiding it.

[Editor’s Note: If you’ve read this far, you know the examples and sources cited in this piece are sorely outdated. This article was originally published in 1994, in the Journal of Business Strategy. Notwithstanding 20+ years and huge shifts in the media landscape, I stand by the relevance of the “media burn” guidance it offers.]

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PR Lesson from the Lolo Jones / New York Times Controversy

Did Jere Kill Lolo’s Mojo?

On August 4th, New York Times sportswriter Jére Longman – who has been covering the Olympics under an “Inside the Rings” column – wrote an article on American hurdler Lolo Jones that was considered by many readers to be overly harsh and entirely unnecessary. In his piece, Longman characterized Jones as a self-promoter who is more flash than substance, and he appeared to go out of his way to discredit Jones’ athletic credentials; ignoring her long list of athletic achievements, as well as the fact that Jones had qualified for the Olympics in spite of spinal cord surgery a year ago.

Four days following Longman’s hatchet job, after a disappointing fourth-place finish in the 100-meter hurdles, in a tearful interview on the TODAY Show, Jones expressed her frustration, telling Savannah Guthrie: “They should be supporting our U.S. Olympic athletes and instead they just ripped me to shreds. I just thought that that was crazy because I worked six days a week, every day, for four years for a 12-second race and the fact that they just tore me apart, which is heartbreaking.”

The public appears to agree with Lolo regarding Longman’s attack. In a highly unusual column entitled, “Lolo Jones Article is Too Harsh,” the New York Times public editor Art Brisbane acknowledged the volume of reader pushback the Longman piece has created, and noted that, “In this particular case, I think the writer was particularly harsh, even unnecessarily so.”

Putting aside Longman’s opinion or Jones’ reaction, and discounting speculation that Jones’ spokesperson made a serious tactical error in declining to participate in the story, there is a simple but valuable PR lesson in the New York Times coverage of Lolo Jones, which is:

MEDIA RELATIONS 101

It is not a journalist’s job to make you look good. In fact, journalists are always more likely to make you look bad…because it suits their temperaments, pleases their editors and attracts more attention.

We’ll never know Longman’s motivation for trashing Jones. He might have eaten a bad hot dog that day. He might have placed a small wager against Lolo, and was hoping to kill her mojo. Or perhaps his rant was based on moral grounds, exposing the hypocrisy of self-proclaimed virgins who appear nude in sports magazines.

Several years ago I brought a Forbes magazine reporter to meet with the CEO of a major grocery chain. The interview went very well. Or so I thought…until the story was published, which turned out to be a devastating attack on my client. After being summarily fired by the CEO for arranging the public debacle, I called the reporter to ask why she had written such a damaging piece. Her response was simple: “I didn’t like the way he treated his secretary, and he needed to be taught a lesson.”

The CEO and I learned very different lessons that day. He is unlikely to have changed the way he treated his secretary. But I changed the way I treated journalists.

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Using Negative Publicity as Negotiating Leverage

Shakedown of BMW of North America

The disclosure last May that Facebook had hired public relations firm Burson-Marstellar to initiate a smear campaign against Google’s “Social Circle” raised the hackles of many PR practitioners who labeled the tactic as unethical.  Although there’s no direct reference to the practice of using accurate information to disparage a competitor’s reputation in the PRSA’s Code of Ethics, it certainly can be classified as a bare knuckles strategy that most companies would not attempt.

A related behind-the-scenes tactic that’s more widely practiced (often by law firms on behalf of their clients) involves using the threat of negative publicity as a negotiating ploy. In many high-profile divorces, disputes involving celebrities or sports personalities, corporate mistakes or shortcomings, and misdeeds of senior executives, the direct or implied suggestion that unpleasant, embarrassing or damaging information will be disclosed to the media often serves as an effective bargaining chip.

Having witnessed the power of negative publicity, I decided to use it for personal advantage in my dealings with BMW of North America involving the lease of a 1992 318i, which over the course of less than a year had 27 different problems – including engine failure, faulty muffler system and a sideview mirror that simply fell off the car.  After multiple trips to my local BMW dealer, I felt it was time to bypass Lemon Laws and escalate the issue.

So here’s the strategy I developed:

  • I created a simple tombstone ad that read: “Looking for Reasons NOT to buy or lease a BMW 318i ? Call me. I’ve got 27 Good Ones for you.”
  • I drafted a press release entitled “Irate BMW Owner Places Ads in New York Times and Wall Street Journal After 27 Problems With 318i,” that detailed the car’s various issues.
  • I compiled a comprehensive list of automotive editors at every major publication.
  • I drafted a letter to the CEO of BMW of North America that said, in effect, “As a courtesy, I thought you would like to see the advertising and press release that’s scheduled for distribution next Wednesday.”
  • I FedExed the letter, the advertisement, the press release, and the editor list to BMW headquarters in New Jersey.

Two days later, I received a call from BMW’s head of service, who opened with, “Mr. Andrew. I understand you have a problem with your 318i?”

“In fact,” I responded, “I’ve had 27 problems with the car.”

“Have all of those 27 problems been fixed to your satisfaction?” he asked.

I countered with, “What is BMW’s slogan?”

“What do you mean?” he said.

“What’s your tag line, your advertising slogan, the phrase BMW uses to distinguish itself from other cars? “ I said.

He said nothing.

“Doesn’t BMW claim to be The Ultimate Driving Machine?” I asked.

His tone of voice changed. “What do you want from BMW, Mr. Andrew?”

“I want a new car.” I said.

He laughed. I didn’t.

“Here’s the deal” I said. “You give me a new car, or I place the ads and distribute the press release on Wednesday. It’s your call.”

After a very long pause, he asked, “Can you give me more time than that?”

I said, “You have until Friday. Thanks for your call.” And hung up the phone.

On Thursday, I received a call from my local BMW dealership, asking me to bring my car in as soon as possible for “an inspection.” When I arrived at the dealership the next morning, I noticed that all of the parts & service staff were wearing ties. I asked the service manager (who was also wearing a blazer with a BMW logo on the pocket) why everyone was dressed so formally. He pulled me aside, and whispered, “Mr. Andrew, I’ve worked at this dealership for 7 years, and no one from BMW of North America has ever been here for any reason. Today the head of service for all of BMW will be here, and he’s coming to look at YOUR car.”

Bingo!

Here’s what BMW offered me: If I paid for taxes and registration, they would swap the 1992 4-cylinder 318i clunker for a brand new 1993 6-cylinder 325i.  I took the deal, and never had a single problem with the 325i while I owned the car.

The lesson in this for people looking to use negative publicity as negotiating leverage, is that you must:

  1. Possess truthful information that’s likely to cause tangible reputational / brand damage
  2. Convince the other party that you have the ability to disseminate that information credibly
  3. Demonstrate that you either have nothing to lose, that you have a few screws loose, or both

The lesson in this for BMW of North America is that by dealing with me fairly, they created a lifelong customer. I believe BMW does live up to its Ultimate Driving Machine claim, and I currently drive a 2011 328xi for that reason. But the assumption BMW should have made in its negotiations with me is that there was no way a guy who was too cheap to drive one of their 7 series cars would have made good on a threat to place ads in the NYTimes or WSJournal.  I was bluffing, but with negative publicity as a card I might be holding, I won the hand.

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