11 Early Development in PR Modern PR Agents“Poison Ivy” Lee had John D. Rockefeller as a client(Ivy Ledbetter Lee)Rockefeller:
12 Early Development in PR Modern PR AgentsStandard Oil/Ludlow ColoradoTerrible working conditionsIda Tarbell/Standard Oil/McClure’sWorkers went on strikeLudlow massacre“Poison Ivy” Lee was hired to “repair” Rockefeller’s imageIvy Lee discovered he could shape facts to tell whatever he wanted to say, and people would believe him.Facts are malleable and can be interpretedRockefeller:
13 “Ivy Lee would have probably shared the mantle of ‘Father of Public Relations’ with Edward Bernays if he hadn’t made the fatal career mistake of going to work with the Nazis, and then dying before he could clean up his own image.”--John Stauber
14 Early Development in PR Modern PR AgentsEdward BernaysFreud’s nephew“Father of public relations”Bernays:
15 Early Development in PR BernaysWorked for GovernmentCBS (Option time)American tobacco industry“Torches of freedom”Torches of freedom:
16 Lucky Strikes Organized “Green Ball” Luncheon for fashion editors “new green fashions for fall”Convinced historians &psychologists to talk about greenOrganized “Color Fashion Bureau”Wrote to interior decorators, department stores, art industry group about “new trend” (on green paper)Got dept. stores to display green dresses in windowsGot an established gallery to feature a “Green” painting exhibition.
17 Green became the colorof the 1934 seasonIvory Soap: soap carving contestUnited Fruit Company
18 United Fruit=“banana republic” Paid off governments/brutally exploited GuatemalansWhen reformist Gov. attempted to reign in United Fruit’s power, called in BernaysBernays created a successful PR campaign that led to the CIA’s overthrow of a democratically elected government
22 Survey in 2000 by PR Week Surveyed 1,705 PR professionals: 25% admit to lying on the job39% say they had exaggerated the truth44% are uncertain of the ethics of a task they are required to perform60% say their work has been compromised by being told to lie.
23 The Practice of PR Major PR Agencies In-house Services Weber Shandwick Worldwide (Interpublic)Fleishman-Hillard (Omnicom)Hill and Knowlton (WPP Group)Burson-Marsteller (WPP Group)Incepta (Incepta Group)Edelman PR Worldwide (Independent)Porter Novelli (Omnicom)Ketchum (Omnicom)GCI Group/APCO Worldwide (WPP Group)Ogilvy PR Worldwide (WPP Group)In-house Services
24 Ex. KetchumAccording to the U.S. House Committee on Government Reform Minority Office, Ketchum received the following amounts per year, for federal PR contracts:* $1,692,000 in 1999* $2,552,000 in 2000* $3,657,000 in 2001* $2,563,000 in 2002* $31,163,457 in 2003* $58,895,846 in 2004(http://www.democrats.reform.house.gov/investigations.asp?Issue=Covert+Propaganda)
25 Doing Public Relations Six main functionsWriting and editingpress releasesVNRsPSAsInternet materialsbrochures, etc.
26 Ketchum scandal on No Child Left Behind $700,000 Did a “rankings analysis” to see which reporters covered the story (pos. or neg.) Produced a VNR supporting the lawfeatured Education Secretary Rod Paigepaid journalist/conservative columnist Armstrong Williams $241,000Narrated by fake reporter Karen Ryan (a PR pro)
27 Doing Public Relations Six main functionsWriting and editingMedia Relationspromote a client or organization by securing favorable news media coveragee.g. Heisman trophy
28 Doing Public Relations Six main functionsWriting and editingMedia RelationsSpecial Eventspseudo-event refers to any circumstance created to obtain coverage in the media (publicity stunt)
32 Doing Public Relations Six main functionsWriting and editingMedia RelationsSpecial EventsResearchResearch the way the company is perceived by the publicFocus groups
33 Doing Public Relations Six main functionsWriting and editingMedia RelationsSpecial EventsResearchCommunity and consumer relationsCreate positive image for companyRockefeller and dimese.g., American Express, Applebees
34 American Express Applebees Statue of Liberty Renovation Raised $1.7 millionSpent $6 million promoting itSave Our Strength hunger campaignApplebeesThe “Neighborhood Wall”
35 Doing Public Relations Six main functionsWriting and editingMedia RelationsSpecial EventsResearchCommunity and consumer relationsGovernment relations and lobbying
36 Organizations lobby against industry regulation EX:NAB: National Association of BroadcastersNRAFast FoodAutomobile IndustryMeatpacking industry
38 Lobbying for entire governments e.g.: Qorvis: Saudi ArabiaBurston Marsteller: Indonesia, El Salvador, NigeriaHill and Knowlton: Kuwait
39 “congressional human right caucus” 1990:Iraq invaded KuwaitDrum up American support“congressional human right caucus”girl testified about the horrors of Iraqi invasion…babies on bayonetsShe was the daughter of the Kuwaiti Ambassador (and lived in the U.S.)
40 Tensions between PR and the Press Pay issuesUndermining facts and blocking access (“flack”)Promoting publicity and business as news
41 Social Responsibility Case of The Gap -- proactive transparency. May 2004, releases first-ever corporate report on social responsibility.
42 Cause-Related Marketing Case of TimberlandAlso American Express, Ford, Nike, Procter & Gamble, Starbucks, and Target
43 Crisis Management Bridgestone/Firestone and Ford, 2001 Odwalla Fruit Juices, 1996Exxon 1989 Valdez oil spillJohnson & Johnson, 1982 Tylenol poisoning