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G/H INT'L WINS $3M VISA USA
BUSINESS
Golin/Harris International
bested four contenders, including incumbent Ketchum, for
Visa U.S.A.'s $3 million PR account. The extensive review
began in late spring and was handled by Morgan Anderson
Consulting. Ketchum had the work for six years.
"The payment industry
is a dynamic industry," said Visa VP-corporate relations
John Abrams when asked about the switch to G/H. He said:
"There's always change going on. We're the leading
payment company and we can't rest on our laurels."
Carl Pascarella, president/CEO
of Visa U.S.A., said in a statement that G/H's research-based
approachand thought process were key factors in the decision.
Visa EVP-communications
Barie Carmichael said the move was a "tough choice"
and a "difficult but critically important decision."
TRG CHASES TAX 'CHEATS'
The Rendon Group is helping the Massachusetts Department
of Revenue pitch an amnesty plan to encourage tax cheats
to change face and pay their dues to the state without penalty.
The "Find us before we find you" campaign is
being rolled out by TRG in a $350K national media blitz
which includes PR and ads.
The state is pitching the program nationally to track down
out-of-state companies which do business in Massachusetts
but haven't paid taxes.
TRG has previously handled work for various agencies in
Massachusetts. The firm's Washington, D.C., office is advising
the Pentagon on how to sharpen its message in the "war
on terror."
MS&L IS 'SAFE' AT CAPITAL
ONE
Credit services giant Capital One, which has reportedly
talked to search firms after Publicis Groupe folded its
ad agency, told this NL it is satisfied with its PR account
at Manning, Selvage & Lee, the former Bcom3 unit acquired
by Publicis earlier this year.
"We are thrilled with MS&L's work for us,"
said Pam Girardo, manager of consumer PR at Capital One,
adding that the matter was separate from the "gossip"
regarding its ad account.
Sources told Adweek that Capital One learned of
Publicis Groupe's plans to fold the D'Arcy ad firm through
press reports and the client was not given details of its
transition to Publicis New York.
TENET TAPS H&K FOR MEDICARE
CRISIS
Tenet Healthcare, which "faces a mounting crisis"
over its Medicare billings, according to the Nov. 11 Wall
Street Journal, uses Hill and Knowlton for PR strategy.
The company has lashed out at some critics for spreading
"misinformation" about it in the aftermath of
charges that two surgeons at its Redding Medical Center
performed unnecessary heart surgeries. Those charges have
hammered TH's stock and resulted in shareholder lawsuits.
TH has made its CEO Jeffrey Barbakow available to the media
for comment. He has been "cleaning house," after
claiming he was unaware of the alleged aggressive pricing
policies of Santa Barbara-based healthcare facility chain.
Gary Hopkins, TH's spokesperson, could not be reached for
comment about H&K's work.
TOP 5 PRSA CHAPTERS FOR DECOUPLING
Georgia, third biggest PRSA chapter with 809 members, will
support decoupling APR from Assembly membership. All of
the five biggest chapters now support decoupling. The others
are D.C., N.Y., L.A. and Chicago. Vote is Nov. 16.
The committed delegate vote is about 120-20 in favor of
decoupling. A two-thirds vote of the 180 or so delegates
is needed. About 22 of the 117 chapters will be unrepresented
this year because no APR members are going to the meeting
in San Francisco.
Among the next five biggest chapters, Minnesota and Colorado
say they are against decoupling while Detroit, Houston and
Puget Sound have not come to final decisions.
Mark Dvorak, Georgia president, said some of its best leaders
are not APR. A Georgia chapter delegate in favor of decoupling
is Nancy Wood, who will be 2003 chair of the APR board.
Gwin Johnston, 1995 chair of the Counselors Academy, is
in favor of decoupling. She said the Academy board that
year removed APR as a requirement for the spring conference
because it was cutting into attendance.
There are pockets of strong resistence to decoupling by
APRs who feel decoupling will be a severe blow to the 37-year-old
APR program. They also note a new APR test is being prepared
and that it can be taken throughout the year at various
test centers.
Another controversy is a move to allow students to join
PRSA directly (and not via a PRSSA chapter). Both professors
and PRSSA members oppose this.
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14 GROUPS TO WORK ON PR FOR
PR
More than 14 PR groups
have been meeting informally to coordinate a new plan in
support of PR's role, David Drobis, chairman of Ketchum,
told an audience of 250 on Nov. 7 in giving the 41st annual
"Distinguished Lecture" to the Institute for PR
at the Union League Club, New York.
"Early next year,"
he said, "they will come together in an effort to provide
industry positioning on three critical topics: ethics, disclosure
and transparency."
He said the Arthur Page
Society (about 300 corporate PR executives from throughout
the U.S.) has been the "driving force" behind
the new industry coalition.
Members include PRSA,
IABC, NIRI, The Institute for PR, PA Council and Women in
PR, he said.
Drobis described great
changes in the PR industry over the past 30 years.
"When I first came
into the business, PR meant that you were writing a release
after someone else told you what was happening. That was
it. Today, 'publicity' is usually only one element in a
PR program."
PR people are now "better
paid, more experienced, and have much greater opportunitiess,"
he said.
They are often creating
programs as well as communicating them, he added. Their
value, he said, springs from the fact that they have "a
total view of an organization - all its publics and how
they interact."
Worried About
'Fractured' Relations
Drobis expressed concern
about PR's "fractured" relationship with the media.
"Isn't media relations
the one PR tool that makes us distinctive from other marketing
disciplines? So why do we devalue this relationship so much
that we do so little to bridge the gap between the two sides?
he asked.
He finds there is too
much "complaining about the profession," too much
"dissension about what we do and what we call it"...too
much "self-analysis, introspection and, perhaps even,
a little self-absorption,"
He continued:
"Where have we been
in the last 12 months of business turmoil as the lawyers,
particularly, have taken over creating debacles out of Arthur
Andersen, Enron, Martha Stewart, and WorldCom?
"Why haven't we worked
to find a united voice to talk to the public, and frankly,
help build public confidence? Isn't it time we take some
responsibility here?"
More Research
Needed
Drobis, a longtime supporter
of research in PR, said PR pros should be working harder
to convince clients to fund needed research. He called for
"upfront research to better understand prevailing attitudes
and opinions so we can test our messages and plans better."
"How come so many
CEOs and government officials and marketing types say they
don't know what PR is all about?" he asked. "Or
when they do, it seems to be all about media management
or, at worst, spin control."
Discussing PR's image
in the media, TV shows and Broadway, he said that the Lizzie
Grubman incident (the publicist was given a jail sentence
after injuring 16 people with her SUV) did not reflect well
on PR nor did the portrayal of PR person Sydney Falco in
"The Sweet Smell of Success" on Broadway.
"I am not denigrating
what Lizzie does in her business," said Drobis. "It's
just not what most of us do. But, as you know, impressions
are often created, especially by the media, using the lowest
common denominator. And that's Lizzie and there are a lot
of Lizzies out there."
On the positive side,
he said, is C.J. Cregg, a press secretary on "The West
Wing."
"She's bright, articulate-and
most importantly-a real counselor to her fictional president
Bartlet, who welcomes her advice and even takes some of
it."
BORELLI KEEPS EYE ON DOONER
AT IPG
The Interpublic Group,
which last month slashed its 2002 profit forecast and said
it will restate $120M in expenses, has moved to shore up
corporate governance issues by appointing former Marsh &
McLennan Cos. CFO Frank Borelli as presiding director, a
new position. Borelli has served on IPS's board since 1995.
The post was set up to
ensure "optimal communication between the board and
management" and more participation by board members,
IPG chairman John Dooner said in a statement. He said IPG
will draw upon Borelli's experience as directors "forcefully
address the challenges facing our company."
Borelli, who continues
as a senior advisor at Marsh and the board of directors
at Express Scripts, earlier was CFO and director for Airco,
an industrial/medical product maker, and a senior partner
at Deloitte Haskins & Sells (now Deloitte & Touche).
He has also served on
the boards of United Water Resources and Mid Ocean Reinsurance.
Interpublic set up a corporate
governance committee in July.
LERER 'JUGGLES' AT AOL TIME
WARNER
Ken Lerer, executive VP
at AOL Time Warner, may soon be leaving his post to launch
a teaching career. He has told CEO Dick Parson that he hopes
it's possible to do both, according to the Nov. 5 Wall
Street Journal.
Lerer relinquished investor
relations and press oversight in May when he becomes an
advisor to Parsons. Ed Adler is AOLTW's senior VP-corporate
communications.
The former COO of Robinson
Lerer & Montgomery had been a confidante to former AOLTW
president Bob Pittman, who was recently bounced. That exit
was viewed as a sign that the AOL side is losing its power
to Time Warner in the combined entity. Pittman was AOL's
president. Lerer was a senior VP at AOL, and consulting
to the company, while at RL&M. Prior to that, he was
VP-corporate affairs at Warner Amex Cable communications.
Lerer chairs the Public
Theater/New York Shakespeare Festival, and serves on the
board of Bank Street College of Education.
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PR PROS NEED
NEWS WRITING SKILLS
Richard Truitt,
who heads Truitt Ptrs., a Connecticut-based consulting firm,
said PR professionals need to "reclaim our journalism
foundation" to help business reestablish its reputation
for trustworthy performance.
Truitt, who
gave the 2002 James C. Bowling Lecture at the Univ. of Kentucky
on Oct. 17, believes any PR pro who is going to help his
company or his client recover their reputation has to know
how to write.
"We
need to get back in touch with the fundamental disciplines
that were so critical to the PR process when its power was
at its peak" in the '60s and '70s, said Truitt, who
believes "good, thoughtful, well-founded writing is
as critical to the PR craft as it is to news journalism."
Hammond's
Rule
When he joined
Carl Byoir & Assocs. in 1959, Truitt said he came up
against a company rule that almost kept him out of the firm.
It said that every new employee must have at least four
years' professional experience working in the editorial
department of a respected newspaper, magazine or radio station.
"I had
three of these years, with the (Chicago) Tribune.
What didn't count was my three months as the editor of a
military newspaper, and, of course, my master's degree in
journalism. I finally squeezed in the door by claiming my
several years as a sports stringer for United Press while
in college."
Truitt said
he asked George Hammond, Byoir's chairman, why the firm
was so stringent. "He was very direct," said Truitt.
"He said that good writing depended almost entirely
on organized thinking, and this was as good a test as he
could find to weed out lazy thinkers."
Years later,
when he was in the position to counsel executives of client
companies, Truitt found that the "person who could
write cogently was the person who carried the day.
"I learned
that when I was in a meeting of executives who were trying
to formulate an action plan or a response to a crisis, I
was the one who could excuse myself and find a typewriter
to bang out a draft statement.
"When
I got back into the room, where the participants were still
debating, I could present my version and then, like magic,
it became the center of attention and often ended up as
the guts of the response statement or policy paper."
When he was
a speechwriter, he learned his own ideas found themselves
lodged in the final presentation because "I was the
one who had crystallized them and put them into type."
Truitt said
today's PR firms pay little attention to the value of good
writing.
He knows
one firm that retains a single full time writer who handles
the heavy stuff. "The rest of the staff muddles through
with little journalism education and no experience in the
news business," he said.
PLACEMENT TIPS
Fairchild Publications
will start a twice-yearly magazine, called Women's Wear
Daily Accessories, in February. It will be aimed at
consumers and focus on bags, belts and shoes.
Staffers of WWD and Footwear News will work on the magazine,
which will go to subscribers and be sold on newsstands.
MediaMap, Watertown,
Mass., said more than 2,200 editorial calendars with over
95,000 story opportunities have been collected as of Nov.
1 for its online directory. It anticipates more than 4,500
calendars with 175,000 story opportunities by the first
quarter of 2003.
The calendars list planned stories, issues and special
sections for publications, allowing PR pros to identify
key opportunities for publicity of their company and products.
Suzanne Levin is director of marketing for MediaMap. She
can be reached at 617/393-3361; [email protected].
Indievision,
a monthly magazine, has published its first issue.
It will cover the world of independent filmmaking.
The premiere issue features a cover story on Robert DeNiro,
who is called "The King of Tribeca."
Bruno Derlin is editor of the magazine, which is published
by Gothamwood Entertainment Ltd. Editorial offices are located
at 156 Bay 14th st., Brooklyn, NY 11214. 718/621-9797.
Hannah Deely
has joined US Weekly to cover celebrity fashion for
the "Style" section. 212/484-1616.
Robert Moritz,
who writes the monthly "Gadget Guide" for Parade
Magazine, plans to look at the latest in cell phones
and mobile computing products in the coming months.
He wants to get only e-mail pitches and regular mail should
be used to send him product samples.
His address: "Gadget Guide," Parade Magazine,
8212 Gould ave., Los Angeles, CA 90046. 323/650-3768; www.parade.com/current/columns/gadgetguide.html.
AMERICAN BABY GETS NEW PARENT
Meredith Corp. has reached an agreement with Primedia to
buy American Baby magazine and its related properties
for $115 million.
American Baby, which was started in 1938, is published
monthly and has a circulation of two million.
Other properties include Childbirth magazine, First
Year of Life magazine, several Hispanic titles, TV programs,
websites, and custom publications for Procter & Gamble,
Fisher Price and Mead Johnson, plus other companies.
Meredith plans to keep American Baby's operations based
in New York.
(Media news continued
on next page)
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MEDIA
NEWS/JERRY WALKER
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SEVENTEEN NAMES
NEW EDITOR
Sabrina Weill, 32, is leaving CosmoGirl!, where
she has been executive editor for the last three years,
to become editor-in-chief of Seventeen magazine.
Weill, who started her career as an editorial assistant
at Seventeen, has been a senior editor at Redbook and editor
of the Scholastic teen magazines Choices and Health
Choices.
She will be responsible for overseeing the editorial direction
of Seventeen, and shaping the content of the teen girl branded
websites.
She also will be the spokesperson for Seventeen.
HEALTH REPORTER WEDS PFIZER
PR PRO
Michael Waldholz, a senior science and health writer and
a news editor at The Wall Street Journal, and Mariann
Caprino were married on Oct. 1.
Caprino, who is keeping her name, is the senior director
for corporate media relations at Pfizer, a pharmaceutical
company.
Waldholz, who was a member of a group of Journal reporters
that won a Pulitzer Prize for national reporting in 1997
for coverage of AIDS drug discoveries, is author of "Curing
Cancer," published by Simon & Schuster in 1997.
LONDON PAPER GETS NEW BUSINESS
ED
Will Lewis, who was news editor of The Financial Times,
in London, has resigned to become business editor of The
Sunday Times of London.
Lewis, 33, will replace Rory Godson, who is joining Goldman
Sachs as its PR chief in London.
Tracy Corrigan, the FT's deputy news editor, will take over
from Lewis on an interim basis until a full time successor
is named.
FORMER PUBLISHER JOINS MAGAZINE
Former Boston Globe publisher Benjamin Taylor, 55,
will join American Prospect magazine as executive
editor. He replaces Harold Meyerson, who is now the magazine's
editor-at-large.
Taylor will divide his time between Boston and the magazine's
editorial office in Washington, D.C.
Taylor, who will work closely with magazine founder and
co-editor Robert Kuttner, is one of a group of majority
investors in the year-old newspaper Women's Business
New York.
American Prospect, which made its debut in 1990, was the
brainchild of Globe columnist Kuttner and Princeton Univ.
professor Paul Starr.
Feature coverage will be expanded in the Prospect, which
has an estimated circulation of about 45,000, and it will
be published monthly.
Washington Hispanic, a Spanish-language weekly newspaper
serving the District of Columbia, Maryland and Virginia,
now publishes articles, from The Wall Street Journal,
on Fridays.
PEOPLE
Godfrey Deeny,
who is editor-in-chief of Fashion Wire Daily, was named
president of the New York-based news service, which was
co-founded by fashion PR publicist Brandusa Niro.
Steven Reddicliffe
has resigned as editor-in-chiefof TV Guide, a position he
held for seven years.
Kelly Wallace
has been transferred to CNN's Jerusalem bureau after three
years at the White House.
TWO CARMAKERS START OWN MAGAZINES
DaimlerChrysler and Toyota are starting their own magazines.
Meredith Corp.'s custom publishing unit won a contract
from DaimlerChrysler to produce three magazines for Dodge,
Jeep and Chrysler brands, while Fluent Communications, in
Seattle, will create a North American version of Lexus
magazine, an 800,000-circulation title, for Toyota.
The carmakers are the latest marketers to start publications
of their own that "look, feel and read like a typical
magazine, rather than a mere catalog of praise for their
own products," reports The New York Times.
The custom publishing market in 2001 is estimated to have
reached $1.5 billion, and has been growing at 10% a year,
according to the Custom Publishing Council.
STUDY SHOWS COMPANIES IGNORE
E-MAIL
CustomerRespect.com,
which spent four months e-mailing the 100 largest corporations,
found 37% of them did not respond to their e-mails, and
it took three days or more for an additional 22% to answer.
Researchers posed as customers, graded companies on the
speed and quality of responses, site navigability, and ease
in finding privacy policies.
The results of the consulting firm's study were published
in Business Week's Nov. 11 issue. Here are the top
10 rankings:
Most responsive-Freddie Mac, Costco Wholesale, Dupont,
Allstate, Lowe's, Verizon Communications, Intel, Sears Roebuck,
Hewlett-Packard, and IBM.
Least responsive-Ingram Micro, Marathon Oil, Pepsico, Pfizer,
United Technologies, Merck, Goldman Sachs, Lockheed Martin,
Berkshire Hathaway, and J.P. Morgan Chase.
DAVID LETTERMAN COMES TO RADIO
"Late Show with David Letterman" will be aired
weeknights on radio stations in major markets across the
country starting Nov. 11.
Fifteen of Infinity Broadcasting's largest stations, including
WNEW-New York, KLSX-Los Angeles, and WCKG-Chicago, will
broadcast the program each weeknight at the same time as
the CBS TV show (11:35 p.m.-12:37 a.m.).
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KILLEEN, EAGON
SEE PR/IR LINKUP
Joann Killeen,
president of PRSA, and Don Eagon, chair of NIRI, speaking
Nov. 5 on a web panel hosted by OpenChannel.info, forecast
a happy marriage for PR and IR.
Killeen,
Eagon and two IR executives saw no great "cultural
differences" between PR and IR.
One worry
expressed was whether companies that unite PR/IR might use
it as an excuse to downsize.
Eagon, referring
only to his own company, Diebold, said this has not been
the case.
He described
an integrated department that includes both IR and PR people
working closely together.
He said it
was "extremely important" for all communications
functions to use a "single voice in driving the same
message at the same time."
Advertising,
PR, IR, sales promotion, etc., must "work together
with one big force" to get a company's message across,
he added.
Killeen said
her experience is that IR people do not tell PR people what
to do nor vice versa. They're on the same "peer level,"
she added.
The main
goal of each, she continued, is to present a "consistent,
integrated message" for clients to target audiences.
"We need to work together," she said.
NIRI Proposes
Integration
Lou Thompson,
president of NIRI, recently proposed a merger of the IR
and PR departments, saying, "In many of the larger
corporations, IR and PR operate in separate silos."
There is "little difference between the role of analysts
and reporters," he also said.
"Some
IR pros are afraid of the media and prefer not to deal with
reporters," he said "But this does not work in
today's disclosure environment," he added.
Panelist
Peter Hall, director of IR for BP, said "lots of people"
pass through IR on their way to higher company jobs. He
described IR as a "development post" through which
"high-flyers" get exposure to the IR environment.
Most of them have no trouble handling the IR assignment,
he said.
Dianne Douglas,
VP-IR, Mattel, described close coordination in her company
between IR and PR.
Carol Metzker, contributing editor to IR Update,
the monthly magazine of NIRI, was the moderator.
The discussion
drew 250 participants, who were able to type their questions
on the web and have them answered by the panelists.
OpenChannel
helps companies to assemble panelists for any financial
topic. Panelists are able to take part from their own offices.
ROBINSON JOINS H&K
Michael Robinson, who was Securities & Exchange Commission
ex-chairman Harvey Pitt's spokesperson, has joined Hill
and Knowlton as deputy director of its Washington, D.C.,
corporate practice.
He handled media inquiries involving Enron, Arthur Andersen,
WorldCom, Tyco and ImClone Sys.
SEIDEMAN, PRSA DEBATE NIKE
ISSUE
Jeff Seideman, Boston counselor, and PR Society of America,
gave opposing viewpoints on the Nike vs. Kasky lawsuit.
Seideman said PRSA and other PR groups should not be supporting
Nike on this issue but should be demanding an investigation
into the truthfulness of the issue. "The greatest problem
facing our profession today is our lack of credibility,"
he said.
Nike, claiming in a letter-to-the-editor and elsewhere
that its labor policies in the Far East are fair, was sued
by California citizen Marc Kasky on charges that these statements
were "commercial speech" (designed to sell products)
and were false.
While private citizens have the right under the First Amendment
to make false statements (as long as no malice can be proved),
companies cannot do that when selling products. The California
Supreme Court has ruled against Nike and the case may go
to the U.S. Supreme Court. Nike claims it is exercising
its right to free speech.
Supporting Nike via an amicus brief, in addition to PRSA,
are the Council of PR Firms, the Arthur Page Society, the
Institute for PR and the Public Affairs Council.
Seideman, president of the Boston chapter of PRSA and who
has been nominated to the 2003 board of PRSA, said (in speaking
for himself) that PRSA's position in this matter should
be that it supports ethical practices by PR professionals.
The focus should be on whether or not Nike is the model
of corporate responsibility that it claims to be, said Seideman,
since Nike is promoting this image to help sales.
PRSA Rebuts
Seideman
Answering the Seideman position, PRSA said that "The
true issue of Nike vs. Kasky is the First Amendment, not
any discrepancies in Nike's position statements...Kasky
has appointed himself special prosecutor for the people,
an unusual position allowed by California, and hopes to
silence corporations from entering social debate."
PRSA said the First Amendment protects all citizens in
expressing their views on social issues and this has been
upheld many times by the courts and most specifically, by
Sullivan v. New York Times (which said "malicious"
inaccurate speech was not protected).
Ad adverse ruling in this case will "silence institutional
America and...open the floodgates to costly litigation by
special interests.
Threatened are news releases, position statements and remarks
by corporate spokespeople.
By establishing three "standards" of what is
commercial speech, "the Court has relied on interpretations
already struck down by higher courts," said the PRSA
statement, which was not attributed to any individual. PRSA
said it "certainly supports the truth, but more importantly,
it supports the First Amendment, the cornerstone of this
nation's Bill of Rights."
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PR OPINION/ITEMS
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PRSA
president Joann Killeen was outgunned four to one
in the web panel on IR/PR. Facing her were Don Eagon, NIRI
president; Dianne Douglas, VP-IR, Mattel ($4.8 billion sales),
and Peter Hall, IR director, BP ($148 billion).
The moderator was also
from IR-Carol Metzker of NIRI's monthly IR Update magazine.
Title of the panel was "IR/PR Convergence: Tearing
Down the Silos." (Note IR was put ahead of PR.)
This would be bad for
PR people not only in terms of lost jobs but loss of prestige
and power.
IR people, many of them
NIRI members, held many top positions at Worldcom, Enron
and other companies that cost investors more than $100 billion.
Many dot-coms also had IR people. Either they knew nothing
of what was going on (which is bad) or kept it to themselves
(which is worse).
Killeen thought a merger
of the two functions quite desirable. If PR people don't
know financial, there are plenty of courses to teach them,
she noted. Both Eagon and Killeen repeated the current marketing
mantra: hit target audiences from every direction with a
single company message. Eagon used the word "drive"
as in pound these messages into the brains of your targets
as hard and often as possible.
As
for PR people "learning IR," there's little to
learn. Hall said IR is a training job at the giant
BP through which many pass on their way to someplace else.
Almost no one has any trouble with IR, he said. Of course
not. IR in a blue chip is mainly deciding who will get to
see the CEO/CFO or who gets on a conference call. Ornery
analysts may get blackballed and their investment banking
partners shut out of deals. IR people put out whatever is
given them by the CFO. The companies of board members of
NIRI ignore NIRI's own rules. Diebold, Eagon's company,
does not supply a balance sheet with earnings as called
for by NIRI.
We
don't think PR should lie down with IR because IR has made
such a mess of its own bed. Financial disclosure
is a disaster area that continues to worsen. SEC chairman
Harvey Pitt was bounced because he was perceived as being
too pro-business. Oddly, the panelists did not discuss his
departure even though it happened the day before. Reporters
are barred from analyst teleconference calls. Analysts themselves
are at a big disadvantage in trying to question CEOs and
CFOs over the phone. Reg "Fair Disclosure," intended
to give the press equal access to Wall St. info, was passed
but never implemented. NIRI could easily publish a "shame"
list of companies not living up to its earnings report disclosure
rules. This would be quicker, cheaper and better enforcement
than anything the SEC could do.
IR culture is different
from PR. PRSA, for instance, this year gave the press
more than 200 of its directories listing 19,000 members.
NIRI won't even let a reporter buy its directory of 5,000
members. NIRI's expanded ethics code does not have the word
"public" in it. It's concerned with members, clients,
and investors. The mark of a profession is that it serves
the public first and foremost and has a free library open
to the public. NIRI has no such thing although with its
$4.6M treasury it could well afford one on its website.
PRSA once had a library and then an information center.
It now has a "Professional Development Center"
that is for members. NIRI, despite ample funds, has never
had an on-staff PR person. PRSA usually has one although
this is far from sufficient.
Before
PRSA members can get into the financial disclosure game,
they must do it themselves. Not one of the 117 PRSA chapters
routinely provides finances to members. The best disclosure
would be a report every quarter tracking the spending of
every cent. Officers should prove to members that things
are on the up and up. Members should not have to force financial
info out of them. Federal law says any group handling $25,000+
must file a 990 tax return and must send it within 30 days
to anyone who writes for it.
Financial
disclosure at PRSA national remains spotty. For instance,
$717,478 was spent on "travel" in 2000. But this
also includes meals and hotels. PRSA refuses to break out
spending on either. The APR board, which used to pay its
own travel/meals, charged PRSA $30,212 for this in 2000.
The national board, meanwhile, spent $88,748 on travel/meals
in 1997 and $78,288 in 1998 but this soared to $138,654
in 1999, $143,061 in 2000, and $176,719 in 2001. Counselors
Academy supposedly spent $165,954 on travel/meals in 1990
(vs. the usual $20K). Academy officers deny ever spending
such a huge amount. Who did?!
PRSA
Assembly delegates this year are getting a skimpy five-page
financial report (vs. 10 pages in 1996). The nine-month
report shows deferred dues of only $545,569 when this figure
should be at least $2.1 million based on dues of $4.2M in
2002. Current liabilities exceed assets by about $200K,
meaning PRSA is technically insolvent. IABC shows $1.2M
in DD on $2.5M of dues revenue. PRSA had $904,000 in DD
back in 1991 when it had 15,000 members and $175 dues. Dues
income for the nine months is up only $29,843 to $3,500,061.
Since dues were raised $10 in 2002, income would be up nearly
$200K if membership remained the same. PRSA gained 4,000
new members in 2001 but 4,000 failed to renew.
-- Jack O'Dwyer
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