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PN REGAINS $7.4M '5 A DAY'
ACCOUNT
The
National Cancer Institute has awarded a three-year $7.4
million "5 A Day for Better Health Program" to
Porter Novelli. Matthews Media Group, a sister Omnicom agency,
had the $23 million 'NCI master account.'
Lorelei
DiSogra, an NCI spokesperson, said the feeling was the "5
A Day for Better Health," which she called the largest
federal health initiative, deserved to have its own PR shop.
NCI, DiSogra added, is excited about the campaign because
a large element of it will deal with outreach to African-Americans.
PN's Mike Frisby handles that effort, while Ed Maibach is
concerned with the overall health messages.
PN
launched the "5 A Day for Better Program" in 1991,
and worked on it through 2000. DiSogra said PN won the campaign
via a spirited pitch against eight other firms-none of which
she would name. "All the big players wanted the account,"
she said.
RUDER FINN BESTS TRIO FOR
VERIFINE
Ruder
Finn was tapped by Verifine Products for a high six-figure
account to promote its flavored, no-calorie water Fruit20.
RF beat MWW Group, Brodeur Worldwide, and Schneider &
Assocs. for the account.
The
firm is charged with boosting the image of the drink as
an alternative to soda.
Mary
Trudel, executive VP in RF's New York office, heads the
account team, which is managed by Tony Mangle and Iya Davidson.
The
drink, which sells for a little over a dollar a bottle,
was launched in May into a budding "enhanced waters"
market which is estimated to be at around $200 million in
sales by the end of the year.
POLANSKY, HEIMANN GET KEY
WS POSTS
Weber
Shandwick promoted Andy Polansky to the president/North
America slot. He had been COO of the eastern region, while
Tom Tardio headed both the western region and the Rogers
& Cowan entertainment PR combine.
Polansky,
a former municipal reporter for the Bucks County Courier
Times (Levittown, Pa.) has counseled Singapore Airlines,
Ingersoll-Rand, Texaco, Hewlett Packard, Unisys and AT&T.
The
Interpublic unit also upped Gail Heimann to president/New
York. She has run programs for Coors Brewing and Ocean Spray.
She remains co-president of the consumer marketing practice
with Cathy Cal houn.
QORVIS HELPS SAUDIS ON 'KIDNAPPING'
Qorvis
Communications is helping Saudi Arabia handle fallout from
charges that American children born of mixed U.S./Saudi
parents are being kidnapped to the Kingdom, according to
CEO Michael Petruzzello.
He
was subpoenaed to appear Oct. 3 before Rep. Dan Burton's
panel for a day of hearings on "Americans Kidnapped
to Saudi Arabia: Is the Saudi Government Responsible?"
Burton,
who recently returned from Saudi Arabia, said there are
"hundreds of cases" of children of U.S./Saudi
mixed marriages taken to Saudi Arabia and held there against
their will.
Prince
Bandar, Saudi Arabia's U.S. Ambassdor, flatly denies that,
but said his government is working with U.S. officials to
settle a dozen custody disputes.
Petruzzello,
whose firm receives $200K a month from Saudi Arabia, told
the panel: "On the issue bef ore the committee today,
we have helped the Embassy prepare materials and respond
to information requests, such as requests for interviews
of Embassy officials."
He
emphasized that the "vast majority of our communications
work is related to the war on terrorism and bi-lateral U.S.
Saudi relations."
OMC's F-H, KETCHUM UNITS CUT
STAFF
Fleishman-Hillard
plans to cut about 60 people in a cost reduction plan, Dave
Senay, an F-H spokesperson, told this NL. The firm is also
paring salaries and travel to get costs in line with business
realities.
F-H,
according to Senay, continues to talk to recruiters for
"strategic hires." For instance, Senay said the
firm hired 44 people in August to service strong areas such
as healthcare/PA. The cutbacks, representing about three
percent of F-H's 2,000-member force, are designed to achieve
a proper employment mix, he said.
Sister
company, Ketchum, continues its people pruning. Four staffers
have been cut from its Dallas office. That leaves nine staffers
remaining.
Joseph
Vecchione,
retired corporate VP of PR for Prudential, will receive
PRSA's Gold Anvil Award for 2002, for his contributions
to the field for the last 40 years, the group said. Timothy
Doke, VP of corporate comms. for American Airlines, will
receive the Professional of the Year Award, for his role
in managing the "chain of crisis" that confronted
the airline in 2001.
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GPHA DECRIES RIVAL'S 'SHAMELESS
PR'
The Generic Pharmaceutical
Assn. has blasted the prescription drug industry's main
trade group over an ad campaign which says generic drugs
will not cure a sick child.
GPHA CEO Kathleen Jaeger,
in a letter to the Pharmaceutical Research and Manufacturers
of America, said the ad "shamelessly exploits the photograph
of a critically ill child and goes far beyond the bounds
of common decency and the issues at hand." She called
the use of a child's photo "nothing more than a shameless
public relations tactic."
The ad is part of a multifaceted
PhRMA campaign opposing the Greater Access to Affordable
Pharmaceuticals Bill, which limits the rights of brand name
drug companies to stall, challenge, or buy off generic competitors.
Defends
Use of Sick Child
Responding to Jaeger's
letter, PhRMA president and CEO Alan Holmer defended the
ad's relevance, citing brand-name pharmaceutical companies'
contributions toward innovation, and knocking generic copies
which "never represent even the smallest improvements
in medical care."
Holmer pointed out in
a letter to Jaeger that he is "all too familiar with
the plight of critically ill children" as both of his
kids have cystic fibrosis.
GPHA spokesman Greg Howard,
who is handling media relations while the group searches
for a communications director, provided copies of the letters
to this NL.
The GAAP bill's main provision
is to ax a 30-month automatic stay given to brand holders
who file suit against a generic challenger. The bill would
have a court decide whether a case merits a stay.
PhRMA contends that a
brand-name drug costs about $500 million to bring to market,
while a generic version could cost as little as $1M. The
$500M figure, however, was disputed by a Public Citizen
report in July which placed the cost at around $100M.
JEFFREY GROUP LANDS HANDSPRING
The Jeffrey Group, Miami, has picked up a six-figure assignment
to introduce Handspring Inc.'s personal communications and
handheld computing products in the Latin American market.
TJG CEO Jeff Sharlach is to especially focus on the Handspring
Treo, which is a communicator that combines mobile phone
capability, wireless applications (e-mail and web surfing)
and Palm OS organizer.
Handspring executives were responsible for the launch of
Palm Computing Co. Founder & CEO Donna Dubinsky had
headed Palm, while chairman and chief product officer Jeff
Hawkins founded Palm and COO Ed Colligan was Palm's VP/marketing.
Handspring suffered a $91.6 million net loss on $240 million
revenues for the fiscal year ended June 29.
Switzer Communications handles Handspring in the U.S.
WINNICK SHOWS 'HEART'-RUBENSTEIN
Global Crossing CEO Gary Winnick's shocker offer to contribute
$25 million to cover a portion of the losses in the company's
401 (k) plan is a sign of compassion, and not a PR ploy
to bolster his image, Howard Rubenstein told this NL.
Winnick made the pledge after former GC employee Lenette
Crumpler told the House Energy and Commerce Committee investigations
subcommittee on Oct. 1 that she lost her $86,000 retirement
fund of GC stock because she trusted the bullish predictions
made by top management. Winnick "was truly touched
by that woman," said Rubenstein, which led to the offer
that "caught lawmakers off guard," according to
a front page story in the Wall Street Journal on
Oct. 2.
Winnick's $25 million check breaks down to $5,000 per-plan
participant. It represents about three percent of the $734
million value in GC shares sold by Winnick before the stock
crashed. "Sure he made a lot of money," but he
also lost a lot of money on his investments," said
Rubenstein. The PR exec noted that Winnick is the first
CEO of a fallen company to "look out for the people
who worked there." Winnick-unlike other CEOs-"did
not take the Fifth," added Rubenstein. Rubenstein expects
Winnick "will be open and do press interviews."
The former Drexel Burnham Lambert partner, who founded GC
in 1997, has a "deep sense of justice, and will take
responsibility for his action," said the New York counselor.
Rubenstein advises on the Winnick account. Marcia Horowitz,
executive VP, heads the account and is assisted by Scott
Tagliarino, who recently joined Rubenstein Assocs.
CF&M FIGHTS BIO-LABEL
Conkling Fiskum & McCormick is counseling a coalition
of heavyweight food biotechnology companies in a push to
defeat a November ballot initiative in Oregon requiring
labels for genetically modified foods in that state.
The Coalition Against the Costly Labeling Law, with help
from CropLife International, PepsiCo, General Mills, ConAgra
Foods and others, has raised a $4.6 million war chest, according
to The Wall Street Journal, to fight what is known
as Measure 27 - a rule which would slap labels on foods
both sold in Oregon, and those produced in the state and
sold elsewhere.
CF&M partner Pat McCormick told this NL that his Portland-based
firm was contracted for media and community relations work
related to the campaign. CF&M has worked with the Grocery
Manufacturers of America in Oregon since 1991. Earlier in
his career, McCormick was chief of staff to state House
Speaker Hardy Myers, who is now Oregon's attorney general.
Winner & Mandabach Campaigns of Santa Monica, is overseeing
the campaign and tapped CF&M for the work, added McCormick.
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COLUMNIST PRESSES
FOR MORE RELEASES
Ben
Silverman, who writes a web column called "PR Fuel,"
for ereleases.com,
has stopped believing in the "magic bullet" theory,
that one press release will grab the attention of journalists.
"A non-scientific study of a dozen small Internet and
tech companies revealed something to me: the more press
releases, the more press," said Silverman, who publishes
DotcomScoop.com, a weekly newsletter digest covering the
Internet, technology, telecommunications, media and finance
sectors. He also contributes a weekly business news column
to The New York Post.
"I
always felt that putting out an abundance of press releases
was like throwing money at the problem, and that rarely
works. But I've written in the past that it is essential
to grab the media's attention using various tactics and
I'm going to add multiple press releases to that list,"
Silverman wrote in his Oct. 2 column.
Silverman
said a company the size of Oracle puts out hundreds of press
releases each year. "In fact, Oracle put out five in
one day last week," he said. "Not every company
has the money or resources of an Oracle, but every company
has something newsworthy going on during the course of the
year. With that said, I've come up with a plan to promote
my own business: quarterly press releases," he said.
Although
a privately held company is under no obligation to release
details of its financial performance, Silverman said this
does not mean it "can't beat its own chest."
He
recommends putting out a press release at the end of the
quarter touting new sales wins, expansion, the hiring of
new executives, the release of new products and other routine
business happenings. "These press releases lay the
foundation of credibility in the eyes of journalists,"
said Silverman. "Releasing information like this is
essential to keeping your company in the public's eye. A
single press release announcing a deal is unlikely to grab
attention."
Silverman
([email protected])
does not want to get any pitches.
PLACEMENT TIPS
"Animal
Tales"
is a new weekly column that will be a fixture on UPI's science
wire.
Written
by Alex Cukan, the column is a series of funny and interesting
anecdotes about all kinds of animals-wild, domestic, working,
and pets, says Amy Vogel, spokesperson for UPI.
In
one of her recent columns, Cukan wrote about keeping exotic
pets, smart chickens, and what to do when Fido takes your
shoe.
Cukan
has been writing stories and columns for UPI for eight years.
She has convered a broad range of topics from Hillary Clinton's
political campaign to the latest developments in science
and technology.
Her
work has appeared on MSNBC, in The New York Post, and in
several daily newspapers and national magazines.
Cukan,
who is based in Buffalo, N.Y., can be reached at 518/436-9139;
[email protected].
Ruth
Rosen will write
a column twice a week for the opinion page of The San
Francisco Chronicle, starting in November.
Rosen,
who is the author of three books, including, most recently,
"The World Split Open: How the Modern Women's Movement
Changed America," joins Joan Ryan and Debra Saunders
as regular op-ed columnists.
Rosen had been an editorial writer for The Chronicle,
expressing opinions on everything from homelessness in the
Bay Area to military actions in Colombia and Iraq.
David
Butwin, a freelance writer
rooted in Leonia, N.J., wishes more publicists would imitate
counselor Jeff Blumenfeld of Rowayton, Conn.
"His
are the only PR releases that inform, amuse and even titillate
out of the dozens I get every week as a freelancer (mostly
travel) writer," Butwin told this Newsletter.
"If there is any way to encourage his brethren (and
sisters) in the biz to lighten up and reach for the less
obvious phrase or angle, please do so," said Butwin,
who can be reached at 201/585-2482.
Stewart
Bailey-who
is the New York-based supervising producer for the Comedy
Channel's "The Daily Show," hosted by Jon Stewart-sends
reporters to cover events with a laughable angle.
For
example, in July when nine miners from Pennsylvania emerged
from a water-filled mine, the show's staff discovered there
was another miner who did not work that day because he had
gone to Ozz-Fest, a concert known for heavy metal music.
"What
he had to endure was way worse than what the miners had
to," Bailey told an IABC, District 5, meeting in Topeka.
The
challenge is make sure the show is "edgy enough"
but also fair, he said.
BoomerCafe.com,
an online magazine for Baby Boomers and those with active
lifestyles, wants publicists to submit feature story material
and visuals on a wide range of issues-travel and leisure,
books, lifestyle, health and money.
The
editors are looking for direct relevance to Boomers. Detailed
submission guidelines are available online. Boomer Cafe
does not accept news releases.
The
magazine was started by two former network TV correspondents-David
Henderson, ex-CBS News and Edelman PR, and Greg Dobbs, formerly
at ABC News.
The magazine's offices are at 102 Adams ave., Alexandria,
VA 22301. 703/628-6868. All correspondence should be sent
to [email protected].
(Media
news continued on next page)
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MEDIA
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STEWART NAMED
HBR EDITOR
Thomas
Stewart, 54, who is editorial director of Business 2.0,
is taking over as editor of the Harvard Business Review.
He
replaces Suzy Wetlaufer, who resigned earlier this year
after she admitted to an "improper relationship"
with former General Electric CEO Jack Welch while she was
working on an interview with him for the Review.
Stewart
is the author of two books: "Intellectual Capital:
The New Wealth of Organizations," published in 1997,
and "The Wealth of Knowledge: Intellectual Capital
and the Twenty-first Century Organization," published
in 2002.
He
is a former editor at Farrar Straus and Giroux and Harcourt
Brace Jovanovich, and VP and editor-in-chief of Atheneum
Publishers, a division of Macmillan.
Stewart
joined Fortune magazine in 1989 as an associate editor,
where he wrote on management subjects. He went to Business
2.0, which is published by Time Inc., in 2001, and wrote
a web column, "Barely Managing."
Based
in Boston, HBR is a business unit of Harvard Business School
of Publishing, a wholly owned, not-for-profit subsidiary
of Harvard University. The magazine, which is published
12 times year, has a paid circulation of 243,000.
SCARDINO LAMBASTS BUSINESS
PRESS
Marjorie Scardino, CEO of Pearson, said business journalists,
including those on the Pearson-owned Financial Times,
often miss important stories.
In an interview with Stefan Stern for the 150th anniversary
issue of the RSA Journal, the magazine of the Royal
Society of Arts, Scardino said: "If journalists were
better at reading balance sheets, some of these things would
be discovered sooner. We could have done a lot more digging.
But business journalists often don't know a lot about business.
It's a shame, but that's the case."
Scardino also questioned the tendency of business journalists
to focus on the personality of chief executives.
"I think it's unfortunate but it's probably inevitable.
But you know, Pearson isn't me; it's all these 30,000 people
who do have a particular kind of character, particular values."
Scardino's husband is a former reporter for The New
York Times. Together they published an award-winning
weekly newspaper for several years in Savannah, Ga.
PEOPLE
Deborah McDermott,
previously head of her own PR firm, which she opened after
leaving The York (Me.) Weekly, where she was editor
from 1991 to 2000, has joined Seacoast Newspapers, in New
Hampshire, as news editor of the weekly Exeter News-Letter,
Hampton Union and The Rockingham News. The News-Letter
and Union are launching a tri-weekly format.
Efrain Hernandez Jr.,
who has been interim city editor of The Los Angeles Times'
San Fernando Valley edition, was named director of reporting,
minority editorial training program at The Tribune Co.,
in Chicago. He will oversee training of reporters in Los
Angeles.
Thom Fladung,
42, previously managing editor The Akron Beacon Journal,
is rejoining The Detroit Free Press as its managing
editor, replacing Carole Hutton, who was promoted to executive
editor in June.
CORRECTION:
John McCorry,
who was put in charge of print reporters at Bloomberg News
(9/18 NL), was never a reporter at The New York Times.
He is a former editor of Bond World and Bond Buyer.
MEDIA BRIEFS
Staples Business Depot,
Toronto, has published the first edition of SOHO Magazine.
Some 400,000 copies of the custom magazine will be available
in English and French in 205 stores in Canada. It will also
be distributed to a loyalty mailing list.
The magazine will focus on matters relevant to small businesses.
It will profile successful entrepreneurs and have columns
written by individuals who are experts in technology, franchising,
finance, legal and taxes. The magazine will also have articles
about health, fitness, leisure and vacations.
The Colorado Journal,
which covered the local law community, published
its last issue on Oct. 2. The weekly paper, which had about
300 readers, was owned by Los Angeles-based Daily Journal
Corp., which also owns The Los Angeles Daily Journal,
The San Francisco Daily Journal and California
Lawyer magazine.
New Times L.A.,
and Cleveland Free Times have been shut down
by New Times and Village Voice Media, a company headed by
David Schneiderman. VVM publishes the Village Voice
in New York.
Forbes ASAP,
a magazine started 10 years ago by Forbes to
cover the Internet, is closing. It was published six times
a year for most of its life, and was distributed with the
regular Forbes magazine.
Crain's New York
Business is seeking candidates for its upcoming
"40 Under 40" section, which profiles up-and-coming
businesspeople under the age of 40. Candidates must work
for Manhattan-based companies and be doing extraordinary
work in their fields.
Pitches, along with bios, resumes and birth dates, go to
Emily DeNitto, deputy managing editor, CNYB, 711 Third ave.,
New York, NY 10017, or fax: 212/210-0799. Her e-mail address
is [email protected].
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DROP APR RULE,
SAY SOME PRSA CHPTS.
Some of PRSA's
117 chapters are in favor of dropping the APR requirement
although most have not made up their minds, according to
an e-mail poll by this NL.
Among those
favoring dropping the APR rule are the New York chapter
and the Assembly delegates of the Chicago chapter.
Michael Rinaldo,
president of PRSA/NY, said the chapter has long been a vocal
advocate of dropping the requirement while also supporting
the APR program.
"We
simply don't believe that APR should be a requirement for
Assembly delegates," he said. The chapter will field
nine delegates and all are expected to vote for decoupling.
"Chapter leadership is firmly behind this amendment,"
said Rinaldo.
Paul Raab,
president of PRSA/Chicago, said the four chapter delegates
"will support the national board's proposed bylaws
amendment" to decouple.
"We believe that open and inclusive leadership and
decision-making are in the best interests of PRSA and the
PR profession," said Raab.
The delegates
are Raab, Ann Fahey-Widman, Don Kirchoffner and Kelly Womer.
Raab said all strongly support APR. He noted the topic will
be discussed at a board meeting Oct. 22 and will take into
account "the views of our colleagues."
Dropping
APR as a requirement for Assembly membership would be a
retreat from the program that was begun in 1965. The pro-APR
wing at PRSA has blocked the subject from even reaching
the floor of the Assembly for many years.
At present,
all of the 250 or so delegates and all the national officers
of PRSA are required to have passed the one-day accreditation
exam.
After 37
years of promoting APR to the membership, only 4,100 of
the 19,000 members are APR.
Other chapter
presidents who have told O'Dwyer's they favor decoupling
are from the Capital Region, New York; Arizona Valley, and
Reno.
The initiative
was started by the 15-member section council, which voted
unanimously to drop the APR requirement for Assembly membership.
Gabrial Werba,
co-chair of the council, said the sections are deprived
of a vote in the Assembly because not enough of the officers
of the sections are APR.
Joann Killeen,
PRSA president, said on July 19 that she has been hearing
the same complaint for years from a number of chapters.
The problem "has resulted in empty seats at the Assembly,
has precluded chapters from sending current chapter leaders
as delegates since they are not APR, and has forced chapters
to rely on the same members as delegates," she said.
Delegates
are not supposed to attend more than three years in a row.
Assembly
'Unrepresentative'
Michael Cherenson
of The Cherenson Group, Livingston, N.J., president of the
300-member New Jersey chapter, said the Assembly is "unrepresentative"
of the PRSA membership since the Assembly is all-APR and
80% of the membership is not.
He said he
is not criticizing APR and intends to take the exam but
he is against requiring APR for Assembly membership.
U.S. ON CUSP OF CHANGE-DILENSCHNEIDER
New York PR consultant Robert Dilenschneider believes the
U.S. is "on the cusp of dramatic change."
Dilenschneider predicts in his new mega-trends report for
2003 that "extraordinary progress is only a short time
away, reflected in revolutionary advances in chemistry,
physics, biology, genetics and communications that will
alter our lives radically."
Dilenschneider's predictions are based on interviews with
about 100 leading bankers, economists, academics, politicians,
journalists and others.
Before the U.S. can move ahead, "we must find ways
to become comfortable with the challenges around us and
prepared to operate within an ever-uncertain environment,"
said Dilenschneider, who released his annual trends report
Sept. 30.
"Long term, the outlook is good," said the PR
veteran, who points out the U.S. labor force has grown just
over one percent a year during the past decade, but, "remarkably,
economic productivity has doubled."
He said long term projections call for economic growth
well in excess of three percent in the U.S. Other economies
are slated to grow as well. "The robust Chinese economy,
with a GDP growth of almost eight percent, will be a major
factor," said Dilenschneider, who also notes the Thai
economy, now at six percent, and the Singapore economy,
growing at four percent, "indicate that Asia is on
the rebound."
He said Japan still needs to institute structural reforms
and deal with a massive bad loan issue.
Dilenschneider believes the U.S. will deepen its ties with
Russia as an offset to uncertainty in the Middle East. A
closer relationship, if accomplished, could lead to huge
new markets and opportunities as well as more economic certainty
for the U.S. and the West, he said.
"Bottom line: Despite the impact of the ongoing terrorist
challenge, the overall economic outlook remains positive,"
said Dilenschneider.
Not All
Is Rosy
On the downside, his report points to Europe's weakening
bond with the U.S.; tensions between Saudi Arabia and the
U.S.; instability in South America; asbestos litigation,
which is threatening to overwhelm corporate America, and
the mysterious "Asian Brown Cloud," a vast blanket
of smog that extends over much of South Asia and the Indian
Ocean, which is leading to weather changes for the whole
world.
Dilenschneider's two previous reports have been on the
mark. In his trends report of Jan. 2000, the PR pro singled
out Osama bin Laden as a violent enemy who the U.S. should
be very concerned about.
Last year's report forecast the rise of shareholder activism
and warned of a forthcoming popular revolt against excessive
executive pay packages.
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PR OPINION/ITEMS
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The
accreditation program of PRSA faces a test on Nov. 16 in
San Francisco
when 250 Assembly delegates vote on whether delegates have
to be accredited, a rule in force since 1973.
Any
retreat from APR has always been greeted with horror by
the pro-APR wing of PRSA, which includes a large number
of PR professors.
But
PRSA no longer has the money it used to have for this program,
which has had a loss of about $2 million in the past ten
years. The net cost of each new PRSA APR member in 2000
was $1,794. It cost $441,467 after fees for 246 new PRSA
APRs.
After
37 years, only 4,100 of the 19,000 members are APR, a 20%
ratio that has held for years.
Less
than 2% of PRSA eligibles take the test when it's given.
This year, the APR board tried to raise $300,000 in gifts
from members. Only $30,300 came in, according to APR chair
Doug Coffey. Only a couple of thousand came from partner
groups. A 1999 study by Rene Henry for the College of Fellows
found virtually no interest in APR among PR recruiters or
their clients.
On
the chopping block, as soon as the contract runs out, is
the $100K or so cost of having an outside service correct
the exam. Attempts to sell this program to other PR groups
have not gone far, partly because of the steep $385 price.
Since 1998 only 203 members of partner groups have taken
the test (95 failed). Those who passed are supposed to pay
PRSA $225 a year to keep using APR after their names.
Coffey
says the new exam, due in 2004, will be available throughout
the year in test centers in major cities. An oral exam will
still be required. It is hoped this will increase the number
of APRs. The new test will cover general abilities such
as planning, research and writing that are required for
any PR program.
PR
pros should read both The Liberty Incident by Jay
Cristol and the Assault on the Liberty by James Ennes
(10/2 NL)
because communications (or lack of them) played such a big
role in the attack on the U.S. ship on June 8, 1967.
This
incident is a case study in institutional non-communication,
a practice that is rampant these days. An institution says
it doesn't know things that it darn well should. For instance,
Omnicom CEO John Wren told the June 12 analyst teleconference
he had no idea that OMC might not be totally forthcoming
with the analysts and pleaded with them to ask any questions
at any time. This offer was not extended to the press. Wren's
statement, admitting less-than-perfect communications, ended
up in many of the nearly 20 class-action lawsuits against
OMC. Neither OMC, Interpublic nor WPP will provide us with
anyone for discussion of their finances. E-mails and phone
calls are not answered.
Massive
non-communication and denial of obvious facts went on in
the 1967 Liberty incident.
Only sheer luck prevented all 297 sailors from being killed.
The
U.S. denied that any of its ships were within 100 miles
of Israel and Egypt. The U.S. insisted it was a non-participant
in the war that started June 5.
The
455-ft spy ship armed only with four machine guns, was patrolling
a mile just off the Gaza coast. I ts crew, which could see
smoke from battles on shore, asked for a military escort.
The Navy turned it down.
The
two books are non-stop choruses of "We're not talking"
and "We don't know." Another common refrain is:
"Prove to me that I knew something."
Supposedly, the Joint Chiefs of Staff sent five messages
to the Liberty to leave the area as soon as possible. It
never got any of them, perhaps to give the ship "deniability."
On June 5, Israel had destroyed the Egyptian air force on
the ground. The Liberty messages went to naval stations
in Maryland, the Philippines, Greece, Ethiopia, Morocco,
Germany and London. It supposedly took hours to craft and
relay them through a tortuous system aimed at ensuring secrecy
while informing various levels of brass. One of the messages
was so "top secret" that even the Liberty couldn't
decode it.
The
best defense for the Liberty could have been simply calling
Israel on the phone and identifying itself. It could have
sent a press release to Ha'aretz Daily and the Jerusalem
Post or other papers saying it was not a military ship
and was doing research (its cover story). It could have
plastered itself with 100 flags or other signs of U.S. identity.
Israel says the one tiny U.S. flag couldn't be seen because
there was no wind. On the other hand, Israel could have
sent a small boat out to the ship to talk to the crew. Liberty
crewmen wonder why the Navy didn't simply call it on a radiophone.
Military-level
secrecy and refusal to communicate or acknowledge communications
is in force at a number of companies including the big ad
conglomerates. The PR or "communications" dept.
is often at the center of this "I don't know"
and "I don't want to know" charade, which can
have serious consequences. Both OMC and IPG now face numerous
lawsuits to which they have to reply on the public record.
Stockholders are getting restless with the paucity of information
provided by such companies. The 10,000 IPG employees who
have lost their jobs might start talking. The hallmark of
the Enron, Arthur Andersen, Worldcom and other scandals
is that insiders didn't talk and claimed lack of knowledge
when questioned by authorities. But investigations (into
Andersen, for instance), revealed that many high-level execs
and staffers had to know what was going on. This proved
to be fatal to AA.
--Jack O'Dwyer
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