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PARIS PICKS WS FOR OLYMPICS.
Paris has selected
Weber Shandwick from a field of eight firms to guide its
bid to host the 2012 Olympic Games. It marks the first time
that the city has used a foreign firm for Olympics activity.
Paris lost out to Beijing for the '08 Games. Weber Shandwick
had served as PR counsel for Beijing, and has worked on
bids for Sydney '00 and Turin '06.
Philippe
Baudillon, director general of Paris 2012, said WS was hired
because the city wanted to promote its bid beyond France's
borders. He also cited the Interpublic unit's experience
in the Olympic bid world.
WS
will handle international media relations for Paris, coordinate
the city's relationship with the International Olympic Committee
and monitor IOC protocol and ethics guidelines.
London,
the archrival to Paris, is expected to hire its own PR firm.
The U.K.-based Evening Standard reports that WPP Group's
Hill & Knowlton is the "hot tip" to win that
effort.
Nine
cities submitted bids last month to host the Games. British
bookmakers give Paris, which hosted the Olympics in 1900
and 1924, the best odds to land the Games.
The
International Olympic Committee will announce the winner
next July.
HOWARD JOINS PR21.
Barbara-Jo Howard, who was executive VP/marketing and client
development at Cohn & Wolfe, has joined PR21 in New
York. "My job is to flesh out its consumer business,"
she told O Dwyer's .
PR21 was founded in 1998 as a tech firm by Edelman PR Worldwide.
Howard said PR21 has a strong consumer practice in Chicago
as evidenced by its high-profile launch of Ted, the discount
carrier of United Airlines. That campaign has led to other
assignments from United. Bridget Brennan is the senior VP
in charge of PR21/Chicago.
Howard left C&W two years ago to set up her own marketing
firm that counted the WPP unit as a client. She also worked
at Ketchum Promotions, Paddington Corp. and Buckingham Wile
Co.
Circuit City is considering
Ogilvy PR Worldwide, Stanton Crenshaw, Fleishman-Hillard
and hometown Richmond-based Carter Ryley Thomas for
its PR account. Weber Shandwick, the incumbent, decided
not to pitch the business of the electronics retailer.
OMC REPORTS 10% GROWTH
IN Q4 NET.
"PR for the first time in two years showed good solid
growth," said CEO John Wren during the Feb. 17 webcast
announcing that Omnicom reported a 9.8 percent rise in fourth-quarter
net to $221.3 million on an 18.3 percent jump in revenues
to $2.5 billion. Full-year net jumped five percent to $675.9
million on a 14.4 percent spurt in revenues to $8.6 billion.
OMC's PR units, including Fleishman-Hillard, Ketchum, Brodeur
Worldwide and Porter Novelli, combined for a 9.5 percent
gain in the year, chalking up $248.6 million in revenues.
Overall, they posted a 3.7 percent rise in growth to $955
million for 03.
OMC spent $473 million in `03 acquisitions, including $236
million in earn-outs, during the year.
Deals included the acquisitions of PR firms Fischer Health,
Mercury PA and Harrison & Shriftman, plus Hall &
Partners communications research firm.
The ad/PR conglom disclosed $2.6 billion in total debt,
up from $2 billion from yearend `02. The company continued
its policy of not releasing a balance sheet. That counters
the recommendation of NIRI CEO Lou Thompson.
C&W SPEAKS FOR
MUTUAL FUND INDUSTRY.
Clark & Weinstock has registered as lobbyist for the
Investment Company Institute, the group representing the
$7.4 trillion mutual fund industry that has come under fire
for abusive trading practices and hidden fees.
ICI opposes the Mutual Fund Reform Act of 2004 introduced
this month by Republican Sens. Pete Fitzgerald (IL), Sue
Collins (ME) and Democrat Carl Levin (MI) that would overhaul
fund fee structure.
"We're taking the brokerage community off the gravy
train," said Fitzgerald at a Feb. 11 press conference
to introduce the measure.
ICI president Matthew Fink criticized "vague provisions
in the bill" that "would seriously jeopardize
the interests of current and future mutual fund investors."
The group, instead, supports reforms proposed by the Securities
and Exchange Commission.
The ICI, on Feb. 18, issued a report that it hopes will
debunk the perception that fundholders are getting ripped
off by costly fees/expenses. The report, says ICI, tackles
"multiple misconceptions."
C&W's team includes former Congressman Vic Fazio (D-CA),
Niles Godes, former chief of staff to Sen. Byron Dorgan
(D-ND), and Kent Bonham, ex-policy director for Sen. Chuck
Hagel (R-NE).
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CINTAS ADDS PR VETS.
Pam Lowe, who headed corporate communications for apparel
manufacturer Fruit of the Loom, has taken a VP/corporate
communications post at Cincinnati-based uniform giant Cintas
Corp.
Lowe, prior to ten years at Fruit of the Loom, was executive
director of The Mid-America Committee and worked in the
White House public affairs office in the early days of the
Reagan Administration. She was at Hill & Knowlton in
D.C. before that. Lowe has not yet been reached.
Cintas has also added Joyce Hergenhan, a former top General
Electric PR exec, to its board of directors. She retired
from GE recently after 22 years, serving as VP of corporate
PR, president of the GE Foundation and a close advisor to
then-CEO Jack Welch.
Hergenhan was also former chair of PR Seminar and, prior
to GE, was VP of PA for Con Edison.
Sues for Defamation
Cintas filed a defamation suit against a Boston Trust &
Investment Management company and one of its executives
following an October accusation that it used sweatshops
to produce its millions of uniforms.
The executive, Timothy Smith, who is part of Walden Asset
Management, a socially responsible investment unit of Boston
Trust, linked Cintas to a Haitian factory he described as
a "poster child for sweatshops" during a Cintas
shareholder meeting last fall.
Cintas has filed the suit seeking $75K plus punitive damages
in U.S. District Court in Cincinnati.
The company has also rapped a needletrades union, UNITE,
which is believed to be the source of Smith's charges. (UNITE
is attempting to organize Cintas workers.) In a statement,
Cintas said UNITE's charges are "highly exaggerated"
and part of the union's ongoing campaign against the company,
which has included 100 Unfair Labor Practice charges in
the last year, two-thirds of which were dismissed or withdrawn.
PN CONNECTS WITH SUPERIOR.
Superior Essex, the billion-dollar cable and wire manufacturer,
has tapped Porter Novelli to handle communications and IR
support following its emergence from Chapter 11 late last
year.
The Brunswick Group had guided communications for Superior,
which was previously known as Superior Telecom, through
bankruptcy.
Hank Pennington, director of IR for the company, told this
NL CEO Stephen Carter (formerly CEO/ president of Cingular
Wireless) liked Porter Novelli's approach after hearing
from a handful of firms.
Brad MacAffee heads the work for PN in Atlanta, where SE
is now based.
The company filed for Chapter 11 protection in March 2003,
emerging in November. Once one of the country's top copper
wire makers, the company now produces mainly fiber-optic
and magnet wires and cables for customers like Sprint and
the regional Bells. It reported 2002 sales of $1.4 billion.
SAUDIS SEE NEED FOR
TRUST.
"Exaggerated reporting and biased conspiracy stories"
are hurting the relationship between Saudi Arabia and the
U.S., according to a report distributed by Qorvis Comms.
on behalf of the Kingdom's Embassy.
"Ten Reasons for Reforging U.S. and Saudi Relations"
is written by Anthony Cordesman of the Center for Strategic
and International Studies in Washington, D.C. It raps the
"pointless anger and antagonism" between both
countries. "There has been enough talk about Fourth
World Wars, Zionist conspiracies in the U.S., and
fatal flaws in Western and Arab cultures," according
to Cordesman, who was national security assistant to Sen.
John McCain and director of intelligence assessment at the
Dept. of Defense.
"While the events of 9/11 cannot be forgotten, there
is no way to go back to the past," wrote Cordesman
in urging both sides to reforge social, political and security
ties. He wants new information campaigns that can build
understanding rather than anger and fear. "The cycle
of U.S. Saudi bashing by Congress and the U.S. media
and its mirror image in the form of U.S. bashing by Saudi
opinion leaders and media is largely destructive in character,"
he wrote.
Both the U.S. and Saudi Arabia must work to avoid a "clash
of civilizations," which benefits "hate mongering
extremists like Bin Laden." Wrote Cordesman: "The
last thing either the U.S. or Saudi Arabia need is to hand
Bin Laden and his inevitable successors a victory, paralyze
effective cooperation through continued tension, or pass
up the opportunity to create new forms of cooperation where
they are so clearly in both nation's interests."
EDELMAN HOLDS ONTO
ILLINOIS TOURISM.
Edelman PR Worldwide has fended off a challenge on its hold
on the Illinois tourism account, picking up a contract worth
$6.2 million over the next three years. It has received
$12.2 million from Illinois for tourism work since 1980,
according to the Feb. 15 Chicago Sun-Times.
Laura Hunter, a spokesperson at the state's Dept. of Commerce
and Economic Opportunity, noted that Edelman was not the
lowest bidder on the account, but offered a superior communications
strategy to help Illinois reach its tourism goals. She said
Illinois negotiated a lower price for the work that was
originally proposed by Edelman.
The newspaper suggested that Edelman's $32,600 contribution
to the `02 campaign of Democratic Gov. Rod Blagojevich may
have been a factor in its win.
Toby McCarrick, SVP at Edelman, rejected that notion, saying
Edelman won because it was the best agency. He also said
Edelman has given money to past Republican Governors Jim
Edgar and George Ryan.
Doug Dowie, head of Fleishman-Hillard's Los Angeles office,
adds public affairs oversight for the firm throughout the
state and becomes co-chairman of its national PA practice.
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SPORTS DESKS SEEK
NEWS & FEATURE TIPS.
The Publicity Club of New York's Feb. 10 luncheon featured
a discussion on pitching news and features to the sports
desk.
Jill Agostino, who is the sports assignment editor at The
New York Times, starts her day by reading USA Today,
The Times, Post, News and Newsday to
find out how they cover various events "so once I get
into the office I can start calling our reporters."
Agostino, who is usually the first one in the office in
the morning, said it is "really bad for someone to
ask, `Can I talk to someone who knows sports? That usually
doesn't go over very well."
Big
on E-mail
Agostino, who also takes calls from PR people when "you
guys call in pitching us stories, said she is a big e-mail
person. "I love e-mails and I ll often tell you guys
that because we ll have three or four phones ringing at
the same time.
"Give me a real quick pitch, send me an e-mail and
then I ve got it right there, I can print it out and talk
to my bosses about it," said Agostino, who tries "really
hard" to get back to everyone.
In terms of what the Times is interested in, Agostino said
it is "different stuff."
"If it's just going to be an athlete with 20 or 25
reporters around, there is not much different that we can
get out of that."
But if there is something differentlike last summer
when she got an e-mail about women for A League of Their
Own, who were going into the inner city of Los Angeles and
teaching young girls how to play softballthat was
something they like and "we sent someone over and it
ended up being just a great story."
Agostino said the "new regime" at the Times is
making some adjustments. She said one thing that did carry
over from the old regime is "we are trying to go a
lot more national."
Events
Get Covered
"We absolutely love PR events," said Tim McHugh,
executive producer/sports for WCBS-TV (Ch. 2).
"I can't tell you just how important they are to what
we do," said McHugh.
Getting an athlete at a certain event talking about his
childhood or talking about some angle to breast cancer or
whatever it may be is "really important to us,"
said McHugh, who also advised the publicists to "plan
ahead and look at the seasons."
"Yesterday {Feb. 9} is a perfect example: not a single
event on our sports calendar, no pro team played and unfortunately
there was no PR event," said McHugh. "I assure
you, if there was an event yesterday we would have had a
camera there."
McHugh prefers to get any information from publicists by
e-mail and fax, and then a follow-up call.
His "biggest rule, biggest pet peeve" is never
call a TV producer after 4 p.m. "If you re on deadline
and trying to get on at five or six o clock, try to make
your calls early, try to fax us."
Real
Booker's Challenge
Yvette Michael, who is one of three bookers for ESPN2's
"Cold Pizza"a new show that airs on Mondays
to Fridays from 7-9 a.m., which is a combination of hard
news, sports news and interviews said her job is to
"make sure men watch us for about eight minutes every
morning."
"What I try to tell people when they pitch ideas or
suggestions to the show is to have a sports angle for it."
She cited two recent celebrity guest appearances as examplesBilly
Baldwin, who is involved with keeping the wrestling program
going at SUNY-Binghamton, where he went, and Matt Dillon,
whose father is a golf coach at an upstate New York university.
"So there are lots of ways to peg it to sports. It's
not an easy thing to do but we try really hard to do it,"
said Michael.
The other two bookers on the show are Tammy Caputo and
Meredith Walker. All three can be reached at ESPN2's New
York studio at 305 W. 34th st., 12th fl., or by phone and/or
e-mail.
Michael: 212/609-4533; yvette.c.michael@espn. com; Caputo:
244-0824; [email protected], and Walker: 609/4530;
[email protected].
Crazy
Topics Work
Al Gattulo, who produces an afternoon talk show on 1050
ESPN Radio, co-hosted by Wally Matthews and Tom Keegan,
who are both former sports writers for The New York Post,
said even though "we re a sports show and we talk mainly
about the four major sports in the areabaseball, football,
hockey and basketballno real topic is too crazy for
us."
He said the program, which runs the gamut of sports and
entertainment topics, is designed to interest listeners
who are driving home from a long, hard day at work.
"We play little games, we have some fun people on,
we don't take ourselves too seriously. My advice to all
of you would be that nothing is too small for us,"
said Gattulo.
E&P CREDITS NEWSLETTER
FOR SCOOP.
Ethics columnist Alan Wolper devoted a whole page to the
recent link of Associated Press Wide World Photos and PR
Newswire in Editor & Publisher's February issue under
the headline: "Blurring the lines of PR photography."
Wolper pointed out the "only journalist to pay attention
to the AP/PRN marriage was Jerry Walker, a writer for Jack
O Dwyer's Newsletter, a New York City publication devoted
to PR news."
Jane Kirtley, who teaches journalism at the University
of Minnesota, condemned the marriage, telling Wolper that
"news folks have no business getting into the PR trade."
(Media news continued on next page)
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WORKING WOMEN
SWITCH MAGAZINES.
Susan Lapinski, who had been executive editor of Working
Mother magazine, was promoted to editor-in-chief of
Working Women magazine. Betty Wong replaces her at
WM.
Wong previously was senior editor of Parents and
editor-in-chief of Parents Baby.
PEOPLE
Mary Ellen Egan was recently promoted to deputy chief of
reporters at Forbes.
Frank Markus has replaced Jack Keebler as Motor Trends'
Detroit bureau chief.
At Sync, a new gadget lifestyle magazine from Ziff
Davis, Ron Bernstein was named features editor. He had been
senior associate editor at Maxim.
Damien Cave was named associate editor at Rolling Stone.
Adi Ignatius was appointed editor of Time Canada. He will
keep his job as executive editor of Time's U.S. edition.
John McManus has replaced Seema Nayaar as editor-in-chief
of American Demographics magazine.
George Whipple, NY1's society reporter, whose late father
ran Benton & Bowles PR department for several years,
is engaged to marry Lisa Woodward, the widow of banking
heir William Woodward III, who jumped out of a window during
their divorce proceedings in 1999.
Lori Yacavone, previously deputy managing editor of Jane
magazine, has joined Vibe as managing editor, succeeding
Andrea Rosengarten.
Floyd Norris, chief financial correspondent for The New
York Times, has begun writing a weekly column on international
markets for the Times-owned International Herald Tribune,
working from both Paris and New York.
Terry Anderson, the former AP reporter who was held hostage
in Lebanon for nearly seven years by pro-Iranian Shiite
Muslims, is running as a Democrat for an Ohio State Senate
seat.
D.C. POST RETIRES
OVER 50 NEWSPEOPLE.
The Washington Post's early retirement offer was
accepted by 54 editors, photographers and other newsroom
staffers, who were 55 or older and had worked at the paper
for more than 10 years.
As much as two years salary in one payment and an extensive
medical plan was included in the program.
More than 24 of the retired staffers have signed contracts
to stay on as freelancers for as long as a year to help
ease the transition of losing about 7% of the newsroom staff
at once.
BLYTH'S BOOK RIPS
WOMEN MAG EDITORS.
Myrna Blyth's new book, entitled "Spin Sisters,"
about women's magazine editors, will be published March
1 by St. Martin's Press.
James Brady, who wrote a blurb for the book jacket, found
the "inside stuff the best," especially about
how magazine editors have to "cope with monstrous PR
people, employ celebrity wranglers and put up with the egos
and the narcissism of the stars they want and need for their
covers."
Blyth, who recently retired as editor of Ladies Home Journal,
which she took over in 1981, and More, a magazine she started
for older women, told the columnist she is angry about how
women's magazines and TV shows position American women as
victims.
"The crux of Myrna's argument is that instead of serving
their readers, the women's magazines are doing them a disservice.
And as a self-described moderate-Republican, she lambastes
the majority of women in media as working from a liberal,
feminist bias," Brady said.
"Look, media for women influence women much more than
media for men influence men," Blyth said. "Women
are told in the magazines that they can't cope with their
lives. While the truth is, women can cope marvelously."
PLACEMENT TIP
Sunset, a magazine owned by Time Warner, has been redesigned
in an attempt to attract more readers under 40. The average
age of the magazine's 1.45 million subscribers is in the
upper 40s.
The new layout allocates more space for short items in
the front pages, with a larger "feature well"
for longer stories in the back.
Sunset, based in Menlo Park, Calif., will continue to focus
coverage on home, travel, food and garden. Katie Tamony
is editor-in-chief.
MEDIA BRIEFS
Albert and John Scardino are co-writing a regular column
for The Manchester Guardian.
Al, executive editor of the U.K. paper, along with his
wife Marjorie, publisher of The Financial Times, co-published
an award-winning weekly paper for many years in Savannah,
Ga. He later became a reporter for The New York Times and
press secretary to former New York Mayor David Dinkins.
His brother John is an independent PR consultant, who was
a Democratic candidate for Congress from Georgia in 1992.
Bild, a Berlin-based daily newspaper, replaced its usual
menu of stories about crime, violence and scandal on Dec.
24.
Under a front page headline, "There's only good news
today," the paper filled its columns with articles
about tax cuts, falling gas prices and accelerating economic
growth.
The New York Times has started a new weekly column called
"Consumed," which is devoted to consumer products.
The column, written by Rob Walker, a contributing writer,
appears in "The Way We Live Now" department of
The New York Times Magazine.
The column, which was described as "part business
report, part cultural anthropology," will cover everything
from toys and appliances to jewelry and beer, cell phones
and TV shows.
Technology Marketing has been folded into Brandweek, a sister
publication.
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MAYA LIGHTS UP NAVY
Washington, D.C.-based
Maya Advertising and Comms. has emerged the winner from
a competitive pitch for a three-year, multi-million-dollar
contract to push energy efficiency at the U.S. Dept. of
the Navy.
The firm will cover a
wide range of tasks in support of Navy's existing Energy
Awareness Program, including media relations, research,
theme and logo development, newsletter production and sponsorship
development, among other assignments. Maya's contract bills
at $990K per year.
Forty agencies responded
to the initial RFP, a field which was narrowed to seven
and then four.
The DoN includes both
the Navy and Marine Corps.
Scott Samson, PR specialist
and manager for the account at Maya, told this website the
program's goal is to position DoN as a leader in energy
conservation and will initially focus on internal programs
with plans to branch out later in the campaign. He noted
Maya's kickoff meeting with DoN was last Monday and the
work is in its early stages.
Samson also pointed out
that if Federal agencies all purchased energy-efficient
products, the U.S. could save $900 million per year while
reducing CO2 "greenhouse gas" emissions by 11
metric tons.
President Clinton signed
a sweeping executive order in 1999 in part to cut energy
use at the federal level over the next 10 years. The federal
government is the nation's largest energy consumer and,
Clinton noted, wields $200 billion in buying power which
can be used to promote energy-efficient products. He called
for energy consumption to be cut by 35 percent by 2010.
Maya, a 13-year-old firm
that began with a Hispanic marketing focus but has since
branched out to full PR and advertising work, has worked
on several projects for the government in the past, including
the U.S. Postal Service, Dept. of Health and Human Services
and the Federal Emergency Management Agency.
CKPR MAKES THE TEAM
Florida's St. Johns
County has tapped CKPR for a $130K PR account to plan for
its moment in the spotlight as host for 2005's Super Bowl
XXXIX.
The City of Jacksonville
was chosen in 2000 as the site for the international event,
which NFL officials project could reap a $250 million economic
windfall for the area by luring 100,000 visitors for the
game.
Chicago-based CKPR, a
Cramer-Krasselt unit which beat out a handful of firms believed
to include WPP's Ogilvy PR Worldwide and an unnamed Havas
unit, was hired by the state's Orlando/Orange County Tourism
Bureau following the 9/11 attacks and maintains an office
in Orlando.
Following a planned $45
million renovation, Jacksonville's Alltel Stadium is slated
to pack in 85,000 fans, which would be the NFL's largest
Super Bowl venue to date.
St. Johns County wants
to play up its miles of beaches, golf courses and fishing
grounds for tourism and to lure investors. The area includes
St. Augustine, the oldest city in the United States at 438
years old, founded by the Spanish in 1565.
PR PRO URGES AMERICANS
TO VISIT FRANCE
Paul Critchlow, former
head of PR for Merrill Lynch & Co. in New York, urges
Americans to visit France this year in a new film produced
by the French Government Tourist Office in New York.
He plays a starring role
in the film, which is entitled "Operation Open Arms,"
and was directed by his friend Robin Massee, who is communications
director for Maison de la France (FGTO).
The 15-minute film will
be used by the FGTO and its partners Air France, Rail Europe
and the Normandy Tourist Board, as the cornerstone of a
15-city media tour of the U.S. to promote travel to France.
Despite a slow year for
tourism worldwide, France has held its number one tourist
destination worldwide and remains the second most visited
European country by Americans with 2.63 million visitors
in 2003.
"Our efforts will
focus on two main goals to ensure that American travelers
know that they are welcome in France and to encourage them
to take advantage of special travel deals," said Jean-Philippe
Perol, who is director of Maison de la France in the U.S.
"We want Americans
to fall in love with France all over again," Perol
told the more than 300 travel writers, who attended the
kickoff of the new campaign on Feb. 12 at an event held
aboard the former W.W. II aircraft carrier Intrepid.
A bevy of PR people also
attended the preview of the campaign, which marks the 60th
anniversary of D-Day and the start of the Battle of Normandy.
In the film, several American
veterans recount what life was like for them on June 6,
1944.
Critchlow said he was
moved by his visit to Omaha Beach just as he was when he
went back to visit the spot where he was wounded in Vietnam
while serving as a forward observer for an infantry company.
His 13-year-old son, who
also appears in the film, said he found the small towns
in France to be more interesting than some of the towns
in the U.S.
Critchlow, who was recently
promoted to SVP/public policy at Merrill Lynch, was the
firm's top PR executive for many years, serving under seven
chairmen.
DIRECT IMPACT BEEFS
UP
Direct Impact, Burson-Marsteller's
grassroots PR specialist, has hired Heather Wells as senior
media relations manager. She was press secretary to Florida
Senator Bill Nelson and served as a spokesperson for the
Democrats during the Al Gore tussle against George Bush
in the vote recount saga.
Beth
Frigola is a new legislative director at DI. She was communications
policy analyst at the National Republican Congressional
Committee, and deputy director of communications for the
House Government Reform Committee.
DI
describes its "core capabilities" as "field
recruitment; high-end telephone recruitment and mobilization;
direct mail and materials creation; local earned media,
and database development and management.
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PR OPINION/ITEMS
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"Reputations
of Big Companies Tumble in Consumer Survey,"
said a headline in the Wall Street Journal Feb. 19.
A survey by Harris Interactive found the image of big companies
is rated either "not good" or "terrible"
by three-quarters of respondents.
Despite the stock market and economic recovery, people
still remember the evidence of "corporate fraud, deception
and greed" that dominated business news two years ago
and which is continuing.
The WSJ didn't mention
that the dismal image of business continues despite
the "PR Coalition Summit" that brought together
leaders of 19 PR and IR groups in Madison, N.J., Jan. 14,
2002, and that was specifically designed to counteract that
image.
Represented were PRSA, IABC, NIRI, IPRA, PAC, Page Society,
Institute for PR, WEPR, Council of PR Firms and others.
A lengthy paper was produced about eight months later giving
companies and their PR/IR pros detailed instructions on
how to restore trust in corporate America. It appears to
have done no good.
James Murphy of Accenture and the Page group was chair
of the meeting. We spent a full day in Madison with the
leaders of these groups and two of the statements that were
made come to mind.
One participant said what proof is there that doing good
things such as telling the truth, being transparent, etc.,
impacts the bottom line? No one will want to do that if
it doesn't , he added.
Another said he was in favor of transparency as long as
it was done after the company had cleaned up its act. Whew!
is all we can say about the moral level of such comments.
The paper that was put out did not mention one of the negatives
that so many CEOs are shouldering their high pay vs.
foreign CEOs.
U.S. CEOs are making
531 times what their average workers get while this ratio
is 57 in Brazil, 45 in Mexico, 25 in Britain, 21
in Canada, 16 in France, 11 in Germany and 10 in Japan.
The average reputation score among 60 companies ranked
hit 66.7 out of 100 points, a record low. Even Johnson &
Johnson, usually helped by its association with babies,
kept its No. 1 rank but fell below 80 for the first time
in the survey's five years.
Omnicom last week said
its Q4 earnings were up 9.8% to $221 million and
revenues were up 18% to $2.5 billion. But the stock fell
about five points to $79. Why? OMC, as usual defying the
guidelines of NIRI and the practice of almost all other
public companies, did not supply a balance sheet with its
earnings report. It did admit that debt rose from $2B on
Dec. 31, 2002 to $2.6B on Dec. 31, 2003.
Very simply, OMC is buying much of its sales and earnings
via acquisitions which put it deeper into debt. It doesn't
want to show its balance sheet because that would give the
new goodwill total, last seen at a staggering $5.58B as
of Sept. 30, 2003, up $730M in the first nine months of
2003. As of Sept. 30, OMC had a minus $2.55B in net equity.
Stockholders who chat on Yahoo! are waiting for OMC to
depreciate some of this goodwill. It will come out of earnings
but won't reduce taxes. As for OMC's claim that PR was up
9.5% for Q4 and 3.7% on the year, we re not told how much
of this came from acquisitions on which OMC spent $473M
in 2003. PR continued as OMC's worst performer in 2003 since
ads were up 14%, direct mail up 20% and specialty up 9.9%...
Companies are complaining
about the cost of Sarbanes-Oxley, said the Wall
Street Journal Feb. 10. One cost that hasn't been reported
on much is setting up a secure hotline so employees can
report ethical and other abuses. Some companies are hiring
an outside service to do this to counter any fear that the
identity of the source will be revealed. Telephone calls
are used because e-mails can be traced. One outside service
doing this is The Network (www.tnwinc.com) which takes calls
24/7. Many calls come in after hours or on the weekends...
New York PR counselor
Mallory Factor, who heads his own firm, is one of
the organizers of "The Monday Meeting," a group
of conservatives who meet one Monday each month at the Grand
Hyatt. As profiled in the New York Observer Feb.
9, the off-the-record, invitation-only group is a "power
center" whose guests have included a half dozen U.S.
senators. Members are the "right wing" of the
city's "financial and intellectual elite" who
are major Republican donors. Factor is quoted as saying,
"We re trying to cause action; we re trying to get
support for people who deserve support"...
Evan Smith, editor
of Texas Monthly, is steamed over President Bush's
remarks that he gets briefings from aides rather
than by reading newspapers. "What kind of message is
he sending to the country, and to young people in particular?"
asked Smith in an editorial. "Does he think the rest
of us shouldn't read newspapers either, that they serve
no useful function?" he added...
Tina Santi Flaherty,
former PR exec at GTE and Colgate-Palmolive, authored What
Jackie Taught Us, about Jacqueline Kennedy Onassis.
They were neighbors in an upper Fifth Ave. apartment bldg.
Perigee will publish it in April. Onassis worked hard at
her image, writes Flaherty.
Using a technique of her father, she perfected "the
lighthouse look," shining her smile on all whether
they be ambassadors or waiters...
HMOs spend 11.7% of
revenue on administration while Medicare spends 3.6%
and Canada's single-payer system spends 1.3%, noted New
York Times columnist Paul Krugman Feb. 17.
--Jack
O'Dwyer
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