Top >> Opinion__Comment Opinion:  Current events show good and bad PR published February-March 2006 By Grant Common Editor Grant has 30 years direct experience in public relations and communication in Australia and New Zealand - as well as directing and managing programs in the UK and USA. He has consulted to Governments, publicly listed companies, industry bodies, marketing organisations, multinationals and not-for-profit organisations. He is Managing Director of Sydney-based Network PR and as a Fellow of the Australian Institute of Company Directors (having completed the Company Directors Diploma examination) he is also one of the few PR practitioners to have the perspective of the company director. If we need a reminder of how PR has become mainstreamed in everyday commercial life one need only look at these two examples from current events. Cole Inquiry use of media puts Australian Wheat Board and Government on back foot Who would have thought that a Government- appointed Inquiry would start using clever media tricks as a deliberate tactic? Well, that’s what the Cole Inquiry, set up by the Government to inquire into allegations that the Australian Wheat Board paid kickbacks to the Iraqi Government in order to secure wheat orders, has been up to. As a result it’s had the AWB completely on the back foot and even embarrassed its creator - the Government (and specifically the Prime Minister). Tactics used by the Cole Inquiry to date include tactical release of documents and letters outside of the actual hearings.  They even used one of the oldest tricks in the PR armoury - releasing sensitive information on a quiet Sunday afternoon to ensure maximum media pick-up by media for the new week. And it had its effect, creating a media frenzy. While there’s a long way to go in this inquiry, it seems clear that Terence Cole and those assisting him have decided, at least in the initial stages, that the media can be used to ‘soften up’ witnesses and subject them to a ‘double whammy’ - scrutiny both in the witness stand and by the media.  Clearly they want to win the battle both in the ‘Inquiry’ and in the ‘Court of Public Opinion’. Watch what other media savvy tactics are used as the saga unfolds.  Woolworths ‘slip’ risks eroding goodwill bank Judgement is paramount in maintaining reputations. Therefore it was surprising to see Woolworth’s make a major slip up in late January - one that risked eroding a goodwill bank for the organisation and its CEO Roger Corbett. Woolworths had just been fined $9 million (plus costs) for abuse of its market power after a decade of court battles trying to defend itself against charges from the ACCC for the alleged actions of its subsidiary Safeway. Good (and sensible) PR in these situations dictates that you gracefully accept the decision, take the medicine, apologise for the transgression, promise never to do it again and move on. Above all, don’t do anything to make it more of a media story than it already is. Instead Woolworth’s CEO, Roger Corbett, issued a media release (click here) that gave the impression that Woolworth’s was not repentant at all and didn’t accept the decision. One commentator called it ‘poorly petulant’. What were Woolworth’s/Corbett thinking?  What impression do these kinds of comments leave with the millions of Australian’s who shop there every week?  If this is how a company acts when it has been found guilty after the due process of law, what level of trust can a customer have in Woolworths?  And what if you are a supplier? It seems a case of losing sight of which audiences are most important to Woolworth’s, what its reputation is built on and what messages they spend millions of advertising dollars promoting. Corbett’s comments quickly attracted strong rebukes from key media commentators. And, of course, the story got extended media coverage - undoubtedly reminding those who had read/heard it the first time around, as well as drawing it to the attention of those who missed the news of the prosecution. Corbett of all people should be aware of the fickle nature of the media and the market. While he’s now the darling of corporate Australia, he only needs to think back to when he was appointed to the position some years back.  Then he was vilified from pillar to post (seemingly unfairly at the time) as being the wrong man to be CEO of Woolworths. Since then he’s clearly done a good job at Woolworths and built his reputation, and that of the organisation.  However, this episode shows that it is small indiscretions like this that can often swing media and influencer sentiment against an organisation - and erode the goodwill bank that can often take a long time to build.

PR Influences Australian Public Relations Newsletter. Article: PR Case Study: Current events show good and bad PR. Information Content: Opinion & Comment