PR Controversy Fuels Seven Figure Contracts

If the media thinks it has struck a blow to the large public relations companies recently exposed as indulging in arguably unethical activities, then the Fourth Estate sorely needs a reality check.

The row over global PR companies cooperating with controversial foreign Governments has given these agencies free – and potentially extremely lucrative – publicity, because the truth is that controversial PR can be a goldmine for PR companies willing to take on ethically questionable clients.

“Google-gate” – in which Burson-Marsteller were hired by Facebook allegedly to pitch negative stories about Google to the US media – focused on Burson-Marsteller’s tactics to disparage the search and digital media company. The company has not stayed away from controversial clients previously, and allegedly worked with the Nigerian government after claims of genocide in the Nigerian Civil War and the Argentine junta following the disappearance of 35,000 civilians. Putting a positive spin on these types of issues is clearly not in the same stratosphere of PR as promoting the latest bronzer or lip gloss to Cosmo.

Burson-Marsteller isn’t the only agency to have taken on controversial clients. Bell Pottinger has been harshly criticised by protestors for its decision to work for the Bahrain government following the recent clashes between government forces and anti-regime demonstrators. The contract was previously held by Weber-Shandwick and is, according to PR Week, “understood to be worth a seven-figure sum annually.”

Television presenter and “renowned PR expert” Lauren Laverne laid into major PR companies on Channel 4’s damp squib of a satire show 10 O’Clock Live. Those bearing her brutal brunt included Bell Pottinger, Brown Lloyd James for its alleged work with Colonel Gadaffi, and Burson-Marsteller for its work in supposedly assisting a number of dictatorial regimes.

Lord Bell has defended his company, saying: “The implication that in some way my company and I damage the reputation of the industry is absurd,” adding that his company “abides by all the regulations of a public company.” Regarding the contract in Bahrain, he reiterated Bell Pottinger’s role: “We work for the Economic Development board. Whatever happens, the economy has got to grow. We're nothing to do with the constitution; we're nothing to do with Sunnis and Shiites.”

2011 has already thrown up some monumental news stories, not least the anti-regime uprisings in Northern Africa and the Middle East. With increasing calls for political reform, governments are more desperate than ever for some of the most skilled PR experts to protect their reputations, and to spin what has been called the “unspinnable”.

Google-gate merely served as a reminder of the nature of competitive business in the PR industry. Steve Earl, MD of Speed Communications, argued that the primary thing that Burson-Marsteller got wrong was its “amateur and clumsy” methods of smearing, suggesting the PR industry should just “admit” such practices “rather than getting all high and mighty”.

Yet this bad publicity has had negligible effect on these firms. There have been no headlines of clients cancelling their contracts since the surge of focus on PR agencies’ ethics. One may ask whether clients should be comfortable - ethically - funding a company that works for clients that are morally questionable. Supplier selection is a key element for an effective corporate social responsibility strategy. Employees for such companies may well ask themselves whether they feel comfortable working on such accounts. No doubt many will relish playing the Prince or Princess of Darkness role.

Yet what many clients – especially controversial clients – really want is a firm who are happy to be morally ambiguous. While Bell Pottinger has suspended its contract in Bahrain due to a ‘three-month period of emergency rule’, it has announced plans to revisit the contract after this period. It'll be interesting to see whether the policies of whatever regime emerges after the three month period will have an impact on BM deciding to continue the work

If a lack of ethical behavior has become integral to successful PR businesses we have to question whether clients actually care. While a company may not condone the practices of a PR agency, as long as they get some good publicity - or their competitors get bad publicity in the Google-gate case - they may not be too worried about the means that produce their desired ends. As a result PR consultancies that are willing to cross ethical boundaries for a fee will continue to win the most lucrative contracts in the world.