The Post

Court case highlights ethical risks in public relations

Opinion: Sometimes the experts brought in to help with image issues end up creating new problems, writes

- Daniel Laufer. Daniel Laufer is an associate professor of marketing at Victoria University, and an expert in crisis management.

When trying to manage a crisis, organisati­ons and individual­s are often overwhelme­d. During ‘‘Dieselgate’’, the Volkswagen emissions crisis in 2017, the company was busy managing a global recall and communicat­ing with those affected around the world.

At the same time, it had to manage its other product lines, including the company’s petrol vehicle operations, which were not part of the global recall.

Because of the tremendous challenges organisati­ons and individual­s face during crises, many turn to public relations firms for help.

These firms are usually hired for their expertise in crisis management gained through years of experience working in the field.

Normally, a public relations firm’s advocacy work on behalf of its client is not the focus of scrutiny by the media during a crisis.

But recently a public relations consultanc­y faced a crisis of its own because of work on behalf of a prominent businessma­n who was accused of sexual assault.

Jevan Goulter was reported to have participat­ed in a meeting at a hotel in Australia where the victim of sexual assault was pressured to withdraw his complaint against a prominent businessma­n.

This incident raises important questions around ethics involving public relations firms. Is there a code of ethics for the industry? What are the consequenc­es of public relations firms behaving unethicall­y while advocating for a client during a crisis?

The Public Relations Institute of New Zealand is the industry group.

According to the organisati­on’s website, it was establishe­d in 1954, and has more than 1300 members. In order to become members, public relations consultant­s are required to follow a code of ethics.

Very few complaints alleging breaches of this code have been filed against members. According to institute chief executive Elaine Koller, only 10 complaints have been lodged since 1999, and just two were upheld.

Of the two complaints upheld, one was related to a public relations firm helping a company during a crisis.

The complaint, filed 20 years ago, involved public relations firm Shandwick Internatio­nal which was hired by Timberland­s, a government-owned logging company.

Timberland­s hired Shandwick to help the company defend itself against opponents who wanted to stop native logging.

The code of ethics violation involved the use of the word ‘‘extremists’’ to describe opponents of Timberland­s’ operations.

The institute found that the two Shandwick public relations consultant­s should not have agreed to Timberland­s’ use of the word ‘‘extremists’’ to describe opponents of logging. Although a number of the opponents used extreme tactics to stop Timberland­s from logging activities, others engaged in legitimate forms of protest.

How would the institute handle Goulter’s actions? Would the behaviour of the firm’s consultant­s be a violation of its code of ethics?

According to Koller, Goulter is not a member of the institute and it therefore would not have been able to bring any disciplina­ry action.

But Koller believes that had he belonged to the institute, any member of the public would have been entitled to bring a complaint based on what has been reported in the media.

After the complaint is received it is reviewed by an ethics panel, and if the panel finds that there was a breach of the code, it has the power to recommend a fine or expulsion.

The complaint would need to specify which aspects of the code had been breached. For example, a complaint might refer to a section relating to the need to decline representa­tion of clients or organisati­ons that urge or require actions contrary to the code.

It is encouragin­g to see the institute has a code of ethics for its members. Also, the low number of complaints suggests that ethics violations among its members are rare.

However, there are many public relations consultant­s in the industry who do not belong to the institute and are therefore not required to adhere to its code of ethics.

She estimates that due to the broad scope of public relations activities, there are between 8000 and 12,000 people working in the sector.

This may suggest that we will see more cases in the future involving questionab­le conduct by public relations firms.

It is important for public relations firms to advocate on behalf of their clients during a crisis. However, there are certain ethical red lines that shouldn’t be crossed in the name of advocacy.

 ??  ?? Public Relations Institute chief executive Elaine Koller says only two complaints have been upheld against members since 1999 – but many PR practition­ers don’t belong to the industry body.
Public Relations Institute chief executive Elaine Koller says only two complaints have been upheld against members since 1999 – but many PR practition­ers don’t belong to the industry body.
 ??  ?? Government-owned Timberland­s brought in Shandwick to defend itself against logging opponents but the agency’s approach prompted complaints.
Government-owned Timberland­s brought in Shandwick to defend itself against logging opponents but the agency’s approach prompted complaints.
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