One organization is a household name, perhaps the most famous in American football. The other was virtually unknown to most American consumers until very recently. Both are extraordinarily successful, and have been the subject of unwelcome headlines in recent weeks. Most of the media coverage is the result of actions of individuals at the top and the policies and culture they created.
Huawei
China’s Huawei has grown from a startup in 1987 to one of the largest telecommunications companies in the world. Its leader is Ren Zhengfei, a recluse who until very recently avoided the media altogether.
The company has long been suspected of close ties to the Chinese government. As a result, security officials in the U.S., U.K. and other western countries routinely blocked its access to their markets, fearing security risks.
The concerns didn’t stop the company’s growth and it dominates many of the markets in which it operates.
Then, in December, Ren’s daughter, who is the company’s CFO, was arrested in Canada, accused of fraud and sanctions violations with headlines framing the company as a major security threat.
All of this occurred as the company was preparing for one of the major conferences of the year—the Mobile World Congress and the US was ramping up its trade war with China. Suddenly the company was the subject of intense media scrutiny.
At Mobile World, Huawei traditionally has maintained a dominant presence, with its logo in every conceivable place. But this year the U.S. sent a delegation to protest Huawei’s involvement in 5G (the latest generation of wireless), calling it a threat to security that would enable China to spy on its rivals.
In response, Huawei launched an aggressive campaign to rebut the spying allegation and reshape its image. The campaign included full-page ads in major U.S. and U.K. publications as well as an unprecedented invitation to foreign media outlets to visit its facilities. All of which is in sharp contrast to its traditional avoidance of the media. Whether the new charm offensive will work is uncertain, given its leadership’s long history of delegating communications to lobbyists and overseas PR agencies.
New England Patriots
In contrast to Ren Zhengfei, Robert Kraft, chairman and CEO of the New England Patriots, revels in the spotlight. He is one of the most visible of NFL owners and a friend of President Trump.
This is why his name was the first to make headlines when Palm Beach, Florida, investigators filed prostitution charges against a number of prominent businessmen in a wide-ranging human trafficking investigation. Through a spokesperson, Kraft immediately issued a denial. This was despite the revealing and sexually explicit video footage that the Palm Beach investigators apparently have.
Kraft and the Patriots are not strangers to PR crises and scandals. They have weathered numerous storms thanks to the continuing success of the team and the loyalty of its fans. Whether Kraft can survive this one is less certain.
The NFL is pushing hard to attract more female viewers, and it has said that its Personal Conduct Policy will apply. The policy was implemented in the wake of numerous sexual violence scandals that have plagued the league for years. It likely will mean punishment for Kraft. So, chances are that the denials of Kraft (and his lawyers) will do little to save him.
Full disclosure: I live in New England and have been a Patriots fan for most of my life, except for a brief flirtation with the San Francisco 49ers when I lived in California in the early 1980s.
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