Hill and Knowlton, hired by the International Olympic Committee in January to help the organization dig out of its image ruins, last week withdrew from the bidding process to represent Toronto in its pitch for the 2008 Olympics.
In reaching the decision, H&K cited the "appearance of a potential conflict" raised by a former judge hired as an independent ethics consultant to review the plausibility that Toronto officials would cement a deal with H&K. Charles Dubin, the retired justice, didn't return multiple calls made to his home.
H&K had come under scrutiny last month after the media, including The Wall Street Journal, learned that its Toronto operation was courting the city as a client despite its work on the IOC account, which is managed out of New York.
At that time, H&K execs told PR NEWS that it did not view a potential partnership with the Olympic bid city as a "conflict of interest" because the accounts would be handled by separate teams, with the firm even setting up a firewall to block employees from accessing computer files.
Even though H&K had revealed to both the ICO and to Toronto officials its work on and interest in both accounts, H&K Toronto GM Carole Kerbel said that Dubin's opinion triggered the second look. After a round of internal conversations, the firm withdrew its name from the circle of contenders. H&K issued a short press release, calling its resolve one reached "out of respect for the Toronto 2008 Olympic Bid Corp."
But Kerbel also said she felt that the media's analysis of the deal as inherently controversial led to the decision, and that the firm is still adamant that it wasn't a conflict of interest.
(H&K, Kerbel, 416/413-4614)