In 2001 conservative groups blasted clothing retailer Abercrombie & Fitch for distributing catalogs filled with "scantily clad" models. The next year, Asian-Americans
accused the retailer of racism when A&F introduced a line of T-shirts depicting caricatures of Asian men with captions such as "Wong Brothers Laundry Service - Two Wongs Can
Make it White." (Abercrombie eventually pulled the shirts.)
Now, it's racism again, as A&F faces a lawsuit on behalf of nine plaintiffs who claim they were fired or rejected for sales positions due to their ethnicity. This echoes a
commonly held perception among consumers that A&F predominantly hires well-scrubbed, white salespeople. Lawyers filed suit in the case June 17 in U.S. District Court in San
Francisco.
The company's PR response has fallen back on corporate guidelines. "[O]ur policy is to have a zero tolerance for discrimination in hiring or employment on the basis of race,
national origin, ancestry," A&F Corporate Spokesperson Tom Lennox told the Associated Press. "Abercrombie & Fitch represents American style. America is diverse, and we
want diversity in our stores." In the view of crisis-control experts, Lennox is playing it just right.
Citing policy
There are different sorts of crises. Something may break or fall down. Maybe something gets lost, or a competitor tries to take over the company. But crises involving ethics
are different. In these cases, there may be allegations of racism or prejudice, for example. These are crises that involve not just business failings, but failings of character.
Enron? Probably, if the allegations of bald-faced malfeasance are true. Martha Stewart? Almost certainty, since her business in effect is her character.
In an alleged crisis of ethics, "the policy manual is your best ally," says Tim O'Brien, principal of Pittsburgh-based O'Brien Communications, a corporate communications
practice. He adds that documentation represents the front line of communications. It demonstrates to the press that any potential misstep was merely that: a misstep, a deviation
from policy, rather than the norm.
"The key issue is: Is it systemic? That is the most critical issue in the whole PR process," O'Brien says. Ideally, the communications strategy will be able to demonstrate that
the alleged action, if true, was an aberration from standard procedure and is already being dealt with.
The point here is not just to deny culpability. Rather, the intention of citing policy is to keep the media's eye on the Big Picture. With a communications strategy that
stresses healthy internal systems, the PR executive can subtly broadcast the message that the overall health of this company is strong, sound and organized. It suggests that,
whether true or false, this particular accusation will not sink the ship.
To address the issue forthrightly, though, a PR executive will first have to ferret out the facts. This means sitting down with the lawyers and getting an honest account of
what in fact happened. "You don't want to step out there and say something that ends up being contradicted by the facts," says Amy Katz Rotenberg, a former lawyer and now VP of
crisis communications at PR firm Padilla Speer Beardsley. "That itself ends up being more damaging to the company than the initial accusation, because it starts to look like a
cover-up."
Of course, the strategy of falling back on policy assumes first that the policy itself is defensible. At engineering firm ITT Industries, Senior VP of Corporate Relations Tom
Martin says the best way to make sure that policy is defensible in times of crisis is for the PR executive to be part of the policy-making team from the get-go.
"Before you are preparing the communications to explain the policies, you want to be part of preparing the policies themselves," he says. "I sit on the executive council, which
to me is the most important place for PR to have its participation. I want to be there when decisions are being made, rather than after things go awry. That way I can put
reputation on the table as a consideration, alongside legal and financial issues."
Meeting the media
Of course, not every PR executive has that luxury, and even those who do cannot always foresee the way a policy may play out in the press. Even with the best intentions, a
company may find itself staring down the barrel of an ethics accusation. And then...?
"The biggest danger is management's first reaction, which usually is to not say anything. All that does is to create a vacuum that gets filled in by rumor and innuendo. You
allow other people to shape your messages for you," says Warren Egnal, senior consultant at PN Consulting. "The PR person has to have a lot of strength of character in these
situations. You will have to be the one who is saying that we have to get out in front of this."
This means, first and foremost, getting out in front of employees, before they read/see it in the media. There will be a lot that cannot be said, either because the facts are
not known, individuals' privacy rights, or because the lawyers need certain information kept under wraps. Nonetheless, for purposes of morale and rumor control, the employees will
need to be brought into the loop early.
Finally, it's time to meet the press. If the company is genuinely in the wrong, the PR exec will once again have to show moral fortitude by biting the bullet and admitting the
error. "We are all human beings, we all make mistakes," says Andrew Gilman, CEO of CommCore Consulting. "If you made a mistake, apologize and move on. Take the corrective action,
make it sincere, and then go from there."
If your company or client has done nothing wrong, vigorously deny the allegation. Without defaming those who are making the charge, insist that there is no substantial basis
for this accusation and bring forth every piece of tangible information the lawyers will let you produce in order to make the point.
If things are uncertain, do what Abercrombie & Fitch has been doing: Cite policy. Declare that all internal instructions should have prevented any such breach from
occurring -- and then make it clear that a thorough internal investigation is already under way.
Coping with Crises of Conscience
Sometimes PR is called up to guide the company through a crisis of moral dimensions, whether it's allegations or unfair hiring practices, executive corruption or a situation
that can be defined as ethically-challenged. How can companies navigate through these rather choppy waters?
- Lay the groundwork: Bring reputation to the table in matters of policy-making. If you won't be able to defend it tomorrow, don't let it become policy today.
- Talk it up: Make sure that internal communications routinely addresses ethical issues, reminding managers and employees of their responsibilities.
- Cite policy: When something goes wrong, show the media your policy manual. This is concrete proof that whatever happened was contrary to policy, and not part of the routine
way of doing business. - Disclose in and out: Gather the facts of the crisis and then tell all you can to employees and to reporters. Holding back will only make it worse.
- Think big: Ultimately, you want to portray the crisis as limited, a small blip on a much bigger screen. Keep attention focused on the long-term health and well-being of the
firm, rather than getting mired in the moment.
Contacts: Warren Egnal, 310.444.7040, [email protected]; Andrew Gilman, 202.659.4177, [email protected]; Tom Martin, 914.641.2157, [email protected]; Tim O'Brien,
412.854.8845, [email protected]; Amy Katz Rotenberg, 612.455.1733, [email protected]