A recently released white paper produced by the Public Relations Coalition, a group of 19 organizations serving the PR arena, is drawing mixed reviews from the communications
field. Some PR executives say the document provides the first real "road map" for navigating transparency and maintaining corporate trust - issues that are top of mind for most
communications executives these days. Others, however, say it is difficult to legislate honesty and that "white papers" tend to get sullied when applied to real-world PR
battles.
The white paper, titled "Restoring Trust in Business: Models for Action," challenges corporate America to do three things: adopt ethical principles, pursue disclosure in
everything companies do and make trust a fundamental "precept of corporate governance." A checklist of actionable steps is included in the white paper.
The document stems from a one-day summit meeting in January at Fairleigh Dickinson University that drew 55 senior PR pros from each of the 19 participating organizations who
collectively represent more than 50,000 executives in PR, corporate communications, investor relations and public affairs. The coalition is a veritable PR alphabet soup, including
reps from the Arthur W. Page Society, the PRSA, the IABC Research Foundation, Council of Communications Management, Council of PR Firms, Institute for PR, IPR's Commission on
Measurement & Evaluation and Women Executives in Public Relations.
The contents of the 12-page document are familiar to any communicator who in the last few years has sat through any number of PR industry conferences, virtual seminars or trade
forums where transparency, measurement and accountability invariably become part of the mix.
What's unique about the white paper is that it has brought the various industry trade groups together to form a united front on restoring trust in corporate America, and the
vital role PR execs must play in doing so. This is in stark contrast to the debate about PR measurement, in which industry groups have failed to come up with any guiding
principles.
"This is a profession that rarely does anything together," says James E. Murphy, Global Managing Director of Marketing and Communications for Accenture and Chairman of the
Coalition and Summit meeting, who helped produce the white paper. But on trust and transparency, "We have pulled together in a cohesive way."
Ron Hanser, president of Hanser & Associates, who worked for 25 years in corporate communications before opening his own PR firm in 1997, says the white paper is "highly
adoptable to any organization and I don't say that about just any document."
The white paper tackles myriad issues centered on transparency and trust, with titles like "Ethics: What You Believe and How You Act" and "Trust: What it is and How it is
Measured."
Barbara Pagano, a leadership expert for the past 25 years, who has coached senior executives from AT&T, Coca-Cola and Target, for example, says the white paper won't do any
good unless the powers that be within an organization make it a mantra - and not a fleeting one. "You can't just come up with a white paper in two or three hours and say, 'Here it
is,'" says Pagano, co-author of "The Transparency Edge: How Credibility Can Make or Break You in Business."
Dennis Reina, principal of the organizational development research and consulting firm, Chagnon & Reina Associates, Inc., whose clients include American Express Co., Eli
Lilly and Walt Disney World, adds: "The notion of putting out a white paper for the sake of doing so isn't going to go very far. However, if organizations are willing to put their
money, time and energy where their mouths are, the [white paper] could be an effective road map to making a statement that not only is trust important but the company is going to
do something about it."
Others say the PR Coalition is just blowing smoke. "When things are going well it's easy for CEOs to say they'll do the right thing," says Rob Gelphman, a principal with PR
firm Gelphman & Associates. "But when you're trying to make numbers, you might do things a little differently."
Gelphman, who in the past has represented Intel, Hitachi and Phillips Electronics, says situations may arise whereby companies and/or agencies institute steps to disclose
everything they do, which, in turn, heightens the scrutiny from the other side. But if one party abrogates its responsibilities in this case, the lawyers will be handing out
noisemakers in no time.
"Somebody in PR has to be first to say, 'No, I will not do that,'" Gelphman says. "That takes a lot of courage and yes, you will lose your job. But it will become easier for
the profession after that."
Contacts: Rob Gelphman, 408.451.8420, [email protected]; Ron Hanser, 515.224.1086, [email protected]; James E. Murphy, 917.457.4598, [email protected]; Barbara
Pagano, 850.916.1129, [email protected]; Dennis Reina, 802.253.8808, [email protected]
Checklist for Restoring Trust
As part of its recently released White Paper on Restoring Trust in Business, the PR Coalition Summit has included a checklist aimed at creating an "atmosphere of
accountability." To get there, the coalition recommends adopting a checklist of "actionable steps" to make sure your company's reputation is airtight. Following are samples from
the checklist titled "Pursuing Transparency."
- Have we created a process for transparency and disclosure that is appropriate for the company in both current and future operations?
- Have we proactively engaged our stakeholders in dialog about transparency and disclosure?
- Have we monitored our external environment so that we can understand, prioritize and respond to expectations?
- Have we published our corporate governance policies on our Web site?
- Have we formed an internal committee to ensure that the Board is getting a complete picture of the company's performance? Have we established a disclosure committee to
evaluate internal controls, review disclosure policies and practices, determine the materiality of information that might need to be disclosed and review all public communications
and SEC filings? - Do we require employees to take ethics training and sign letters upholding our business principles?
- When addressing issues of public concern, do we localize the message by involving company employees in affected communities and enlisting the help of third parties?
- Do we address the tough questions (e.g. CEO compensation) directly and completely and talk candidly with employees about how and why the company does business the way it does?
Source: Restoring Trust in Business: Models for Action; PR Coalition
Allergic to Honesty?
- Leaders think they're overwhelmingly honest, but many followers say otherwise. In leadership assessments, more than 50% of nearly 13,000 peers and direct reports felt
their leaders could improve in being honest and ethical - Of 12,000 employees, 55% believe that a boss or co-worker could improve in consistently keeping promises. And of more than 1,100 leaders, 67% admit they have room for
improvement in promise keeping - In assessment surveys, 62% of leaders said they could improve at admitting mistakes
*Stats were derived using data from a database of approximately 16,000 people who participated in 360-degree assessments. They are primarily senior and upper level management
in Fortune 500 companies from various industries and geographic locations.
Excerpted from "The Transparency Edge: How Credibility Can Make or Break You in Business," by Barbara Pagano and Elizabeth Pagano (October, 2003, McGraw-Hill Books)