Question: How does the federal government approach the subject of media relations?
ANSWER: With a lot of money. A report by the Government Accounting Office (released last month) found that the Bush Administration spent more than $1.6 billion
in federal funds for 343 contracts with public relations firms, advertising agencies, media organizations and individual journalists between 2003 and 2005. The breakdown of the
spending falls along these lines:
- Advertising: 137 agency contracts, totaling $1.4 billion.
- Public Relations: 54 agency contracts, totaling $197 million.
- Media Organizations: 131 contracts, totaling $15 million.
- Individual Journalists: 8 contracts, totaling $100,000.
The biggest media spenders were the Department of Defense ($1.1 billion), the Department of Health and Human Services ($300 million), the Department of
Treasury ($152 million) and the Department of Homeland Security ($24 million).
The GAO listed 14 contracts, worth a total of $1.2 million, for the creation of video news releases on behalf of the Census Bureau, the Food and Drug
Administration, National Institute of Health, the Transportation Safety Administration, the National Park Service, and the U.S. Mint.
The GAO report covered only seven of the 15 cabinet-level departments and did not include independent government agencies. Among the missing projects was the the Department
of Education's controversial subcontract with conservative commentator Armstrong Williams to promote the No Child Left Behind Act.
Question: On the whole, is corporate reputation on the rebound after years of credibility gaps, or is it still an upward battle?
ANSWER: Judging from a recent survey by Burson-Marsteller, the reputation slope is as slippery as ever. In conjunction with the Economist Intelligence
Unit (EIU), the global PR firm surveyed business leaders from around the world and found an an increasing magnitude of warning signs for impending reputation failure. The top
five in rank order: Low company morale, internal politics are more important than doing the job well, top executives departing, CEO celebrity displaces CEO credibility and
employees speak of customers as nuisances.
Based on the survey results, Burson-Marsteller published Cures for the Company Blues, a pocket guide containing warning signs, preventive remedies and best practices for
handling looming reputation problems. Among the best-practice advice, the guide emphasizes the importance succession plans that can be implemented quickly upon the departure of a
CEO, as well as benefits of promoting the C-suite as a team to prevent CEO celebrity from taking hold. Office Depot serves as a shining example of this practice; chairman
and CEO Steve Odland collectively plans the company's strategies with a nine-member executive committee and a 100-member global officer coalition, resulting in a strong, unified
front that cannot be overshadowed by one personality. PRN