Can You Hear Me? Communicators know that when your brand is in crisis mode it seems every move you make or fail to make is scrutinized. You also become a large target. That’s where Wells Fargo finds itself. In addition to critics on both sides of the political spectrum, a wealthy Texas investor, Lacy Harber, took out full-page ads Oct. 6 in four newspapers, including the NY Times, denouncing the conduct of Wells’ investment advisors, as opposed to its consumer banking unit, where the phony account scandal is centered. Meanwhile California and Illinois blasted the bank, too. The states dropped Wells to the tune of more than $30 billion in investment activities. Chicago followed, saying Oct. 5 it’s suspending business with Wells for one year. In response, the bank apologized, sort of, emphasizing its stability but failing to mention the phony accounts scandal. The apology attempted to dip into Wells’ goodwill reserve, stating the bank “will continue…to be the same committed community partner [to Chicago]…in 2015 we donated more than $2.8 million to 382 nonprofits, gave more than $803,700 to match our team members’ gifts…and totaled $1.4 million in team member contributions…through…community support and the United Way campaign.” It’s a similar tack the bank took when, just days before the accounts scandal broke, the creative community whacked Wells on Twitter for urging teens to forego arts careers in favor of science and technology jobs (PRN, Sept. 12). In that case Wells apologized quickly and far more directly, noting it had erred when urging teens to abandon the arts. It also again emphasized its goodwill, this time for the arts. The question, as Image Patrol (page 1) notes, is whether or not anyone is listening to a brand extol its good works when the stench of scandal lingers. – Besides scandal, something embattled blood-tester Theranos soon will share with Wells Fargo will be an uptick in ex-employees. In the bank’s case some of the 5,300 employees who were fired over five years in the phony accounts scandal have spoken publicly about internal issues at the bank that led to the scandal. A brand we’ve chronicled extensively, Theranos said Oct. 6 it will shutter its public blood-testing centers in Arizona, California and Pennsylvania and its clinical labs and instead focus on developing miniLab, its miniature, automated laboratory product. The issue is that Theranos also will be dropping about 40% of its staff, or 340 people, as a result. Our guess is that enterprising reporters and attorneys engaged in lawsuits against the company will be scrambling to find soon-to-be-ex-Theranos employees willing to spill about what’s been alleged so far, such as large irregularities in the blood-testing labs and product development.
Rules of the Game: Kudos to MLB’s Toronto Blue Jays for properly handling a situation that occurred during the 7th inning of the American League wild-card game Oct. 4 in Toronto’s Rogers Centre. As Baltimore Orioles left fielder Hyun Soo Kim settled under a routine fly ball, a can of beer flew out of the stands past him. The next day the Blue Jays issued an apology to the Orioles and MLB: “…it is extremely unfortunate that the irresponsible actions of one individual would detract from the game…” In addition the team said it will “enact heightened security measures and alcohol policies that will ensure the fan experience and safety of everybody involved.” The Blue Jays added the “individual responsible is not welcome back to the stadium.” The guilty fan surrendered Oct. 6. The Blue Jays said the safety of fans, staff, players and visiting teams is “paramount.” While the Toronto club has been criticized for serving beer in cans, it’s hard to find fault with its communications strategy: Act quickly, undertake an investigation, apologize and tell the public how you intend to make sure a similar incident does not recur.
People: Hill+Knowlton Strategies said Oct. 5 that Americas president/CEO Michael Coates will retire in 2017 after 33 years with H&K. Until then he’ll move into a global vice chairman role. Goldy Hyder, Claudia Gioia and Beth Balsam, CEOs of Canada, Latin America and the U.S., respectively, now will report to Jack Martin, global chairman/CEO. Prior to becoming the Americas CEO and president, Coates was CEO of Canada from 1995 to 2014. H+K Canada is the global network’s most profitable region. – FleishmanHillard Oct. 6 named SVP/senior partner Mike Cearley global managing director, social and innovation. He’ll connect social managers across FH’s network to establish “a signature FH global social POV,” the firm said. – APCO Worldwide named James Robinson managing director of its Shanghai office. He began his career at APCO’s Beijing office and recently spent 11 years in NY for APCO working on accounts including PepsiCo, Microsoft and the Clinton Global Initiative. – Marino promoted Jennifer Rudolf to SVP, digital and brand strategy. Previously, Rudolf was group director at VaynerMedia, where she led digital strategies for brands such as Unilever and Discovery Channel.