Whom to believe?

In this Internet age, when it becomes incredibly easy to both spread rumors and find truth, what a company says becomes less and less important and what it does becomes
paramount. This has huge ramifications for our industry, since we are widely perceived as being responsible for the part that is becoming less important. Never has that been truer
than for this month's case histories, Computer Associates and Home Depot.

Computer Associates terminated a number of employees in January for what they say was "poor performance." But many had received above-average performance reviews prior to the
firings and many happened in identical ways, leading to charges that the company actually had a mass layoff and tried to disguise it as poor performance firings in order to avoid
paying severance. Pressure mounted and CA now says they WILL pay severance to some of the terminated workers. To make matters worse, CA terminated some of the people who had done
the initial firings, and they, of course, told their stories to the media. The press was not kind to CA, partly because CA refused to comment and sent a press release instead.
Moreover, CA's actions do not stand up to scrutiny.

The Home Depot faced what most of us would call the ultimate PR nightmare - a three-year-old girl was killed when a load of countertops fell from a forklift in the Twin Falls,
Idaho store.

As it turned out, that death was not an isolated incident but rather one of many that have occurred in recent years. A bill pending in the Massachusetts legislature, if passed,
will require customers to don hard hats when they enter a Home Depot store. While the facts can't be denied, our analysis shows that the press definitely gave Home Depot the
benefit of the doubt, characterizing the proposed bill as "crazy" and charging that the bill's proponent is capitalizing on the topic from book sales. Personal injury lawyers who
'don't get no respect' are behind efforts to publicize the issue of "falling merchandise," further challenging the cause's momentum.

Moreover, The Home Depot can actually point to signage and training as indications of their willingness to be part of the solution. The Home Depot is a company acutely aware
of the importance of actions in public image. (Recently they avoided a threatened boycott by cooperating with the opposition on issues of sustainable hardwood.)

Lesson learned: Actions earn credibility. Silence produces skepticism.

Katharine Delahaye Paine is president of Delahaye Medialink (603/431-0111). Image Patrol is based on a subjective content analysis of major news sources covering a crisis.
Comments are not intended to criticize the work of the company in crisis, but rather to illustrate the role the media play in shaping the perceptions of various stakeholder
groups.

Computer Associates International

HQ: Islandia, NY
]2000 Sales: $6,103 (mil)
2000 Employees: 21,000

Criteria	Grade	Comments	Advice
Coverage Containment	F	The story was picked up by the International Herald Tribune, so it received not just national, but worldwide attention.	No doubt the intent of this strategy was to avoid publicity, but such strategies seldom work, particularly in this age of electronic global communication. It is virtually impossible to keep bad news out of print so the best strategy is to assume that it will make its way into print and to be prepared.
Effectiveness of spokespeople	F	No company spokespeople were quoted. When asked tough questions, most people "could not comment" and hid behind standard references to manuals and policies.	Any incident of this magnitude deserves prompt and candid comment by senior management. Anything less will prolong the negatives and give greater credence to the opposition. In the absence of official comment, all the disgruntled ex- employees became the spokespeople most frequently quoted.
Communication of key (positive) messages	D	If the message was "we're cutting costs," that was clearly communicated.	Even when you hope not to get publicity, you should still have a plan to communicate a key message or position, just in case. By not proactively communicating, CA deferred to the opposition, in this case, ex-employees and their lawyers, and allowed them to control the messages.
Management of negative messages	F	CA came across as cold-hearted and uncaring about its employees, never mind being untruthful about its motives.	When something looks like a layoff, and smells like a layoff, chances are, no matter what you want to call it, it will be termed a "layoff" by both employees and the media. If this incident was orchestrated to avoid negative messages that "layoffs" can generate, it backfired.
Impact on customers	C	Customers were not directly impacted but might be rendered "nervous," at least by the departure of so many employees.	Research has shown that the number one driver of customer loyalty is employee satisfaction. This incident did little to bolster employee satisfaction.
Impact on investors	C	While one commonly assumes that "we're cutting costs" is a message that Wall Street would favorably receive, the underlying vulnerability to law suits was communicated with equal fervor, leaving investors with doubts.	Part of the new reality in investor relations is increased awareness of litigation's impact and bad publicity on stock price. Every action, no matter how trivial it may seem, should be examined for its ultimate impact on corporate reputation.
Impact on employees	F	There's nothing like having your employer portrayed as untruthful and uncaring to make employees run for cover.	It doesn't matter what senior management calls something, it's what actually occurs that counts. Spin doesn't work in cyberspace and can end up hurting you in print.
Overall score	F	This was clearly a strategy driven by finance, carried out by human resources, with PR left to mop up afterwards.	If you are laying off large numbers of people, regardless of whether you call it "layoff" or not, PR must get involved. Each individual laid off becomes a "spokesperson" who can generate negative publicity, either in print or online.

Home Depot

HQ: Atlanta, GA
2001 Sales (FY ending in Jan.): $45,738 (mil.)
2000 Employees: 201,000

Criteria	Grade	Comments	Advice
Coverage Containment	F	When "20/20" comes calling, you know that you've got major exposure.	You ask for publicity, you get it. Home Depot maintains a very high media profile in the wake of sustainability issues and its reputation as a hot stock asset to watch. When you're that visible, you should expect to take your hits.
Effectiveness of spokespeople	A -	Carole Schumacher was good at presenting statistics, and pointed to actual policy changes in the wake of the girl's death, including a new policy restricting times of day when fork lifts can be used. She occasionally ducked behind the "we're not required to divulge that" curtain.	It's easy to be a good spokesperson when you have concrete changes and actions to use as examples of positive change. By making policy changes and appointing a "VP of Safety," Home Depot could credibly say they had already taken actions to ensure that such occurrences never happen again.
Communication of key (positive) messages	A	Home Depot appeared concerned enough about the issue to change their policies.	Even though the company was clearly under fire, it did not come across as defensive, the company message was one of concern and compassion.
Containment of negative messages	C	Attorneys and activists clearly have the upper hand since no one can deny that deaths have occurred. However, the fact that the press presented both points of view is indicative of Home Depot's efforts to improve.	Sometimes all you can hope for is to cast a modicum of doubt on the motivations of your opposition.
Impact on customers	B	The publicity will no doubt make customers more aware of the safety issues of warehouse stores, arguably a very good thing. Will it keep people away from the stores? Probably not.	In this case, customers are clearly part of the solution. By making them aware of the issues, safety is enhanced and everyone wins.
Impact on investors	C	Investors could well become concerned over liability issues.	Some education on the issue for investors is probably in order 4.
Impact on employees	B	Again, it would be impossible for employees to avoid awareness of this issue, but if it makes them more careful, everyone will benefit.	Widespread publicity can be far more effective than all the internal memos in the world.
Overall	C+	A customer death is probably the worst crisis a PR person can face. However, by using it as a reason to make substantive changes in their policies, Home Depot and its customers both came out ahead.	When disaster strikes, you have a choice: you can duck; or make lemonade. If you use the opportunity to make substantive changes in your business to benefit the public and educate your employees, you can mitigate the negatives as well as ensure that some good will come out of the deaths that have unfortunately occurred.

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