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How seriously do the bosses back at Fleishman-Hillard headquarters take the public relations agency's media hits here in Los Angeles? Pretty seriously, according to a story in today's St. Louis Post-Dispatch.
In an irony for public-relations giant Fleishman-Hillard Inc., a PR problem that might be out of the firm's control threatens to tarnish a strong reputation built over six decades.Founded in St. Louis shortly after World War II, Fleishman-Hillard has been one of the fastest-growing communications firms in the world. It operates more than 80 offices worldwide, and it represents some of the most recognized brands in the world, including Procter & Gamble Co. and Wal-Mart Stores Inc.
Last week, the firm said it would terminate its contracts with three Los Angeles city agencies, shortly after federal prosecutors subpoenaed the firm for records as part of an investigation into possible government corruption in Los Angeles...
If improprieties are found, the consequences could be dire, said Dean Kruckeberg, a communications professor at the University of Northern Iowa. "Hypothetically, something like this would have the same effect as an Arthur Andersen."
Fleishman-Hillard has become a favorite target in the Los Angeles media. The Los Angeles Daily News referred to the DWP as the "Department of Water and Public Relations." A recent political cartoon by Patrick O'Connor in that paper showed a snake labeled "Public Relations" in an open manhole, with a nearby cover labeled "Department of Water and Power."
[fast forward]
Fleishman-Hillard Regional President Bill Anderson said the firm takes the situation in Los Angeles seriously. "Reputation is truly a fragile thing," said Anderson, who works in the St. Louis office. "If you asked if we're concerned about potential reputation damage from LA, we'd have to say absolutely."
In the piece, one PR industry watcher calls it a mere distraction for Fleishman that will blow over soon. But the editor of the Holmes Report newsletter says: "I think it's fair to say that it's become a bigger deal than anybody in St. Louis or senior management initially thought it would." Joseph Kessler, a competitor of Fleishman as president of the L.A. office of Weber Shandwick Worldwide, is also quoted.
Is it just me or is this starting to seem like the press at its worst--the famous echo chamber. Please --no more stories about Fleishman Hillard "improprieties" unless you can say in a sentence what the alleged improprieties are.
The only things I have read are: 1) They gave money to the mayor's campaigns and 2) they billed their client the DWP by the hour. Okay...
As for #1, campaign contributions are legal. Why aren't there just as many stories about all other businesses that give money to politicians? What's unique about this company?
As for #2, what did Fleishman's contract say they should do about billing? Were they told they should or should not bill by the hour? Who decided the budget? If it's true they've been working for DWP for six years, why are their bills being criticized by the controllor only now? Could the controller have a motive for changing her tune? Has any reporter bothered to ask her?
These are the questions that real reporters used to ask. If a politican like Chick was doing a hit job on someone, we wouldn't just print it, we'd try to get behind it. Nowadays, you lazy hacks just repeat what each other says. It's incompetent, it can be unfair, and it depressing for those who once looked at journalism as a higher calling.
Posted by: dzzrt Ratt at April 25, 2004 01:59 PMWow - the news media is attacking a PR firm for questionable ethics. The same news media that lets PR firms write their stories for them and then plugs them into publications and broadcasts every day. Hypocritical.
Posted by: FHer at July 15, 2004 12:45 PM
Monica Almeida has the perspective of a native Angeleno who photographs Los Angeles for an East Coast newspaper: the New York Times.
of LA Observed
Comparing Fleishman Hillard to Arthur Anderson is truly absurd. Arthur Anderson was accused of cooking Enron's books. Fleishman hasn't been accused of anything more than getting criticized by Laura Chick for bills its been submitting for six years. And has anyone asked Kessler if his agency does any public sector work?
Posted by: Ms. Insider at April 25, 2004 12:59 PM