The No Comment Pitfall

http://msmagazine.com/blog/blog/2012/04/05/masters-of-sexism/

          Never ever say “no comment.” It amazes me how fast people forget this concept, especially public relations professionals who have experience with crisis management. What shocks me more, though, is when the everyday average citizen uses the “no comment” way out of a sticky situation.

The most recent case I can think of is this years Masters golf tournament. As many of you know, IBM is one of the three sponsors for the tournament (the company handles the tournaments websites, apps, and media center). The issue was, Virginia Rometty, IBM’s CEO, is a woman. August National Golf Club does not admit women. So, the question burned in many individuals’ brains: would Rometty attend the tournament?

When Augusta Chairman Billy Payne was confronted with the issue, he stated, “All issues of membership remain the private deliberations of the membership. The statement remains accurate.” Reading between the lines, Payne essentially said the words, “no comment.”

As a public relations graduate student who has taken a course in crisis management, I am knowledgeable of the mistake Payne made in those statements. Wouldn’t an individual understand the desire for other average citizens to know the situation and what will come of it? Why on earth would Payne decide to make these statements? It boggles my mind.

What is worse is the fact that Augusta has refused to offer membership to Rometty, disregarding the history of offering membership to all IBM’s past CEO’s. While Rometty did attend the tournament this year, she was not offered membership to the club. In this day and age, sexism is viewed as a reprehensible perspective, one that must be defeated. I’m for one curious how Augusta will address this issue even now that the tournament is over (or if they will address it at all). What do you think the club with do?

When an Employee Makes a Mistake

http://www.guystuffcounseling.com/counseling-men-blog/?Tag=Midlife%20Crisis

            Almost every company has been there. A current or former employee makes a monumental mistake that jeopardizes not only their reputation, but potentially the companies as well. Media begin reaching out to the company, asking questions. Who is the employee? How do they conduct themselves at work? Have you ever noticed this odd or peculiar behavior in the workplace?

The question remains for the company, how do you navigate this crisis? While each situation fluctuates in its intensity and the ripple effects on the company’s reputation, all of the crises should be handled with care and the proper set of skills. In recent weeks I’ve heard of a number of companies that have found themselves in the midst of a situation where either a current or former employee has committed a crime. So, what should the companies do?

First and foremost, get the facts. Understand the situation inside and out. Know what is true and what is not. Know what is not yet proven true or false. Any possible piece of information about the crisis, learn it.

http://www.communiquepr.com/blog/?p=3369

Then, form a general statement that you deem fits the level of information the media needs to know. For a former employee, it can be as simple as, “So-and-so was employed at our company 3 years ago for a duration of 1 year. We have not had contact with him/her since we parted ways.” For a current employee, the statement can read, “So-and-so is currently employed at our company. He/she has been temporarily suspended due to the ongoing investigation. No decisions will be made on their status as an employee until the investigation has come to a close.”

The first statement released to the media by the company is critical. It is essential that the company does not say, “No comment.” If you wish to hammer the nails into your own coffin, go right ahead. But, if you wish to continue working, I’d advise another route. The first statement is an opportunity for the company to explain their part in the crisis situation and how they intend to handle it. You do not need to provide full-blown details, but you do need to respond.

Goldman Sachs Resignation Crisis

Photo Courtesy of: The Telegraph (2012)
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9142641/Goldman-Sachs-chief-Lloyd-Blankfein-disappointed-by-claims-of-toxic-greed.html

            The resignation of an executive in any corporation, large or small, can rock the very foundation on which the company functions. As with all resignations, there is a chance that it is a mutual parting of the ways or disagreement and bad blood. The recent resignation of Goldman Sachs executive Greg Smith happens to have occurred under the latter. Now what does this mean for Goldman Sachs? The company is now faced with fighting off a negative corporate culture reputation as a result of Smith’s harsh words in his very public resignation letter.

Photo Courtesy of: heatingoil.com
http://www.heatingoil.com/blog/goldman-sachs-advice-sell-oil-futures-triggers-big-price-fall-0412/

            Goldman’s PR department released a statement disputing Smith’s claims of a corporate culture that flourishes by making as much money as possible off of its clients. In the statement, Goldman Sachs executives stated, “Needless to say, we were disappointed to read the assertions made by this individual that do not reflect our values, our culture and how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients.” However, was the statement enough? Smith’s comments were strong, laced with resentment and disgust towards the company’s practices.

            I believe that an attack on corporate culture runs deeper than an attack on a defunct or poor-quality product. Corporate culture is the very essence of a company. A poor product is easier to fix than the ‘personality’ of a corporation. Regardless of the statements released by Goldman Sachs, Smith has planted a seed in the publics mind. He has made them question the corporation and its practices. For this reason, I believe Goldman Sachs needs to provide proof to customers, stakeholders, and other important publics that the culture of the company is one that fosters ethical behavior.

            How can Goldman Sachs do this? Reassess and rebrand. Create an initiative that will foster and promote an ethical corporate culture where all employees strive to provide the utmost service to customers. It is a tough challenge, but one that needs to be accomplished by Goldman Sachs.

What do you think the company should do?