Corporate Mea Culpas
Thursday, April 27th, 2006
Can good PR advice avert the demise of a corporation and the filing of federal fraud and conspiracy charges against the company’s top executives? During his recent testimony, former Enron Corp. Chairman Ken Lay bemoaned his decision back in September 2001 to stick his head in the sand when the Wall Street Journal requested an interview for a series of articles focusing on the company’s bookkeeping practices. “My policy has always been that it is better to talk to the press than not to,” Lay testified. Ignoring his own advice, Lay listened to subordinates who felt the damage from not doing the interview would be minimal. Lay now credits the articles that appeared a few weeks later with destroying confidence in the company, ultimately leading to its bankruptcy filing in December 2001.
While it’s impossible to speculate on the outcome had Ken come clean with WSJ, he would have been well advised to follow the example of Chrysler Corporation Chairman Lee Iacocca in the wake of criminal charges involving odometer tampering in the mid-1980s. The situation led to the indictment of two Chrysler executives for driving cars with their odometers disconnected and then selling them as new. In some cases, the vehicles had been in minor accidents and repaired, then sold as new. In a dramatic press conference held in Detroit, Iacocca called the practice of test-driving cars without telling people “dumb.” And selling damaged vehicles “goes beyond dumb and all the way to stupid,” Iacocca lamented. “Did we screw up,” Iacocca questioned. “You bet we did…Simply stated, that’s unforgivable, and we have nobody but ourselves to blame.”
Iacocca’s mea culpa was textbook crisis communications of “Tell it all. Tell it fast. Tell what you’re going to do about it. Tell when it’s over.” In addition to giving owners of affected cars new vehicles and extending warranty protection for other vehicle owners, Iacocca emphasized, “Our big concern is for our customers, the people who had enough faith in Chrysler to buy a vehicle from us. These charges and the press reports about them are causing some of those customers to question that faith, and we simply cannot tolerate that.” Following Chrysler’s public apology, a survey found 67 percent of those contacted believed the company had adequately dealt with the issue. As a result, neither vehicle sales nor stock prices suffered.
Given that outcome, there was nothing “dumb” about Chrysler’s response to bad news. If only the same could be said in the case of Enron and its indicted chairman.

And what are these monsters that creep toward our trembling and defenseless bodies as we toss and turn in an effort to break free from the night terrors? That’s the truly amazing part. If you experience a major catastrophe at the office and all fingers point to you – it comes as no surprise that you will receive a visit from the dark lord of the night. He will terrorize and taunt you until your body is writhing and tortured and your soul is wishing for release – of any kind. That’s expected. But what about those nights when things have gone well at the office – why then do his minions choose to pay a visit? How many of us have received ghoulish visits that are a result of a minor faux pas at the water cooler – Good God did Sally think I meant SHE was fat???? Oh Lord how can I go on when my coworkers all know that I’m an insensitive boob – aaaaaaarrrrrrrrggggggggg!!!!! Yes, we are often under siege for issues that could, and have been, instantly sloughed off during daylight hours. But at night there’s no sloughing.
Online revenues at newspaper websites were an estimated $2 billion in 2005, up from $1.19 billion in 2004, with real estate, help wanted and car ads accounting for 75 percent of 2005 online ad revenue. Newspaper sites were profitable last year, according to the report, but the average site lost market share within its designated market area; the average site controlled an estimated 14.8 market share last year, down from 18 percent in 2004. The search engines have begun stealing share in the local media, offering a new form of targeted advertising that is luring dollars from real estate, automotive, legal and other advertisers traditionally the mainstay revenue stream of the newspaper business.
Marketers are working to give a healthier glow to many products perceived as not so good for you by increasingly nutrition-conscious consumers.
Art Evans of Dixie Chopper didn’t invent the zero-turn mower as much as perfect it. But when he spotted one at the Indiana State Fair in the 1970s, he knew then and there how people would be mowing their grass in the future.
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Professional singer and songwriter Tom Waits was awarded $2.6 million in damages for a radio commercial that used a “sound-alike” singer who deliberately imitated his voice while performing one of Waits’ songs. A
robot with a blonde wig, wearing a red glittered dress and turning letters in what appeared to be a futuristic set of “Wheel of Fortune”. And last year, Gov. Arnold Schwarzenegger claimed an
For $424 a month – or one-sixth the cost of one of the firm’s human temps – Japanese companies can rent an electronic receptionist shaped like Hello Kitty.
It was a gorgeous night. One of those truly perfect evenings at the beginning of Spring where the air is warm, crisp and fresh. As I sat on my deck watching the clouds clear to reveal a beautiful moon, I started thinking about the euphoric feeling I get each Spring — as my daffodils bloom; my tulips (at least those the rabbits haven’t mowed down) come up, the trees come back to life.