May 24

Are You Ready for Some Football (Controversy)?

 

Today’s guest blog is authored by Steve Goodwin, a principal at Brand Foundations, a strategic branding & purpose partner of Peppercomm’s. As you’ll read, the National Football League once again finds itself knee deep in controversy. Enjoy…..

The NBA and NHL playoffs are nearing their final rounds. The MLB All-Star break is within view. Yet even though team training camps won’t open for another couple of months, the National Football League is grabbing headlines. And one of the league’s fiercest rivalries promises to make the upcoming season anything but predictable… for corporate America.

Redskins/Cowboys? Raiders/Chiefs? Packers/Bears? Nope. Fiercer than those legendary matchups. We’re talking owners vs. players.

This week, NFL owners unanimously approved a new policy that requires players and team personnel to stand for the national anthem if they’re on the field while it’s being played. Players will have the right to remain in the locker room. Significant fines can be levied against teams for noncompliance.

Within nanoseconds of that announcement, the NFL Players Association took a contrary stand, promising to fight the ruling – on which they maintain they weren’t consulted – “to the end.”

And moments after that, NY Jets owner Chris Johnson issued a statement saying that he would pay for any fines incurred by his team’s players… a thumb in the eye of NFL Commissioner Roger Goodell (and of a certain inhabitant of 1600 Pennsylvania Avenue).

So the stage – perhaps “trap” is a better word – is set for mega-controversy. Two obvious questions loom:

  1. Will companies with NFL players under endorsement contracts face collateral brand damage if those players opt to defy league rules and take a knee?
  1. Given the copious racial overtones as this issue has played out very publicly over the past two years, will companies who count “diversity” and “inclusiveness” among their deeply held values still feel comfortable with their NFL sponserships the first time a player or team is penalized?

Those are among the sort of questions and potentially incendiary issues that are increasingly forcing big businesses to assess their sponsorship, partnership and other corporate relationships. How thin is the line some companies will need to tread this NFL season? Think about your favorite running back tip-toeing the sideline to stay inbounds.

May 21

Spot On

Richard Edelman’s Linkedin essay posits powerful and accurate views on the rapidly emerging role of the chief communications officer AND her/his PR counselors in this new, dark era of school shootings, a president who changes his mind more often than the wind shifts direction in Chicago and the disturbing rise of fake news or, False News, as we board members of The Institute for Public Relations (IPR) prefer to call it.

Peppercomm and the IPR are about to release the results of our third, in-depth series of interviews with 25 Fortune 500 CCOs and a smattering of senior marketing executives who direct crisis response for their organizations.

The vast majority have already created, or are in the process of developing brand new “societal” crisis plans that anticipate future events, develop responses pre-approved by the CEO, CHRO and CLO, and scenario plan the expectations and reactions of a public comment from their CEO by everyone from an activist board member and colossal customer to employees and local communities in which the organization maintains a presence.

The corporate communications function is uniquely qualified (and prepared) to guide the C-Suite through the uncharted waters of a highly-divisive, and hugely uncertain, global environment.

It’s no longer acceptable for CEO’s to mimic an ostrich, listen to a lawyer’s advice or hope that, this, too, shall pass. Just ask Kasper Rorsted, the CEO of Adidas, who badly bungled his responses to Kanye West’s lamentable statements about slavery.

I have huge admiration for our peers in digital, data analytics, advertising and other marketing disciples but we, in PR, have ALWAYS fulfilled the role of the corporation’s conscience.

And, the need for smart, carefully-crafted, ethically and morally responsible commentary has never been more important. No offense intended, but marketing types simply don’t possess the DNA to lead the charge.

It’s a great time to be a strategic PR counselor. And, here’s my version of a Richard Edelman plug: Keep your eyes peeled for sneak previews of our CCO research in the days to come.

May 09

Bad Advice

I just returned from the superb PRSA Counselors Academy’s Spring Conference, a MUST attend for ANY PR entrepreneur.

I had the privilege to address the 200 or so attendees on the subject of Fake News which, as my three faithful Repman readers will recall, I addressed in a previous blog.

Anyway, one of the attendees provided the single worst piece of advice re: responding to a Trump attack Tweet I’ve yet to hear.

An obvious POTUS supporter, this particular counselor had the following advice for ANY corporation that finds itself on the receiving end of a mean-spirited, factually incorrect Trump Tweet:

“Love him or hate him, he’s the president. And, what’s the one thing he adores more than anything else? A person or organization that praises one of his initiatives. So, forget about the attack and, instead, find something your organization is doing that aligns with Trump’s agenda and Tweet about that. Guarantee he will love it, re-Tweet it and you’ll gain millions of new followers.”

Wow. That is so far beyond wrong that it redefines the word.

The right way to respond to a Trump attack (which we verified with 25 CCOs in our soon-to-be-released, co-branded research report with IPR) is to gather the facts, reach out to a trusted reporter and allow him or her to publish a balanced article.

That’s exactly what Nordstrom’s did when Trump attacked them for dumping Ivanka’s fashion line.

Nordstrom’s shared their business policy with a trusted reporter who said, in effect, that Nordstrom’s had the right to discontinue any underperforming SKU. And Ivanka’s sales were dismal (despite KellyAnne Conway’s attempt to endorse them on Fox & Friends).

Any corporation that has created its higher purpose should use that purpose to guide its response to any sort of Trump attack or societal crisis.

You should NOT attempt to find something you’re doing that Trump will like. You should follow the lead of Ed Bastian, Delta’s CEO who, in the aftermath of the Parkland High School shootings, severed all ties with the NRA.

When the state of Georgia took away a significant sales tax exemption from Delta, its CEO stood his ground. In a memo to employees, he wrote the now famous rallying cry for taking a stand: Our values are not for sale.

That, my friends, is how best-in-class organizations respond to a Trump attack or societal crisis. They use their corporate purpose as the North Star and leverage it to guide their messaging.

May 07

The Sounds of Silence

I must say I was surprised, and disappointed, to read that Adidas CEO Kasper Rorsted felt a bit aggravated last week when asked to comment on Pop Star Kanye West’s highly controversial comments about slavery.

To refresh your memory, West Tweeted the following, “When you hear about slavery for 400 years…for 400 years…. that sounds like a choice.”

It was at that moment the Adidas CEO had a very clear choice as to whether to stand up, speak out and, if not condemn West’s comments, to at least say they didn’t reflect the views or corporate purpose of his company.

Instead, he sounded quite miffed when was quoted as having said: “I’m not going to comment on every comment he (meaning West) or somebody else makes.”

Well, in Kanye’s case, he is most certainly NOT just somebody else when it comes to Adidas. He is both a paid designer and brand ambassador.

Rorsted’s non-comment was, in fact, a very strong comment. It told me, and millions of others, that an incendiary, racist statement made by a representative of his company is acceptable. And, that’s unacceptable.

I don’t wear Adidas sneakers, so I can’t boycott the brand, but I’d be willing to bet my treasured Asics running shoes that many people have or will boycott Adidas as much for West’s hateful statement as for Rorsted’s tacit endorsement (that’s how I read silence). Consumers are currently signing a petition for Adidas to drop the rapper.

Long ago and far away, then-BP CEO Tony Hayward was absolutely eviscerated by media everywhere when, after visiting the site of the massive oil spill his company had caused in the Gulf of Mexico, Hayward said, “I’d like my life back.”

Brutal comment. Just brutal. And the subsequent outrage would end up costing the BP CEO his job.

I doubt Rorsted will lose his job, but his refusal to comment in a time of crisis will most assuredly cost him sales and employees, while stepping all over the brand’s image and reputation.

To paraphrase Thomas Paine, “These are the days that try men’s (and women’s) souls.” These are also the days when it’s no longer acceptable for CEOs to remain silent.

Shame on you, Mr. Rorsted, for not standing up and doing the right thing. It may not end your career, but it will forever tarnish it.

Note: I will be addressing societal crises, fake news and the pressing need for CEOs everywhere to stand up, speak out and double down on their organization’s corporate purpose at the PRSA Counselors Academy’s Spring Conference later today.

Silence is no longer golden, especially in the aftermath of a societal crisis such as a mass shooting, a controversial piece of legislation such as tariffs or an incendiary statement uttered by a high-profile figure.

Silence is shameful.