Reputation Advisors International Welcomes New Members

Reputation Advisors International

NEW YORKFeb. 22, 2024 /PRNewswire/ — Reputation Advisors International (RAI), a worldwide association of distinguished communications professionals, welcomes Nathalie Bergeron of Nota Bene Stratégie of Montreal and Eric Rose of EKA PR of Los Angeles as the network’s newest members.

The addition of Ms. Bergeron and Mr. Rose furthers the network’s continuing growth over the past year. Dirk T. Schmitt of Rosenberg Strategic Communications in Frankfurt and Chris Cartwright of Chris Cartwright Communications in Geneva, Switzerland, joined RAI in mid-2023. Earlier in 2023, Kajsa Stenström of Stenström Consulting in Brussels and Barry Ahern of Business Management Communications (BMC) in Dublin also joined the network, which now boasts members in 16 cities across the globe.

Also, in 2023, Ben Haslem of Sydney, Australia rejoined the network, along with his partner Mark Forbes in Melbourne. Ben and Mark are leaders of Icon Reputation, one of Australia’s leading integrated communications agencies.

“We are excited to see the network grow with the addition of these esteemed professionals,” James F. Haggerty, President of Reputation Advisors International, said. “Each new member represents the expertise and professionalism we look for across the globe.

“We look forward to adding additional members worldwide throughout the coming year,” Haggerty added.

New RAI Members

Nathalie Bergeron, a certified crisis counselor, brings solid in-house and in-agency experience that helps brands gain thought leadership and win market share. A former journalist, Nathalie is known for her strategic communications, reputation, and issues management. Having provided senior-level counsel to the world’s most recognizable brands, she counsels her clients in crisis communications preparedness, crisis management, and reputation management.

Eric Rose is a seasoned professional with over 35 years of experience guiding companies, associations, and individuals across all political, governmental, and public relations challenges. A trusted advisor to numerous Fortune 500 companies, Eric specializes in crisis management, reputation repair, and communications expertise. A court-qualified expert witness in reputation repair, local, national and international media regularly seek Rose for his expert commentary. Eric has also shared his knowledge as a guest lecturer at various universities.

Dirk T. Schmitt, who joined Reputation Advisors International in the Summer of 2023, brings extensive experience advising companies on their communication strategy, crises, and mergers  and acquisitions.

Chris Cartwright, who joined Reputation Advisors International in October 2023, is the founder of Chris Cartwright Communications, which specializes in helping clients in crises in various industries, including healthcare, technology, and international organizations.

Kajsa Stenström joined Reputation Advisors International in March 2023, and is the founder of Stenström Consulting in Brussels. Kajsa has more than 25 years of experience providing strategic advice to clients in EU affairs.

Barry Ahern, who joined Reputation Advisors International in March 2023, is the managing consultant of Business Management Communications, an independent consultancy firm that provides both strategic advice and operational execution in financial communications, corporate affairs, and litigation support management.

About Reputation Advisors International (RAI)

Reputation Advisors International is a worldwide association of senior communications professionals with expertise in high-stakes issues related to reputation management, brand positioning, legal and regulatory communications, crisis planning and response, and related areas.

The network currently has members in 16 cities across the globe, including Brussels, Chiasso, DublinFrankfurtGenevaLondonLos AngelesMelbourneMontrealMunichNew YorkOsloSingaporeSydneyToronto, and Zurich.

To learn more about Reputation Advisors International, visit: www.reputationadvisors.net

Protecting Reputation: Steps to Take in the Face of Leaked Internal Memos

A man with an umbrella facing an oncoming storm

By Eric Rose

This recent headline would make any crisis communicator cringe: “Amazon’s plans to advance its interests in California laid bare in leaked memo.”

The story, which unfolded through a leaked internal memo, shed light on Amazon’s growth strategy in the Southern California region and its 2024 internal community outreach plans. As the media covered the story, it became apparent that the leaked document, while not containing anything illegal, raised eyebrows due to its mention of specific elected officials with whom it intends to strengthen relationships and build trust through community engagement and donations. Understandably, this can be perceived as questionable by the public.

The incident is rife with implications for crisis communications, public and government affairs, and good old-fashioned PR. It’s a situation that merits a closer look.

Amazon’s Response: Leading With Transparency

It’s important to note that Amazon’s response was commendable, considering the potentially damaging nature of the written content. When confronted with the issue, the company acknowledged the document’s authenticity, opting for transparency throughout the process. What could have been a crisis turned into an opportunity for the tech giant to showcase its commitment to philanthropy.

In their official response, Amazon pointed to their philanthropic endeavors, noting that “Partnerships with community leaders and stakeholders help guide how Amazon gives back.” The leaked memo was not ideal, but the company reiterated its intention to support the communities where it operates, emphasizing a responsive approach tailored to the unique needs of each community. The act of reiterating their commitment to community support served as more than just damage control; it became a reaffirmation of Amazon’s values.

Navigating the Delicate Terrain of Leaked Memos

Numerous companies have grappled with the unwelcome exposure of leaked documents, often mishandling the situation from a communication standpoint. Conducting a Google search with the query “an internal memo seen by” shows pages of results showcasing a diverse array of stories. This spectrum spans from highly sensitive and potentially embarrassing revelations for organizations to information that, while widely known within business circles, carries minimal, if any, significant reputational consequences.

The prevalence of such internal memos appearing in news stories and online underscores the challenges organizations face in maintaining the confidentiality of their internal communications. These leaked memos often provide a glimpse into the inner workings of companies, exposing a range of information, from strategic decisions and operational changes to nuanced insights into corporate culture.

The implications of these leaks can vary widely for organizations. In some cases, the leaked content may lead to substantial reputational damage, requiring strategic damage control measures. Conversely, some revelations may not carry significant consequences but still contribute to the broader narrative surrounding corporate transparency and communication practices.

Organizations are navigating a landscape where internal communications can quickly become public knowledge in an era of heightened information flow and digital connectivity. This reality emphasizes the importance of robust communication strategies and the need for a proactive approach to managing public perceptions when internal memos find their way into the public domain.

Unwanted Spotlight: Companies’ Responses to Leaked Information

The following instances underscore the importance of vigilance and strategic responsiveness when confronted with leaked information.

United Airlines

The recent leak of an internal memo from United Airlines sheds light on a heightened focus on cabin crews, emphasizing their need to give customers an image of attentiveness. The directive within the memo is explicit: crews cannot effectively fulfill their duty of being attentive to customers if they are on their smartphones. “Use of a personal electronic device and/or accessories is not permitted while customers are on board the aircraft, with the exception of crew rest,” the memo said.

Despite the proliferation of articles covering the leaked memo, United Airlines has refrained from responding to media requests for comments. This silence is noteworthy—and not good, especially considering United must have anticipated that the widespread circulation of a memo would likely make its way into the media.

Xbox

Last year, Phil Spencer, the head of Xbox at Microsoft, was forced to address a significant Xbox-related leak associated with the FTC v. Microsoft case. In an internal memo addressed to Microsoft employees, Spencer acknowledged the inadvertent disclosure of confidential documents and expressed disappointment within the organization. He emphasized that the leaked documents did not necessarily align with the Xbox’s current trajectory and attributed the discrepancies to the evolving nature of the company’s plans over time.

In a post on X (formerly Twitter), Spencer wrote:

We’ve seen the conversation around old emails and documents. It is hard to see our team’s work shared in this way because so much has changed and there’s so much to be excited about right now, and in the future. We will share the real plans when we are ready.

Spencer encouraged a nuanced perspective, urging consideration of the documents’ age and cautioned against drawing immediate conclusions or forming expectations based solely on the leaked information. This acknowledgment aimed to mitigate any precipitous reactions or premature expectations stemming from the exposed details.

IBM

According to a leaked internal memo from Bloomberg, IBM has instructed its managers to reduce remote work to safeguard their positions. The directive specifically mandates that US managers physically report to an office or client location for at least three days each week and  said it intends to leverage badge-in data to “assess individual presence.”

Using good crisis communication practices, IBM openly acknowledged the memo’s existence. In response to media inquiries, the company’s said that it was “focused on providing a work environment that balances flexibility with the face-to-face interactions.”

Takeaways and Lessons

In an era where information effortlessly spans the globe, the potential impact of information leaks reaching the media poses a significant threat to businesses. To navigate these challenges, companies can proactively prepare through crisis communications planning.

If an organization lacks a crisis communications plan, it is crucial to develop one. This involves:

  • Identifying key decision-makers during a crisis
  • Formulating clear messaging
  • Determining target audiences for communication
  • Anticipating potential reactions in the event of unfavorable news reaching the media

While crisis communication plans may not offer a step-by-step guide for every scenario, they provide a valuable framework for making informed decisions amid challenging circumstances.

Effectively managing such situations requires communicators to closely monitor the public and internal reactions elicited by the disclosed information and act promptly. It is imperative to acknowledge the leaked information openly and, most importantly, to provide a transparent and comprehensive explanation to stakeholders.

In times of information leaks, the communication strategy should transcend mere damage control and be geared toward fostering trust and understanding. Swift response, acknowledgment, and clear communication not only mitigate potential reputational damage but also lay the groundwork for rebuilding confidence among stakeholders. A proactive approach that addresses the information head-on demonstrates a commitment to transparency and accountability, which is crucial in maintaining positive relationships with the concerned parties.

By incorporating these principles into crisis communication protocols, organizations can navigate the complexities of information leaks more effectively, demonstrating resilience and reinforcing their commitment to ethical and transparent practices. Here are some general rules for organizations to follow when confronted with communication leaks:

  • Take a proactive approach in the face of leaked confidential documents. Highlight positive initiatives to counter potential misconceptions and set the record straight. Correct inaccuracies promptly to prevent lingering misinformation challenges.
  • Openly acknowledge the authenticity of leaked documents. Reinforce commitment to community support for effective crisis navigation. Transform crisis into an opportunity to reaffirm corporate values and dedication to responsible citizenship.
  • Use a crisis as a platform to showcase dedication to responsible corporate citizenship (if applicable). Mitigate reputational damage by emphasizing transparency, accountability and community well-being. Strategic responses can turn challenges into testimonials of commitment to the communities served.

Managing communications leaks is crucial in media relations. For significant leaks, a well-prepared crisis framework is vital. It must be built on an ethical business foundation to withstand public scrutiny. Every organization should anticipate internal news leaks and ensure that memos to large groups are reader-friendly for an external audience. In many organizations, news spreads rapidly, even when initially shared with a select few.

Eric W. Rose is a partner at EKA and specializes in crisis communication and reputation management.

Record-Breaking Defamation Verdict: Jury Awards Scott Sapulpa $25 Million in Landmark Defamation Case Against the Oklahoman, Owned by Gannett

A courtroom interior

Muskogee County, Oklahoma, February 5, 2024 – In a historic decision, a jury in Muskogee County District Court, Oklahoma, has delivered a $25 million verdict in favor of Scott Sapulpa, a former assistant football coach, against The Oklahoman newspaper, the state’s largest paper owned by Gannett Co Inc (NYSE: GCI). The jury found Sapulpa’s claim compelling and awarded him $5 million in compensatory damages and an additional $20 million in punitive damages. The record-breaking verdict results from a defamation lawsuit by Sapulpa, represented by Smith Barkett Law Group.

Sapulpa’s legal battle stems from being falsely identified by The Oklahoman as the individual responsible for racist comments directed towards the Norman High School girls’ basketball team during a national anthem kneeling incident. Matt Rowan, the play-by-play announcer responsible for broadcasting the tournament game, later released a statement taking responsibility for the racist rant, acknowledging that he, not Sapulpa, was the source.

As detailed by reporter Michael Duncan, who covered the trial, Mike Barkett, an attorney for Sapulpa, told the jury, “Scott was labeled a racist. He was labeled vile.” Barkett showed the jury that the Oklahoman defiantly continued to publish that Scott uttered the racist remarks despite having the information that they had the wrong guy.

Cameron Jourdan, the reporter for The Oklahoman, and the publication were criticized for failing to conduct adequate fact-checking before publishing the story. Smith highlighted the self-interested haste displayed by The Oklahoman in their pursuit of breaking the news, neglecting their responsibility to verify the accuracy of a story with life-altering consequences,”

Cassie Barkett, another attorney representing Sapulpa, emphasized the severe consequences suffered by Sapulpa due to The Oklahoman’s inaccurate reporting. “Sapulpa, once a respected teacher and coach, faced a barrage of threats, hate calls, and messages after the story was published and picked up by other media outlets, leading to his virtual termination from his position. The impact extended to Sapulpa’s personal life, forcing him to delete all social media accounts as his contact information went viral, resulting in further harassment.”

Eric W. Rose, a Los Angeles crisis and reputation management expert, testified for Sapulpa that it would take a minimum of $860,000 to hire a digital public relations firm to buy advertising and distribute enough positive internet content about Sapulpa to suppress his name from showing up on Google searches related to Sapulpa being labeled a racist. The incorrect story has over 190,000 page views, and 70,000 readers clicked on The Oklahoman’s story alone. Rose testified that research showed that Sapulpa would have to overcome 813 online-related stories with a publicity value of over $21 million.

Syracuse University journalism professor Joel Kaplan, a former investigative reporter for the Chicago Tribune and a reporter for Gannett’s Nashville Tennessean from 1979 to 1986, testified as an expert witness for Sapulpa. Kaplan told the jury that The Oklahoman violated Gannett’s policy by allowing the reporter to offer confidentiality to sources independently without editor approval. He criticized the newspaper for not meeting professional standards, citing the lack of verification in Jourdan’s reporting as one of the most egregious examples of journalistic malpractice. Kaplan believed Jourdan had guessed about the story’s accuracy, disregarded red flags, and faulted the newspaper for not contacting Sapulpa before publishing and for insufficient follow-up attempts amid conflicting reports.

In light of the jury’s landmark verdict, Barkett reiterated the significance of holding media outlets accountable for their actions, particularly when their reporting severely damages an individual’s reputation and livelihood. “We are satisfied with the jury’s verdict. It underscores the significance of truth, highlighting the consequences of falsely presenting someone as making racist remarks. The acknowledgment by the jury signifies that The Oklahoman fell short of its journalistic standards in reporting such a sensitive matter.

Media Contact: Smith Barkett Law Group, PLLC (918) 912-2000

About Smith Barkett Law Group:

Established in 2020, Smith Barkett Law Group is rooted in the Oklahoma legal community. Mike Barkett and Rusty Smith have over 45 years of experience in complex civil trial litigation. Visit https://www.smithbarkett.com for more information.

PageSix.com: Hollywood buzzing after firm removes legendary lawyer’s name from door

PageSix.com: Hollywood buzzing after firm removes legendary lawyer’s name from door

EKA partner Eric Rose was quoted in Hollywood buzzing after firm removes legendary lawyer’s name from door on PageSix.com:

Eric Rose, a crisis management expert who doesn’t represent the firm told Page Six in an email, “The removal of Howard Weitzman’s name from the door of the firm he co-founded does not imply a negative connotation or an erasure of his legacy. It is essential to understand that naming a law firm is a business decision that can be subject to changes over time.”

He added in his statement, “Removing a founder’s name from the firm’s branding is often part of a broader strategic move to align the firm’s vision and objectives.

“Ultimately, the decision to remove any founding partner’s name from the firm’s door is a business-related one that aims to ensure the firm’s continued success and relevance. It does not diminish the impact of Howard’s legal career or status as a legal legend… a name change does not erase Howard’s accomplishments or reputation.”

Rose concluded, “His legacy will continue to be recognized and respected within the legal community, and his countless contributions during his career will endure, regardless of the firm’s name.” The firm did not respond to Page Six’s request for comment.

Article.

EKA’s Alex Cherin on Southwest and Congress

EKA's Alex Cherin on Southwest and Congress

Congress asks for answers in the Southwest Airlines incident, and Transportation policy expert Alex Cherin offers a preview as Congress prepares to hold hearings about the Southwest Airlines meltdown.

Washington Post: Southwest superfans got burned in the meltdown. They’re still loyal.

Washington Post

EKA partner Eric Rose was quoted in a recent Washington Post article covering the Southwest Airlines flight cancellation debacle:

Crisis communication and reputation management expert Eric Rose, a partner at EKA, said Southwest has done some things right: Leaders apologized with empathy, pledged refunds and reimbursement and acknowledged the concerns of Transportation Secretary Pete Buttigieg.

“But this is a crisis that is not over because they haven’t solved the problem,” he said.

Rose said the airline still needed to make outreach to customers like him – not just people whose travels were disrupted – to address the issue and explain what’s being done to fix the problem.

“They need to be a lot more specific about the failure and very specific about what they’re doing to assure people that it’s won’t happen again,” he said.

Article.

PR News: Delayed Penalty: SEC Whacks Disgraced Former CEO and McDonald’s, Transparency Prevails

PR News logo

By Eric Rose

Usually, stories are written about how companies handle PR crises well or botch them when they’re occurring or shortly after they end. Yet a 2019 McDonald’s crisis has provided years of news, including some today (Jan. 9, 2023), well after the crisis ostensibly ended.

Indeed, the Securities and Exchange Commission (SEC) added an exclamation point to the McDonald’s-Stephen Easterbrook brouhaha. In short, it emphasized the importance of transparency in corporate communication, even well after a crisis and its legalities are finished.

The Background

In Aug. 2020, McDonald’s re-wrote the playbook for corporate America about dealing with a crisis months after its board fired CEO Easterbrook, in Nov. 2019. That’s when it learned about Easterbrook’s consensual, non-physical relationship with an employee.

At the time, Easterbrook acknowledged the relationship. He admitted it went against corporate rules. Easterbrook agreed he should leave. He apologized and was fired. His payout was estimated at $40+ million.

Later, after receiving a tip about other Easterbrook relationships, McDonald’s began a second investigation. It uncovered “undisputable evidence” of three sexual relationships.

Investigators found nude photographs from Easterbrook’s McDonald’s email account. In addition, they discovered he’d granted company shares worth hundreds of thousands of dollars for one of the employees “shortly after their first sexual encounter.”

Swift Action

When McDonald’s fired Easterbrook in 2019 “without cause,” it said evidence pointed to a single, non-physical, consensual relationship, consisting of intimate text messages and video calls.

After learning of the other relationships during the second probe, the fast-food giant took an unprecedented step. It sued the now-former CEO, seeking millions from the lucrative departure package it provided him. The company charged Easterbrook hadn’t come clean in 2019. Moreover, he destroyed evidence, it alleged.

In 2021, the former CEO and McDonald’s settled. Easterbrook returned more than $105 million in equity awards and cash to McDonald’s.

SEC Drops Hammer

Today the SEC provided a third burst of news about the incident. The SEC put corporate America on notice, announcing it charged the disgraced CEO with misrepresenting his November 2019 firing. Moreover, Easterbrook, the SEC said today, agreed to a $400,000 fine. In addition, he agreed to forego serving as an officer or director for any SEC-reporting company for 5 years.

“When corporate officers corrupt internal processes to manage their personal reputations or line their own pockets, they breach their fundamental duties to shareholders, who are entitled to transparency and fair dealing from executives,” said Gurbir Grewal, director of the SEC’s Division of Enforcement.

McDonald’s Faulted, Spared

McDonald’s didn’t escape blame. It violated the Exchange Act, which prohibits companies from material misrepresentations and omissions in proxy statements sent to shareholders, the SEC said.

However, Washington spared the Golden Arches. It did not impose a financial penalty on the company. McDonald’s provided “substantial cooperation” during the SEC’s probe, the agency said. On top of that, the fast-food giant implemented “remedial measures,” including clawing back millions from Easterbrook, the SEC said.

Neither Easterbrook nor McDonald’s admitted or denied the SEC’s findings.

In a statement, McDonald’s said the SEC’s actions reinforce what it’s communicated about Easterbrook’s misconduct. “The Company continues to ensure our values are part of everything we do, and we are proud of our strong ‘speak up’ culture that encourages employees to report conduct by any employee, including the CEO, that falls short of our expectations.”

Model for Handling Crisis

It is noteworthy how quickly and resolutely McDonald’s handled this crisis. Leadership was transparent from the beginning and took swift, decisive action. It got ahead of the story and put itself in line with societal expectations.

The changes in its corporate culture did not go unnoticed. Indeed the SEC approved of how the board promptly handled the Easterbrook matter. Without explicitly saying so, the SEC appreciated how McDonald’s set the tone of accountability in corporate America.

Eric W. Rose is a partner at EKA