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Wednesday, May 5, 2010

Passing Judgment: Consumers can see through a lack of transparency

As the Washington Post announced that BP had capped one of the three sources of oil spilling into the gulf this morning, I caught myself reflecting about the way this environmental tragedy has unfolded. The tragic explosion happened on April 20th, and the burning rig sank on the 22nd. According to a timeline published by the Wall Street Journal, the initial reports of a leak—reported to be 1,000 barrels a day—came on April 24th. The number is later revised to suggest that 5,000 barrels are spilling daily.

While the current estimate is that 210,000 gallons per day are spilling into the gulf, according to this story from the New York Times, in a closed-door meeting with members of Congress yesterday the company conceded that the outflow could go up to as many as 60,000 barrels of day (quoting yet another NY Times article).


Implications: A seemingly infinite number of articles have already been published about the damage this oil spill has done to the reputation and brand of BP. (Here’s one example… from Media Post Marketing Daily.) But I’m not here to pile-on. I’m just thinking about how any local company might benefit and learn from BP’s tragic experience. It seems to me that the best damage control is a full frontal admission of the problem; “I guess we over-reacted” is preferable to telling the world, “I guess we under-estimated the problem.”

Case in point: The most recent Tylenol recall. Did it hurt sales? Of course. But in responding to the issue as soon as it was discovered—proactively, rather than reactively—Johnson and Johnson preserved the integrity of its Tylenol and other OTC brands, according to this story from Marketing Daily.

Public relations is not just about "the spin" you put on a situation. It's about the relationship you have with your public. And the best relationships are built on a foundation of truth.

Mike Anderson

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