Crisis for Maker of Smirnoff Vodka, Diageo

We love hearing about a good ethical crisis over here at PRSugar, as long as it’s not our client making the error in judgement (and as long as no one gets hurt).  This is a good one as it involves not only crisis but CSR and booze.

Here’s the jist:

Who:  Diageo, (the big guy) is the world’s largest distiller, with an impressive portfolio of brands including Smirnoff, Crown Royal, Baileys, Captain Morgan, Jose Cuervo, Tanqueray, Guinness, etc.  Brewdog (the little guy) is a Scottish craft beer maker.

Where:  BII Scotland’s 2012 Annual Awards Dinner (The British Institute of Innkeeping, BII, is a trade organization for the licensed retail profession).

What:  Diageo (sponsor of the event) approached event organizers at the event and threatened to pull their sponsorship if Brewdog was given the coveted “Bar Operator of the Year” award.  (Brewdog’s name was already on the trophy).

Communication:  Brewdog took to its blog where you can see Diageo’s statement admitting guilt.  You can find more quotes from a Diageo spokesperson on the Financial Times website.  Let’s see how Diageo continues to handle this one.

This is a classic CSR case of a company saying “look at how much we give back to the community” and then taking an action that completely counters that mission.  In this case, it’s Diageo saying “We are so nice and involved in our community.  Look, we are sponsoring this awards dinner!” while they’re really scheming to fix the results.

Also, what do you think of Diageo’s strategy in blogging about the incident?

Be You: Transparency and Authenticity

Hey there,

I’m here today to talk to you about honesty, transparency and authenticity.  If Gossip Girl teaches us anything, it’s that secrets don’t remain secret – the truth will always come out.

I’ve been working with a new client with an instinct to hide the company’s true identity, thinking that it could turn off clients.  Again, the truth will always come out so it’s better to be honest, clear, and ok with who you are as an organization, rather than being shady and evasive.

In the case of this client, it’s that the company is one company that has a presence in many local markets.  The organization doesn’t want to acknowledge that the local branches are actually owned by a parent company.  I say, own it.  There is strength in having one solid company vision with locals working in the local markets.  It’s a totally valid business model and customers will come because of the combined strength of the parent organization and the real people on the ground in the various locations with whom customers can form genuine relationships.

Today’s Sugar:  Boston University has had this “Be You” campaign which some people find silly but I really like – I can’t help it – I’m a sucker for puns.  This refrain has played over and over in my classes and I think it’s an important part of my graduate education.  Be yourself!  If you’re a company, be yourself, flaws and all!  If I tried to be something other than myself when I started dating my boyfriend, we probably wouldn’t have dated for very long.  He loves me for being honest, communicative and sometimes flawed. If customers call you out for doing something crappy, fess up, apologize, and try to do better next time.  Own your organization for what it is and don’t try to be what it’s not!

Fantastic Tactics: A PR Glossary

Public relations degree programs vary between those that are tactical and practical and those that are theory and strategy based.  I chose Boston University because it sits in the middle on that scale, offering a combination of theory and practice.  Most students of public relations, even at the graduate level, will not be hired out of school to focus on strategy alone.  Although we will be happy to have studied strategy later in our careers, we as students should acknowledge the vast amount of tactical skill that will be required of us early in our careers.

Today’s Sugar:  Public Relations careers vary on the scale of highly tactical to highly strategic.  In order to begin to address the tactical side of Public Relations, I am offering the following glossary of PR tactics.  Many of my definitions are coming straight from the aptly named Public Relations Strategies and Tactics by Dennis L. Wilcox and Glen T. Cameron.  This glossary is not comprehensive but serves as a start.

AdWords – Google web advertising platform (the ads on the top and right side when you Google something)
EPK – Electronic Press Kit, Press kit in an electronic format, distributed via CD, zip drive, or in online media room.
Media Alert/Advisory – Memo sent to media explaining the who, what, when, where, why, and how of an event
Media Kit/Press Kit – A folder containing press releases, fact sheets, company and contact info., and photos, used by editors and reporters to gain information quickly and easily about a topic.  Also see EPK
Media Tour – Media are invited for an intimate experience with the organization – for example: touring a factory, visiting a hotel, or getting a sneak peak at a new product
Media Training – Public relations practitioners often coach their clients in the art of speaking to media, ensuring that they are confident and on-message
Microsite – small, self-contained web destination, separate from company’s primary website, with a distinct URL, and consisting entirely of content focused on a particular product or service (thanks Brian Quinton “Microsites Are Becoming a Macro Idea”)
News Release – (AKA Press Release) Document that disseminates information to mass media, written in news style
Press Conference – Gives media opportunity to interview spokesperson, held when an organization has news to present to the media
Press Party – Informal opportunity to disseminate organization’s message through a social gathering, usually involving an organization’s pitch at the end of the event
PSA – Public Service Announcement, defined by the FCC as an unpaid announcement that promotes the programs of government or voluntary agencies or that serves the public interest
SMT – Satellite Media Tour, person on air is station at a TV studio and news reporters go live from their studio for a 5-10 minute interview with each reporter
Speechwriting – Public relations professionals are often called upon to write speeches for a key member of an organization which that member will deliver
Strategy – Plan for achieving an objective that provides guidelines and key messages
Tactic – Specific activity that helps to achieve stated objectives
VNR – Video News Release, usually sent to cable TV networks and local TV stations

Variation

I forgot how tiring it can be to move, especially when that move includes driving 3,000 miles in 7 days.  I am finally (somewhat) moved into my new home in Boston and have attended my first class at Boston University.

Throughout this semester I will mention the four classes I am currently taking: Writing for Media Professionals, Communication Research, Contemporary PR, and Financial and Strategic Management.  Today was my first day in my Communication Research class and in addition to introductions and choosing group members for an extensive semester-long project, we learned about variation.

Today’s Sugar: Our professor mentioned the word “variation” which will come to mean many things during the semester.  Perhaps I will mention some of these varying definitions in weeks to come.  For now, we are defining variation as the “diversity that exists in various aspects of life”.  The professor used the example of our class as a group.  We are a relatively homogenous group (we all have an undergraduate degree, are similar in age, have the same relative level of comfort with technology), and yet the pre-existing information in the minds of each of us as individuals is non-homogenous.  In the next few weeks I hope to learn more about how to identify variation in homogenous groups and use it as an advantage rather than a hurdle as I form and tailor messages.

P.S.  Speaking of variation, I took loads of photos and videos from the road as the terrain changed from desert in the Southwest to cornfields in the central time zone to undulating greenery in Pennsylvania.  The photo above is a snapshot from the road after a thunderstorm.