A golden rule of corporate PR? Threatening to sue a newspaper or media outlet is a waste of time. Even trying to intimidate through an endless volley of legal letters usually backfires. Unless you can call out a media outlet on its polices and procedures, complaining about perceived unfairness usually falls on deaf and everlastingly hostile ears. Which is why Bloomberg’s recent misstep with Goldman Sachs makes interesting reading.
Bloomberg, a robust news organization, prides itself on high standards and journalist integrity, but is now wiping egg from its face following the admission and subsequent apology that its journalists had access to certain client information from its terminals ubiquitous on every trading floor. This included user’s login information and other general details including help desk inquiries. Bloomberg issued a quick apology and swiftly announced changes in procedure. It has since stressed that at no time did reporters have access to trading and monitoring systems or to clients’ messages to one another (the stuff that really matters).
When Goldman Sachs, routinely held accountable in the public eye, discovered that its employees were being monitored by Bloomberg journalists with access to private data, a formal complaint was made. This must have the been the gotcha moment. No news organization likes to be accused of an ethical breach and this was one case where Goldman could flex its own muscle and claim the moral high ground.
The PR Verdict: “A” for Goldman Sachs for scoring a public and ethical win.
The PR Takeaway: Integrity is the Achilles’ heel. No doubt Goldman Sachs has previously had its fair share of battles with Bloomberg but complaining to news organizations about bias and unfairness rarely works. This time it was different. A bruised eye for a leading news organization and a PR point for Goldman Sachs for starting a news cycle debate about journalist integrity. When there is a breach of procedure any PR is on firm ground to go ahead and complain. Choose your battles wisely.










Apple and the Dark Art of PR
The PR verdict: “A” (PR Perfect) to Apple’s “person close to the matter”.
Sorry is sometimes the hardest word. That is presumably the view of Apple executive Scott Forstall, who was in the headlines for allegedly refusing to sign a public letter apologizing for the mess regarding Apple’s new mapping service. His departure, announced on Monday, coincided with Apple’s retail chief John Browett also packing his bags.
A big day at Apple, but officially the superstar firm was remarkably tight-lipped. Most publications had the firm declining to comment save for confirmation of the departures and plans for their replacements, while Forstall and Browett were both unavailable. But the mystery was how media reports managed to run to several hundred words if neither side was talking? It was the old PR friend, “a person familiar with the matter,” who, as always, was more than obliging.
The well-known background briefer informed the press on how, why, and what happened. Fortsall’s hasty exit apparently came after long-standing tension with other Apple executives, who claimed he was uncooperative and aggravating in boasting a close relationship with founder Steve Jobs. Matters came to a head when the mapping software ran into problems. Our friend, the person “familiar with the matter,” said the game was over and Forstall got his marching orders. A win for Apple PR and zero to Forstall.
The PR Verdict: “A” (PR Perfect) to Apple’s “person close to the matter.” Such a helpfully talkative pal!
The PR Takeaway: There are multiple ways to skin a cat. The Apple fracas provides a timely reminder about the value of speaking “on background.” With Apple and the departing parties declining to comment, who was going to shape the story? Getting a message across is the task of any good PR, and using the broad-brush moniker of a “person close to the matter” gives almost unlimited opportunity to comment without lasting fingerprints. There is a reason, after all, why PR is called the “dark arts.”
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What’s your opinion of this PR tactic? Give us your PR Verdict!