Wednesday, November 14, 2007

Yay for warm, fuzzy feelings! Exxon's got community.

We are going to do an exercise. I’m going to list a few companies and when you first look at them, I want you to think if you associate them with anything good…like a warm, fuzzy feeling.

: The $42.6-billion-a-year Atlanta based company strives to increase fuel efficiency and decrease emissions of its fleet of trucks by deploying 1,500 alternative fuel vehicles powered by electricity, natural gas, propane and hydrogen.

: This monster corporation offers health-care benefits to part-time workers and gives a 10 cent discount for customers who bring their own cup to combat disposable cup waste.

: Who doesn’t feel good about Mickey? Disney monitors its factories in the global south to make sure workers who produce Disney branded goods get decent treatment.

All of these and more can be found here: http://money.cnn.com/2006/02/23/news/companies/mostadmired_fortune_responsible/index.htm

And lastly, EXXON MOBIL: okay…this might take a little convincing on my part.

Community relations…what I always dream as being the fun part of any public relations job (I see employees reading to 1st graders in local schools, a big corporation putting on a fair in its hometown and big check presentation ceremonies to the company’s local soup kitchen), is a company’s development of a mutually beneficial relationship with the communities it is involved with for the overall objective of a good reputation with and trust from the communities. A flippin’ halo of benevolence should be shining over the heads of every executive in a company in the dreams of the people living in the town where the company has a store, factory, whatever. Now, that is good community relations!

Okay, now back to Exxon Mobil. The company makes continuous efforts to enhance the quality of its “interaction and engagement with the community at large” with its Best Practices in External Affairs initiative. BPEA is Exxon Mobil’s management system for global external affairs which plans and manages the teaching and encouragement of Exxon Mobil affiliates to “practice excellence in community relationships at every level.” The BPEA is flexible focusing on all aspects of external affairs and allows its principles in external affairs to be “tailored to the unique business, country, and community context of every operation.” - http://www.exxonmobil.com/Corporate/community_local_bpea.aspx Exxon is global in a major way!

Exxon Mobil is doing a vast amount of things to show community support. Simply go to the company Web site: http://www.exxonmobil.com/Corporate/default.aspx and a page option smack dab in the middle of the screen is, “community & society.” Ta-da! An entire page leading to many other pages of community relations. Please, please, make my job easier and your biggest critic’s lives harder Exxon Mobil (just for fun: http://www.viridiandesign.org/notes/451-500/00463_people_hate_exxon.html). In my opinion, it is a great PR move on the company’s part to prove wrong the so many hateful images of BIG OIL the company receives from the public. And it really spreads itself out to many areas of community, not focusing singularly on one.

Here are the community relations efforts Exxon Mobil’s got going on…

Strategic community investment: With its Educating Women and Girls Initiative (http://www.exxonmobil.com/Corporate/community_ed_women.aspx), U.S. focus on science and math (http://www.exxonmobil.com/Corporate/community_ed_math.aspx), and Africa Health Initiative, Exxon Mobil invests in communities. The company supports programs that help enhance health conditions, improve education, provide opportunities for women and girls, help alleviate poverty and promote economic growth in order to make a difference in the community, even on a global scale. Not only does Exxon help others, but it helps itself by ensuring a stable operating environment it can work in. - http://www.exxonmobil.com/Corporate/community_local_programs.aspx

Community engagement: Exxon Mobil regularly meets with community leaders, community associations, and NGOs in the surrounding community where a project or facility is located. Exxon Mobil believes such meetings will allow for a dialogue exchange in which the community can share its concern, viewpoints and diversity with Exxon, while the company can share information about “operational processes, environmental safeguards, future plans, and strategies.” Please see http://www.exxonmobil.com/Corporate/community_local_engagement.aspx for a list and more information on Exxon Mobil’s community engagement in action.

Capacity building: Exxon Mobil’s success depends on “stable operating environments, sound governance systems, trained and skilled employee pools, and markets for products.” To allow for this success, the company promotes skills, knowledge and experience of the local citizens who can contribute to the development of the societies in which Exxon Mobil operates through investment, employment, education, transfer of knowledge and skills, the purchase of local goods and services, etc. Please see http://www.exxonmobil.com/Corporate/community_local_capacity.aspx because the Exxon Mobil PR person says it much better than I can.

Human rights: And lastly, just because it’s right (pat yourself on the back Exxon), “ExxonMobil is committed to playing a critical role in promoting respect for human rights and complying with all applicable laws and regulations.” The company standards are consistent with the intent of the U.N. Universal Declaration of Human Rights and support Exxon Mobil’s “commitment to human rights, freedom of association, elimination of forced or compulsory labor, abolition of child labor, and equal employment opportunity.” - http://www.exxonmobil.com/Corporate/community_local_rights.aspx

*Please notice that in all of the above initiatives, there has been the building of a mutually beneficial relationship between the community and the company. Very important class!

Exxon Mobil definitely makes its initiatives to improve science education, opportunities for women and 3rd world country development obvious. But there are so many more good things the company does that I never knew about until I looked for it.

Exxon Mobil’s community relations efforts support the mission of the company (please see its guiding principles here: http://www.exxonmobil.com/Corporate/about_operations_sbc_principles.aspx).
Here are a few ways it does so:
>Exxon adheres to the “high ethical standards” it strives for in its mission through its human rights initiative.
>Exxon’s mission to be a good corporate citizen is fulfilled in its initiative to educate women who may have not otherwise received an education and by energizing the local economies where it operates.
>Exxon’s mission to respect local and national cultures is fulfilled by its meetings with community leaders in its places of operation.

Ultimately, Exxon Mobil’s community relations efforts support its mission to be a successful, leader in the business of petroleum and petrochemicals all the while recognizing, caring for, working with and developing relationships with the global community. In nicer words than I can provide, Exxon even states that without its community relations efforts, there would be no operation of Exxon Mobil. How else would you have an economy to support a mass-oil-drilling if someone didn’t look out for the people in the community where the drilling is going on? No community or a crappy (excuse my word choice) community = a failing or non-existent business.

Now, after taking the time to write this blog entry and giving serious thought to what Exxon Mobil could possible do extra in the realm of community relations, I can honestly say “I’ve got nothin’.” I welcome suggestions and feedback (just fill out a comment box) and maybe a reader could think of something more. Take a good look at the links I put above detailing all of Exxon Mobil’s community relations efforts and see if you can expand upon those. I think if anything, Exxon has got it good with what it’s doing right now…spread itself too thin in the community and it will just become less effective and less efficient in its initiatives and projects.

And as a side note, this will be my last blog entry. It’s been fun!

Wednesday, November 7, 2007

Save the Alaskan Sea Otters: Exxon's text book Crisis Communications case

Once more, just to hammer it in: this blog is not only about Exxon Mobil, but about the company’s public relations tactics, the good, the bad, the ugly, etc. I.E.-Anything to do with the Exxon Mobil PR department down in Irving, Texas.

Many believe, and I will concur, that a major, if not the most major part of PR, is Crisis Communications…quick, everyone panic! Ahhh! Just kidding. And it just so happens that along side the Johnson & Johnson Tylenol case of poisoned, killer medication, Exxon’s March 24, 1989 Exxon Valdez oil spill in the Prince William Sound on the shores of Alaska is the greatest (in my opinion) text book example used in I’m sure every college PR class for Crisis Communications. Please see: http://www.mallenbaker.net/csr/CSRfiles/crisis03.html, http://www.jomiller.com/exxonvaldez/investigative.html, http://www.coopamerica.org/programs/rs/profile.cfm?id=221, and http://www.allbusiness.com/management/1086550-1.html just to name a few…of the very many sites out there reporting (mainly negatively information or perspectives) on the Exxon Valdez spill. I would legit have my physician on speed dial for constant Prozac refills were I a PR person at Exxon. Man, the job is never done!

In the 1980’s, Exxon CEO Lawrence G. Rawl (http://en.wikipedia.org/wiki/Lawrence_G._Rawl) headed one of the five largest companies in the U.S. with sales of $80 billion. Wow! What’s that Exxon? You are hiring? Just kidding again. According to my source, Crisis Communications: A Casebook Approach by Kathleen Fearn-Banks, Rawl was a hardworking, strong leader, who disliked publicity and the media. Whoa, whoa, whoa…did no one check this out before he was hired as CEO? Hmm. He was with the company 37 years before taking the head honcho position.

The CRISIS: Shortly after midnight on a Friday during the time of year when there is an animal migration that brings the largest concentration of migratory fowl in the entire world (sea otters, seals, whales, salmon, herring, halibut) to the Prince William Sound, the Exxon Valdez, a 987-foot oil tanker headed for Long Beach, California from the coast of Alaska ran aground on the rocks of Bligh Reef, tearing open a hole in the hull almost as the long as the ship itself spilling 11 million gallons of crude oil into the American waters over the following hours and days.

Captain Joseph Hazelwood (http://en.wikipedia.org/wiki/Joseph_Hazelwood), a respected pilot who had sailed the same trek more than 100 times, and was known for his drinking, led the tanker to Bligh Reef, one of several well-known hazards in the Prince William Sound. He retired for the night and in his place, Hazelwood left Third Mate Gregory Cousins in charge. Government investigators later deemed Cousins unqualified to handle such a maneuver. Hazelwood was fired later while Cousins continued the road to success becoming a Second Mate.







It has been estimated (not including halibut and salmon) over 2 million animals died as a result of this careless human error, and scientists predict it will take decades for the animal life in the Sound and beyond to fully recover.

Dan Cornet (later to become Exxon’s PR manager), was Exxon’s Alaska coordinator at the time. As soon as he heard the news, he rushed to the scene and notified Public Affairs. The company’s immediate strategy was to clean up the mess it had created. Yes, it was a regrettable instance, but at that time, cleaning up the oil and saving sea life was what was most important.

Exxon’s president of Shipping, Frank Iarossi (http://www.adn.com/evos/evos.html), served as the company’s main representative at the Valdez site and handled direction of the spill response. I bet he was ticked at the lack of response he got from headquarters…CEO Rawl was nowhere to be found.

Exxon faced major opposition (too nice of wording)…fisherman, businesses and residents of the shoreline of Alaska were beyond livid: the company’s first attempt at clean-up did not work. Ready for this “OUCH!”? Iarossi held a press conference without being previously briefed by PR personnel (Edward Bernays is rolling in his grave… http://www.prmuseum.com/bernays/bernays_1915.html). Needless to say, he was slaughtered by the media. And then, Brian Dunphy, another spokesperson for Exxon Shipping, refused to verify the extent of the damage or what was being done about it. Also…surprise, surprise…this statement was not well received.

Exxon Mobil’s Cornet got in touch with vice president of Bradley/McAfee PR, George Mason, APR, and asked him to develop and implement strategies for three areas he expected to blow up in Exxon’s figurative face: the tourism industry in Alaska, the animal rescue centers Exxon had begun to set up on Valdez, and Alaska’s seafood industry. Exxon did have success with the animal rescue and clean-up, and tourism actually improved the following year due to a major promotional campaign. Problem was: the company didn’t tell anyone.

Eventually, the M.I.A. Rawl showed up and issued an emotionless statement via TV telling people what kind of chemicals would be used to further clean up the spill. Oh, and one minor detail: he offered no apologies to the fisherman who had essentially lost their livelihood. Three weeks later, despite still not accepting responsibility, Rawl made the trek to Alaska. How kind of him. Those lucky people of Alaska sure were blessed! (Note: Complete and utter sarcasm)


What would I have done differently had I been the PR person at Exxon in 1989? Where do I begin?
1) Don’t have a CEO of a major corporation that has many plausible crises looming over its head that hates, dislikes, is afraid of, doesn’t know about or cannot work with the media.
2) If you do have THAT CEO, give him a serious wake up call when proposing the oil spill crisis to him. Always remember: when your stakeholders think it’s a crisis, it’s a crisis. I would have had A LOT of people backing me up on this one were I Exxon’s PR person (say about a million Alaskans).
3) Educate that CEO on what is happening.
4) Train that CEO in media relations, prepare him with at least three solid and specific messages, and get him in front of reporters and TV cameras ASAP.
5) Get the legal department and management on the same page so you can get the response rolling (timeliness people!).
6) Accept that media has the right to cover a crisis.
7) Tell the media, both local and national, what exactly is going on with clean-up. Silence perpetuates rumors and reinforces the public’s suspicion. Tell them that “we opened an animal rescue operation, have a campaign going to bring back tourists and have made all attempts at cleaning the spill.” They aren’t flippin’ psychic!
8) Be accessible to the media and make leadership available…Rawl was a no show.
9) Stay calm and focused…ha! “Focus, what’s that?” Exxon asks.
10) Admit to the severity of the problem; take fault for the accident, and responsibility for the clean-up.
11) APOLOGIZED TO THE VICTIMS OF THE SPILL!!! The fisherman, the business owners, the residents, the local governmental bodies, etc. deserve a damn apology and they weren’t given one. Ahh! (Again, Bernays, rolling in his grave, I’m sure.)
12) Tell the public when it is all over.
13) And above all, adhere to the four “R’s” – Regret, reform, restitution and responsibility.







*I must credit Crisis Communications: A Casebook Approach by Kathleen Fearn-Banks for the majority of information in this blog entry.

For the most recent updates on this topic from Exxon Mobil: http://www.exxonmobil.com/Corporate/about_issues_valdez.aspx