PR Fuel: An Ethics Test

For a public relations firm, Seyferth Spaulding Tennyson is not saying very much these days.

The Grand Rapids, Michigan-based outfit has found itself embroiled in a scandal in a town of less 5,000 on the shores of Lake Michigan. Seyferth Spaulding Tennyson's client that is involved in the mess is Meijer Inc., a family-owned grocery and goods retailer that is one of America's largest privately owned companies.

According to The Traverse City Record-Eagle, Meijer hired Seyferth Spaulding Tennyson in the spring of 2006 to spearhead a campaign aimed at recalling the board of Acme Township. The public relations firm reportedly billed Meijer over $30,000 to help launch and manage a pro-recall group. The failed recall was aimed at removing local officials who opposed Meijer's plans to build a store in the community.

"The firm's secretive efforts included flooding the Record-Eagle with letters to the editor and opinion page 'Forums' that were written by the firm but attributed to local residents," Brian McGillivary reported in the Record-Eagle. "Additionally, Seyferth Spaulding Tennyson invoices show it conducted 'research' on the Record-Eagle's publisher and editor."

Seyferth Spaulding Tennyson's charges included $47.50 to scan online news coverage of the recall effort; $62.50 to stategize on a petition drive; and, $93.75 to gather information in response to a letter written by former Governor William Milliken.

Though no charges have been filed, it is illegal for corporations to make campaign contributions and Meijer stands accused of violating election laws. News of Seyferth Spaulding Tennyson's involvement came to light after a local official countersued Meijer. Only one Meijer official, the director of real estate, has been publicly named in the scandal and high-ranking company executives have publicly stated that they were unaware of the company's involvement. Meijer has vowed to cooperate with the Michigan Secretary of State, launched its own probe and says it will take corrective action.

On the other hand, Seyferth Spaulding Tennyson has not commented on the issue. Ironically, the firm's co-founder, Ginny Seyferth, had given an interview to The Grand Rapids Press before the Meijer story came to light. The story was about women entrepreneurs and Seyferth spoke about her experience launching a firm in an area where most companies looked to Chicago or New York for their public relations services.

As I read the coverage of this burgeoning, local scandal, I kept wondering whether Seyferth Spaulding Tennyson knew that it was doing something wrong. The firm has been in business for more than two decades and its recent clients include the American Cancer Society, City of Detroit, Georgia-Pacific, McDonald's and Staples, so I suspect that they are good at what they do. I won't draw any conclusions from this, but the evidence does not look good.

My own experience in public relations relates to consumer and business-to-business oriented companies. I've never done PR work on a political campaign, though I was on the receiving end of plenty of pitches and sorties from political PR firms and lobbyists when I was a journalist. To get an expert perspective, I emailed a long-time friend and well-connected lobbyist some of the stories regarding Seyferth Spaulding Tennyson and Meijer.

"This isn't anything new," responded my friend, who has worked on national political campaigns. "What's probably the most interesting aspect of this story is that Meijer's higher ups were not involved. Typically you're not going to have someone junior running this type of program."

Disregarding the fact that "this isn't anything new," did the PR firm in question do anything wrong?

"I don't think you can get away with this stuff like you could in the old days," my politically savvy friend said, pointing out how many companies and organizations have been busted for "astro-turfing."*

"Ethically, it's wrong. But when has ethics gotten in the way of public relations?" he said.

Was it ethically wrong? According to The Public Relations Society of America ("PRSA"), it was. As T. Michael Jackson, senior counsel of Jackson & Associates, pointed out in a Record-Eagle editorial, the PRSA's guidelines on ethics state that an example of Improper Conduct Under the Disclosure of Information Provision is when "a member implements 'grass roots' campaigns or letter-writing campaigns to legislators on behalf of undisclosed interest groups."

Seeking more input, I spoke to a friend who once did some PR work for Wal-Mart.

"Yes, we would have done something like this if they asked us to," she told me. "Anything to please the client."

Would she do it now?

"No, but that's because I have my own firm and I don't have any interest in getting involved in something that can blow-up in my face. But I'm sure that plenty of firms wouldn't have an issue with it. Someone would do it because the money is just too good," she said.

That begs the question: Would you have taken on the Meijer job? What if you could have done so knowing that you could never get caught?

Please email me at bensilverman (at) gmail.com and let me know your thoughts, and whether I can print your name and affiliation.

___

*Ed. note: For more on "astro-turfing," see these previous PR Fuel columns:

http://www.ereleases.com/pr/pr_Thumbs_All_Around.html
http://www.ereleases.com/pr/pr_Giving_Up_on_WalMart.html


Ben Silverman is currently the Director of Development and a Contributing Editor for Indie Research (http://www.indieresearch.com), an independent investment research service. Previously, Ben was a business news columnist for The New York Post and the founder/publisher of DotcomScoop.com. He can be reached via email at bensilverman@gmail.com.


   
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