Conflicts of interest can sneak up on you. The obvious basic definition of a PR conflict of interest is being involved in multiple interests where one could possibly corrupt your decision making of the other. A very obvious example would be working for a video game company while you own stock in their major competitor. The possibility exists that your PR decisions would not be as honest in this situation, as lowering your employers’ sales might increase your own bank account.
Conflicts of Interest in Public Relations
A PR conflict of interest occurs when personal interests, relationships, or obligations interfere with a PR professional’s ability to serve their client or employer’s interests objectively and ethically. Understanding these conflicts is crucial for maintaining professional integrity and client trust.
Key Areas of PR Conflicts
There are numerous ways to end up in a conflict of interest in the Public Relations industry:
Media Relationships
When PR professionals have personal relationships with journalists or media outlets, it can compromise their ability to provide unbiased media outreach. For example, a PR professional dating a journalist at a major publication might feel pressured to give that outlet preferential treatment, even when it’s not in their client’s best interest.
Competing Clients
One of the most common conflicts in PR occurs when representing multiple clients in the same industry. A PR agency handling communications for two competing technology companies, for instance, would struggle to maintain confidentiality and provide equal service to both clients. Each client deserves exclusive attention for their strategic communications, and competing interests make this impossible.
Financial Interests
PR professionals must be transparent about any financial stakes they hold in companies or organizations related to their clients. This includes stock ownership, investments, or financial relationships that could influence their recommendations or strategy. For example, recommending a vendor or partner company in which the PR professional holds shares would constitute a clear conflict.
Personal and Professional Networks
The PR industry relies heavily on relationships, but these connections can sometimes create conflicts. This includes:
- Family members working for competitor organizations
- Close friendships with decision-makers at client organizations
- Board positions or advisory roles in related industries
The Impact of Conflicts of Interest on Clients
When conflicts exist, clients may receive:
- Compromised strategy recommendations
- Reduced media opportunities
- Diluted messaging
- Less aggressive competitive positioning
- Limited access to industry relationships
Managing PR Conflicts of Interest
Prevention is always better than cure. PR professionals should:
- Maintain clear documentation of all client relationships and potential conflicts
- Regularly disclose any new potential conflicts to clients and employers
- Establish information firewalls between competing accounts
- Create clear procedures for identifying and addressing conflicts as they arise
When conflicts are identified, PR professionals have several options:
- Decline new business that creates conflicts
- Resign from conflicting accounts
- Transfer conflicting business to other team members
- Obtain written consent from all parties after full disclosure
Professional Standards
The Public Relations Society of America (PRSA) Code of Ethics provides clear guidelines about conflicts of interest. PR professionals must:
- Disclose promptly any existing or potential conflict of interest
- Act in the best interests of clients or employers
- Avoid actions and circumstances that may compromise good business judgment
- Reveal any financial interest in a client’s organization
- Encourage clients and employers to determine if a conflict exists after disclosure
Real-World Impact
Conflicts of interest in PR can have serious consequences:
- Loss of client trust
- Damaged professional reputation
- Legal liability
- Reduced effectiveness of PR campaigns
- Compromised media relationships
- Industry credibility issues
Examples of Conflicts of Interest
Let me share some notable real-world examples of PR conflicts of interest:
Burson-Marsteller & Facebook vs. Google (2011)
One of the most notorious cases occurred when Facebook secretly hired PR giant Burson-Marsteller to run a smear campaign against Google’s privacy practices. The PR firm pitched negative stories about Google’s privacy policies to journalists and bloggers without disclosing that Facebook was their client. When this was exposed, it damaged both Facebook’s and Burson-Marsteller’s reputations and raised serious ethical concerns about transparency in PR practices.
The Bell Pottinger Collapse (2017)
British PR firm Bell Pottinger faced a catastrophic conflict when it was revealed they ran a secret racial campaign in South Africa for the wealthy Gupta family, creating divisive propaganda that inflamed racial tensions. The campaign involved creating fake social media accounts and websites to spread racially divisive messages. When exposed, this led to:
- The firm’s expulsion from the UK’s PR industry body (PRCA)
- Loss of major clients
- The firm’s eventual bankruptcy
- Industry-wide discussions about PR ethics
FleishmanHillard & Monsanto (2019)
FleishmanHillard faced scrutiny when it was revealed they had created “intelligence files” on journalists and activists on behalf of Monsanto. The firm compiled detailed information about reporters, including their personal hobbies and views on sensitive topics. This raised serious ethical questions about PR firms monitoring journalists and led to:
- A $200,000 settlement with French authorities
- Damaged relationships with journalists
- Enhanced scrutiny of PR surveillance practices
Hill & Knowlton and Kuwait (1990)
A historic case involved Hill & Knowlton’s representation of Citizens for a Free Kuwait during the Gulf War. The firm orchestrated testimony before Congress about Iraqi atrocities, including the infamous “incubator babies” story, which was later discredited. The firm failed to properly disclose their relationship with the Kuwaiti government, leading to:
- Congressional investigations
- Industry-wide discussions about disclosure requirements
- Changes in how PR firms handle foreign government accounts
Edelman’s Climate Change Controversy (2014-2015)
Edelman faced criticism for representing both climate change advocacy groups and fossil fuel companies simultaneously. After media exposure:
- They had to choose between clients
- Eventually announced they would no longer accept climate change denial campaigns
- Created new guidelines for energy sector clients
Ketchum and Russia (2014-2015)
Ketchum’s representation of Russia during the Crimean crisis created significant conflicts with their Western clients and values. The firm struggled to manage:
- Opposing geopolitical interests
- Credibility with Western media
- Client relationships in multiple countries
They eventually ended their relationship with Russia due to the increasing conflicts.
Mark Penn (2008)
Hillary Clinton’s chief strategist Mark Penn fell from grace back in 2008 when, despite Hillary’s anti-free trade stance, he met with Columbian officials. Word got out that Penn’s firm represented the Columbian government, and in the end he was forced to admit he went there to discuss the free trade agreement
When the dust settled, Penn was out as chief strategist and his firm lost the Columbian government account. A total fail. The situation could have been avoided very easily if Penn had the good sense to send someone else from his firm to Columbia about the account. Or, at the very least, had total disclosure about the situation. Either way, his conflict of interest led him to make a decision that benefited him the most, not either of the people he was representing.
Key Lessons Learned:
1. Transparency is Essential
These cases demonstrate that lack of disclosure often leads to bigger problems than the original conflict.
2. Industry Impact
Major conflicts often lead to:
- New industry regulations
- Enhanced ethical guidelines
- Changed business practices
- Improved disclosure requirements
3. Financial Consequences
Conflicts can result in:
- Lost clients
- Damaged reputations
- Legal settlements
- Business failure in extreme cases
Ways to Mitigate a Conflict of Interest
How do you avoid these conflicts? They’re going to arise at some point, it’s inevitable. Your PR firm employer picks up a new client, Bob’s Assault Weapons ‘r Us, and you’re extremely anti-gun. What do you do?
In the case you can’t completely take yourself out of the situation (your PR firm is severely understaffed), don’t hide the fact you’re anti-fun. Attempting to run a campaign while hiding information like that might hurt you in the long run. Being open and honest about it might spark discussions on how to run the campaign more sensitively.
Also, you can recuse yourself from any big decision making in the campaign. Bob’s Assault Weapons ‘r Us wants to know if their current billboard is too graphic, but you know you won’t be a fair judge. You can still run the campaign but let others make the final call.
Resolution Strategies
When conflicts arise, PR professionals should:
- Immediately inform all affected parties
- Document the nature of the conflict
- Present clear options for resolution
- Seek guidance from ethics committees when necessary
- Maintain transparency throughout the resolution process
Future Prevention
To minimize future conflicts, PR professionals should:
- Develop clear conflict screening procedures
- Regular review client relationships
- Maintain detailed documentation of potential conflicts
- Provide regular training on ethical guidelines
- Create clear policies for accepting new business
The PR industry relies heavily on trust and credibility. Maintaining clear boundaries and avoiding conflicts of interest is essential for long-term professional success. When in doubt, PR professionals should err on the side of disclosure and seek guidance from industry ethics resources or legal counsel.
This article is written by Mickie Kennedy, founder of eReleases (https://www.ereleases.com), the online leader in affordable press release distribution. Download a free copy of the PR Checklist – a 24 point list of Press Release Dos and Don’ts here: https://www.ereleases.com/free-offer/pr-checklist/