NEW YORK (July 18 , 2011) — Commenting on the escalating crisis surrounding the News Corp. phone-hacking scandal, Rosanna M. Fiske, APR, chair and CEO of the Public Relations Society of America (PRSA), today issued the following statement regarding the reputational fallout for News Corp. and the company’s response:
News Corp.’s misguided response to the escalating phone-hacking scandal will undoubtedly become a case study for business schools and public relations professionals on the potential perils of not properly managing the reputations of all of a company’s assets. In trying to make excuses for unethical actions by some News of the World reporters and editors, Rupert Murdoch has demonstrated a profound lack of understanding of how his actions and words influence the public’s perception of his company and its employees.
Murdoch has failed to keep in mind the famous Arthur Page adage that reputation is 10 percent what you say and 90 percent what you do.
Beyond the negative impact this scandal is having on News Corp.’s stock-market value — not to mention raising investor ire and forcing the company to pull its bid for BSkyB — the reputational hit that News Corp. has taken is monumental. In unsuccessfully trying to save the careers of some of his top lieutenants, including former News International CEO Rebekah Brooks, Murdoch is damaging the reputation of all his media properties.
The fallout from this scandal also demonstrates that reputation management in the digital age has become an immense challenge for many businesses, even for News Corp., which has weathered many crises over the years.
Rupert Murdoch and News Corp. should follow the guidance of the public relations professionals — including those from PR firm Edelman — that are now providing crisis communications counsel. Chief among those recommendations should be a commitment to transparent and forthright communications regarding News Corp.’s hacking and whether any other improprieties have taken place within the company.
Related PRSA Statements and Commentary:
- PRSA Chair Comments on News Corp.'s Crisis Communications Response (Jay Rosen Storify, July 15, 2011)
- PRSA: Rupert Murdoch is Torching the Reputation of All of His Brands (Ragan's PRDaily, July 12, 2011)
About the Public Relations Society of America (PRSA)
With more than 31,000 members, PRSA is the largest organization of public relations professionals and students. PRSA is comprised of 111 local Chapters organized into 10 geographic Districts; 14 Professional Interest Sections that focus on issues, trends and research relevant to specialized practice areas, such as technology, health care, financial communications, entertainment and sports, and travel and tourism; and the Public Relations Student Society of America (PRSSA), which has more than 300 Chapters at colleges and universities in the United States and abroad. PRSA is headquartered in New York.