Public relations firms and marketers are particularly keen on working with mom
bloggers. These bloggers appear to be independent voices in discussions about
consumer products but may receive gifts in exchange for their opinions. The concern
here is that sometimes such communications appear without complete disclosure,
meaning that the bloggers don’t say that they have been hired by companies to
promote their goods and services; keeping this a secret is an unethical practice. In
2009, the Federal Trade Commission instituted new rules requiring online product
endorsers to disclose their connections to companies.
There is a great example of a socially responsible strategy that was used by a PR
specialist to manage bad publicity. In 1982, there was a tragedy involving Tylenol
pain-relief capsules. Seven people died in the Chicago area after someone tampered
with several bottles and laced them with poison. The parent company, Johnson &
Johnson, and its PR representatives were trying to decide whether withdrawing all
Tylenol capsules from store shelves might send a signal that corporations could be
intimidated by one crazy person. The company’s PR agency, Burson-Marsteller,
decided to engage in full disclosure to the media and an immediate recall of the
capsules nationally. The move cost the company an estimated $100 million and cut
its market share in half. Burson-Marsteller tracked public opinion nightly through
telephone surveys and organized satellite press conferences to debrief the news
media. Emergency phone lines were set up to take calls from consumers and health-
care providers. When the company reintroduced Tylenol three months later, it did so
with tamper-resistant bottles. In the end, the public thought Johnson & Johnson had
responded admirably to the crisis and did not hold Tylenol responsible for the deaths.
In less than three years, Tylenol had recaptured its former (and dominant) share of
the market. The responsible strategy is to tell the truth. By responding immediately,
they can get out in front of the story, honestly addressing the problem and taking
responsibility so that the company appears in a favorable light.