Corporate Ethic Advocate Urges Caution

A national corporate accountability advocate is encouraging companies and their ad agencies to “tread carefully” before considering an image building campaign in today’s scandal-plagued environment.

“There is room for a good ad campaign to make a positive difference if the company behind it is able to face up to financial and ethical scrutiny,” said Patti Lynn, campaign director for Boston-based Infact. “But before making the decision to step into the spotlight in today’s environment it’s essential that the brand or company is truly above board. For the right company, it could be the right thing.”

Infact sharply criticized President Bush's proposals on corporate responsibility, which were delivered in a speech on Wall Street Tuesday. It claimed that the speech fell short of addressing the root of the problems shaking public confidence in corporate America. "With public outrage building over unethical corporate behavior and its impact on ordinary people, we are faced with a unique opportunity for major change. President Bush's proposals barely skim the surface. The public needs to be vigilant to ensure that reforms made now are real and effective, and don't simply add up to another White House or corporate PR opportunity," said Infact executive director Kathryn Mulvey.

According to Lynn, most image campaigns have been launched by brands that were tainted by scandal or engaged in activities that could be construed by consumers as harmful to their health and environment. She criticized image campaigns from ExxonMobil, Philip Morris and Shell for masking what she called “harmful practices.” However, the current environment, in which not only investors but also consumers are faced with a string of accounting and ethical bad behavior, is different. Image campaigns can be seen as a pro-active step.

Lynn encouraged companies and agencies to look at the current crisis as an opportunity to put good social and ethical practices forward. While advertising those practices can be a positive step, she wants companies to make an even more radical shift.

“We want companies to include the cost of social and environmental damage as an expense,” she says. “Should companies make that more radical shift, than advertising can be extremely effective in communicating values.”

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