PRSA: Rupert Murdoch is torching the reputation of all of his brands
The fallout from the News of the World phone hacking scandal has been stunning. Equally shocking was the reprehensible actions some News of the World journalists took to scoop their competitors, including hacking into the mobile phone of 13-year-old Milly Dowler, who went missing in 2002 and was subsequently found dead.
While pundits and journalists continue to flesh out the aftermath of this escalating global scandal, yesterday The Guardian reported that reporters from The Sunday Times, News International’s venerable broadsheet, had attempted to hack the voicemail of former Prime Minister Gordon Brown while he was in office—the question for public relations professionals now turns to the long-term impact these transgressions will have on how we counsel clients in managing their reputations.
Jane Wilson, CEO of the U.K.’s Chartered Institute of Public Relations, wisely notes that the closing of the News of the World “is a great example of traditional and social media working together to produce a staggering outcome.” In this case, following immense pressure on several News of the World advertisers earlier in the week from online activists and the general public, brands started pulling their advertising, en masse, beginning with the high-profile defection of Ford.
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The immense pressure being exerted on Rupert Murdoch and News Corp. will undoubtedly become a case study for business schools and public relations professionals on the potential perils of not properly managing a company’s reputation.
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