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Building a Business on Virtue: Actual, Image, Or Spin Building a Businesson Virtue: Actual, Image, Or Spin Marion K. Pinsdorf Senior Fellow in Communications FordhamGraduate School of Business Public relations practitionersdubbing themselvesthe conscienceof the corporationreally nettle other executivesand wryly amusemany publics. Yet, the bestcounselors practice and teachtruth telling. They havebuilt interna- tional, corporateand boutiquebusinesses by espousing,internally and exter- nally,the virtuesof individual,product, company, or just doingthe right thing. However,from the very beginning,tell 'em anythingpublicists split from and overshadowedthe more analyticand strategiccounselors. Following the con- ference'stheme, the virtue of business,the positiveside of public relationswill be emphasized.General abuses are more widely known and admittedlystill tar- nish the businessgreatly.' Bloody Beginnings Publicrelations was without name,form or evenpractitioners until the bit- ter 1913-14Colorado labor strife known as Bloody Ludlow. Public animuscen- tered on the Rockefeller family, who owned the State's major employer, Colorado Fuel and Coal Company. When PresidentWoodrow Wilson ordered troops in, their indiscriminatefire killed eight strikers,eleven children and two mothers[Heckscher, 1991, pp. 330-31].Former SenatorGeorge S. McGovern in his TheGreat Coalfield War, and a Bill Moyers intervievdcites this as where adroit manipulation of corporateand personalimages began. Two major public relations pioneers-Ivy Lee and George Creel-were involved.Lee transformedthe Rockefellerpublic personafrom unfeelingmale- factorof greatwealth into the philanthrophic,political family of today. Creel later headed the Committee on Public Information, also known as the Creel Committee,America's first propagandaministry. As a Princeton student,Lee was greatlyinfluenced by his chief mentor, ProfessorWilson, who encouragedmediation between corporate practices and • A personalcaveat. Attempting to distillnot only the voluminousmaterial about public relations, but morethan 30 yearsof practicing,writing, thinking about and now teaching the subjectto MBA can- didatesis akinto wrestlingan elephantinto a butterfly. 2Moyers, Bill., "The Image Makers: Interviews with EdwardBernays and Ivy Lee,"(Video tape shown on educationalchannels). BUSINESSAND ECONOMIC HISTORY,Volume Twenty-eight, no. 2, Winter 1999. Copyright¸ 1999by the BusinessHistory Conference. ISSN 0894-6825 186 / MARION K. PINSDORF public opinion [Hiebert, 1966,pp. 22-3].3 Ironic that a presidentso inept at wooingpublic opinion to his causesshould birth both positiveand bombas- tic aspectsof the business. From 1906, when Lee representedanthracite mining operations,he won recognitionfor his policyof "the publicbe informed." Sometimesthough he lapsedto whitewashhis clients.Over the yearsthey includedthe Pennsylvania Railroad,the Guggenheiminterests, Armour and Company, the Bethlehem SteelCompany, Chrysler, Portland Cement, and American-Cubansugar inter- ests.They demonstratedthat businessexecutives, if not yet politiciansand mil- itary leaders,were increasingly aware of how publicopinion could impact their operations[Bernays, 1952, p. 70]. At Ludlow, Lee entered an inflamed situation, not just current strife, but a milieu stirredup by powerfulanti-business muckrakers and crusadingjour- nalist Ida Tarbell'shighly critical book on StandardOil. Public criticismwas alreadystirring, but Creel's "febrile oratory" and the local pressmade sure Ludlow became an inflamed major issue. To counterthat, Lee not only arrangedcompany-sponsored publications, somecriticized for inaccuracies,but photo-opsof the youngerRockefeller vis- iting miners,dancing with their wives. Out of theseefforts grew Lee'smajor andlasting achievement, his humanizing Rockefeller Senior and trumpeting his majorphilanthropy. Ivy Lee'scontribution to publicrelations-corporate counseling and image or reputationmanagement-is often obscuredby EdwardBernays' razzle-dazzle publicity. Evenso, a 1970University of Michigansurvey of expertsranked Lee first asfather of publicrelations with 22 votesfollowed by John Hill, founder of Hill & Knowlton, PendletonDudley, a founder of D-A-Y, Carl Byoir, who establishedhis own firm, now part of Hill & Knowlton, and in fifth place Bernays. "Bernays'greatest achievement was living so long," the surveycon- cluded[Tye, 1998,p. 263]. Creel came from the radical left, from a journalism careerso "disheveled" even some newspaperinterests virtually ran him out-of-state. In attacking Rockefellerand money interests,Creel "exceededin vituperationanything else heardduring that emotionaloccasion and protest."His bravuraperformance upstagedeven Mother Jones [McGovern and Guttridge,1972, pp. 254-55,313]. But his prejudiceswere so blatantthey diminishedhis credibility.Lee and the Rockefellerseventually won this P.IL chessgame. Ironically,Creel, little known today,and WoodrowWilson, one of the least publicsavvy presidents, fostered the bestand the worstof the businessduring World War I. The Creel Committeedramatically established the importanceof informationto motivateand mold public opinion. But it alsofostered some 3 Ray Hiebertattributes to WilsonLee's concern about social ills and publicwelfare. While never adoptingWilson's position completely-"That the statewas a beneficentorgan of societycapable of har- monizingindividual rights with publicduties and socialdevelopment"-Hiebert considers Wilson impor- tantto thedevelopment of Lee's ideas on theutility and role of publicrelations. Lee sought-and played- an intermediaryrole between business and public. BUILDING A BUSINESSON VIRTUE: ACTUAL, IMAGE, OR SPIN / 187 of the worststereotypes still plaguingpublic relationstoday-spin, cause plead- ing absentof veracity,publicists as hired guns. Its centralizing,censoring, and propagandizingweakened public trust in the veracityof governmentand its leaders. The Creel Committee is not even remotely a virtue, except possiblyin demonstratingthe effectivenessof propagandaand developingsome leaders in public relations. However,attention must be paid becauseearly on it under- stood the changednature of war. Capitalizing On Change Jay Luvass,who formerlytaught at the Army War College,has convinced many military scholars-andrightly so-that Europeanmilitary and political leadersin 1914tragically missed how technology,urbanization and industrial- ization dictatedvital changesin strategyand tactics. Had they heededthe real- ities of our Civil War, the Boer and Russo-JapaneseWars rather than seeing only what fit their schemesof limited, controlled encountersamong profes- sionals,the carnageof stalemate,perhaps even a moretempered enthusiasm for conflict might haveresulted [Luvass, 1988, p.253]. 4 Curiously,the very nascentdiscipline of propagandaand still unnamed public relationsunderstood this was a total mass,modern war. Populations must be mobilized, "taught" to hate and fight the evil enemy,respond emo- tionallyto atrocities.That would encourageenlistment and a greaterwar effort. All nations did it. News becamea strategiccommodity. Abuses,misleading hyperboleand worrisomecontol of informationresulted. Credibilityof lead- ersand governmentswas dangerously undermined. Conversely,truthful, analyticcommunications, strategically used and stud- ied, can be like the canariesof the trenchesand corporations-first to sense dangersand opportunities.In one of his wittiest,most insightfulessays for the ManchesterGuardian, Alistair Cooke appliesVietnam Era reporting techniques to the Flanderscampaign of June 3 to November10, 1917. Horrors of the fruitlessbattle, remote leadership,awesome suffering were all "brought" into British living rooms through battlefield reporting. Cooke's conclusions? Communicationsalone would prevent a battlelike the Sommefrom everbeing fought again?Today, the immediacyof communicating,quite simply obliter- atesany gap betweenbattlefield and homefront,changing dramatically how politiciansgovern, generals fight and communicatorswork. 4 The authordetails how Europeanobservers missed lessons of the U.S.Civil War,particularly the stalemateof trenchesaround Petersburg, VA. The BoerWar and Russo-JapaneseWars might have been instructive as well. 5 Cooke,Alistair. "Lettersfrom America,"a personalchoice on audio-tapeby Mr. Cookefrom a weeklyBBC broadcast. 188 / MARION IC PINSDORF Engineering Mass Consent World War I usheredin "engineeringof consenton a massscale," or the "industrializationof lies." "Ideasand their disseminationbecame weapons and words becamebullets. Publicity becameessential to the war effort [Bernays, 1952,p. 71]-a time of developingand testingnew technologiesof persuasion. The Creel Committee,a massiveeffort, usedevery available means-print, broadcasting,film, scholars,particularly historians, a massivepublications pro- gram, and specialappeals to hyphenatedAmericans. Millions were spent to ultimatelywhip up destructiveanti-Germanism against individuals, scholarship, and the culture, inducing an almost farcicalspy hunt. All such propaganda drivenhysteria produced little positiveexcept in honing communicationstech- niquesand many leadersof the public relationsbusiness which boomed dur- ing the 1920'sand 1930's. The committeespawned some of today'sworst P.tL abuses:Spin-say any- thing to win for your client. Outrageouscase-and cause-pleading at the expense of truth and plain-speaking.The "bludgeontechnique" and personnelpressure. That P.tL people like lawyersare hired-guns.The CPI's tone and graphics, humoroustoday, suitedits times. Creel'srabid oratory,however, would
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