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<p><font color="#336699"><b>Topics: </b></font></p>
<ol>
<li><a href="#beauty_salon">Was the beauty salon story a PR stunt?</a></li>
<li><a href="#NPO">What should a non-profit organization do when faced with a
scandal or crisis?</a></li>
</ol>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<h1><!--mstheme--><font face="Times New Roman, Times New Roman, Times" color="#3399FF"><a name="beauty_salon">Was the beauty salon story a PR stunt?</a><!--mstheme--></font></h1>
<font FACE="GillSans">
<p></font><strong>On Thursday, June 17, 1999 4:15 PM, Nos wrote:</strong></p>
<p>I’ve been reading in the papers about this beauty salon where the owner
doesn’t want to cut the hair of anyone over 40. Later stories reported that his limit
was about 30 years old. The last story that I saw said he really wanted to cut the hair of
women in their teens and early twenties. That his cuts were too stylish for anyone older
than that. Then it occurred to me--he’s gotten in all the papers, and on all the TV
news shows. In each case he said what a stylish and exclusive salon he has.</p>
<p><strong>Value of earned media: </strong>gazillions</p>
<p><strong>Cost:</strong> a few thousands in Consumer Affairs fines</p>
<p>So waddaya think? Was it a PR stunt?</p>
<font FACE="GillSans"><b>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<p></b></font><a href="mailto:[email protected]">Martin Mosbacher</a> responded on
Thursday, June 17, 1999 6:05 PM:</p>
<p>Don’t think the genesis of the story was a stunt but do think the owner figured
out how to make the best of a somewhat difficult situation.</p>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<p><a href="mailto:[email protected]">Deven Black</a> wrote Thursday, June 17, 1999 9:58
PM:</p>
<font FACE="GillSans">
<p></font>If it wasn’t it should have been. Next time it will be.</p>
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<p><a href="mailto:[email protected]">Vicki (Free) Presser</a> wrote Thursday, June 17,
1999 8:43 PM:</p>
<font FACE="GillSans">
<p></font>I vote yes—and a damn good one, at that.
<p>
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<p><a href="mailto:[email protected]">Amy Helfman</a> wrote Monday, June 28, 1999
2:23 PM:</p>
<p>Maybe. But the young girls in his salon all seemed to come out with the exact
same haircut, so IMHO he got gazillions of free publicity that showed him to be
a mediocre hairstylist as well as an obnoxious one.</p>
<p>Disclaimer: I don�t have cable; I hardly ever watch TV news; if this guy
got a deluge of exposure, I was not aware of it until you mentioned it! Also I
was out of town 6/19-23, so I may have missed it altogether.</p>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<h1><!--mstheme--><font face="Times New Roman, Times New Roman, Times" color="#3399FF"><a name="NPO">What should a non-profit organization do when faced with a
scandal or crisis?</a><!--mstheme--></font></h1>
<p><b>From: Barry N. Sher</b> <br>
Sent: Saturday, November 27, 1999 9:37 PM <br>
To: �Martin B.
Mosbacher�; �Deven Black�; �Vicki Free'; John Hicks<br>
Subject: NPO PR</p>
<p>I read in last Wednesday�s _Times_ about the crisis at Operation
Smile, a charity that sends doctors around the world to fix kids� cleft
palettes. I couldn�t tell from the article whether Operation Smile is
being smeared by competing charities or needs a thorough housecleaning.</p>
<p>We all know what a business is supposed to do when faced with a
monumental crisis. [Good example: Johnson & Johnson�s quick response
to the Tylenol crisis; bad example: Exxon response to the Valdez oil spill.]</p>
<p>But what about a non-profit?</p>
<p>Two non-profit scandals I came up with were those at United Way and
Covenant House.</p>
<p>So my question is: How should an NPO respond to a scandal or crisis?</p>
<p>[A note about the recipients of this query: Martin, Deven and Vicki are
old friends of mine. Martin and Vicki are both PR professionals. John
Hicks is a client of mine who advises NPOs on fund-raising.]</p>
<p>. . . looking forward to hearing your thoughts . . .</p>
<p>--Nos</p>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<p>Vicki Free, 11/28/99:
<p>Off the top of my head, a good npo response would resemble a good corporate
response�head-on, honest appraisal, minimum of whining. If things ARE bad,
public housecleaning. Regaining consumer confidence no less important in the
public sector than in the private sector.</p>
<p>If I were handling this charity, my message would be along the lines of�</p>
<p>"we were so intent on doing good work, and so grateful fo the
professional time donated to that work, and had so much trust in those who
volunteered, that a vigorous monitoring system was not thought necessary. We
were wrong. With the best will in the world, professional oversight is
imperative. We know this now. We are aghast at the transgressions, small in
number though they are, when taken in the context of the entire operation. We
will put in place vigorous oversight structures, and advisory committees in each
country in which we serve, to be sensitive to cultural differences and improve
communications. We will report to the world in six months time what we have
done."</p>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<p>Deven 11/28/99:</p>
<p>I agree with Vicke that the first order of business has to be to clearly
identify and assess the extent of the problem. This must be done quickly,
honestly, and as much as possible, publicly so that contributors can see that
the house is being put in order. Being forthright and public</p>
<p>can help solve the public perception problem even before the internal or
other external problems are fully identified.</p>
<blockquote>
<p>The single worst possible response would be to become defensive and blame
everything on competing charities.</p>
</blockquote>
<font FACE="GillSans">
<p>Deven</p>
</font>
<!--msthemeseparator--><p align="center"><img src="_themes/arcs/arcsepa.gif" width="600" height="10"></p>
<p>Martin 11/28/99:</p>
<p>I agree with Vicki and Deven. Denying the allegations,
even if they are unfounded, without an open review of your activities would be
viewed as an insufficient response. </p>
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