How Julie Roehm Should Exact Revenge Against Wal-Mart
I know what it feels like to be wronged in the workplace and have images of legal retribution raging in your head. The incident happened many years ago, but my level-headed lawyer convinced me that "living well is the best revenge."
So I have more than just a passing interest in the plight of Julie Roehm, the advertising executive who Wal-Mart fired for allegedly violating the company’s ethics rules. Roehm, too, feels she was wronged. But her preferred mode of revenge is the biblical kind, albeit with a twist: an eye for an eye, and a smear for a smear. Roehm isn't just suing Wal-Mart for fraud and breach of contract -- she also has accused the company’s biggest honchos, including CEO H. Lee Scott, of ethical conflicts. Underscoring her determination, Roehm has retained Michael“The flack when you are under attack” Sitrick. Pitting Sitrick against Wal-Mart’s army of PR pros is the equivalent of hiring Robocop to take on The Three Stooges.
Given her nemesis, I instinctively want to side with Roehm. Wal-Mart is a company without a soul: It pays paltry wages and offers crummy health benefits, leaving a disproportionate percentage of its workers dependent on some form of government financial assistance. It takes great delight shaking down vendors ("Don't ever feel sorry for a vendor" goes the company saying). It gets huge tax breaks and incentives to build its stores and then shutters them to build a bigger one down the road. Its sleazy PR tactics include the "Wal-Marting Across America" blog, supposedly penned by a couple of customer enthusiasts who turned out to have been bought and paid for by the company. (Yeah, I know the scam was Edelman's handiwork, but Wal-Mart’s PR people likely were in on the deception). I’m not inclined to believe anything Wal-Mart says, particularly if it involves a fired employee.
Yet as much as I want to believe in Roehm, a careful reading of her public comments and her court filings requires a dishonest leap of faith. Wal-Mart is quite explicit about prohibiting employees from accepting as much as a cup of instant coffee from vendors and potential vendors; this is an admirable and necessary policy for a company that actively does business in developing countries where bribery and corruption are rampant. So what was Roehm doing dining at New York's trendy and expensive Nobu restaurant as the guest of the advertising agency she would eventually endorse (much less sitting on the lap of one of the ad execs)?
Roehm admits to the Nobu dinner -- “Yes, Nobu! God, we went to Nobu!” – but insists she expected the advertising agency to bill her for the dinner. I’m troubled by this defense: Roehm essentially was relying on the good faith of a potential vendor to ensure compliance of Wal-Mart’s conflict-of-interest rules. My guess is that Wal-Mart’s bean counters would never have approved the Nobu dinner; by having the dinner billed back, the cost would likely have been buried in an invoice that Roehm herself might have had the authority to sign. Given that ad agencies typically mark up expenses, asking the advertising agency to bill back the dinner is fiscally irresponsible at a company that works on razor thin margins.
Fortunately for Roehm, the facts no longer matter with Sitrick as her PR bodyguard. Sitrick’s P.T. Barnum-esque "there's a sucker born every minute" approach to media relations has been unbelievably successful. The infomercial he got 60 Minutes to do articulating his campaign against hedge funds who shorted the stocks of his clients is unquestionably one of the greatest media placements of all time. Just wait until Sitrick unleashes his “truth squads” on Wal-Mart. Don’t be surprised if Roehm remerges as a selfless whistleblower in the spirit of Enron’s Sherron Watkins (Watkins wasn’t a whistleblower either but the media portrayed her as one).
So here is my unsolicited PR advice to Roehm. Drop your lawsuit, admit and learn from your mistakes, and get on with your life. Some of our nation's most respected executives suffered the indignity of being fired or forced out of some very high profile jobs including Lee Iacocca, Sandy Weill, Jamie Dimon, and John Mack. They proved their mettle not by suing their former bosses, but going out and successfully competing against them.
Julie, trust me on this one – living well really is the best revenge.
Eric Starkman is President of Starkman & Associates, a full service public and investor relations firm based in New York City. Prior to a career in PR, he was a journalist with several major newspapers in the U.S. and Canada. The firm has a strong crisis communications practice, having worked with numerous organizations and high-profile individuals to manage and mitigate the reputational damage of real and perceived communications crises.
We are pleased to bring you a new feature here on Strumpette: PR TREND LINKS. Unlike the empty placeholders other top bloggers (Rubel, et al.) throw out often when they've got absolutely NOTHING to say... we're going to bring you the links that hint at the emerging trends in the PR business. These are the true hidden stories shaping our ever-changing industry.
Without further ado, here are six fresh off the wire:
Traditional PR Regains Popularity -- In the age of the Internet, the creative magic that once was the hallmark of the industry is now returning. The International Herald Tribune has an interesting article about its resurgence in the hot Asian market.
PRSA Pushes Continuing Education -- The Public Relations Society of America has just launched a major initiative to help groom the next generation of practitioners. Here from the Associated Press, the St. Paul Minnesota Chapter demonstrates a few of their new and exciting programs.
WOMM Adapts to Fill Crisis Communications Need -- Certainly, one of the HOTTEST new areas to emerge in PR in the last decade is Word of Mouth Marketing (WOMM). However, up 'til now, all those efforts have been to influence proactively. Well, according to an article in LiveScience, researchers at Harvard and McGill University have now developed a technique for countering negative WOMM.
PR Industry Launches Initiative to Bolster Male Ranks -- Great article from Reuters about an effort in Australia to attract males to the public relations business. By conservative estimates more than 80 percent of the rank-and-file of the industry is now female; and of the remaining 20-ish percent, sexuality is most often quite... well... ambiguous. It's great to see someone taking the initiative to put a little healthy balance back in the system.
Video the Next Big Thing for PR 2.0 Crowd -- Forget podcasting! The PR 2.0 geeks are now racing to fill the void in their lives with video. There's a great article in Saturday's LA Times about how a group of entrepreneurs are now busy videographers. Like with most social media, they have yet to find a business model but it has thus far led to a lot of connections, networking and fun.
PR Sees Average Age of Consultants Drop -- Another article from Reuters about how a younger generation is now behind the wheel driving client account work and steering the industry. It is a VERY exciting time to be in PR.
EDITOR'S NOTE: If you come across a link of interest that you think best articulates the rapidly evolving PR business, please send them to Links AT strumpette DOT com. Thank you.
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