image restoration: an examination of the response strategies used by brown and williamson after...

6
Public Relations Review 32 (2006) 131–136 Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing Granville King III Department of Communication Studies, Indiana University Southeast, Knobview Hall-110Q, 4201 Grant Line Road, New Albany, IN 47150, USA Received 17 July 2005; received in revised form 5 December 2005; accepted 22 February 2006 Abstract Organizations often respond to allegations of wrongdoing made by whistle-blowers. Response mechanisms may take several forms, from simply denying the wrongdoing, to offering an apology. This study sought to examine the various response strategies an organization employed after a whistle-blowing incident. Using the whistle-blowing case of Brown and Williamson Tobacco Company, this study sought to examine the different image restoration strategies the organization (Brown and Williamson) used in responding to the allegations of wrongdoing made by the whistle-blower, Dr. Jeffrey Wigand. The study found because Wigand accused Brown and Williamson of management misconduct and inappropriate behavior, the organization used a defensive strategy in order to protect its image. Furthermore, a defensive strategy was more likely because Brown and Williamson was accused of a serious wrongdoing. Analyses of each strategy and organizational concerns are provided. © 2006 Elsevier Inc. All rights reserved. Keywords: Image restoration; Whistle-blowing; Wrongdoing 1. Introduction and background Allegations of organizational wrongdoing continue to surface in media reports. When accusations are made against a company, senior officials often find themselves in an awkward position, especially in regards to responding to the allegations. An organizational issue that has received considerable media attention, but has not received the same degree of attention within the image restoration literature is whistle-blowing. Research on whistle-blowing has focused upon topics such as the characteristics of a whistle-blower (Miceli, Dozier, & Near, 1991), interpersonal closeness and whistle-blowing (King, 1997), the process of blowing the whistle (Miceli & Near, 1991), and the ethics of whistle-blowing (Brabeck, 1984). We can assume organizations that experience whistle-blowing will make an attempt to restore their image, by offering some form of response to the whistle-blower’s allegations (Coombs, 1995). Likewise, characteristics of the wrongdoing may also perform a key role in the selection of an appropriate response strategy (Coombs & Holladay, 2002). In order to address these issues, the whistle-blowing case of Brown and Williamson Tobacco Company ver- sus Dr. Jeffery Wigand was chosen for examination. This whistle-blowing case involved a serious allegation of wrongdoing being made against the company and its officials; that is, Wigand accused Brown and Williamson Tel.: +1 812 941 2681; fax: +1 812 941 2529. E-mail address: [email protected]. 0363-8111/$ – see front matter © 2006 Elsevier Inc. All rights reserved. doi:10.1016/j.pubrev.2006.02.006

Upload: granville-king-iii

Post on 11-Sep-2016

215 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

Public Relations Review 32 (2006) 131–136

Image restoration: An examination of the response strategies used byBrown and Williamson after allegations of wrongdoing

Granville King III ∗Department of Communication Studies, Indiana University Southeast, Knobview Hall-110Q,

4201 Grant Line Road, New Albany, IN 47150, USA

Received 17 July 2005; received in revised form 5 December 2005; accepted 22 February 2006

Abstract

Organizations often respond to allegations of wrongdoing made by whistle-blowers. Response mechanisms may take severalforms, from simply denying the wrongdoing, to offering an apology. This study sought to examine the various response strategiesan organization employed after a whistle-blowing incident. Using the whistle-blowing case of Brown and Williamson TobaccoCompany, this study sought to examine the different image restoration strategies the organization (Brown and Williamson) used inresponding to the allegations of wrongdoing made by the whistle-blower, Dr. Jeffrey Wigand.

The study found because Wigand accused Brown and Williamson of management misconduct and inappropriate behavior, theorganization used a defensive strategy in order to protect its image. Furthermore, a defensive strategy was more likely becauseBrown and Williamson was accused of a serious wrongdoing. Analyses of each strategy and organizational concerns are provided.© 2006 Elsevier Inc. All rights reserved.

Keywords: Image restoration; Whistle-blowing; Wrongdoing

1. Introduction and background

Allegations of organizational wrongdoing continue to surface in media reports. When accusations are made againsta company, senior officials often find themselves in an awkward position, especially in regards to responding to theallegations. An organizational issue that has received considerable media attention, but has not received the samedegree of attention within the image restoration literature is whistle-blowing.

Research on whistle-blowing has focused upon topics such as the characteristics of a whistle-blower (Miceli, Dozier,& Near, 1991), interpersonal closeness and whistle-blowing (King, 1997), the process of blowing the whistle (Miceli& Near, 1991), and the ethics of whistle-blowing (Brabeck, 1984). We can assume organizations that experiencewhistle-blowing will make an attempt to restore their image, by offering some form of response to the whistle-blower’sallegations (Coombs, 1995). Likewise, characteristics of the wrongdoing may also perform a key role in the selectionof an appropriate response strategy (Coombs & Holladay, 2002).

In order to address these issues, the whistle-blowing case of Brown and Williamson Tobacco Company ver-sus Dr. Jeffery Wigand was chosen for examination. This whistle-blowing case involved a serious allegation ofwrongdoing being made against the company and its officials; that is, Wigand accused Brown and Williamson

∗ Tel.: +1 812 941 2681; fax: +1 812 941 2529.E-mail address: [email protected].

0363-8111/$ – see front matter © 2006 Elsevier Inc. All rights reserved.doi:10.1016/j.pubrev.2006.02.006

Page 2: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

132 G. King III / Public Relations Review 32 (2006) 131–136

of organizational misconduct and inappropriate behavior by senior officials in their manufacturing of tobaccoproducts.

Senior officials responded to Wigand’s allegations in various public forums. It is these response strategies thispaper will explore. By examining the response strategies of Brown and Williamson, researchers can gain a betterunderstanding of why a particular strategy was selected in responding to the allegations of wrongdoing. Were somestrategies more effective or ineffective than others? Were there factors surrounding the allegations that may encouragethe use of some strategies, more-so than others? We begin by offering a definition of whistle-blowing and a review ofthe various image restoration strategies.

Whistle-blowing has been defined as the “disclosure by organizational members (former or current) of illegal,immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able toeffect action” (Near & Miceli, 1985, p. 4). In the event of whistle-blowing, officials internal to the organization mustdecide upon an appropriate response. First, an organization can simply deny a wrongdoing has occurred or has beenperformed by the organization. On the other hand, an organization may find shifting the blame to another person orcorporation as an effective response tool (Benoit, 1995).

Second, organizations unable to deny a wrongdoing might reduce their responsibility for the act, by stat-ing their actions were provoked by another party. Or, the organization may paint itself as a victim of somescandalous act by a person or group outside the organization (Coombs, 2000). Still yet, the organization mayclaim the wrongdoing was accidental, or the wrongdoing occurred but with good intentions in mind (Benoit,1995).

Another response strategy an organization might employ is to bolster its own image, by focusing on the pos-itive characteristics associated with the organization. Likewise, an organization may also attempt to minimize thewrongdoing. In a similar vein, an organization may attempt to distinguish or differentiate the wrongdoing fromother similar but less desirable wrongdoings, thus allowing the wrongdoing to be perceived less offensive (Benoit,1995).

Another strategy an organization might employ would be transcendence, which involves placing the wrongdoingin a different, more favorable context. An organization might also attack the accuser who reported the wrongdoing.On the other hand, an organization may offer compensation, in the form of valued goods, services or monetaryfunds.

Finally, an organization might offer to correct the wrongdoing, or apologize and ask forgiveness (that is, mortifica-tion) in committing the offensive act (Benoit, 1995).

2. Brown and Williamson’s case

In 1995, CBS 60 Minutes correspondent, Mike Wallace, interviewed Dr. Jeffrey Wigand, the former Vice-Presidentof Research and Development at Brown and Williamson, regarding the tobacco industry. Wigand informed Wallaceof behavior he perceived to be questionable in the manufacturing of tobacco products. The New York Daily Newsprinted excerpts from a transcript of the 60 Minutes report, identifying the story’s chief source as former Brown andWilliamson research executive, Dr. Jeffrey Wigand (Jensen, 1995). After the allegations were made public by the NewYork Daily News, Brown and Williamson filed suit against Wigand for theft, fraud, and breach of contract, for violatingthe confidentiality agreement made earlier with the company (Carter, 1995).

In order to examine the various image restoration strategies employed by Brown and Williamson, news reports werecollected from the Wall Street Journal, the New York Times, the Washington Post, and the Courier-Journal. Studiesinvestigating organizational crises involving illegal corporate behavior (Bromley & Marcus, 1989) and product recalls(Jarrel & Peltzman, 1985) have found credible newspapers, such as the Wall Street Journal to be fairly accurate inreporting information to the public.

News reports examining the Brown and Williamson tobacco crisis were examined from the period of November1995 through June 1997, ending when the Masters Settlement Agreement was reached between the tobacco compa-nies and federal officials. The researcher collected 67 different news articles during that time period. Articles wereread, focusing only on the direct quotes from sources internal to Brown and Williamson, who were responding tothe allegations made by Wigand. Because only direct quotes were used for the study, editorials were not collectednor examined as part of the study, as well as articles that featured Brown and Williamson, but did not focus uponthe case.

Page 3: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

G. King III / Public Relations Review 32 (2006) 131–136 133

3. Strategies

Different response strategies emerged from the news reports. In order to provide a clear assessment of thosestrategies, the period of November 1995 through June 1997 was divided into five categories, namely (1) the disclosure,(2) silencing the whistle-blower, (3) the deposition, (4) the broadcast, and (5) the formal hearing. Within each category,examples of the strategies used by Brown and Williamson are illustrated.

3.1. Disclosure

3.1.1. Attack the accuserFollowing the disclosure of the allegations, the organization attacked the accuser. For example, an official internal

to the organization stated the whistle-blower was a “master of deceit . . . Wigand attempts to portray himself as somekind of hero, when in reality he is simply out for personal gain” (Carter, 1995, p. A14). Another assertion stated “he[Wigand] had misled management at B&W with half-truths to the point that B&W management lost trust in him . . . ”(Hwang, 1995a, p. A6).

3.2. Silencing the whistle-blower

3.2.1. ProvocationIn November 1995, Brown and Williamson obtained a restraining order barring Wigand from speaking to authorities

(Brown, 1995; Feder, 1995). State officials, however, in Mississippi wanted to speak with Wigand regarding hisknowledge of the organization’s manufacturing of tobacco products. Despite the restraining order issued by a Kentuckycourt, Wigand was subpoenaed to share company secrets with state officials in Mississippi. As a result, Brown andWilliamson employed the strategy of provocation. For example, “since Wigand has not cooperated with B&W asrequired by his agreement and the restraining order, we have no choice but to seek to hold him in contempt if he goesthrough with the deposition . . . ” (Feder, 1995, p. A20).

3.2.2. DenialThe organization attempted to stop the whistle-blower from speaking to federal and state authorities that were

interested in the practices of the tobacco industry. For example, when Wigand was subpoenaed in Mississippi, theorganization used denial stating, “Brown and Williamson has denied Mr. Wigand’s allegations that the company killedefforts to make a safer cigarette . . . ” (Hwang, 1995b, p. B10).

3.2.3. Attack the accuserDuring this period, the company also used the response strategy of attacking the accuser. For example, “Mr. Wigand

and his counsel have gone to extreme lengths to avoid simply meeting with Brown and Williamson. Why? Theinescapable conclusion is that if Mr. Wigand engages in a truthful discussion with us, he will be of little value to theplaintiffs’ attorneys who are looking to profit from false claims being asserted against the tobacco industry” (Wade,1995, p. B8).

3.2.4. MinimizationFinally, the organization used the response strategy minimization in reference to the court subpoena stating, “The

subpoena is nothing more than a litany of unsubstantiated plaintiff-lawyer allegations” (Hwang, 1995c, p. B7).

3.3. Deposition

3.3.1. Attack the AccuserDetails of the accusations Wigand made against his former employer became public on January 26, 1996, with the

disclosure of the testimony given in Mississippi (Feder, 1996a). In responding to the allegations, the organization usedthe response strategy of attacking the accuser. For example, “What he [Wigand] says about Brown and Williamson isnot true and he’s not credible. Wigand has lied about his education, his job history, his scientific achievements, and

Page 4: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

134 G. King III / Public Relations Review 32 (2006) 131–136

even his athletic accomplishments . . . Mr. Wigand has been sued for failure to pay child support and was the subjectof complaints about spousal abuse and shoplifting” (Feder, 1996a, p. A7).

3.3.2. Denial.Along with attacking the accuser, the organization also used denial as an image response strategy. For example, in

reference to the company’s use of Coumarin in smoking products, “Coumarin is not in B&W products now and, as itwas used, it was entirely safe to smokers” (Freedman, 1996, p. A8).

3.4. Broadcast

3.4.1. VictimizationCBS News began broadcasting its controversial interview with Wigand following the publication by the Wall Street

Journal of the testimony in Mississippi. As portions of the interview were broadcast on the ‘CBS Evening News’,the organization responded by using victimization as a response strategy. For example, “this deposition is a one-waystory . . . the allegations baseless . . . Wigand is being protected from cross-examination by his attorneys because theyknow he will be exposed to be untruthful once we have the chance to cross-examine him” (Jensen & Hwang, 1996,p. B10). After CBS broadcast the interview on ‘60 Minutes’, the organization again responded by using victimization.For example, “it is important for everyone who viewed last night’s program to remember that this was not fair andobjective journalism” (Feder, 1996b, p. A17).

3.4.2. Attack the accuserThe organization continued its attack on Wigand’s credibility by noting “Wigand has contradicted himself by telling

federal investigators in January 1994 that he knew of no criminal or fraudulent behavior by Brown and Williamson,yet he told ‘60 Minutes’ and investigators in Mississippi that B&W attorneys took improper steps to keep sensitivedocuments about smoking and health from the public or from being used in litigation” (Ward, 1996, p. D10).

3.5. Formal hearing

3.5.1. Attack the accuserAfter the ‘60 Minutes’ broadcast, officials internal to Brown and Williamson sought to question Wigand regarding

the allegations made against the company. During the formal hearings, B&W attorneys focused upon attacking thecredibility and honesty of Wigand’s allegations made during the interview with Mike Wallace, and later broadcast on‘60 Minutes’. For example, “We have shown him to be a fraud . . . already in the first hour, we have taken away anyreal basis Wigand has for what he said” (Hwang, 1996, p. B10).

4. Examination of Strategies

In surveying the above response strategies, the organization focused upon attacking the accuser. Scholars suggestthat attacking the accuser may be classified as a defensive strategy, which goes beyond an organization’s use of simplydenying the wrongdoing (Coombs, 1999; Marcus & Goodman, 1991). Usually directed towards some stakeholdergroup that claims a crisis exist (Coombs, 1999), attacking an accuser may also be directed towards a person(s) thatmay threaten the interest of the organization.

The organization in this study also used denial as a response strategy. By denying all claims that a wrongdoingexists, the organization sought to separate itself from the whistle-blower’s allegations. According to Benoit (1995),“whether the accused denies that the offensive act actually occurred or denies that he or she performed it, either option,if accepted, should absolve the actor of culpability” (p. 75).

Another response strategy the organization employed was minimization. If an organization “can convince theaudience that the negative act isn’t as bad as it might first appear, the amount of ill feeling associated with the act isreduced” (Benoit, 1995, p. 77). In this case, the organization attempted to minimize the court subpoena by noting it asa litany of unsubstantiated claims; that is, the whistle-blower’s allegations would be proven false.

A fourth response strategy the organization used was victimization. In using this strategy, the organization claimedit was a victim of not only false information, but of one-sided information, which was being presented to destroy the

Page 5: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

G. King III / Public Relations Review 32 (2006) 131–136 135

image and reputation of the company. In this case, the organization perceived itself as a victim of the whistle-blower’sallegations, as well as the CBS network.

Finally, the organization used the response strategy of provocation. In this response strategy, “the actor [i.e., orga-nization] may claim that the act in question was performed in response to another wrongful act, which understandablyprovoked the offensive act in question” (Benoit, 1995, p. 76). In this case, because of Wigand’s refusal to abide by therestraining order, the organization had no other recourse but to hold him in contempt.

5. Discussion

Senior officials, who must respond to the allegations of organizational wrongdoing by a whistle-blower, shouldkeep in mind several important factors. First, characteristics associated with the wrongdoing will influence the typeof response strategy offered by the organization. Allegations of a serious wrongdoing by a whistle-blower will likelyprompt the use of a defensive response strategy by the organization. Defensive strategies are those in which seniorofficials claim a wrongdoing does not exist, and attempts to eliminate any doubts about the legitimacy of the organization(Marcus & Goodman, 1991). The emphasis is on protecting the organization’s image (Coombs, 1999), and to regainstakeholders interests in the corporation.

Second, corporations that respond to a whistle-blower’s allegations are often scrutinized by parties external tothe organization. Parties external to the organization will often make attributions about who or what caused thewrongdoing (Siomkos & Shrivastava, 1993). According to Coombs and Holladay (1996), the more external partiesattribute responsibility for the crisis to the corporation, the greater the risk of damage to the organization’s image. Asa result, senior officials must select an appropriate strategy, which “can lessen the reputational [that is, image] damageby mitigating the affective feelings generated by the attributions and/or altering the attributions themselves” (Coombs& Holladay, 1996, p. 292).

Finally, senior officials should use caution when using a defensive strategy in the event of an organizational wrong-doing. Organizations that are less concerned with the interest of the victims, and more concerned with the long-termfinancial effects of accepting responsibility for the wrongdoing, may find not only the image of the organizationthreatened, but also its legitimacy.

6. Conclusions and limitations

There are a couple of limitations to this study. First, this study only examined a single whistle-blowing case and notmultiple cases. Therefore, the results from this study can not be generlized to other organizations. Second, researchers(Stacks & Hocking, 1999) have discussed the use of case studies as a method of conducting research. According toStacks and Hocking, although the approach is skillful in assisting researchers with obtaining valuable insight into anarea of inquiry, problems can exist in reference to the accuracy of the data.

In closing, how an organization responds to whistle-blowing may affect its bottom line. If an organization experienceswhistle-blowing, the dominant coalition and other members’ internal to the organization must take into account theimage of the organization is at stake. Organizations that employ a defensive strategy, when the allegations are true, riskdamage to the image and reputation of the organization.

The choice of an appropriate and effective strategy will depend upon senior officials in upper management. Both thecosts and benefits of using a specific strategy should be weighed in reference to possible risk to the organization’s image.Strategies that have the potential to damage the image of an organization should be discounted by the organization. Onthe other hand, those strategies that will explain any questionable behavior on or by the company might be considered andreviewed for possible implementation. Such ethical behavior may be receptive to members internal to the organization,as well as the community.

References

Benoit, W. L. (1995). Accounts, excuses, and apologies: A theory of image restoration strategies. Albany: State University of New York Press.Brabeck, M. (1984). Ethical characteristics of whistle blowers. Journal of Research in Personality, 18, 41–53.Bromley, P., & Marcus, A. (1989). The deterrent to dubious corporate behavior: Profitability, probability and safety recalls. Strategic Management

Journal, 10, 233–250.

Page 6: Image restoration: An examination of the response strategies used by Brown and Williamson after allegations of wrongdoing

136 G. King III / Public Relations Review 32 (2006) 131–136

Brown, M. (1995, November 23). 2 in house want to subpoena B&W foe. Courier-Journal, A1.Carter, B. (1995, November 22). Tobacco company sues former executive over CBS interview. New York Times, A14.Coombs, W. T. (1995). Choosing the right words: The development of guidelines for the selection of the “appropriate” crisis-response strategies.

Management Communication Quarterly, 8, 447–476.Coombs, W. T. (1999). Ongoing crisis communication: Planning, managing, and responding. Thousand Oaks, CA: Sage Publications.Coombs, W. T. (2000). Designing post-crisis messages: Lessons for crisis response strategies. Review of Business, 21, 37–41.Coombs, W. T., & Holladay, S. J. (1996). Communication and attributions in a crisis: An experimental study in crisis communication. Journal of

Public Relations Research, 8, 279–295.Coombs, W. T., & Holladay, S. J. (2002). Helping crisis managers protect reputational assets: Initial test of the situational crisis communication

theory. Management Communication Quarterly, 16, 165–186.Feder, B. J. (1995, November 28). Tobacco giant wins ruling on its secrets. New York Times, A20.Feder, B. J. (1996a, January 27). Details of tobacco executive’s assertions are disclosed. New York Times, A7.Feder, B. J. (1996b, February 6). Tobacco company says ‘60 Minutes’ avoided data on accuser. New York Times, pp. A17.Freedman, A. M. (1996, January 26). The deposition: Cigarette defector says CEO lied to Congress about view of nicotine – Wigand claims B&W

chief frequently mentioned its additive properties – firm calls charges fantasy. Wall Street Journal, pp. A1, A8.Hwang, S. L. (1995a, November 22). Brown & Williamson sues ex-executive over information leaks to ‘60 Minutes’. Wall Street Journal, pp. A3,

A6.Hwang, S. L. (1995b, November 30). Wigand testifies in Mississippi lawsuit. Wall Street Journal, pp. B10.Hwang, S. L. (1995c, December 1). Race is on to learn what Wigand knows. Wall Street Journal, pp. B7.Hwang, S. L. (1996, July 16). Brown & Williamson deposes Wigand, ex-research chief, attacks credibility. Wall Street Journal, pp. B10.Jarrel, G., & Peltzman, S. (1985). The impact of product recalls on the wealth of sellers. Journal of Political Economy, 93, 512–536.Jensen, E. (1995, November 20). ‘60 Minutes’ source offered aid by CBS. Wall Street Journal, pp A3, A6.Jensen, E., & Hwang, S. L. (1996, January 29). CBS airs some of Wigands’ interview, accusing tobacco firm, its ex-chief. Wall Street Journal, pp.

B10.King, G. (1997). The effects of interpersonal closeness and issue seriousness on blowing the whistle. Journal of Business Communication, 34,

419–436.Marcus, A. A., & Goodman, R. S. (1991). Victims and shareholders: The dilemmas of presenting corporate policy during a crisis. Academy of

Management Journal, 34, 291–305.Miceli, M. P., Dozier, J. B., & Near, J. P. (1991). Blowing the whistle on data fudging: A controlled field experiment. Journal of Applied Social

Psychology, 21, 271–295.Miceli, M. P., & Near, J. P. (1991). Whistle-blowing as an organizational process. Research in the Sociology of Organizations, 9, 139–200.Near, J. P., & Miceli, M. P. (1985). Organizationa1 dissidence: The case of whistle-blowing. Journal of Business Ethics, 4, 1–16.Siomkos, G., & Shrivastava, P. (1993). Responding to product liability crises. Long Range Planning, 26, 72–79.Stacks, D. W., & Hocking, J. E. (1999). Communication research (2nd ed.). New York: Addison–Wesley Educational Publishers Inc.Wade, S. (1995, December 14). Ex-executive again defies court order to meet with B&W. Courier-Journal, pp. B8.Ward, S. (1996, February 6). B&W again hammers Wigands’ credibility. Courier-Journal, pp. D10, D8.