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Fraud 93
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withheld reports that had been prepared by investigative
reporters.
Brown and Williamson’s bold but misguided effort to intimi-
date news organizations proved to be a public relations night-
mare, because the evidence of manipulation of nicotine levels
had emerged from its own research department and other news
organizations continued to report these findings. A critically
acclaimed Hollywood film, The Insider detailed the effort by the
tobacco company to cover up the findings of its own researcher
and the harassment he experienced. It was against this back-
ground of denial and obfuscation that some of the large settle-
ments were won on behalf of individuals who had suffered from
lung disease attributed to smoking.
By disputing unpleasant facts instead of acknowledging them and
taking corrective action, a client faces a much longer and more diffi-
cult path to restoring its credibility with the media. By delaying the
inevitable reckoning, the public perception of integrity that enables
your client to function effectively in the public sphere will be seriously
compromised.
When your client is a victim of fraud
When your client is on the receiving end of fraudulent accusations, PR
crisis management faces a similar challenge to gather facts quickly and
communicate them effectively to all the parties the organization serves.
The crisis management team must consider the consequences of short-
and long-term strategies to make it clear that the client was the victim
of a fraud and that information is or will soon be available to support
this statement.
Fingered
A classic case of this type was the fraudulent claim by a customer
of Wendy’s Hamburgers outlet in San Jose, California, to have
found part of a finger in her bowl of chilli. It would certainly have
been a disquieting finding, had it actually happened, but the