PR & Communications News South Africa

PR stands for Poor Response on BEE

PR faces a PR disaster in government circles because of inertia on Black Economic Empowerment (BEE). It's already hitting business prospects in the official and parastatal sector and will soon erode corporate credibility. This warning comes from Johanna McDowell, CEO of PR and media promotions company Integrated Communications.bmc.

She notes: "It's already a joke in BEE discussions that PR stands for Poor Response. But the PR industry has nothing to smile about. Business consequences will be severe if we don't embrace BEE.
 
"From both an image and new business perspective, action has to be taken now while the reminders are gentle. It will be too late if we get to the official warning stage. Damage to credibility will then be severe."
 
Clients of Integrated Communications.bmc include publicly owned Sentech (the broadcasting and wireless Internet enabler) and The Kimberley Process (the government-backed programme to halt the spread of 'Blood Diamonds'). McDowell is therefore close to sentiment at official level.
 
Already, says McDowell, some BEE proponents feel snubbed by PR's perceived arrogance. She quotes the recent Marketing Federation of SA transformation workshop in Johannesburg which was attended by "only two PR representatives and a handful of advertising agency professionals".

These workshops are endorsed by government as a way of fostering transformation in the advertising, marketing and communications industry.
 
"It is naïve to think a woeful response like this will go unnoticed," she says.
 
Image problems in official circles are being compounded by a credibility crisis among major corporate clients. McDowell says many PR companies "blithely" advise big companies to engage in BEE, but "do absolutely nothing about it themselves".
 
As more big business players conclude BEE transactions, the mismatch between PR words and action will stand out and be confirmed by low BEE scores in preferential procurement programmes instituted by the PR firm's biggest clients.
 
Integrated Communications.bmc commissioned EmpowerLogic, the BEE benchmarking professionals, to assess its own BEE scores as the basis for BEE scenario-planning.
 
It is now implementing the first phase of a BEE strategy to boost its ratings across all categories itemised in government's Broad-Based Black Economic Empowerment Act. The strategy is based on the balanced score-card approach suggested by this legislation, the Mining Charter and the financial services charter.
 
The Broad-Based Black Economic Empowerment Act makes it difficult for PR professionals to plead that they are waiting for industry consensus and an industry-wide charter before embarking on BEE strategies.
 
The Act endorses the concept of industry-wide and enterprise-based BEE charters.
 
"In other words," says McDowell, "a company does not have to wait for its industry. It can write its own BEE charter and start boosting its BEE scores. Initial implementation of the BEE strategy at Integrated Communications.bmc involved the circulation of a BEE questionnaire to suppliers. Less than 20% responded.
 
"That's fine," says McDowell. "We're prepared to be patient and help them along the learning curve – for now, but not forever. I suspect that's pretty much government's reaction to the PR industry. The clock's ticking, but are we listening?"
 
Integrated Communications.bmc is a full service communications company providing PR, editorial, media promotions and corporate design. The company operates nationally and services about 40 clients in Johannesburg and Cape Town. Integrated Communications.bmc became the first African member of IPREX, one of largest independent networks of owner managed PR and communications companies, in 2001. Membership is awarded on strict standards criteria and is restricted to one company member per country or state.



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