Edelman PR Agency Faces Trust Issue

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By Douglas A. McIntyre Published
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Edelman PR Agency Faces Trust Issue

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Edelman, the largest public relations firm in the world, has faced some unflattering criticism recently, particularly in terms of its relationship to fossil fuel companies. CEO Richard Edelman, who inherited control of the company from his father, founder Daniel, was painted in a particularly poor light in recent CNBC and Financial Times articles. Since Edelman considers itself an expert on trust, these criticisms raise a troubling issue. Moreover, Edelman already operates a sector that has an image problem with the American public according to Gallup research.

The headline of the Financial Times article was “Activists target public relations groups for greenwashing fossil fuels.” Edelman’s relationship with oil companies was at the center of the article. Richard Edelman commented that if his company could not “come to an understanding” with the climate commitments of some clients, then “we’re going to part company.” The report added that Edelman had not dropped any fossil fuel companies. The broad undercurrent of the analysis was that Edelman’s interests were on the side of profit above climate care.

The CNBC article focused on the challenges PR firms face for “greenwashing” on behalf of fossil fuel companies. PR firms were described as “active agents” in trying to convince the public that fossil fuel companies have moved in the direction of being supporters of a greener future. In reality, Chevron, Exxon Mobil and ConocoPhillips are among the 20 worst polluters in the world based on carbon emissions.

The damage done to Edelman’s reputation recently is doubly important. It is not only the largest firm in its industry, but it is also the creator of the 2022 Edelman Trust Barometer, which was recently released for the 22nd year. The primary conclusion of the report was the “cycle of distrust” globally is fueled by the media and governments. On a less global level, in the United States, how fossil fuel companies defend their positions is a more minor issue, but one that cannot be ignored. “Physician, heal thyself.”

If Edelman wants to continue to promote its trust research without the impression it has trust issues of its own, it should add its name to the list of transgressors, or it should drop all of its fossil fuel clients.
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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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