Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header
Share for a Cause









THE GREATEST PUBLIC RELATIONS DISASTER EVER

Written by: Nick Renton

Article Overview: The so-called "McLibel trial" was an infamous British court case involving libel, with important implications for public relations professionals and company managements.

Free Download - DOES THE US NEED A PR DEPARTMENT? By Nick Renton
Name: Email:

THE GREATEST PUBLIC RELATIONS DISASTER EVER

THE GREATEST PUBLIC RELATIONS DISASTER EVER

by Nick Renton AM

The so-called "McLibel trial" was an infamous British court case involving libel, with important implications for public relations professionals and company managements.

McDonald's Corporation (a company listed on the New York Stock Exchange) and McDonald's Restaurants Limited (one of its subsidiaries) sued two unemployed environmental activists, Helen Marie Steel and David Morris, for defamation. They had been instrumental in distributing a brochure critical of McDonald's and accusing the company of a number of undesirable practices such as those mentioned below - everything from selling unhealthy food to exploiting its workers and destroying the South American rain forests.

The case ran for some two-and-a-half years and became the longest ever English trial. The two defendants, having been denied legal aid, were forced to argue their case in person. The judge, Mr Justice Roger Bell, delivered his 800-page verdict on 19 June 1997.

It was a public relations disaster for McDonald's. The judge ruled that they had exploited children with their advertising, had produced misleading advertising, were culpably responsible for cruelty to animals, were antipathetic to unionisation and paid their workers low wages.

But Steel and Morris had failed to prove all their points and so the court ruled that they had indeed libelled McDonald's. The judge awarded damages of 60,000 pounds. They refused to pay and McDonald's knew better than to pursue the matter.

In March 1999 the Court of Appeal made further rulings against McDonald's in relation to heart disease and employment.

If the company had ignored the brochure it would have been seen by a small number of people and that would have been the end of the matter. By suing, the company in effect gave the brochure and the allegations in it massive exposure - the text was posted on a number of web sites and read by a great many people. In particular, McSpotlight was created. It can still be accessed by those wanting further details of the case beyond this brief summary. It is located at

http://www.mcspotlight.org/case/trial/story.html

By the summer of 2003 McSpotlight had been accessed some 184,675,000 times.

It is true that all this unfavourable publicity did not seem to adversely affect McDonald's sales - after all, children who enjoy junk food and their parents do not really care whether or not the company was responsible for destroying rain forests in South America and similarly in regard to the other allegations. But the case did harm the image of the company and tied up management resources for years. Its executives were made to look foolish under cross-examination. The case also cost the company many millions of dollars.

The business community should really take the lessons of McLibel to heart.

(C) Copyright 2006 Nick Renton


Related Articles
  Is Your PR Firm Right For You?
  A PR CONCEPT BORN OUT OF THE RECESSION!
  PR News You Can Use
  What To Do When Public Relations Fails
  Why use PR

Home > Public-Relations > Nick Renton > THE GREATEST PUBLIC RELATIONS DISASTER EVER
Article Tags:

About the Author: Nick Renton
RSS for Nick's articles - Visit Nick's website

Nick Renton is a consulting actuary, commercial arbitrator, company director & writer. He was Executive Director of the Life Insurance Federation of Australia 1975-86. He was the founder of the Australian Shareholders' Association and has been president of the Australian Society of Security Analysts and chairman of the Commercial Law Association of Australia. Renton has had 70 books published by 11 different publishers in Australia & the US. He has written books about more different topics than any other Australian author. His Guide for Meetings & Organisations has been widely used as a reference work on all aspects of chairmanship and the running of voluntary associations since 1961. In 1992 he was awarded the prestigious H M Jackson Memorial Prize for two of his works, Understanding Dividend Imputation and the Retirement Handbook. In 1995 he received the Ken Millar Award for his best-selling Understanding the Stock Exchange and his highly controversial Company Directors: Masters or Servants? As a free community service his site invites questions on meetings procedure, family trusts, style and investment terms. He was made a Member of the Order of Australia in 2004.

Click here to visit Nick's website
Dashed Line

More from Nick Renton
A SUCCESSFUL PUBLIC RELATIONS DEVICE GIVE YOUR CUSTOMERS A FREE BOOK
DOES THE US NEED A PR DEPARTMENT
A SHORT PUBLIC RELATIONS CASE STUDY LOSERS ALL ROUND
SEMINARS CAN BE A USEFUL CORPORATE PUBLIC RELATIONS TOOL
LETTING CULTURE GET IN THE WAY OF GOOD PUBLIC RELATIONS


Related Forum Posts


Recommended Article for You close

  Is Your PR Firm Right For You?

Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article


Bottom Footer
Share for a Cause












Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Reverse Mentoring

How To Be A Management Legend

A Guide to Franchise Financing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.