Wednesday, September 25, 2013

Martha Stewart...Enough Said


Although this article is a bit dated, I feel it still provides relevant questions in the public relations world as it pertains to spokespersons. Over and over again we have seen celebrity endorsements go wrong. But one 'celebrity' not only damaged her personal reputation but her reputation as the CEO of her own company, Martha Stewart. 

For those of you who don't remember, Martha Stewart was jailed back in 2004 for 5 months for conspiracy, obstruction of agency proceeding and making false statements to federal investigators. She was reportedly told by the assistant of her Merrill Lynch broker to sell her shares of ImClone Systems because the company was about to implode. Stewart jumped on the opportunity, sold her shares and was later arrested for insider trading. Had Stewart not sold her stocks, it would have barely made an impact on the empire she built.

In an article published in NY Magazine they reported that Stewart was reported saying "isn't it nice to have brokers who tell you these things." This statement is inevitably what got her in trouble.

This raises multiple questions but first, what makes a good spokesperson? The book, On deadline: Managing media relations gives six characteristics that represent a qualified spokesperson. A spokesperson must be knowledgable of the subject he or she is talking about. They need to have a detailed understanding of the organizations overall goals and objectives and they must be able to make a sale and have an overall desire to present the information.  

For Stewart, it would have almost seemed silly to not have her represent her own company by becoming the face. It was an empire she built around her name, so why pick anyone else to be the spokesperson? 

But as we have all seen in the past, celebrities are notorious for making quick, irrational decisions and having a bad case of word vomit.

This brings up the question

Is it more effective/practical to have a celebrity spokesperson who can make you cash fast with the chance they could possibly destroy your organization altogether

Or 

Have a credible spokesperson, such as the CEO, who might not bring in as much revenue as quickly, but in the long run?


Even eight years later, Stewart, being as she was the CEO and face of her company, unfortunately still hasn't been able to repair her image or the company's.