Edelman (firm)

Edelman is an American public relations and marketing consultancy firm, founded in 1952 by, and named after, Daniel Edelman.[3] It is currently run by his son Richard Edelman. As of 2018, it is the largest public relations firm in the world by revenue.[4]

Edelman
Formerly
Daniel J. Edelman and Associates
Private
IndustryPublic relations
Founded1952 (1952)
FounderDaniel Edelman
Headquarters
New York City and Chicago
Number of locations
67[1]
Area served
Worldwide
Key people
Richard Edelman
(President and CEO)
Revenue$894m (2017)[2]
Number of employees
~7,000
Websiteedelman.com

Corporate history

Edelman public relations was founded in Chicago in 1952 by former journalist Daniel J. Edelman[3] as Daniel J. Edelman and Associates.[5] The company started with three employees[6][7][8][9] and grew to serve 25 accounts by 1960.[10] Edelman established a second office in New York that same year and a third in Los Angeles in 1967.[11]

The firm opened offices in London, Canada, East Asia and Europe in the late 1960s and early 1970s.[11] The New York office grew from $1 to $20 million in revenues from 1979 to the late 1980s under the leadership of Daniel Edelman's son, Richard Edelman.[12] By 1981, Edelman had five international offices and it opened six more over the following decade.[13] Some former employees and industry experts said its focus on financial growth led to high turnover and client service issues as a result.[12] There was also an unsuccessful attempt by some employees to start their own firm with some of Edelman's clients.[11]

In 1985, the firm's founder, Daniel Edelman, retired and his son Richard Edelman became the new CEO.[14][15][16] As of 2001, the senior Edelman remained chairman.[17] In the 1990s, offices were opened in Mexico, Brazil, Argentina, Germany, Spain, South Korea, China, and Belgium. In the United States, a Silicon Valley office was opened in 1992 to serve technology clients, and in Sacramento, California, in 1994. It also opened offices in Florida, Georgia, and Washington.[13] The firm grew to $70 million in revenues by 1994.[12]

In 1995, Edelman was the first public relations firm to have a website and began web-based projects for its clients.[13] By the early 2000s it grew to $210 million with about 25% of revenues coming from Europe.[13] In September 2010, Edelman acquired a Houston-based firm, Vollmer public relations.[18]

An office was opened in Turkey in 2012.[19] By 2012, it had established the Edelman Digital division with about 600 staff and about half of its work was social media-related. It acquired technology public relations firm, A&R, in 2006.[20] In January 2013, the firm launched The Daniel J. Edelman China Group.[21]

In 2012 it introduced the Business and Social Purpose division.[22] It also introduced the Employee Engagement Connections Index, which helps users evaluate employee engagement through data collected in employee surveys, social media conversations, and feedback from human resources departments.[23]

In September 2018, Edelman was listed by UK-based company Richtopia at number 4 in the list of 200 Most Influential PR Companies.[24]

Notable work

Edelman's founder, Daniel Edelman, is credited with inventing the corporate media tour for his work with his previous employer, Toni Home Permanent Co. He toured the country with "The Toni Twins", a set of twins, where one used a professional salon and the other used Toni's home hair-care products.[3][5][25] When Edelman started his own firm, Toni became Edelman's first client.[11] Toni was followed by Sara Lee, a small cheesecake company at the time,[26][27] and a bowling equipment manufacturer, Brunswick Corporation.[28]

Edelman also worked with Finland to improve its image in part through the Finnfacts Institute it founded in the 1960s. It promoted wine for the California Wine Institute and promoted bowling for the National Bowling Council by emphasizing it as a way to stay in shape.[13][29] The firm worked with Symantec to promote the Norton brand of antivirus software in more than 35 countries since 2008.[30] Heineken hired Edelman in 2012 for its U.S. corporate public relations and its Dos Equis brand.[31]

In April 1998 the Los Angeles Times reported that Edelman had drafted a campaign plan to ensure that state attorneys-general did not join antitrust legal actions against Microsoft.[32] Documents obtained by the Los Angeles Times revealed that the plan included generating supportive letters to the editor, opinion pieces, and articles by freelance writers.[33] The LA Times said the plan included, "unusual and some say unethical tactics, including the planting of articles, letters to the editor and opinion pieces to be commissioned by Microsoft's top media handlers but presented by local firms as spontaneous testimonials".[32][34]

Controversies

Working Families for Wal-Mart front group

In the 2000s, Edelman created a front group called the Working Families for Wal-Mart, which said it was a grassroots organization, but was actually funded by Wal-Mart. It paid two bloggers to travel the country interviewing Wal-Mart employees, one of whom was a senior Edelman employee's sister. According to The New Yorker, "everyone she talked to was delighted with Wal-Mart". In 2006, BusinessWeek reported that the public relations effort, which was positioned as a grassroots blog, was actually paid for by Wal-Mart. The New Yorker called it a "blatant example of astroturfing".[35]

E.ON Kingsnorth coal power station

In 2008 Edelman's work with E.ON, which planned to build a coal power station at Kingsnorth attracted protests at Edelman's UK headquarters.[36] In 2009, to coincide with the weeklong "Climate Camp" range of protests, a group of naked protestors occupied Edelman's reception.[37]

Keystone XL pipeline and climate change deniers

Edelman was commissioned by TransCanada Corporation to run campaigns supporting the Keystone XL pipeline, a proposed pipeline to carry tar sands oil from Canada to refineries on the Gulf coast of Texas.[38] Edelman also developed a strategy for the proposed Energy East pipeline intended to carry tar sands oil through Québec, en route to a deep water harbor at Cacouna, Quebec for export abroad in supertankers and to refineries in New Brunswick. This resulted in a major controversy when documents leaked to Greenpeace revealed that Edelman had made some unethical proposals to sway public opinion in favor of its client. TransCanada distanced itself from those proposals as soon as the "dirty tricks" were published in the press.[39][40][41][42][43] In 2015, the firm announced that it would cease work for coal producers and climate change deniers.[44]

News Corporation phone hacking scandal

Edelman provided crisis communications to News Corporation during the phone hacking scandal.[45][46] Other clients have included Vidal Sassoon, Red Cross, Cantor Fitzgerald,[13] Royal Dutch Shell,[47] The Church of Jesus Christ of Latter-day Saints,[48] Starbucks,[45] and the government of Saudi Arabia.[49] It has used front groups to help the American Petroleum Institute reduce the perceived environmental damage caused by oil companies.[35]

Russia and Yukos

In June 2016, Edelman was hired by the International Centre for Legal Protection (ICLP), led by Andrey Kondakov, former director in the Russian Ministry of Foreign Affairs. The company was hired to "turn the tide of public opinion" and "help influence U.S. opinion on a massive court verdict involving the oil giant Yukos."[50]

Equifax privacy breach crisis control

Equifax hired Edelman for crisis control after the October 2017 privacy breach.[51][52]

Geo Group private prison

Edelman supported private prison company GEO Group and helped in "laundering the reputation of private US concentration camps" in July 2019.[53] In May 2019, executives from the Washington, DC office, including office president Lisa Ross and former Trump White House deputy press secretary, Lindsay Walters, went to Florida to present the pitch.[54] In June, when word spread across the company that the work was being pursued, debate sprang up on networking app Fishbowl. The work was resigned by Edelman in July 2019 and announced during an all-hands meeting in Washington. On Fishbowl, an employee commented that the executives "took the opportunity to basically shame us for ruining the work for the company because they couldn’t trust us not to leak it to the press."[54] Other employees on Fishbowl made similar comments.[54]

The company's official response was that "Edelman takes on complex and diverse clients ... and ultimately decided not to proceed with this work."[54] Edelman also refused to confirm they did similar work for another major private prison company, CoreCivic.[54]

The story received coverage in the New York Times[54][55], Adweek[56], PR Week[57], Boing Boing[53], Holmes Report[58], the Chicago Tribune[59], AdAge[60], and Crain's Chicago Business[61].

See also

References
  1. Global Network, Edelman
  2. "Edelman Revenue 2017 2017". Holmes Report. Retrieved May 2018. Check date values in: |accessdate= (help)
  3. Miller, Stephen (January 15, 2013). "Daniel Edelman 1920-2013; Public-Relations Pioneer Began with 'Toni Twins' Stunt". The Wall Street Journal. Retrieved October 27, 2013.
  4. "Top 10". www.holmesreport.com. Retrieved July 31, 2019.
  5. Wisner, Franz (2012), Edelman and the Rise of Public Relations, Edelman
  6. Channick, Robert (November 7, 2012). "Public relations scion Richard Edelman, subject of an upcoming book, shares his take on the business in the digital age". Chicago Tribune. Retrieved November 9, 2012.
  7. "Richard Edelman, CEO, Edelman Inc". North of Neutral. Retrieved December 6, 2011.
  8. Kirk, Jim (June 18, 2002). "Edelman savors nearly 50 years of independence". Chicago Tribune. Retrieved December 6, 2011.
  9. "Ruth Edelman, behind scenes force at PR firm, 1929-2013". Chicago Tribune. October 22, 2013. Retrieved October 27, 2013.
  10. Bertagnoli, Lisa (January 30, 2012). "PR firm Edelman rises to No. 1 under second generation". Crain's Business. Retrieved November 8, 2012.
  11. Tina Gant (June 25, 2004). International Directory of Company Histories. Gale.
  12. Feder, Barnaby (August 17, 1994). "A family-run public relations firm in transition keeps its place near the top of the industry heap". The New York Times. Retrieved November 7, 2012.
  13. "Company Histories & Profiles: Edelman". Funding Universe. Retrieved January 6, 2012.
  14. "Son Moves up as Edelman President". Chicago Tribune. June 17, 1985. Retrieved November 7, 2012.
  15. Dougherty, Philip H. (December 20, 1983). "Advertising - People". New York Times. Retrieved February 16, 2012.
  16. Dougherty, Philip H. (June 14, 1985). "A Promotion At Edelman". New York Times. Retrieved February 16, 2012.
  17. Mowatt, Raoul V. (September 9, 2001). "Neison Harris, 86: Entrepreneur, philanthropist". Chicago Tribune (Obituary). Retrieved April 29, 2018.
  18. Kaplan, David (September 27, 2010). "Vollmer Public Relations acquired by Edelman". The Chron. Retrieved November 7, 2012.
  19. Sudhaman, Arun (October 30, 2012). "Edelman Launches In Turkey". The Holmes Report. Retrieved November 6, 2012.
  20. "Media Agency of the Year: PR, Edelman: Focus on international, digital puts world's largest PR agency at the center of the social buzz". AdWeek. January 23, 2012. Retrieved November 7, 2012.
  21. "Edelman to expand in China|Economy|chinadaily.com.cn". Usa.chinadaily.com.cn. October 12, 2012. Retrieved May 30, 2013.
  22. Elliott, Stuart (April 26, 2012). "At Edelman P.R. Agency, 'Purpose' Gets Put Into Practice". The New York Times. Retrieved November 6, 2012.
  23. Kiefer, Brittaney (October 30, 2012). "Edelman unveils employee engagement tool". PRWeek. Retrieved November 6, 2012.
  24. "PR Agencies Top 200: From Edelman to Porter Novelli, These Are the Most Influential Communications Firms in the World". Richtopia. Retrieved September 13, 2018.
  25. Krishnamurthy Sriramesh; Dejan Vercic (September 10, 2012). The Global Public Relations Handbook, Revised Edition. Routledge. pp. 994–. ISBN 978-1-135-84554-4. Retrieved July 25, 2013.
  26. Crain, R. (2010). Industry legend Dan Edelman reflects on the birth of a public-relations giant. Advertising Age, 81(27), 15.
  27. Emily, L. (1). Pioneer revolutionized public relations. Washington Post, The.
  28. Boorstin, Daniel J. (May 9, 2012). The Image: A Guide to Pseudo-Events in America. Knopf Doubleday Publishing Group. p. 189. ISBN 9780307819161.
  29. Dobnik, Verena (January 15, 2013). "NY Public Relations Pioneer Edelman dies in II". The Associated Press. Retrieved October 27, 2013.
  30. Kiefer, Brittaney (June 27, 2012). "Symantec picks Edelman as global consumer AOR". PRWeek. Retrieved November 6, 2012.
  31. Bruell, Alexandra (July 19, 2012). "Heineken USA Makes PR Agency Changes". AdAge. Retrieved November 6, 2012.
  32. GREG MILLER and LESLIE HELM. "Microsoft Plans Stealth Media Blitz".
  33. "DOJ/Antitrust" (PDF). Retrieved May 9, 2007.
  34. Jim Drinkard; Owen Ullmann (May 30, 2000). "Microsoft leans creatively on levers of political power as breakup decision looms, 'stealth' lobbying efforts aim for survival". USA Today.
  35. Goldberg, Jeffrey (April 2, 2007). "Selling Wal-Mart". The New Yorker.
  36. "Activists target Edelman in climate change protest". PR Week. July 17, 2008. Retrieved October 29, 2013.
  37. "Edelman discovers the naked truth". Communicate magazine. September 2009. Archived from the original on October 29, 2013. Retrieved October 29, 2013.
  38. Goldenberg, Suzanne (August 2014). "World's top PR companies rule out working with climate deniers". The Guardian. Retrieved August 5, 2014.
  39. Energy East pipeline 'advocates' targeted in TransCanada PR move. Canadian Broadcasting Corporation, article on CBC website dated 18 November 2014, retrieved 22 November 2014.
  40. Greenpeace sees ‘dirty tricks’ in PR firm’s TransCanada plan Article published in The Globe and Mail on 17 November 2014, retrieved 22 November 2014.
  41. Strategic Plan:Québec 46-page English-language PDF document available in extenso at the end of this Radio-Canada article published on 18 November 2014, retrieved 22 November 2014.
  42. Leaked documents show TransCanada planning “dirty tricks” campaign to support Energy East pipeline Greenpeace Canada article published 18 November 2014, retrieved 22 November 2014.
  43. Aulakh, Raveena (November 18, 2014). "TransCanada pressuring opponents of Energy East pipeline, documents show". The Toronto Star. Retrieved November 22, 2014.
  44. Goldenberg, Suzanne (September 15, 2015). "Edelman ends work with coal producers and climate change deniers". The Guardian.
  45. Bruell, Alexandra (January 23, 2012). "Edelman Is No. 8 on the Ad Age Agency A-List". AdAge. Retrieved November 8, 2012.
  46. "Phone hacking: Rupert Murdoch calls in PR firm Edelman". The Guardian. July 2011. Retrieved August 5, 2014.
  47. Ian Hall, "Edelman, Burson Land Global Deals With Unified Shell", PRWeek
  48. "Public relations: Dan the (Not Mad) Man", The Economist
  49. "Edelman Reps Saudi Arabia". Odwyerpr. March 20, 2013. Retrieved May 30, 2013.
  50. NW, The Center for Responsive Politics 1300 L. St; Washington, Suite 200 (March 13, 2017). "Russia hired Edelman in 2016 to help deal with Yukos fallout". OpenSecrets News. Retrieved August 13, 2019.
  51. "Equifax Picks DLA Piper", Kevin McCauley, O'Dwyer's, October 23, 2017
  52. https://krebsonsecurity.com/2017/09/equifax-breach-response-turns-dumpster-fire/
  53. "Edelman PR drops GEO Group after employee revolt at the prospect of laundering the reputation of private US concentration camps". Boing Boing. Retrieved August 13, 2019.
  54. Hsu, Tiffany (July 30, 2019). "Edelman, Public Relations Giant, Drops Client Over Border Detention Centers". The New York Times. ISSN 0362-4331. Retrieved August 13, 2019.
  55. "DealBook Briefing: Carlyle's Founders Give Outsiders More Power". The New York Times. July 31, 2019. ISSN 0362-4331. Retrieved August 13, 2019.
  56. Coffee|July 31, Patrick; 2019. "ICE Prison Contractor Accuses Edelman of Bowing to Political Pressure in Resigning Account". www.adweek.com. Retrieved August 13, 2019.CS1 maint: numeric names: authors list (link)
  57. Moore, Thomas. "Geo Group calls out Edelman for dropping it as a client". www.prweek.com. Retrieved August 13, 2019.
  58. "Edelman Drops Migrant Detention Center Work After Employee Backlash". www.holmesreport.com. Retrieved August 13, 2019.
  59. Channick, Robert. "Edelman facing its own PR problem after signing and then abruptly dropping private prisons company". chicagotribune.com. Retrieved August 13, 2019.
  60. "Snapchat infiltrates Instagram. And Edelman drops a controversial client: Wednesday Wake-Up Call". adage.com. July 31, 2019. Retrieved August 13, 2019.
  61. "Edelman drops a controversial client". Crain's Chicago Business. July 31, 2019. Retrieved August 13, 2019.
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