Edelman (firm)
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| Type | Private |
|---|---|
| Industry | Communications |
| Founded | 1952 |
| Headquarters | New York City Chicago |
| Key people | Daniel J. Edelman, founder Richard Edelman, President & CEO |
| Products | Public relations |
| Revenue | $521 million in fees (2010)[1] |
| Employees | 3,635 |
| Website | edelman.com |
Edelman is a public relations firm founded and named after Daniel J. Edelman and currently run by his son Richard Edelman. Founded as a team of three in the postwar boom, today the company collects over $521 million in annual fees and employs 3,635 people with co-headquarters in New York City and Chicago. It is the world's largest independently owned public relations firm.[1]
Edelman is known for remaining private, despite an industry-wide trend towards consolidation and many offers for acquisition.[2][3] Edelman serves some of the world's largest companies, including controversial work with Microsoft, EON and Wal-Mart.[4]
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[edit] History
[edit] Founding
In 1949 Edelman founder Daniel Edelman moved to Chicago to accept a position as public relations director for Toni Company (now a Gillette division). Daniel took twelve sets of identical twins around the country asking audiences to identify which had used the Toni Home Permanent kits. He left Toni Company in 1952 to open up his own shop and founded Edelman. Within three months Toni and Sara Lee were some of Edelman's first clients and the company had a staff of three with a $500 retainer. Daniel Edelman's wife was also a key supporter of the business.[3][2]
[edit] Early beginnings & growth
By 1960, the firm had about 25 accounts, including the country of Finland.[5] The first thirty years of Edelman Inc.’s focus was geared towards creating a strong base operation in the US.[3]
Edelman retired as CEO in 1996 at the age of 76. His son and current CEO Richard Edelman continued in his father's footsteps. Daniel's other children John and Renee also held high positions in the company. In 1997, Richard made it public that they had received purchasing offers from two of the company's biggest competitors, and that they turned them down. Edelman would remain the only private firm amongst the top ten by revenue.[6]
[edit] The 2000s
By the early 2000s, Edelman had about $210 million in revenue with almost a quarter of it coming from Europe. Industry consolidation among competitors however, made several conglomerate competitors much bigger.[6]
The early 2000s marked the pop of the so-called "dot-com boom," which Edelman had become particularly vested in. Edelman's considerable client base in consumer technology was impacted by the economy, but they also diversified into healthcare, finance, and other high-growth sectors.[6]
[edit] Noteworthy clients
[edit] Corporate
[edit] Reports
The company's Insights group regularly publishes reports on issues relevant to PR and marketing professionals.[9] They are most well known for the once-annual Trust Barometer, which in 2009 showed a 10 year low for trust in businesses.[10]
The report found that:
- Nearly two-thirds of informed publics trust corporations less than they did a year ago
- Only 38% said they trust business to do what is right and only 17% trust information from a company's CEO
- 77% said they would not buy products or services from a company they distrusted
Edelman's CEO said the results are an indication to how difficult it will be to rebuild the economy, when businesses have lost the trust of their customers.[10]
[edit] Views
Shortly after the mortgage lending crisis, Richard Edelman said that financial institutions have a PR problem. Richard claimed that financial institutions rank lowest on the company's trust barometer, because they don't explain the how and why of their actions to the public.[11] Steve Rubel, who helps Edelman clients identify emerging trends for marketing purposes, has said that he expects social networking to reach the television next year.[12] Edelman CEO Richard Edelman spends about an hour per day voicing his views on the company blog that he started to set an example for Edelman clients.[13][14]
[edit] Corporate culture
Edelman provides a stable environment and has maintained a positive business outlook even through rough economic patches. The CEO enjoys a strong approval rating from employees, but some complain of long work hours, as is common in the industry.[15][16][17]
Edelman helped raise donations for the Vietnam Veterans Memorial.[6]
[edit] Controversy
Edelman has sometimes been criticized by activist groups for failing to provide disclosure or mismanaging promotions for clients including Microsoft and Wal-Mart.
[edit] Microsoft
In April 1998 the Los Angeles Times revealed that Edelman had drafted a campaign plan to ensure that a dozen state attorneys-general did not join anti-trust legal actions against Microsoft. Documents obtained by the LA Times revealed that the plan included generating supportive letters to the editor, opinion pieces and articles by freelance writers.[18] USA Today responded to the astroturfing saying, "the elaborate plan hinges on a number of 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."[19]
[edit] Wal-Mart
The New York Times reported in March, 2006 that Edelman had sent information to bloggers, some of which was copied word for word on blogs, to try to help Wal-Mart in a public relations campaign.[20] Edelman responded by saying that they were working with bloggers and Wal-Mart in a "transparent" manner.[21]
Edelman is also infamous for having invented the "flog", or fake blog. Edelman execs created a fake blog called "Walmarting Across America". The blog was written by a former Washington Post employee who was allegedly paid by Edelman to write the blog.
[edit] Eon
Edelman has also been targeted by those who accuse the company of greenwashing. On July 16, 2008, a group of protesters mounted a protest against Edelman's UK headquarters by climbing their glass roof and unfurling a banner.[22] The activists were protesting Edelman's work with Eon, an energy company seeking to build a coal power station at Kingsnorth. The group charged that Edelman presents Eon as an environmentally aware company, despite coal power being one of the most carbon intensive form of energy production. On 1 September 2009, to coincide with the week long "Climate Camp" range of protests, a group of naked protestors occupied Edelman's reception, resulting in a considerable amount of news activity.[23]
[edit] References
- ^ a b O'Dwyers. "Worldwide Fees of Top Independent PR Firms With Major U.S. Operations." Retrieved December 6, 2011.
- ^ a b Jim Kirk, Chicago Tribune. "Edelman savors nearly 50 years of independence." June 18, 2002. Retrieved December 6, 2011.
- ^ a b c North of Neutral. "Richard Edelman, CEO, Edelman Inc." Retrieved December 6, 2011.
- ^ DOJ/Antitrust. Retrieved 2007-05-09.
- ^ Funding Universe. "Edelman -- Company History." Retrieved December 6, 2011.
- ^ a b c d "Company Histories & Profiles: Edelman". Funding Universe. http://www.fundinguniverse.com/company-histories/Edelman-Company-History.html. Retrieved January 6, 2012.
- ^ Jeffrey Goldberg, The New Yorker. "Selling Wal-Mart."
- ^ Ian Hall, PRWeek. "Edelman, Burson Land Global Deals With Unified Shell."
- ^ "Insights". Edelman.com. http://www.edelman.com/insights/. Retrieved January 6, 2012.
- ^ a b Media Bistro. 2009 Edelman Trust Barometer: Trust in Business at 10-year Low in U.S.. January 22, 2009.
- ^ Alain Sherter, Bnet. "PR Man Richard Edelman Says Banks Have a Perception Problem. Wrong" October 13, 2009.
- ^ Steve Rubel, Forbes. "What To Watch In 2010: Social TV."
- ^ Debbie Weil, Social Media Insights Blog. Q & A with CEO blogger Richard Edelman. October 2, 2007
- ^ "6 A.M. blog". Edelman.com. http://www.edelman.com/speak_up/blog/. Retrieved January 6, 2012.
- ^ "Edelman Career Information". Vault.com. http://www.vault.com/career-company/Edelman-Public-Relations.html. Retrieved January 6, 2012.
- ^ "Edelman Reviews". Glassdoor.com. http://www.glassdoor.com/Reviews/edelman-reviews-SRCH_KE0,7.htm. Retrieved January 6, 2012.
- ^ "Occupational Outlook Handbook: Public Relations Specialists". Bureau of Labor Statistics. http://www.bls.gov/oco/ocos086.htm. Retrieved January 6, 2012.
- ^ "DOJ/Antitrust". http://www.usdoj.gov/atr/cases/ms_tuncom/major/mtc-00030610d.pdf. Retrieved 2007-05-09.
- ^ Jim Drinkard; Owen Ullmann (2000-05-30). "Microsoft leans creatively on levers of political power as breakup decision looms, 'stealth' lobbying efforts aim for survival". USA Today.
- ^ Wal-Mart Enlists Bloggers in P.R. Campaign, Michael Barbaro, New York Times, March 6, 2006
- ^ A Word to the Wise, Edelman blog, March 6, 2006
- ^ Activists target Edelman in climate change protest, PR Week, July 17, 2008
- ^ Edelman discovers the naked truth Communicate magazine, September 2009
