Public relations: People are not stupid
The Pacific Gas and Electric Company (PG&E) has recently begun airing a television and radio campaign touting its commitment to safety. In the spots, the company CEO characterizes PG&E as a company that "had lost its way" but is now back on track thanks to the continued commitment of its employees.
Nobody is buying it.
Having worked with PG&E employees at all levels, I can't fault the claim that there are a whole lot of dedicated and hardworking people in the company. But there are many who would argue that PG&E didn't "lose its way" – it never was on the right path to begin with. Since the gas pipeline explosion in San Bruno in 2010 that killed 8 people, the image of PG&E that has emerged in the media is that of a company that fostered a culture where safety was subordinate to profit. Inadequate safety records were kept, promised safety work was never performed, revenue earmarked for safety upgrades was redirected to other uses, and employees were rewarded for not reporting problems.
At the same time PG&E is running its campaign, it has requested a $5.25 billion increase in gas and electric revenue to pay for upgrades to safety and reliability. If approved, this increase will raise utility rates by over 15% by 2016. PG&E has also requested an additional $2.2 billion to fund transmission line work that would further raise rates.
Despite claims that the campaign is being paid for by shareholders and not customers, many are seeing the campaign as a cynical attempt by the company to defuse consumer anger over the proposed rate increase. There are increasing demands that PG&E account for its poor safety record and demonstrate that the increase is not just an attempt to get more money to pay for what should already have been done.
The lesson here is that the people are not stupid. A slick media campaign is not going to divert attention from years of poor performance or overcome the public perception that corporate greed cost lives. It's going to take more than images of hardworking employees to salvage PG&E's reputation.