The blame game

What one CEO's letter unwittingly reveals about image and responsibility

 
The US banking and insurance industries suffered huge losses in 2008. In September, the federal government took control of Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), both important mortgage providers. Lehman Brothers investment bank filed for bankruptcy, and problems arose with other banks (including Washington Mutual, Wachovia and the Federal Reserve Bank of St. Louis). One particular sore point in the financial mess was AIG (American International Group): by March 2009, over 170 billion US dollars in federal money had been poured into this institution, and criticism surged over reports that AIG planned to pay out “about 165 million US dollars in bonuses. . . to executives in the same business unit that brought the company to the brink of collapse” (New York Times, March 14 2009). A “senior government official,” speaking off the record, declared that “it is unacceptable for Wall Street firms receiving government assistance to hand out million-dollar bonuses, while hard-working Americans bear the burden of this economic crisis” (New York Times, March 14 2009). AIG had a serious image problem.

William L. Benoit

William L. Benoit is a professor of communication studies at Ohio University. He has published numerous articles and books, including Accounts, Excuses, and Apologies, SUNY Press, 1994. He holds a PhD from Wayne State University.

Finn Frandsen

Finn Frandsen is professor at Aarhus School of Business (ASB), University of Aarhus in Denmark and director of the ASB Centre for Corporate Communication. His research focuses on public relations and communication in the areas of marketing, crisis, environmental and organisational communications.

Winni Johansen

Winni Johansen is associate professor at ASB and director of study of the executive master’s in corporate communication. Among others her research covers corporate communication, public relations and crisis communication.