Public Relations Clients

Unlike in the United Kingdom, where members of the PR Consultants Association are required to have an updated, published list of all clients, the U.S. Council of PR decided against a proposal for the disclosure of client lists. Therefore the worlds biggest PR agencies, which are mostly U.S. based, are still in the position to make a secret of their clients.

Although public relations activity is mostly associated with marketing and issues management for corporate firms, also PR for nations, politicians and NGOs is common. Among the first to pursue PR for nations was Edward L. Bernays, one of the founders of modern public relations. Besides his activity in the Creel-Committee, which was responsible for the American propaganda during World War I, he also worked as a PR consultant for Lithuania and India. With his engagement for United Fruit he was moreover actively involved in the Cold War - especially in the overthrow of the Guatemalan government of Guzman.

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2000 A.D.

2000
Convergence of telephony, audiovisual technologies and computing

Digital technologies are used to combine previously separated communication and media systems such as telephony, audiovisual technologies and computing to new services and technologies, thus forming extensions of existing communication systems and resulting in fundamentally new communication systems. This is what is meant by today's new buzzwords "multimedia" and "convergence".

Classical dichotomies as the one of computing and telephony and traditional categorizations no longer apply, because these new services no longer fit traditional categories.

Convergence and Regulatory Institutions

Digital technology permits the integration of telecommunications with computing and audiovisual technologies. New services that extend existing communication systems emerge. The convergence of communication and media systems corresponds to a convergence of corporations. Recently, America Online, the world's largest online service provider, merged with Time Warner, the world's largest media corporation. For such corporations the classical approach to regulation - separate institutions regulate separate markets - is no longer appropriate, because the institutions' activities necessarily overlap. The current challenges posed to these institutions are not solely due to the convergence of communication and media systems made possible by digital technologies; they are also due to the liberalization and internationalization of the electronic communications sector. For regulation to be successful, new categorizations and supranational agreements are needed.
For further information on this issue see Natascha Just and Michael Latzer, The European Policy Response to Convergence with Special Consideration of Competition Policy and Market Power Control, http://www.soe.oeaw.ac.at/workpap.htm or http://www.soe.oeaw.ac.at/WP01JustLatzer.doc.

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Voice recognition

The only biometric technology which does not measure the visual features of the human body. In voice recognition the sound vibrations of a person is measured and compared to an existing sample. The person to be identified is usually required to pronounce a designated password or phrase which facilitates the verification process. Voice recognition can be used on the phone, but has the weakness of technology is its susceptibility to interference by background noise.

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Copyright Management and Control Systems: Metering

Metering systems allow copyright owners to ensure payment to or at the time of a consumer's use of the work. Those technologies include:

Hardware Devices

Those have to be acquired and installed by the user. For example under a debit card approach, the user purchases a debit card that is pre-loaded with a certain amount of value. After installation, the debit card is debited automatically as the user consumes copyrighted works.

Digital Certificates

Hereby a certification authority issues to a user an electronic file that identifies the user as the owner of a public key. Those digital certificates, besides information on the identity of the holder can also include rights associated with a particular person. Vendors can so control access system resources, including copyrighted files, by making them available only to users who can provide a digital certificate with specified rights (e.g. access, use, downloading).

Centralized Computing

Under this approach all of the executables remain at the server. Each time the executable is used, the user's computer must establish contact with the server, allowing the central computer to meter access.

Access Codes

Access code devices permit users to "unlock" protective mechanisms (e.g. date bombs or functional limitations) embedded in copyrighted works. Copyright owners can meter the usage of their works, either by unlocking the intellectual property for a one-time license fee or by requiring periodic procurement of access codes.

Copyright Clearinghouses

Under this approach copyright owners would commission "clearinghouses" with the ability to license the use of their works. A user would pay a license fee to obtain rights concerning the intellectual property.


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Online data capturing

Hardly a firm today can afford not to engage in electronic commerce if it does not want to be swept out of business by competitors. "Information is everything" has become something like the Lord's prayer of the New Economy. But how do you get information about your customer online? Who are the people who visit a website, where do they come from, what are they looking for? How much money do they have, what might they want to buy? These are key questions for a company doing electronic business. Obviously not all of this information can be obtained by monitoring the online behaviour of web users, but there are always little gimmicks that, when combined with common tracking technologies, can help to get more detailed information about a potential customer. These are usually online registration forms, either required for entry to a site, or competitions, sometimes a combination of the two. Obviously, if you want to win that weekend trip to New York, you want to provide your contact details.

The most common way of obtaining information about a user online is a cookie. However, a cookie by itself is not sufficient to identify a user personally. It merely identifies the computer to the server by providing its IP number. Only combined with other data extraction techniques, such as online registration, can a user be identified personally ("Register now to get the full benefit of xy.com. It's free!")

But cookies record enough information to fine-tune advertising strategies according to a user's preferences and interests, e.g. by displaying certain commercial banners rather than others. For example, if a user is found to respond to a banner of a particular kind, he / she may find two of them at the next visit. Customizing the offers on a website to the particular user is part of one-to-one marketing, a type of direct marketing. But one-to-one marketing can go further than this. It can also offer different prices to different users. This was done by Amazon.com in September 2000, when fist-time visitors were offered cheaper prices than regular customers.

One-to-one marketing can create very different realities that undermine traditional concepts of demand and supply. The ideal is a "frictionless market", where the differential between demand and supply is progressively eliminated. If a market is considered a structure within which demand / supply differentials are negotiated, this amounts to the abolition of the established notion of the nature of a market. Demand and supply converge, desire and it fulfilment coincide. In the end, there is profit without labour. However, such a structure is a hermetic structure of unfreedom.

It can only function when payment is substituted by credit, and the exploitation of work power by the exploitation of data. In fact, in modern economies there is great pressure to increase spending on credit. Using credit cards and taking up loans generates a lot of data around a person's economic behaviour, while at the same restricting the scope of social activity and increasing dependence. On the global level, the consequences of credit spirals can be observed in many of the developing countries that have had to abandon most of their political autonomy. As the data body economy advances, this is also the fate of people in western societies when they are structurally driven into credit spending. It shows that data bodies are not politically neutral.

The interrelation between data, profit and unfreedom is frequently overlooked by citizens and customers. Any company in a modern economy will apply data collecting strategies for profit, with dependence and unfreedom as a "secondary effect". The hunger for data has made IT companies eager to profit from e-business rather resourceful. "Getting to know the customer" - this is a catchphrase that is heard frequently, and which suggests that there are no limits to what a company may want to about a customer. In large online shops, such as amazon.com, where customer's identity is accurately established by the practice of paying with credit cards, an all business happens online, making it easy for the company to accurately profile the customers.

But there are more advanced and effective ways of identification. The German company Sevenval has developed a new way of customer tracking which works with "virtual domains". Every visitor of a website is assigned an 33-digit identification number which the browser understands as part of the www address, which will then read something like http://XCF49BEB7E97C00A328BF562BAAC75FB2.sevenval.com. Therefore, this tracking method, which is advertised by Sevenval as a revolutionary method capable of tracking the exact and complete path of a user on a website, can not be simple switched off. In addition, the method makes it possible for the identity of a user can travel with him when he / she visits one of the other companies linked to the site in question. As in the case of cookies, this tracking method by itself is not sufficient to identify a user personally. Such an identification only occurs once a customer pays with a credit card, or decides to participate in a draw, or voluntarily completes a registration form.

Bu there are much less friendly ways of extracting data from a user and feeding the data body. Less friendly means: these methods monitor users in situations where the latter are likely not to want to be monitored. Monitoring therefore takes place in a concealed manner. One of these monitoring methods are so-called web bugs. These are tiny graphics, not more than 1 x 1 pixel in size, and therefore invisible on a screen, capable of monitoring an unsuspecting user's e-mails or movements on a website. Leading corporations such as Barnes and Noble, eToys, Cooking.com, and Microsoft have all used web bugs in advertising campaigns. Richard Smith has compiled a web bugs FAQ site that contains detailed information and examples of web bugs in use.

Bugs monitoring users have also been packaged in seemingly harmless toys made available on the Internet. For example, Comet Systems offers cursor images which have been shown to collect user data and send them back to the company's server. These little images replace the customary white arrow of a mouse with a little image of a baseball, a cat, an UFO, etc. large enough to carry a bug collecting user information. The technology is offered as a marketing tool to companies looking for a "fun, new way to interact with their audience".

The cursor image technology relies on what is called a GUID (global unique identifier). This is an identification number which is assigned to a customer at the time of registration, or when downloading a product. Many among the online community were alarmed when in 1999 it was discovered that Microsoft assigned GUIDS without their customer's knowledge. Following protests, the company was forced to change the registration procedure, assuring that under no circumstances would these identification numbers be used for tracking or marketing.

However, in the meantime, another possible infringement on user anonymity by Microsoft was discovered, when it as found out that MS Office documents, such as Word, Excel or Powerpoint, contain a bug that is capable of tracking the documents as they are sent through the net. The bug sends information about the user who opens the document back to the originating server. A document that contains the bug can be tracked across the globe, through thousands of stopovers. In detailed description of the bug and how it works can be found at the Privacy Foundation's website. Also, there is an example of such a bug at the Privacy Center of the University of Denver.

Of course there are many other ways of collecting users' data and creating appropriating data bodies which can then be used for economic purposes. Indeed, as Bill Gates commented, "information is the lifeblood of business". The electronic information networks are becoming the new frontier of capitalism.

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Basics: Acquisition of Copyright

The laws of almost all countries provide that protection is independent of any formalities. Copyright protection then starts as soon as the work is created.

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PR Firms and their Mission

Looking at how public relations practitioners advertise their services, they do not primarily seem to be followers of the "social engineering" approach. Burson-Marsteller, the worlds leading PR agency, for example sells itself as a specialist in "... public affairs, government relations, crisis communication, investor relations, environmental issues and marketing communications ... experienced at orchestrating effective campaigns, which motivate the right behaviors.". Porter Novelli, third largest international PR company, somewhat more aggressive promises, that their marketing-based public relations "... penetrate the consumer psyche - where - your target audiences work, learn, play or shop, through everything they read, hear and see.". While Porter Novelli seems to be specialized in psychological warfare, Fleishman-Hillard highlights its know-how and experience in government relations programs. "We have handled some of the nation's most challenging public policy issues, including issues affecting the environment, from clean air to agricultural chemicals; aviation safety; regressive taxes; international trade; and human rights.". To handle those difficult tasks, Fleishman-Hillard maintains "... an effective, professional lobbying team that includes registered lobbyists recruited from the Senate and the House."

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Biometrics applications: privacy issues

All biometric technologies capture biometric data from individuals. Once these date have been captured by a system, they can, in principle, be forwarded to other locations and put to many different uses which are capable of compromising on an individuals privacy.

Technically it is easy to match biometric data with other personal data stored in government or corporate files, and to come a step closer to the counter-utopia of the transparent citizen and customer whose data body is under outside control.

While biometric technologies are often portrayed as protectors of personal data and safeguards against identity theft, they can thus contribute to an advance in "Big Brother" technology.

The combination of personalised data files with biometric data would amount to an enormous control potential. While nobody in government and industry would admit to such intentions, leading data systems companies such as EDS (Electronic Data Systems; http://www.eds.com) are also suppliers of biometric systems to the intelligence agencies of government and industry.

Biometric technologies have the function of identification. Historically, identification has been a prerequisite for the exercise of power and serves as a protection only to those who are in no conflict with this power. If the digitalisation of the body by biometric technologies becomes as widespread as its proponents hope, a new electronic feudal system could be emerging, in which people are reduced to subjects dispossessed of their to their bodies, even if these, unlike in the previous one, are data bodies. Unlike the gatekeepers of medieval towns, wear no uniforms by they might be identified; biometric technologies are pure masks.

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Biometrics applications: physical access

This is the largest area of application of biometric technologies, and the most direct lineage to the feudal gate keeping system. Initially mainly used in military and other "high security" territories, physical access control by biometric technology is spreading into a much wider field of application. Biometric access control technologies are already being used in schools, supermarkets, hospitals and commercial centres, where the are used to manage the flow of personnel.

Biometric technologies are also used to control access to political territory, as in immigration (airports, Mexico-USA border crossing). In this case, they can be coupled with camera surveillance systems and artificial intelligence in order to identify potential suspects at unmanned border crossings. Examples of such uses in remote video inspection systems can be found at http://www.eds-ms.com/acsd/RVIS.htm

A gate keeping system for airports relying on digital fingerprint and hand geometry is described at http://www.eds-ms.com/acsd/INSPASS.htm. This is another technology which allows separating "low risk" travellers from "other" travellers.

An electronic reconstruction of feudal gate keeping capable of singling out high-risk travellers from the rest is already applied at various border crossing points in the USA. "All enrolees are compared against national lookout databases on a daily basis to ensure that individuals remain low risk". As a side benefit, the economy of time generated by the inspection system has meant that "drug seizures ... have increased since Inspectors are able to spend more time evaluating higher risk vehicles".

However, biometric access control can not only prevent people from gaining access on to a territory or building, they can also prevent them from getting out of buildings, as in the case of prisons.

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Dos and donts of the data body economy

Do

Don't

use plastic money





pay cash





tansfer money through bank

shop online





buy in small independent shops

consume life style products

display an unpredictable consumer behaviour





complete registration forms





refuse to register or provide erroneous data

have an insurance against everything









accept risk

constantly use mobile communication equipment





prefer face-to-face communication

drive a car equipped with a GPS terminal





use other means of transportation

willingly provide personal information





have privacy concerns



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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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Fleishman-Hillard

Fleishman-Hillard, headquartered in St. Louis, Missouri, is the world's fifth largest public relations agency, with offices throughout North America, Europe and Asia, and affiliates in Latin America. Its 1998 net fees accounted for US$ 160,692,000.

INDEXCARD, 1/2
 
Porter Novelli

Porter Novelli is the third largest PR firm with 1998 net fees of US$ 183,050,000. The companies focus lies on building brands, enhancing reputation and crisis management. Porter Novelli is specialised in: Food and nutrition, health care, consumer goods, technology, public affairs and social marketing.

INDEXCARD, 2/2