The difference between generating ideas and action taken with those ideas can make for hapless headlines.
That could be the tale of local PR heavyweight Stoorza, Ziegaus & Metzger, Inc., to hear firm President and CEO David DePinto tell it.
A project proposal written by Stoorza’s Sacramento office has created shockwaves in recent weeks, describing a possible insurance awareness campaign for the now-beleaguered state Insurance Commissioner Chuck Quackenbush.
Quackenbush’s office has been accused of diverting $13 million it collected from insurance companies , in lieu of a possible $3 billion in fines stemming from the 1994 Northridge earthquake, say several published reports , and spending some of the money on efforts to boost Quackenbush’s image for future political moves.
The language in Stoorza’s proposal describes an aggressive campaign that would both educate residents about the industry and improve the industry’s image, funded by dollars levied from the insurance industry by Quackenbush’s office.
According to the memo, the campaign would stage a series of community insurance forums and also create a nonprofit foundation headed by the commissioner.
“While the specifics are flexible, the concept should be clear , Commissioner Quackenbush is pushing the industry into underserved communities. He has identified the need and is addressing it with real leadership,” the memo reads, in regard to the insurance forums.
A couple of lines down, Stoorza’s memo continues that Quackenbush could be a “prominent participant in all advertising for the forums.”
It goes on: “We expect significant coverage for these forums and increased visibility for the Insurance Commissioner.”
Brainstorming Ideas
DePinto, who joined founder and chairwoman Gail Stoorza-Gill last summer to lead the 26-year-old firm, defended the company’s involvement. Stoorza-Gill was not available for comment.
DePinto stated the much-discussed memo was simply a product of brainstorming sessions and was later filtered down to ideas that were feasible and legal.
“It was after a very careful review of the original ideas that we winnowed it down to things that were most appropriate , given what a nonprofit organization could do and what a nonprofit organization wouldn’t do,” DePinto said.
He also said Stoorza has not been involved with the nonprofit organization that spent money on pro-Quackenbush television advertising or had funneled millions into other nonprofits that seemed unrelated to the Insurance Department.
He pointed out there were three nonprofits, and the one that has been accused of wrongdoing was the California Research and Assistance Fund.
Foundation Role
Stoorza’s contract has been with a different one, the California Insurance Education Project, which has been independent of the Insurance Department, DePinto said.
As part of their contract, Stoorza had organized an insurance forum that took place last year and involved insurance companies, community organizations and other advocates.
Another part of Stoorza’s work for the foundation will be released later this year: Information about earthquake insurance and insurance in general, distributed through California classrooms to students and their families, DePinto said.
Stoorza’s two-year contract with the foundation pays the firm $25,000 a month.
Stoorza is the highest-grossing firm headquartered in San Diego. Last year, the San Diego Business Journal ranked it No. 1, reporting that its adjusted gross income totaled $4.1 million in 1998.
The Quackenbush allegations have prompted Stoorza’s need to do some public relations work on their own behalf.
However, DePinto said he’s not worried about his company’s image.
“The truth of the matter is that our company had handled this program very, very well very, very effectively,” he said, referring to Stoorza’s work for the foundation.
“That information, those facts, will come out and people who are studying the matter and continue to follow it will see that , and any concerns that people will have will be alleviated.”
Two longtime executives in San Diego’s public relations industry agree Stoorza’s recent headlines have certainly made for a spate of negative publicity.
“I regret to say I think it might be a problem for them,” said Laura Walcher, principal PR consultant for Downtown marketing firm matthews/mark.
“I think the problem of not seeing the pitfalls of this project is an issue, because that’s one of the things we tell clients we can do , evaluate the media and public pitfalls we evaluate the opportunities as well as the potential downside.
“I think they’ll probably have some trouble over this, internally, for sure.”
Richard Daniels, who ran his own large PR firm at one time and now operates solo, noted public relations covers a broad area.
“It’s everything from basic publicity to the kinds of things that are done to position clients to achieve specific objectives , whether they be marketing or operational or in this particular case, a political nature,” Daniels said.
“The problem that practitioners always have is that nothing, the practice itself, the strategy itself, should never endanger the good standing the client already has,” he said.
Daniels said he thinks Stoorza understands that.
“They’re very good at what they do, and a fine agency, and have not gotten that big without delivering very impressive results for clients over the years,” he said. “I have immense respect for the organization.”
It should soon blow over, Walcher said.
“I don’t think this will ultimately curse them in the long run,” she said. “People have a short memory about everything.”
This isn’t likely to prompt an exodus of Stoorza clients, Walcher said.
“I think it very much depends on what they’re doing internally to communicate with their existing and potential clients,” she said.
As to how Stoorza’s role in the Quackenbush story could affect the PR industry as a whole, both Daniels and Walcher said it would be minimal.
Walcher also views it as a warning flag.
“I think it’s probably important to every agency in this city,” she said. “It reminds us that we have to think about a potential new client, what we really can and can’t do for them, and what we should and shouldn’t do.”
It could deepen the feelings of people who are skeptical about the PR profession, she noted.
Still, Walcher believes in the integrity of local agencies. “Not many agencies would sell out,” she said. “I don’t really know of any.”
Of Stoorza, she said, “So I think they were probably a little blindsided by this, but that is unfortunately not an excuse.”
