Bell Pottinger senior management criticised in damning South Africa report as chief executive resigns | City A.M.
An independent report into PR firm Bell Pottinger’s conduct in South Africa today concluded that there had been failings among senior staff as well as the account team.
Law firm Herbert Smith Freehills said that its inquiry into Bell Pottinger’s work for Oakbay Capital, owned by the influential Gupta family, had led it to believe some campaign material “was potentially racially divisive and/or potentially offensive and was created in breach of relevant ethical principles.”
The report also criticises the role of senior management for failing to rein in the actions of those on the account or to fully understand the sensitivity of the situation.
While we do not consider that it was a breach of relevant ethical principles to agree to undertake the economic emancipation campaign mandate per se, members of BP’s senior management should have known that the campaign was at risk of causing offence, including on grounds of race. In such circumstances BP ought to have exercised extreme care and should have closely scrutinised the creation of content for the campaign. This does not appear to have happened.
Chief executive James Henderson stepped down ahead of the report’s release.
Chairman Mark Smith today commented: “James has always had the best interests of the business at heart, especially during the recent, difficult months. He was not involved in the Oakbay account but as CEO he believes he must take ultimately responsibility. That is a laudable decision.”
Henderson today put out a statement explaining his decision. The full statement can be read below:
“I have today resigned as CEO of Bell Pottinger.
“In June I commissioned Herbert Smith to look at the details of the work we undertook for Oakbay, the findings of which will be published shortly.
“Having read these findings, I recognise the business requires a change of leadership to fix the problems of the past and to move forward.
“Although I neither initiated nor was involved in the Oakbay work, I accept that as CEO, I have ultimate executive responsibility for Bell Pottinger.
“I feel deeply let down by the colleagues who misled me. However, I think it is important I take proper accountability for what has happened.
“I have also striven to put the best interests of Bell Pottinger and its brilliant staff first, and it is for that reason that I am stepping down today.
“I would like to thank all of the Bell Pottinger staff and clients who have supported, and continue to support me. The business will now move forward in the best interests of its clients and staff.”
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