Is Kitzhaber Killing the Oregon Brand?
Friday, February 13, 2015
The country is talking about the Beaver State, but not for the usual reasons of clean air, vegan beer and Portlandia. Meanwhile, experts differ over whether Oregon's image has changed amid the months-long scandal.
Major news outlets nationwide, including the L.A. Times, the Washington Post, the Huffington Post, the Atlantic, and Politico are closely watching the situation, following an unusual series of events that began Tuesday.
Tuesday, the governor summoned Secretary of State Kate Brown, who is next in line for the governorship, back from D.C. two days ahead of schedule, triggering a flurry of rumors Wednesday that resignation was imminent. But when she returned, the governor stated he had no intention of resigning. By Thursday, Senate President Peter Courtney, House Speaker Tina Kotek, and Secretary of the Treasury Ted Wheeler asked Kitzhaber to resign, following months of unfolding revelations about the governor and his fiancee, Cylvia Hayes, their finances, and allegations of corruption.
Brand moves forward
With or without Kitzhaber, once the dust settles and the rumors stop flying in the Capitol, the state must move forward.
Communications, branding, and political experts differ over whether Oregon’s brand will be tarnished by the scandal, and whether the state will be seen differently by the nation as it moves forward.
“Oregon has credibility issues in a national playing field,” said Christopher Donahue, Senior Partner of Liquid Communications, who argues Oregon has already been branded by the Kitzhaber-Hayes scandal. “This may take years to overcome,” he said.
Other experts, such as Political analyst and Pacific University professor Jim Moore, argue if Brown takes office, the nation will ponder the country's first openly bisexual governor for a day or two, then move on. But, he argues Oregon’s brand will be enhanced if Kitzhaber leaves office.
“But along the lines of Portlandia,” Moore said. “Quirky end to a governorship, small stakes in terms of corruption...and lots of drama that focuses around a colorful first lady.”
'Death by a thousand cuts'
Sean Rossall, a crisis communications consultant and Vice President of Cerrell Associates in Los Angeles, said it is unusual to hear of a political scandal coming out of Oregon.
“It definitely has the potential to hurt oregon nationally,” said Rossall.
What's worse, the governor's press office went on lockdown each time a set of emails, dubious contract, or state filing revealed something new.
“This lack of engagement in a time of crisis is the thing that kills brands,” Rossall said.
Kitzhaber and Hayes are currently the subject of an Oregon Ethics Commission review, and a criminal investigation by the Attorney General's office. If the allegations against Kitzhaber are true, they raise questions about actions taken by governor’s office over the length of his terms, Rossall said. “It has the potential to leave a blemish or an asterisk on things that happened in Oregon in recent memory,” Rossall said.
Oregon has a distinct identity and brand that has little to do with politics and much to do with culture, Rossall said. “But you never want to see a brand face controversy for too long.”
Scandal wanes next to Harding
Oregon Public Relations Consultant Lee Weinstein, of Weinstein PR, said Oregon is fortunate in that the state has not experienced serious corruption in the same way other states have -- think New Jersey, Illinois and Louisiana. However, the allegations against the governor are of a different nature for Oregon, he said.
But, Weinstein argues the story is highly convoluted, and will not likely have a long term impact on Oregon’s reputation, especially when compared to the Tonya Harding scandal. Harding, a Portland figure skater, orchestrated an attack on her competitor, Nancy Kerrigan, in the lead-up to the 1994 Olympics, causing a national media frenzy.
Had the governor been transparent with the public from the beginning, the events may not have led to multiple calls for his resignation, Weinstein said.
“You don’t have to be PR professional to see that,” he said. “It’s a very sorry time for everybody, it’s certainly not being handled well, but I can’t see it getting handled any better than they’re currently doing,” Weinstein said.
Impact on business
Moore said what he called Oregon's “new” economy, which includes tech, start-ups, and media, will likely benefit from the attention. The opposite may be the case for established industries, such as logging, agriculture, and energy.
“The “old economy" will see this as a threat to political stability,” Moore said.
Political analyst Len Bergstein of Northwest Strategies is more optimistic.
“The brand is not so much corruption as a series of politicians in Oregon who fall off the wagon,” he said.
Bergrstein also argues the unique set of events adds to Oregon’s “keep it weird” brand. But, he holds the scandal unfolding around the Governor is a serious problem, and will have an impact on how people think about Oregon politics.
Rossall, the communications expert, said despite the lack of trust in goverment, and the growing pains of a potential transition of power, the situation gives Oregonians a chance and an impetus to become more informed and involved in the workings of the state.
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