Epic Shell PR fail? No, the real villains here are Greenpeace

Since when were Greenpeace the bad guys?

For several weeks now I’ve watched endless retweets of "epic Shell PR fails" cascading down my timeline, seeming less like bullshit than the thousands of identical, perfectly-formed little packets of poo you might find behind an incontinent deer. In June came a video supposedly filmed at a private launch party for Shell’s "Let’s Go! Arctic" campaign, which showed “an obvious malfunction of the model rig that was supposed to pour drinks for guests,” a major gaffe with hilarious results:

The video was reported widely in the media, gaining half a million views within a day of its release. Then it was revealed as a hoax, a publicity stunt organised by Greenpeace in collaboration with The Yes Men and Occupy Seattle.

Then matters escalated further, with a series of intimidating legal threats sent to bloggers. Warning that “lawyers operating on behalf of Royal Dutch Shell plc. (Shell) are considering formal action,” over the counterfeit campaign launch, an email from Shell’s PR department told bloggers and journalists that: “Shell is monitoring the spread of potentially defamatory material on the internet and reporters are advised to avoid publishing such material.” A jolly good Streisanding seemed imminent, until the threats turned out to be just another layer of the hoax.

Soon after, links began appearing to arcticready.com, supposedly the “social media hub” for the "Let’s Go! Arctic" campaign. “We at Shell are committed to not only recognize the challenges that climate change brings,” the introduction declares, “but to take advantage of its tremendous opportunities. And what's the biggest opportunity we've got today? The melting Arctic.” The site allows members of the public to suggest their own captions for Shell advertisement, displaying the unfortunate results in a gallery of user submissions. Another hilarity-inducing epic Shell PR fail? Nope, another cynical Greenpeace hoax.

I’ve nothing against parodies – I’ve written a few myself, and they can be an incredibly useful and effective way of skewering an argument. These hoaxes are something much more cynical and dangerous. Ryan Holiday at Forbes rightly described it as media manipulation, a very deliberate attempt to deceive and mislead their audience: “It may have been done for noble reasons, but that doesn’t change the salient fact that they are manipulating the media by creating a fake scandal and lying about it to get more coverage.”

Of course manipulating the media turned out to be frighteningly easy in this case. Journalists aren’t infallible – god knows I’ve fallen for hoaxes in the past – but the speed and carelessness with which the main news sites copy and repackage each other’s content means that these errors are compounded and multiplied at a furious rate. Throw in the awesome power of social media, and one blogger’s late night fuck-up can become a truth spoken by millions before breakfast. Evolution has not yet gifted us social apes with sceptical powers to match our fascination with ‘like’ buttons.

The real villain here is Greenpeace. This is an NGO that thinks it is acceptable to lie to the public, to lie to bloggers and journalists, and to then intimidate writers with threatening emails warning of legal action. This absolutely is not okay. I don’t care if you’re saving the Arctic, rescuing kittens from YouTube’s vicious pet-celebrity training camps, or training pandas to pull famine-ridden children out of earthquake debris; to behave in this deceitful way demonstrates an astonishing amount of contempt for the public - not least for environmentalist supporters who spread their message in good faith only to find themselves forced into embarrassing retractions.

And for what? It’s not like there’s any shortage of real scandals to draw attention to. As I write this, Reuters have just reported that Shell could face a US$5 billion fine for a major oil spill off the Nigerian coast that affected 950 square kilometres of water and caused serious harm to local communities. An analysis published last year by the United Nation’s Environment Programme estimated that it could take thirty years to clean up damage to the Ogonil and region in the Niger Delta, pollution caused in part by Shell’s activities in the area. With real scandals like this to cover, inventing fake ones isn’t just unnecessary but actually quite crass.

Shell’s lawyers have sensibly steered clear of this latest fuss, resisting the urge to take any action against Greenpeace. Why bother, when Greenpeace’s message is so extraordinarily self-defeating? The message to the public is crystal clear, as Holiday observes: “Even if you think Shell is evil and will lie to achieve their goals, now you know Greenpeace is the exact same way.” Spending tens of thousands of dollars to deliberately mislead and manipulate the public used to be something the bad guys did, but here we all are watching pigs in suits drive another important debate into the quagmire.

Update 18/07/2012 15:51 Greenpeace have posted an explanation of the campaign here.

 

A Greenpeace activist covers the logo of the Shell oil company in protest. Photograph: Getty Images

Martin Robbins is a Berkshire-based researcher and science writer. He writes about science, pseudoscience and evidence-based politics. Follow him on Twitter as @mjrobbins.

Getty
Show Hide image

Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation