In the current environment of corporate misdeeds and nondisclosure, the public yearns for honesty, truthfulness, integrity and open communications. In absence of these attributes, assumptions are drawn and beliefs are formed based on appearances. For example, the public often assumes that oil and gas companies have a value system nurtured by greed and power. How else could one explain the exorbitant prices charged at the gas pump? It's no wonder negative perceptions exist; the industry image the public often sees is one littered with a history of corporate malfeasance, from Exxon's Valdez to Enron's accounting debacle.

This lack of communication attributed to the energy industry has masked the facts, and miscommunication by special interest groups has disguised the truth. If the energy industry were to transform its efforts from reactive lobbying to improving its public image, it could circumvent a great deal of negative campaigning and ridicule. For a combative strategy, the industry might consider adopting a policy of open communication, detailing energy's value to society and educating the general public.

Historically, the energy industry has consistently contributed to society in a positive manner. However, it has failed to communicate in a proactive and unified voice. The industry has not established a platform to educate and inform Americans of its achievements and accomplishments. The industry should promote its contributions, technological developments and implementation of good business practices. Then, Americans may appreciate that they pay substantially less at the gasoline pumps than our acquaintances in Europe and Asia. In addition, energy companies should promote the developments that have increased global standards of living. Petroleum provides variations of plastics and other materials used in everyday conveniences and in medical devices that prolong human life. And, fertilizers manufactured from natural resources have contributed to high agricultural yields, producing food for millions of people around the world.

A possible solution to the current image problem could be the introduction of an ambassador, one who would take control and lead a coalition towards a campaign of positive public relations. For example, thousands of jobs have been created, both directly and indirectly, by the industry, as well as billions of dollars paid via taxes into the state and federal coffers. The ambassador needs to convey how much time and effort employees contribute to the community, the commitment by both executives and employees to adhere to high ethical standards and, finally, make assurances that the industry is concerned about protecting the environment. If and when a mistake is made, the industry needs to readily admit the mistake, apologize and advocate proactive measures to correct the occurrence and mitigate the consequences.

This ambassador must stand by his or her convictions and be willing to rebuke his or her adversaries, establish the benchmark for ethical business conduct that others will aspire to achieve, and conduct a strong campaign without fear of liability concerns. As this great nation moves forward and becomes more dependent on foreign suppliers, the industry must act quickly so that we may operate in a global world and continue to strive for unity. What is the other alternative? To let the public assumptions and accusations about the energy industry continue, letting perception have the last word.

Mark Baxter, mabaxter@mail.cox.smu.edu, is director of the Maguire Energy
Institute at SMU Cox School of Business in Dallas, Texas.

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