Brad Banducci has this morning stepped down as Woolworths CEO following a heated exchange with an ABC journalist who refused to exclude comments that Banducci made on the record in an investigation into the supermarket giant’s pricing practices.
The phrase “off/on the record” is such a well-known piece of journalism jargon that most punters (or dear readers, in your case) are aware of it.
At the risk of navel-gazing, many a journalist will have an anecdote from being at a dinner party, divulging what they do for a living, and being playfully asked to not report on the scandalous hijinks of Karen from accounts at Anonymous Megacorp Inc.
Indeed, ABC’s Four Corners this week highlighted the chasm between how the general public understands “the record” to work, and how the media does.
In an interview with ABC journalist Angus Grigg, the then Woolworths CEO Banducci referred to former ACCC chair Rod Sims as “retired”, an apparent shot at Sims’ qualifications to remark on Woolworths’ actions concerning competition law. Banducci’s immediate regret turned to anger after his subsequent request to have the remark edited out was denied by a resolute Grigg, who insisted that it was “on the record”.
“You said it, let’s just move on,” said Grigg. Banducci protested about good faith and walked out on the interview, before being persuaded to return by Woolworths’ PR staff.
Banducci retired on Wednesday morning, just two days after the interview aired. The announcement came that Banducci would leave the company in September, to be replaced by WooliesX digital head Amanda Bardwell, as the supermarket giant announced its latest profit results, 2.5% rise in half-year profit to $929 million (excluding one-off writedowns in the value of its New Zealand, alcohol and hotels operations).
The idea of what “on the record” means is nebulous, and in many instances can mean different things to different journalists. The Media, Entertainment and Arts Alliance is the peak union body for journalists, and its code of ethics states that journalists should “aim to attribute information to its source”.
“Where a source seeks anonymity, do not agree without first considering the source’s motives and any alternative attributable source,” the code states. “Where confidences are accepted, respect them in all circumstances.”
Associate Professor Johan Lidberg, the head of journalism at Monash University’s school of media, film and journalism, says the idea of what the record is means different things to different people because “there are no hard and fast rules”.
Lidberg told Crikey that as a “default point”, reporters should aim for everything to be on the record, and where a source requests otherwise, it should be agreed to in advance and not without consideration of the source’s motives.
Lidberg said Banducci’s behaviour in the Four Corners interview was “amateurish and unprofessional”.
“[Angus Grigg] was absolutely right — it’s an on-the-record, recorded interview,” he said. “The CEO has no right or scope to ask for things to be taken out.”
The question of what the record is, and when journalists can go off the record, is also raised often in the political sphere, with the practice of “backgrounding”.
Sources giving information “on background”, while not limited to politics, is common with media advisers who aren’t necessarily authorised to act as spokespeople on an issue but who are tasked with expediently getting stories into the public record, according to Alexandra Wake, associate professor at RMIT’s school of media and communication.
Wake said these rules of engagement are well-known in the political world.
“Working in the political sphere, you have to take background information from a range of politicians, advisors and departmental officials, and they’ll never put their name to anything. Everyone in that realm knows that,” Wake told Crikey.
This issue came to the fore in 2007 when former treasurer Peter Costello accused three journalists of breaching an understanding that comments made at a 2005 dinner were off the record.
Tony Wright, Michael Brissenden and Paul Daley were allegedly told over dinner that Costello threatened to “destroy” then prime minister John Howard’s leadership ahead of the 2007 election to launch his own leadership challenge.
Retroactively, Wright told ABC Radio two and a half years later that he regretted not writing the story at the time, but that eventually publishing was “simply putting on the record what [Costello] says he never said”.
Wake says the rules of engagement change in scenarios such as these, and that in her view, if a source were to lie about an off-record conversation, “all bets are off”.
“If someone goes out and lies about [the contents of an off-record conversation] later, I think that does change the rules of engagement,” she said.
Wake said the Four Corners episode demonstrated an increasing “lack of understanding by PR people, media people and marketing people of the role and value and importance of journalism.”
“The CEO clearly needed better media preparation. That was a failure of his PR team, rather than the journalist.
“[This incident is] one good reason why PR people should learn about journalism. Just because you said something you don’t like, doesn’t mean you get to take it back.”
What are your thoughts on Banducci’s resignation? Let us know by writing to letters@crikey.com.au. Please include your full name to be considered for publication. We reserve the right to edit for length and clarity.
it’s utterly absurd to suggest that the Head of PR/Media for a retail-facing ASX20 doesn’t know Journalism 101, and that Banducci was let down by his PR team’s ignorance of the meaning of “on the record”
as any PR who has worked with a big cap CEO can attest – you can lead the horse to water, but you can’t make it drink
sure, Woolies head of PR may not have had the necessary gravitas to persuade Banducci to heed his/her advice – but i guarantee that he only has his arrogance to blame
Apparently, this Banducci character was/is on a salary of over 7 million dollars per annum. The neo-liberal/free marketeers who support this kind of capitalist racketeering claim that “market forces demand that such high salaries be paid so that business attracts the highest quality applicants”. Really?? If that performance I witnessed from him while watching 4-Corners on Monday night warranted that kind of remuneration I will ‘bare my rear end in Pitt Street’. I also wonder how much he will walk away with when he finally goes in September (that is if he actually lasts that long). Remember who pays for this lavish salary; it is us consumers and the suppliers who are squeezed by these large corporations and let’s not forget the average staff member who is paid an absolute pittance in comparison.
We have also seen just how “good” some of these business executives who are paid equally outrageous salaries, were in the past. The examples of certain airline, banking and casino industry executives immediately spring to mind.
And don’t be so naive as to expect any meaningful change in the modus operandi of this (or any other) company when a new CEO is appointed. It will be “business as usual” (with perhaps a bit of smoke and mirrors around the edges to create the impression that things have changed). These business moguls have more tricks up their sleeve than Mandrake the Magician.
There will be no change in the way Woolies operates under a new CEO, same as Qantas. New CEO, same old processes.
RBA Aus Post
Whatever, peasant – nothing that you or any of the other plebs have to say matters a damn.
I’d love to know what basis the downvoter has to disagree…
Where is there any indication that egalitarianism and democracy aren’t empty lies?
The ruling class spit in our faces every day, and wipe their 4rses on all the facts pertaining to the common good.
do not fret Kimmo – its a nong troll with tickets on they selves
Hi Kimmo,
I think that the downvoter may have misunderstood your comment. (I have removed the downvote to set the record straight!) They might have thought you were serious. I think that I know you well enough to know that it was not meant that way.
Your subsequent comment clearly reveals your real views on the whole disaster. And I totally agree with those views.
You are right. The powers that be completely ignore us unless we do something that really gets under their skin, then “all hell breaks loose”. I am sure that Julian Assange would be more than happy to confirm that conjecture.
Remind me not to go wandering up Pitt St in the near future, Robert!
A wise move Rob, it wouldn’t be a pretty site!!
“The CEO clearly needed better media preparation. That was a failure of his PR team” hahahahahaha can’t stop laughing at the corporate version of dog ate my homework.
The many excuses are remarkable and not just for on/off the record conversations with CEOs.
I am 82 and this morning shopped at my local Colesworth. Many of the fruit and veg shelves were empty and others had low levels of stock. Commented about this to two strangers – women also in their 80s and we had all watched 4 Corners on Monday evening (right in the middle of the ABC’s viewer demographic, we are!).
One told me the hilarious story of a friend’s recent experience. Helping out a family member catering for a large gathering the friend had selected 10 cartons of dip from the deli aisle. Store manager would only let her buy five cartons – he feared she might be “money-laundering.
It’s not just the CEOs who don’t know what they’re talking about. The store managers are obviously in training and learning the content-free phrases early. Quite Orwellian!
And before consumers ( us plebs) rush to serve yourself self checkout to profit corp data logistics models we might think about that cost to jobs ; okder women often stuck in worst store roles irrespective of womens’ skills and post graduate higher education and longer sales service experience notwithstanding – nuh the worst jobs whilst being profiled. I would break up the duolpoly in everything if these neo livs really believe in a so called free market ! Free trade means free money for parasites
Imagine being that helpless as a CEO that you have to cry out into the night for your PR team. That you sit down with Four Corners reporter with cameras rolling and then you start wondering what is on the record. Four Corners should interview all the CEO’s of our top 100 companies and see how many other stunned mullets are out there running the place.
I’m not buying the story that this retirement has anything to do with Monday night’s “Prince Andrew Tribute” interview.
The announcement comes on the same day as the announcement of half year results, a conventional opportunity to announce staff changes and corporate actions, and the media release proclaims that “…following an extensive international search process supported by external consultants, [the board] are thrilled …”
“Thrilled” is an odd word, but perhaps the board have VIP tickets to Taylor Swift and thought they’d mention their elation. But I suspect they’re sincere about the “extensive international search”. It usually takes more than 36 hours to complete one of them, At worst the process had completed anyway and the announcement was brought forward.
Wouldn’t surprise me. Poorly handled (previously decided) resignation announcement following an equally poorly handled interview…