Reputation laundering

One of the first uses of the phrase "reputation laundering" was in 1996, in the book The United Nations and Transnational Organized Crime, which defined it as "the process of acquiring respectability in a new environment".The United Nations and Transnational Organized Crime, p. 166, Phil Williams, Ernesto Ugo Savona, Psychology Press, 1996.{{Cite web |title=Google Books Ngram Viewer |url=https://books.google.com/ngrams/graph?content=reputation+laundering&year_start=1800&year_end=2019&case_insensitive=on&corpus=26&smoothing=3&direct_url=t1;,reputation%20laundering;,c0 |access-date=2022-11-11 |website=books.google.com |language=en}}

An early use of the phrase in mass media was in 2010, in a Guardian article headlined "PR firms make London world capital of reputation laundering", a report which focused on the use of public relations (PR) firms by heads of state (including Saudi Arabia, Rwanda, Kazakhstan, and Sri Lanka) to obscure human rights abuses and corruption.{{Cite web |date=2010-08-03 |title=PR firms make London world capital of reputation laundering |url=http://www.theguardian.com/media/2010/aug/03/london-public-relations-reputation-laundering |access-date=2022-11-11 |website=the Guardian |language=en}}

The phrase was in common use by 2016 when it was used by Transparency International in their report "Paradise Lost: Ending the UK's role as a safe haven for corrupt individuals, their allies and assets". In that report, they defined reputation laundering as "the process of concealing the corrupt actions, past or present, of an individual, government or corporate entity, and presenting their character and behaviour in a positive light."{{Cite web |title=Paradise Lost: Ending the UK's Role as a Safe Haven for Corrupt Individuals, Their Allies and Assets |url=https://www.transparency.org.uk/publications/paradise-lost |access-date=2022-11-11 |website=Transparency International UK |language=en}}

The phrase "reputation laundering" is a play on the older phrase "money laundering".

Reputation laundering includes activities such as:

• Using public relations companies
• Developing political connections to influence governments
• Hiring law firms to combat allegations related to past unethical conduct
• Donating to cultural, charitable, and educational organizations
• Sending children to elite schools
• Investing in prestigious sports teams
• Sponsoring major sporting or entertainment events
• Buying highly-visible luxury real estate
• Hiring consultants to enhance their image
• Establishing partnerships with museums or universities

Reputation laundering activities are sometimes delegated to professional public relations (PR) firms. Techniques employed by PR firms on behalf of the purportedly corrupt or criminal customers include fake social media accounts, blogs by fake personalities, or partisan op-eds.Media and Mass Atrocity: The Rwanda Genocide and Beyond Allan Thompson, p 509, 2019, McGill-Queen's Press. "So-called 'black' public relations (PR) firms have also played an important role as hired proxies for state-sponsored trolling attacks, notably Bahrain. These firms offer 'reputation laundering' services, which take many forms, including..."

The British public relations firm Bell Pottinger is noted for using PR techniques for reputation laundering, supporting clients such as Alexander Lukashenko, Bahrain, and the Pinochet Foundation.{{Cite web |date=2017-09-05 |title='Reputation laundering' is lucrative business for London PR firms |url=http://www.theguardian.com/media/2017/sep/05/reputation-laundering-is-lucrative-business-for-london-pr-firms |access-date=2022-11-11 |website=the Guardian |language=en}}

Public relations firms Havas, Publicis, and Qorvis were hired by Saudi Arabia to perform reputation laundering after 9/11 and the Assassination of Jamal Khashoggi.

{{main|Sportswashing}}

Involvement in professional sports, by sponsorship or ownership, is a prominent activity used for reputation laundering. Examples include the creation of Formula 1 car races in Qatar and Saudi Arabia,{{Cite web |date=2021-12-11 |title=Laundering Reputation: Gulf Countries and 'Sportwashing' - Berkeley Political Review |url=https://bpr.studentorg.berkeley.edu/2021/12/11/laundering-reputation-gulf-countries-and-sportwashing/ |access-date=2024-04-22 |language=en-US}} ownership of Chelsea F.C. by Roman Abramovich,{{Cite web |date=2022-03-02 |title=Unravelling of Roman Abramovich era leaves doubts at Chelsea and beyond {{!}} Barney Ronay |url=https://www.theguardian.com/football/blog/2022/mar/02/roman-abramovich-chelsea-uncertain-future |access-date=2022-11-24 |website=the Guardian |language=en}} and ownership of the Newcastle United football club by Saudi Arabian investors.{{Cite web |date=2021-10-08 |title=Saudi takeover of Newcastle leaves human rights to fog on the Tyne {{!}} David Conn |url=https://www.theguardian.com/football/blog/2021/oct/08/saudi-takeover-of-newcastle-leaves-human-rights-to-fog-on-the-tyne |access-date=2022-11-29 |website=the Guardian |language=en}}

Reputation laundering often involves charitable donations from the persons attempting to improve their reputation. One study found that Russian oligarchs had donated between $372 million and $435 million to charitable institutions in the United States.{{Cite web |last=Michel |first=Casey |date=2022-04-01 |title=How Russia's Oligarchs Laundered Their Reputations |url=https://nymag.com/intelligencer/2022/04/will-oligarchs-reputation-laundering-face-a-reckoning.html |access-date=2023-05-24 |website=Intelligencer |language=en-us}} Charities and non-profits that received funds, according to a database compiled by David Szakonyi and Casey Michel include MIT, Brandeis University, Mayo Clinic, John F. Kennedy Center for the Performing Arts, New York University, Brookings Institution, Harvard University, and the New York Museum of Modern Art.{{Cite web |date=2022-03-13 |title=To sanction Russian oligarchs, the first step is finding their money |url=https://www.nbcnews.com/politics/meet-the-press/sanction-russian-oligarchs-first-step-finding-their-money-n1291774 |access-date=2023-05-24 |website=NBC News |language=en}}

The Sackler family is particularly notable for its charitable donations that aim to repair their reputation, which was heavily damaged by their role in the opioid crisis. Since 2009, the family has donated over £170m to art institutions in the United Kingdom.{{Cite news |last=O’Hagan |first=Sean |date=2022-02-27 |title=Patrick Radden Keefe on exposing the Sackler family's links to the opioid crisis |language=en-GB |work=The Observer |url=https://www.theguardian.com/us-news/2022/feb/27/empire-of-pain-patrick-radden-keefe-sackler-opioid-crisis-oxycontin |access-date=2023-05-24 |issn=0029-7712}}

The family's philanthropy has been characterized as "reputation laundering" from profits acquired from the selling of opiates.{{cite web|url=https://www.newyorker.com/magazine/2017/10/30/the-family-that-built-an-empire-of-pain|title=New Yorker Sackler Article|date=October 23, 2017|publisher=newyorker.com|accessdate=October 17, 2018}}{{cite web|url=https://www.theguardian.com/commentisfree/2018/feb/16/sackler-family-blood-money-disgrace-museums|title=Sackler Blood Money disgraces museums|date=February 16, 2018|publisher=theguardian.com|accessdate=October 17, 2018}} The Sackler family name, as used in institutions which the family have donated to, saw increased scrutiny in the late 2010s over the family's association with OxyContin. David Crow, writing in the Financial Times, described the family name as "tainted" (cf. Tainted donors).{{cite news| url= https://www.ft.com/content/46ff5632-b1bd-11e8-99ca-68cf89602132| author=David Crow |title=What next for the Sacklers? A pharma dynasty under siege |newspaper=Financial Times |date =September 8, 2018 |accessdate=February 24, 2019}}{{cite web |url=https://www.propublica.org/article/richard-sackler-oxycontin-oxycodone-strength-conceal-from-doctors-sealed-testimony| author=David Armstrong| title=Sackler Embraced Plan to Conceal OxyContin's Strength From Doctors, Sealed Testimony Shows |publisher=ProPublica |date=February 21, 2019 |accessdate=February 27, 2019}} In March 2019, the National Portrait Gallery and the Tate galleries announced that they would not accept further donations from the family. This came after the American photographer Nan Goldin threatened to withdraw a planned retrospective of her work in the National Portrait Gallery if the gallery accepted a £1 million donation from a Sackler fund.{{cite news |title=Tate art galleries will no longer accept donations from the Sackler family |url=https://www.theguardian.com/artanddesign/2019/mar/21/tate-art-galleries-will-no-longer-accept-donations-from-the-sackler-family |accessdate=March 22, 2019 |newspaper=Guardian |date=March 22, 2019}}{{cite news |last=Walters |first=Joanna |title=Nan Goldin threatens London gallery boycott over £1m gift from Sackler fund |url=https://www.theguardian.com/artanddesign/2019/feb/16/nan-goldin-sackler-gift-oxycontin-national-portrait-gallery |accessdate=March 23, 2019 |newspaper=The Guardian}} In June 2019, NYU Langone Medical Center announced they will no longer be accepting donations from the Sacklers, and have since changed the name of the Sackler Institute of Graduate Biomedical Sciences to the Vilcek Institute of Graduate Biomedical Sciences.{{cite web |last=Youn |first=Soo |title=NYU Langone no longer accepting donations from the Sacklers, the family that owns OxyContin maker Purdue Pharma |url=https://abcnews.go.com/US/nyu-langone-longer-accepting-donations-sacklers-family-owns/story?id=63502900 |website=ABC News |accessdate=December 19, 2019}} Later in 2019, the American Museum of Natural History, and the Solomon R. Guggenheim Museum and Metropolitan Museum of Art in New York, each announced they will not accept future donations from any Sacklers that were involved in Purdue Pharma.{{cite news|last=Harris|first=Elizabeth A.|date=May 15, 2019|accessdate=May 17, 2019|title=The Met Will Turn Down Sackler Money Amid Fury Over the Opioid Crisis|url=https://www.nytimes.com/2019/05/15/arts/design/met-museum-sackler-opioids.html|newspaper=The New York Times}} In 2022, the British Museum announced that it would rename the Raymond and Beverly Sackler Rooms and the Raymond and Beverly Sackler Wing, as part of "development of the new masterplan", and that it "made this decision together through collaborative discussions" with the Sackler Foundation.{{cite web |last=Cascone |first=Sarah |title=The British Museum Drops the Sackler Name From Its Galleries, Joining a Growing Flood of Institutions Cutting Ties With the Family |url=https://news.artnet.com/art-world/british-museum-ditches-the-sackler-name-2090153 |website=Artnet News |access-date=25 March 2022 |date=25 March 2022}} Prior to the collapse of his cryptocurrency exchange, FTX, entrepreneur Sam Bankman-Fried did not have known wrong doing to launder, but is alleged to have used (among other means) "a value system of utilitarian idealism ... not orientated toward money"{{emdash}}for example promising to give away 99 percent of his fortune{{cite news |last=Kim |first=Whizy |title=Sam Bankman-Fried's arrest is the culmination of an epic flameout |url=https://www.vox.com/the-goods/23458837/sam-bankman-fried-ftx-sbf-downfall-explained |access-date=23 January 2023 |agency=Vox |date=22 December 2022}}{{emdash}}which led to investors letting "down their due diligence guard."{{cite news |last=Helmore |first=Edward |title=Fraud, cons and Ponzi schemes: did Sam Bankman-Fried use Madoff tactics? |url=https://www.theguardian.com/business/2022/dec/17/sam-bankman-fried-bernie-madoff-fraud-ftx |access-date=23 January 2023 |agency=The Guardian |date=17 December 2022}}

Alex Shephard, writing in the New Republic, asserts that general Mark Milley{{emdash}}chairman of the Joint Chiefs of Staff{{emdash}}engaged in self-beneficial reputation laundering when he acted as a primary source for news media, providing media with inside accounts of events in the Trump White House. {{Cite magazine |last1=Shephard |first1=Alex |last2=Tomasky |first2=Michael |last3=Tomasky |first3=Michael |last4=Grant |first4=Melissa Gira |last5=Grant |first5=Melissa Gira |last6=Shapiro |first6=Walter |last7=Shapiro |first7=Walter |last8=Tannehill |first8=Brynn |last9=Tannehill |first9=Brynn |date=2021-07-16 |title=The Generals Won't Save Democracy |magazine=The New Republic |url=https://newrepublic.com/article/162994/generals-wont-save-democracy |access-date=2023-05-24 |issn=0028-6583}} Milley's intention, according to some analysts, was to prompt major media outlets to rehabilitate his reputation (tainted by the association with the Trump administration) and in exchange, Milley provided insider information to the media.{{Cite web |last=Allsop |first=Jon |title=On Mark Milley, Stephanie Grisham, reputation laundering, and complicity |url=https://www.cjr.org/the_media_today/milley_grisham_books_trump.php |access-date=2023-05-24 |website=Columbia Journalism Review |language=en}}

Arwa Mahdawi, columnist for The Guardian, characterized Rudy Giuliani's appearance on The Masked Singer as reputation laundering. {{Cite news |last=Mahdawi |first=Arwa |date=2022-02-05 |title=Lied and need your reputation laundered? Just go on a reality TV show |language=en-GB |work=The Guardian |url=https://www.theguardian.com/commentisfree/2022/feb/05/rudy-giuliani-the-masked-singer-week-in-patriarchy |access-date=2023-05-24 |issn=0261-3077}}

The United Kingdom government generated a report in 2020, analyzing the activities of Russian oligarchs in the United Kingdom.{{Cite web |date=2020-07-21 |title=Government response to Intelligence and Security Committee Russia Report |url=https://www.gov.uk/government/publications/government-response-to-intelligence-and-security-committee-russia-report |access-date=2023-05-24 |website=GOV.UK |language=en}} The report states that the oligarchs had been "extending patronage and building influence across a wide sphere of the British establishment" and had employed public relations firms that were "willing beneficiaries, contributing to a ‘reputation laundering' process". {{Cite news |last=Thomas |first=Daniel |date=2022-05-04 |title=British accountants and PR firms told to cut Russia ties |work=Financial Times |url=https://www.ft.com/content/f79e55e7-dd07-4fab-b7b8-fa2991a4c4d0 |access-date=2023-05-24}}

A notable example of Russian oligarchs participating in reputation laundering is Viatcheslav Moshe Kantor, who donated £9 million to King Edward VII's Hospital, a facility used by the UK royal family and patronized by the queen. The donation came under scrutiny after Kantor was placed under sanctions during the 2022 invasion of Ukraine, and the hospital removed Kantor's name from a wing of the hospital.{{Cite news |date=2022-04-23 |title=Inquiry Into Oligarch's Charity Which Donated to Royal Hospital |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-04-23/inquiry-into-oligarch-s-charity-which-donated-to-royal-hospital |access-date=2023-05-24}}

According to the National Endowment for Democracy, kleptocrats from former Portuguese colony Angola used Portugal as a base to engage in reputation laundering. In particular, Isabel dos Santos, the billionaire daughter of Angola’s president, was alleged to engage in reputation laundering. Examples of reputation laundering by Angolese aristocrats included participation in high-profile social events, and promoting philanthropic endeavors."Waking up to Reputation Laundering as a Mechanism for Transnational Kleptocracy" Melissa Aten, John Glenn (editors) March 2022, National Endowment for Democracy, https://www.ned.org/wp-content/uploads/2022/03/Global-Insights-Waking-up-to-Reputation-Laundering-as-a-Mechanism-for-Transnational-Kleptocracy.pdf

According to the National Endowment for Democracy, aristocrats of United Arab Emirates engaged in reputation laundering when they established a partnership with France's Louvre museum, and created the Louvre Abu Dhabi.

{{main|Qorvis#Saudi Arabia}}

The public relations firm Qorvis was hired by Saudi Arabia to improve its image in the wake of the September 11 attacks, paying the company $14.7 million between March and September 2002.{{cite news|last=Gerstein|first=Josh|title=P.R. Effort By Saudis Sparks Justice Probe|url=http://www.nysun.com/foreign/pr-effort-by-saudis-sparks-justice-probe/6502/|access-date=December 8, 2011|newspaper=The New York Sun|date=December 20, 2004}} Qorvis engaged in a PR frenzy that publicized the "9/11 Commission finding that there was 'no evidence that the Saudi government as an institution or senior Saudi officials individually funded Al Qaeda, while omitting the report's conclusion that 'Saudi Arabia has been a problematic ally in combating Islamic extremism.'"{{cite news|last=Kurlantzick|first=Joshua|title=Putting Lipstick on a Dictator|publisher=Mother Jones|date=May 7, 2007|url=https://www.motherjones.com/news/outfront/2007/05/extreme_makeover.html|access-date=August 22, 2007}}{{cite news|last=Shenon|first=Philip|title=Saudis Face New Problem With Publicity|url=https://www.nytimes.com/2002/12/05/business/saudis-face-new-problem-with-publicity.html|access-date=December 8, 2011|newspaper=The New York Times|date=December 5, 2002}} Petruzzello told The Washington Post that the work was not about "lobbying" but "educating" the public and policy makers.{{cite news|title=Saudi Arabia a 'Fascinating Client' for Qorvis|author=Judy Sarasohn|newspaper=The Washington Post|date=March 21, 2002}}

Qorvis also had lead role in shaping media coverage of the widely criticized Saudi-led attack on Yemen of 2015. This included the creation of the website operationrenewalofhope.com and helping Saudi officials gain access to US media.{{Cite web|url = https://theintercept.com/2015/12/01/inside-saudi-charm-campaign/|title = Inside Saudi Arabia's Campaign to Charm American Policymakers and Journalists|date = December 1, 2015|access-date = December 2, 2015|website = The Intercept|last = Fang|first = Lee}} One example of the latter is a Newsweek article in which the Saudi foreign minister claims that, far from "supporting violent extremism", his country has actually shown "leadership in combating terrorism".{{Cite web|title = The Saudis are fighting terrorism, don't believe otherwise|url = http://europe.newsweek.com/saudis-are-fighting-terrorism-dont-believe-otherwise-422710|website = Newsweek|access-date = February 8, 2016|date = February 3, 2016|last = Abel bin Ahmed al-Dubeir}}

Qorvis has also been employed by Saudi Arabia to repair its image and reputation following the Kingdom's assassination of journalist Jamal Khashoggi, receiving $18.8 million from October 2018 through July 2019{{cite news |first1=Beth |last1=Reinhard |first2=Jonathan |last2=O'Connell |first3=Tom |last3=Hamburger |title=In the aftermath of Khashoggi's killing, Saudi influence machine whirs on in Washington |url=https://www.washingtonpost.com/investigations/in-the-aftermath-of-khashoggis-murder-saudi-influence-machine-whirs-on-in-washington/2019/07/09/c6da2d86-9683-11e9-a027-c571fd3d394d_story.html |access-date=July 17, 2019 |newspaper=The Washington Post |date=July 10, 2019}} and signing three additional contracts with the Kingdom in spring 2019.{{cite web |last1=Ahmed |first1=Akbar Shahid |title=Khashoggi's Murder Should Have Made Saudi Arabia A Pariah. 7 Men Made Sure That Didn't Happen. |url=https://www.huffpost.com/entry/saudi-seven-khashoggi_n_5d975e49e4b02911e11a38b1 |publisher=HuffPost |access-date=October 9, 2019 |date=October 9, 2019}}

• Corporate sociopolitical activism
• Ethics of philanthropy#Tainted donors
• Greenwashing
• Money laundering
• Reputation management

{{Reflist}}

• "Waking up to Reputation Laundering as a Mechanism for Transnational Kleptocracy" Melissa Aten, John Glenn (editors) March 2022, National Endowment for Democracy, https://www.ned.org/wp-content/uploads/2022/03/Global-Insights-Waking-up-to-Reputation-Laundering-as-a-Mechanism-for-Transnational-Kleptocracy.pdf

• "On Mark Milley, Stephanie Grisham, reputation laundering, and complicity", Jon Allsop, 29 September 2021, Columbia Journalism Review, https://www.cjr.org/the_media_today/milley_grisham_books_trump.php

• "'Reputation laundering' is lucrative business for London PR firms", Mark Sweney, 5 Sep 2017, The Guardian, https://www.theguardian.com/media/2017/sep/05/reputation-laundering-is-lucrative-business-for-london-pr-firms

• "'It's shameful': Russian-linked billionaires have given enormous sums of money to the West's leading educational and cultural institutions", Majlie de Puy Kamp and Isabelle Chapman, 11 May 2022 CNN, https://www.cnn.com/2022/05/11/us/russian-oligarchs-philanthropy-ukraine-war-invs/index.html

• "The Reputation-Laundering Firm That Ruined Its Own Reputation", Ed Caesar, June 25, 2018 New Yorker Magazine, https://www.newyorker.com/magazine/2018/06/25/the-reputation-laundering-firm-that-ruined-its-own-reputation

• "How Russia's Oligarchs Laundered Their Reputations in the West", Casey Michel, Apr. 1, 2022, New York Magazine, https://nymag.com/intelligencer/2022/04/will-oligarchs-reputation-laundering-face-a-reckoning.html

• "British accountants and PR firms told to cut Russia ties", Daniel Thomas, 4 May 2022, The Financial Times, https://www.ft.com/content/f79e55e7-dd07-4fab-b7b8-fa2991a4c4d0

• "Inquiry Into Oligarch's Charity Which Donated to Royal Hospital", William Janes, April 23, 2022, Bloomberg News, https://www.bloomberg.com/news/articles/2022-04-23/inquiry-into-oligarch-s-charity-which-donated-to-royal-hospital

• "Lied and need your reputation laundered? Just go on a reality TV show", Arwa Mahdawi, 5 Feb 2022, The Guardian, https://www.theguardian.com/commentisfree/2022/feb/05/rudy-giuliani-the-masked-singer-week-in-patriarchy

• "Patrick Radden Keefe on exposing the Sackler family's links to the opioid crisis", Sean O'Hagan, 27 Feb 2022, The Guardian, https://www.theguardian.com/us-news/2022/feb/27/empire-of-pain-patrick-radden-keefe-sackler-opioid-crisis-oxycontin

• Empire of Pain, Patrick Radden Keefe, April 13, 2021, Doubleday, ISBN 978-0-385-54568-6

• {{Cite Q | Q120561805

}}

Category:Reputation management

Category:Public relations techniques