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The Earth Times | Posted February 22, 2002



Business

Meeting Howard J. Rubenstein
> BY PRANAY GUPTE
Copyright © 2002 by The Earth Times. All rights reserved
What makes New York work?

New York works, turning seeming confusion into a fairly well run city thanks to the enthusiasm and the dedication and conviction of so many leaders here in our city. They have a common purpose--and that's to keep New York City a world capital. You can see how this plays out in the different key New York industries--real estate, banking and finance, the arts, and leisure. In each sector, somebody rises to the top and leads the group toward excellence. When they work together, New York works. When they haven't worked together, New York has run into crisis.

How would you define influence and power?

Influence and power really rest on the ability of an individual, or a group, to make a difference, to affect policy--and to bring about change.

Would you say that, on a per-capita basis, that New York has more "powerful people of influence" than any other city?

New York has one of the most powerful groupings of people internationally, for several reasons. First, it's an international city. Secondly, it's the media capital of the world so that anybody can magnify his or her--or their organization's--position to achieve a level of intense media coverage that you won't have access to in a small city. We're the financial capital of the world. And on account of that, all of the financial news flows out from here worldwide. We're the cultural capital. From that status too, you generate enormous coverage. So the advantage that a person of power or influence has in New York certainly is the advantage of massive potential media exposure. And the media exposure is global now. It wasn't always that way. Anything here travels worldwide instantaneously.

Is there a special New York characteristic to wielding the levers of power?

New Yorkers are always thought to be more aggressive than individuals in many other cities internationally and here in the United States. Very focused. Very purposeful. Willing to deal with people of all cultures because that's what we are here--from all races, and creeds, and cultures. So New Yorkers might have a broader vantage point on the wielding of power, a global view, and that in itself is empowering.

After Sept. 11, is there more of a consciousness brought of the power of the city and its vulnerability?

Certainly, for the first time, I think, we realized how vulnerable we are. But something else surfaced. Our strength. And our dedication to the cause of making New York come back. People from all walks of life, every economic level, rose to the challenge that the terrorists gave us. And together, really together, we have been working to resurrect New York psychologically, economically and spiritually. The first day people looked at the event as a terrible calamity, which it was and is. The second day, and thereafter, we rose with courage to fight back. I think America and the world realized that. The outpouring of affection for New York, and support for New York, was unmatched. I've never seen that before. And it's unfortunate that such a massive tragedy was the occasion to throw the magnifying glass on our strength, strength that we always had.

When you look at your own career, and your own style, what has placed you in that unique position where you wield formidable influence yourself and yet are personally modest about your accomplishments?

I guess it started with my parents. They always lectured me to be modest- and to never take apparent success as something that you should boast about. So whatever measure of success I've had, I try not to project it or boast about it. I think boasting is improper. People trust me, I guess, after all these years. I have a credo. And that credo is that you have to base everything you do on integrity. You have to ask yourself: "What's the right thing to do?" Then you have to have a basic knowledge of the functioning of government, the functioning of our city and of our economy. You must have that.

But there has to be something more than just knowledge of the city and its communities?

Yes--and that's a love for the city. I love the city. I've spent all of my days here in New York and so I'm dedicated to it. And I think people understand that after many years of dealing with me. I also believe that you have to have creativity. You can't just accept everything around you without adding something new, or something dynamic to the mix. And I try to do that. You have to be loyal. If you are a will-o'-the-wisp on loyalty, people will not trust you. And I draw the line. I will remain loyal to a person who is honorable--and who has either worked with me or helped me in some way. I will return that loyalty. Some people don't. You also should be collegial. I really don't function on the negative side of the street. I don't attack people. I don't smear people. I'm not anxious to hurt people and I don't. I'll defend somebody in a crisis, but I won't hurt somebody during that defense. I avoid the negative aspects of public relations.

What about when people attack you?

I avoid personal vendettas, or vindictiveness. If somebody says something concerning either my clients or myself that is personal in nature, I'll first decide whether it's something I want to respond to. If I do answer, I'll answer factually. I will let my reputation speak for itself. I've found that that has proven of value to me. I won't resort to negative tactics and retaliation because someone else is negative. I just won't do that.

And yet, success couldn't only be obtained by just being the nice guy in a hard-knuckled city like New York?

Sure this is a hard-knuckle city--and when I need it I have steel in my spine. And I can stand up, and do stand up, for a client under attack. But that doesn't mean you have to be personally vindictive. That means you have to be aggressive in telling a positive story for your client. I will take on any tough challenge knowing that if I tell the truth, and if the client projects the truth, we have a really good chance of winning. Yes, this is a tough city and to make it here you have to be persistent, you have to be strong-willed, but you have to be honest. If you are not honest in New York, because of the scrutiny afforded or given by media, you won't last a long time. The person who treads on the line of integrity--but on the wrong side of the line--sooner or later is exposed. You can't afford that. It's good business to be honest.

What is New York?

New York is a mosaic. It's a mosaic that forms a wonderful pattern if you stand back and look at the texture of it, the color of it, the motion of it. So what's happened in recent years--after Crown Heights, after the riots in our streets during the John Lindsay administration, somehow people of goodwill have come together and said: "Let's talk and let's try to work it out and let's try to avoid those conflicts." So today you find that the Asian community is seeking to be integrated here far more than they've ever been. The African American community, the Hispanic community--there's dozens of communities that now, for the first time--just in the last 10 years--have been seeking out other communities and saying, "We're Americans and we're New Yorkers and what can we do together?" There are dramatic changes in attitude here and it's working. It's a far better town today than it was in my early days in business. Back then people were suspicious of each other. When minorities would move into the community, they'd say, "Oh my God, they're going to burn the place down. They're going to lower our property values." Quite the contrary, the minorities here have purchasing power, they supply our labor force, they're brilliant students, and they do everything to generate an exciting New York. And that's the reason for our success: We welcome diversity, we don't challenge diversity. That's what I love about the city.

What is your recipe for dealing with foreign clients?

First, you really have to understand the nuances of the foreign client's problems. We're active in the UK and in Russia. And we've been very active in South America and China. Also, Germany--we've had clients all over the world. And since globalization has started to take hold, there's a unifying thread of communications that exist. The most traditionally isolated countries, like China, are not isolated any more. The first step is to study the problem that a client has, both in their own country and in the international arena. You need to spend time with the client. I find that most of our foreign clients are interested in the US-based media. They know that if they can tell their story here it will travel worldwide. You have to be sensitive to their needs but also sensitive to the US media's need for independence, the devotion to freedom of speech. A few years ago the People's Republic of China retained us to do a cultural exhibit promotion and help arrange it at the Javits Center. It was enormously successful in their minds because not only did Chinese-Americans visit, but tens of thousands of others came and "discovered" China. Chinese officials were willing to answer some very difficult questions at the news conferences that we ran. And I found that very refreshing.

Is there a New York style that you bring to international communications that is getting to be very clearly perceived as such?

Some people don't think my style is a New York style. Some people think the New York style is brashness, aggressiveness, loud-mouthed. But there also is a New York style of being conciliatory, understanding, soft-spoken with a strong will to accomplish a goal without sacrificing ethical standards. That's my New York style. But when you read stories about New Yorkers pushing people away from taxicabs and jumping in, or jumping lines and getting in front of people, or screaming at ball games or doing things that might not seem so gentle, that's also New York. New York is tough. And New York is an aggressive place. But I think to succeed in New York you really also should have a sensibility about respecting other people. If you don't respect other people, the fabric that makes up New York society would break apart. I bring that sense of people working together to the table when I'm trying to negotiate or deal with conflicting personalities and issues. There usually is a common ground that the worst of enemies can seek out, probably after they've damaged themselves in some way. That's what I try and help them do--seek out the middle ground.

What will it take for New York to continue to be the corporate capital of the world?

I think we have to project a sense of safety for New York's corporations and international corporations for them to want to settle in New York and stay here. Former Mayor Giuliani did a remarkable job in creating a safe environment. It was pervasive. And Mayor Bloomberg is doing the same thing. Now, he's already started on quality-of-life issues. I think that's essential. Secondly, we have to welcome talent here. We have to let it be known that New York encourages talent from our universities and from other places. We have to look at the available housing and the available office space and be able to show that it's affordable. If we price ourselves out of the marketplace, the corporations will look to surrounding states--and perhaps, with technology the way it is, they might not even come to the Northeast. They can be anywhere. We have to minimize our taxation. We have to look at taxation and not try to solve our economic problems by raising taxes. I think that will be essential. I think the city has to openly support businesses here. Give them incentives to come and stay. Mayor Bloomberg must sustain an environment that says, "Come to New York, we'll help you." They're already saying, "We're open for business," but it has to go beyond that. They have to say we're going to improve--everything from our public education system to transportation to housing. And we must welcome new ideas, new people, and continue to encourage diversity.

What about New York as the media capital of the world?

We must make sure we don't lose our media base--it's really going to be important that we encourage major media entities to stay here and expand. Some of the media companies have moved some of their employees out of New York. I think we have to pay attention to that. And I think the city and state together have to give incentives to media to stay here. We can't be discouraged. We can't wring our hands and beg for help from the federal government and other sources. We have to present factual arguments if we seek financial help. Corporations want our city to be run as a business. And I am quite convinced that Mayor Bloomberg will run it as a business with a human heart, with a human concern.

If Mayor Bloomberg asked you to create an international campaign to get international cooperation in this time of globalization, what would be your advice?

I think that the new mayor needs to cope with our fiscal crisis. We're heading into a massive deficit--he's got to explain that both locally and internationally. He's got to make clear that here's a city that can fight back and triumph. Once that is in hand, I would have the mayor travel to the major media centers of the world over the course of his four--perhaps eight- years, taking with him business leaders. Perhaps taking the governor with him. And I would do a road show, like any business that's going public might do. And I would sell the idea that New York wants you and here's what we offer. Sure, they know we're here. But we have to tell them we're here and show them why we could be of value to them. I would schedule such trips perhaps three times a year and suggest that Mayor Bloomberg charter a large plane, put 20 or 30 of the people on it who have enormously powerful names--the Rockefellers, the Tishmans, the Tisches and the Speyers and people from Crain's and people from Wall Street--and do a global business tour. In each place, in each location, the group would meet the mayor, meet the governor, and throw the welcome mat out without being threatening to them. I would spend a great deal of time going through Western Europe. I would go across the world seeking to attract businesses to do their business here. The slogan can't just be "I Love New York." It might be "I Need New York."

What's your advice to corporations regarding good corporate governance and social consciousness?

Good corporate governance and social consciousness are not vague issues or meaningless words that a corporation can hold up as a fig leaf. My advice to corporations is to make their sense of responsibility real. To make it part of their environment. I think it's important for a corporation to dedicate itself to excellence in service and in the quality of the products they turn out. Too often you'll see a company try to shortcut. Maximize products through minimizing the service. I think they ought to go in the other direction now. I think they ought to try to hold down the expense of their service and try to provide the best possible product. I also think the corporations ought to provide active and proactive leadership in supporting their community. They should encourage their executives and workers to be active in their own communities at every level. Maybe at the school board level. Maybe on a citywide level. Maybe through a big charity. If they make that sense of responsibility part of the corporate culture, that helps the corporation as well as the community.

What about within the corporation itself?

I think they have to send the message of unyielding ethics out to all the people working for them. Too often somebody down the pecking order of a corporation will think, "Well, if I'm successful by manipulating my financial statements . "--you see that with some major corporations facing difficulty now. They think that's what top management desires. Top management has to send the message: We're drawing a line in the sand with unyielding ethics--and don't you cross that line. That will help the corporation. That doesn't hinder a corporation. I think corporations have to show respect for their employees at every level. Too often they treat the entry-level employees or the secretarial and mailroom people with a lack of respect. I think the same respect you give to the boss you ought to give to every employee in your organization.

What about communications?

I think they have to spend time on communicating their ideas to the publics they deal with, to the employees, to all their audiences. Don't bring down the Venetian blinds and say, "Nobody should look in." I think visibility, transparency, is important now in today's environment. Integrity--fiscal integrity--is a very great part of that. I think they should motivate their staff with their vision. They should promote their vision to the people working for them and analyzing them, saying, "Well, here's the vision of where we want to be five years from now. Ten years from now. Here's what we want to be in our community. Here's what we want to be globally." Then they have a goal. Not just making money. Making money shouldn't be the only goal or the prime goal.

Will such a strategy enable corporations to make more money?

What I've found with corporations is, if they follow some of these things aggressively and intelligently, they will make money. If they see the changes in the marketplace and roll with those changes, they will make money. They just can't be rigid in their approach to those problems. They have to demonstrate their willingness to grow, to change and anticipate the future. If they don't do that, I think many of them will be outmoded and you'll see they'll be acquired and shut down. Certainly in my field you've seen that. You really have to change. In advertising you've seen that. In the conglomeration of media companies, you see that all time. So, you must ask what's the right thing to do and then you must do it. Media, as you grow, will watch what you do and report on what you do, good or bad. Largely the bad. If you do something that's inappropriate and you're on the rise and important in the community, that activity will be exposed.

How should corporations be dealing with those who feel that globalization has simply left too many people behind?

Corporations have to recognize that globalization, to some extent, has left some people behind. However, it's a great opportunity to raise the standards of living all over the world. It's a great opportunity for a bigger marketplace to be created. The free flow of ideas and products globally in the long run, and in the short run too, will bring jobs, will bring money, will bring education, will bring enthusiasm, will bring health. Putting up barriers is really a throwback to economic isolationism, which can't work. I don't think there's a choice. I think people who fight globalization are fighting a losing battle and they should, instead, try to come into the corporations and say, "Well, let's work together and how can we make the impoverished nations better off? Let's do something about it." I think what we've just experienced in Afghanistan and elsewhere highlights that our country and other countries will focus on the poverty that exists in those nations--and you're going to see a desire on the part of Americans to help. You're going to find the desire to provide jobs. You're going to find the desire to stimulate those economies so they'll be self-sufficient, not dependent on handouts. So I'm all for continuing, in a strong way, the globalization effort.

How can corporations use public relations in a more meaningful fashion?

Public relations is more important today than in any other time in my years in the field. And I think corporate leaders recognize that. In terms of projecting the value of globalization, the corporate leaders themselves should incorporate that idea in their speeches, in their interviews, in their television appearances, in the op-ed-page pieces that they write, in their meetings with editorial boards, in their internal communications. They should incorporate that message into all of their literature, their annual reports, so that it becomes a communications mantra across the board. Our country will benefit from it. I think that the public relations companies that are global in reach are playing a significant role in advising their corporations. All of our public relations companies ought to bring that up and put it on the agenda of how to do it. And it'll work. What I find is that the corporate CEOs are listening more and more to the advice of public relations advisers, not following all of it certainly, but following a lot of it. And I'll bet that if this kind of activity goes on for a period of time--and polling is done with different publics--you'll discover a broad awareness of the value of good public relations and a desire to nurture globalization.

What does Howard Rubenstein believe in?

I believe that you should not measure yourself by other people's standards of success. Set your own standards. I believe that you should treat people with respect in all of your dealings. I believe in confidentiality. I believe that you shouldn't gossip. You shouldn't hurt people. I believe that you should try to do what's right, based on honesty. I believe in a strong work ethic. I don't think that anybody can be successful by accident. Briefly, maybe. But if someone doesn't have those ethics their success won't last. I believe you should find work that you enjoy so that you're not just doing it for the economic benefit. I don't think that's enough of a motive for most people. And I believe that you should value what you do for a living. Don't be ashamed of what you do. In the early days of public relations, when I started--the field was relatively new--I knew PR people who were ashamed to say what they did. They were treated as flacks or snake-oil salesmen. Public relations is a wonderful method of communicating ideas. It's an excellent way of changing things for the better.

How hard is it up at the top to believe what you do?

Well, I don't find it hard now at all. But what makes it hard--from time to time over the course of these years--is that clients will sometimes hold up so-called incentives to do something that might be inappropriate. So if you're inexperienced, just entering the field of communications, you might succumb to greed. So yes, at the beginning it's very hard. But after a while ethics become ingrained. And I don't find it hard at all to say "No" to something that's inappropriate. We have almost 200 people working here--and I've told every one of them: "If you have to say no to something that you deem inappropriate, unethical, say no and I'll back you. Don't cross the line." And I think the very successful corporate leaders that I know and I work for, and I'm close to, have the exact same attitude. They might be very tough negotiators, but they're very tough in hewing a line of integrity.

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