Oscar envelope blunder puts firm’s reputation in jeopardy And the loser is...

By PAN PYLAS

Associated Press

LONDON

For 82 years, accounting and consulting firm PwC has enjoyed a reputational boon from handling the balloting process at the Academy Awards.

Now its hard-won image as a dependable partner is under threat.

The company has apologized for a colossal mistake at the 89th Academy Awards on Sunday night when actors Faye Dunaway and Warren Beatty wrongly announced the top Oscar went to “La La Land,” instead of “Moonlight.”

The presenters, it turned out, had been given the wrong envelope by tabulators PwC, in this case the one awarding Emma Stone for best actress for her role in “La La Land.” The representatives from PwC, formerly known as PricewaterhouseCoopers, eventually corrected the mistake on air, but it’s not clear yet how the wrong envelope ended up in the hands of the “Bonnie and Clyde” stars.

Whatever the reason, it’s been a cue for endless jokes and hilarity around the world.

For London-headquartered PwC, it’s anything but funny.

According to Nigel Currie, an independent London-based branding specialist with decades’ worth of industry experience, this mistake is “as bad a mess-up as you could imagine.”

“They had a pretty simple job to do and messed it up spectacularly,” he said. “They will be in deep crisis talks on how to deal with it.”

Brands go to extraordinary lengths to protect their image and reputation and to be seen as good corporate citizens. History is littered by examples when a hard-won reputation nosedives – from sporting legends Tiger Woods and Lance Armstrong to business giants like BP following the Deepwater Horizon oil spill disaster and Volkswagen after its emissions cheating scandal.

Crisis managers say PwC has no other option than to front-up immediately and explain exactly what happened to contain the damage to its reputation and brand and plot a way forward where there’s no repeat.

“There will certainly have to be accounting for this error,” said Jeremy Robinson-Leon, principal and chief operating officer at New York-based public relations firm Group Gordon. “The onus will be on PwC, assuming they stay as partners, to institute controls to ensure this doesn’t happen again.”

PwC, which originated in London over a century ago, was quick to apologize to the movies involved, Beatty, Dunaway and viewers.

“The presenters had mistakenly been given the wrong category envelope and, when discovered, was immediately corrected,” it said in a statement. “We are currently investigating how this could have happened, and deeply regret that this occurred.”

In fact, it took over two minutes on air, during which time the “La La Land” team gave three acceptance speeches, before PwC corrected the mistake on stage.

PwC’s representatives were Brian Cullinan, a partner at the firm, and Martha Ruiz, the second woman to serve as a PwC Oscars tabulator.

Cullinan is the lead partner for the Academy of Motion Picture Arts and Sciences.

In a promotional video on the company’s website ahead of Sunday’s show, Cullinan said he and Ruiz are the only two who knew who the winners were on the night of the awards.

Here is how the envelopes are handled before being opened live onstage:

Two briefcases, each containing an identical set of envelopes for the show’s 24 categories, are brought to the ceremony by PwC accountants (in this case, Cullinan and Ruiz), who also memorize the winners.

During the telecast, the two accountants are stationed in the stage wings, one at left and one at right. Most presenters enter stage right. They come backstage a few minutes ahead of time, and the accountant hands them their category’s envelope just before they walk onstage. The sealed envelope with the winner’s name inside is opened live onstage.

On Sunday, Warren Beatty and Faye Dunaway entered stage right, where PwC representative Brian Cullinan handed them the errant envelope.

The previous award, best actress, was presented by Leonardo DiCaprio, who entered stage left, where Ruiz handed him the envelope for the correct category. But a duplicate, unopened envelope for best actress remained stage right and apparently ended up in the hands of Beatty and Dunaway.