... Penn kept his foot in the political world through the Clintons. In 2000 he became the chief architect of Hillary's Senate victory in New York, persuading her, in a rerun of '96, to eschew big themes and relentlessly focus on poll-tested pothole politics, such as suburban transit lines and dairy farming upstate. Following that election, Penn became a very rich man... The massive PR empire WPP Group acquired Penn's polling firm for an undisclosed sum in 2001 and four years later named him worldwide CEO of one of its most prized properties, the PR firm Burson-Marsteller (B-M). A key player in the decision to hire Penn was Howard Paster, President Clinton's chief lobbyist to Capitol Hill and a top executive in the WPP firmament. "Clients of stature come to Mark constantly for counsel," says Paster, who informally advises Hillary, explaining the hire. The press release announcing Penn's promotion noted his work "developing and implementing deregulation informational programs for the electric utilities industry and in the financial services sector." The release blithely ignored how utility deregulation contributed to the California electricity crisis manipulated by Enron and the blackout of 2003, which darkened much of the Northeast and upper Midwest.
Burson-Marsteller is hardly a natural fit for a prominent Democrat. The firm has represented everyone from the Argentine military junta to Union Carbide after the 1984 Bhopal disaster in India...
A host of prominent Republicans fall under Penn's purview. B-M's Washington lobbying arm, BKSH & Associates, is run by Charlie Black, a leading GOP operative who maintains close ties to the White House, including Karl Rove, and was former partners with Lee Atwater, the political consultant who crafted the Willie Horton smear campaign used by George H.W. Bush against Michael Dukakis in 1988. ... In recent years Black's clients have included the likes of Iraq's Ahmad Chalabi, the darling of the neocon right in the run-up to the war; Lockheed Martin; and Occidental Petroleum. In the summer of 2005 he landed a contract with the Lincoln Group, the disgraced PR firm that covertly placed US military propaganda in Iraqi news outlets. The agreement, according to Intelligence Online, allowed the Lincoln Group to "tap into BKSH's extensive contacts in the Republican administration." When asked by The New Yorker if there was too much cronyism in Iraq, Black responded, "I just wish I could find the cronies."
Black is only one cannon in B-M's Republican arsenal. Its "grassroots" lobbying branch, Direct Impact--which specializes in corporate-funded astroturfing--is run by Dennis Whitfield, a former Reagan Cabinet official, and Dave DenHerder, the political director of the Bush-Cheney '04 campaign in Ohio. That's not all. B-M recently partnered with lobbyist Ed Gillespie, the former head of the Republican National Committee, in creating the new ad firm 360Advantage, which is run by two ad men for the Bush-Cheney campaigns and which includes a few prominent Democrats. Its first project was a campaign for the neoconservative Weekly Standard magazine against "liberal bias" in the media. There's more than a little irony that some Democrats would assist a conservative media machine that so regularly smears the Clintons. Yet the so-called "bipartisan" firm is hardly objective--of its thirteen principals, ten are Republicans.
As expected with such a lineup, B-M has a highly confrontational relationship with organized labor...
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But it's difficult to tell where Penn's corporate life ends and his political one begins. Most Democratic consultants do some business work--it's the easiest way to pay the bills. Yet nobody wears as many hats--and advises as many corporations--as Penn does. "Penn and Schoen have displayed a thirst for corporate work, often in conflict with the policy agendas of their political clients, that has long set the bar among Democratic pollsters," wrote Democratic pollster Mark Blumenthal on his blog recently. "My employers and partners over the years had corporate lines they (variously) refused to cross--tobacco, pharma, big oil, aggressively anti-union--both out of ideological principle and to avoid putting their valued political clients in a tough spot. A quick glance at the Penn, Schoen, Berland client list shows they not only crossed some of those lines, but did so with enthusiasm."
Furthermore, few Democratic consultants so consistently and publicly advocate an ideology that perfectly complements their corporate clients. ... Through his longtime association with the Democratic Leadership Council, Penn has been pushing pro-corporate centrism for years. Many of the same companies that underwrite the DLC, such as Eli Lilly, AT&T, Texaco and Microsoft, also happen to be clients of Penn's.
Yet despite occupying such a divisive place in the Democratic Party and outsized role in the corporate world--and despite his company's close ties to Republican political operatives and the Bush White House--Penn remains a leading figure in Hillary's campaign, pitching the inevitability of her nomination to donors and party bigwigs. According to the New York Times, " Clinton responds to Penn's points with exclamations like, Oh, Mark, what a smart thing to say!" Politically, his presence means that triangulation is alive and well inside the campaign and that despite her populist forays, Hillary won't stray too far from the center. "Penn has a lot of influence on her, no doubt about it," says New York political consultant Hank Sheinkopf, who worked with Penn in '96. "He's not going to let her drift too far left."
http://www.thenation.com/doc/20070521/berman