Last week, while the U.S. financial system approached a meltdown, two of the major players in the Wall Street crisis dealt with public-relations nightmares.

First there was the disclosure during congressional hearings that the now-bankrupt investment bank Lehman Brothers arranged for millions of dollars in bonuses for its executives even as it asked the federal government for a bailout.

Then there was the news that American International Group Inc. executives spent hundreds of thousands of dollars on spa treatments during a “retreat” at a California resort just days after getting its own government rescue.

Among my first thoughts after hearing about each of these debacles was, “I sure am glad I don’t work in public relations for that company.”

I believe public relations can provide tremendous value to organizations dealing with crises. PR can help mend strained relationships between companies and stakeholder groups. It can help restore public confidence in brands that have been tarnished by bad news. PR professionals can help organizations communicate important messages to myriad audiences. But PR cannot fix stupidity.

Many examples of noble work performed by PR professionals exist in business lore. One of the most enduring examples is how Johnson & Johnson handled the Tylenol scare of the 1980s in which several people died after ingesting cyanide-laced capsules. The company immediately responded with a product recall and a redesign of its packaging. It communicated frequently to keep the public apprised of steps it was taking to deal with the crisis and to make sure it would not happen again.

StarKist tuna led its industry in changing fishing practices after dolphins got caught in fishermen’s nets. What could have destroyed the StarKist brand instead led to its being recognized as an environmental leader.

An example about which I’ve written before is how JetBlue Airways responded to weather-related delays on Valentine’s Day 2007. The company quickly apologized and communicated the actions it was taking, including the creation of a “customer bill of rights.”

There are many more examples of how well-planned PR and communication efforts have helped avert damage to companies’ reputations and contributed to positive changes. The common thread to these examples is that the companies involved chose to do the right things. That’s something we’ve yet to see among the Wall Street firms that are teetering on disaster. On the contrary, it seems the investment banks and insurance companies at the epicenter of this storm are digging in and defending their inexcusable actions at all costs.

Public relations can’t turn poor decisions by executives into good ones. It can’t make a silk purse out of a sow’s ear. It can’t undo every bit of damage that has been done. Wall Street executives have to stop acting like fools before turning to their PR counselors and asking for a miracle.

Robert J. Holland owns Holland Communication Solutions LLC in Mechanicsville. He works with Fortune 500 companies and small businesses to help them develop communication programs that support business goals. He is also available to speak to business groups about workplace communication. You can reach him at robert@hollandcomm.com, at www.hollandcomm.com, or by calling (804) 368-0312.