Friday, July 27

Ordering Up Ethics: Flogs, Blogs, And Posers

After reading that 279 U.S. chief marketing officers, directors of marketing and marketing managers polled in the PRWeek/Manning Selvage & Lee (MS&L) Marketing Management Survey revealed some confusion over ethics, I posted a poll to see if a self-selected group of participants could determine which of eight case scenarios might demonstrate the greatest ethical breach, noting that some were not ethical breaches (but have had some people attach ethical arguments to them).

While the poll was well read, only 22 people participated as of 9 a.m. this morning (before PollDaddy had some challenges). There are several other accounts for low participation, including: ethics cannot really be measured in terms of “greatest;” not everyone was familiar with the various cases; and people are generally confused and/or don’t care about ethics anyway. All valid points.

Fortunately for me, a few people opted in because I promised to make no claims that this is a scientific survey, but rather a discussion opener for today (and an opportunity to try PollDaddy). So here’s our take on eight...

(Poll 23%) John Mackey, CEO of Whole Foods Market, Inc., anonymously posted disparaging remarks about Wild Oats, a company that Whole Foods is now hoping to acquire. We considered placing this in a secondary position, until Vera Bass offered the following on BlogCatalog: “… I believe that breach of the more specifically defined duties (especially fiduciary duty) and obligations that are developed and maintained by those who carry more responsibility for others than most people do, is, by this definition, a greater breach.” Clearly, this is an ethical breach; and we’ll be adding something to our case study next week.

(Poll 18%) Julie Roehm accepting gifts from advertising agencies while they were seeking the coveted Wal-Mart account. While there are allegedly other ethical breaches related to this case study, we limited the poll to a single breach because it’s enough. While some argue wooing guests is an industry norm, the truth is Roehm knowingly violated her company’s policy and has been spinning ever since. While the initial action was bad enough, her defense of it continues to damage an increasing number of people.

(Poll 36%) Edelman Public Relations Worldwide published a fake blog (flog) last year for Wal-Mart (there were three actually). What makes this scenario stand out is that it was premeditated by people who knew better. The real irony is that Wal-Mart could have avoided the breach with disclosure. Perhaps more ironic, no matter how you feel about Wal-Mart, it has enough good news not to need fake news. We placed it third, but only because no one seems to have been hurt.

None of the other five are ethical breaches. At least, not to date.

(Poll 14%) While the Cartoon Network bomb scare illustrates a worst case scenario for a guerilla marketing campaign to go wrong and clearly impacted Boston (closing roads, tunnels, and bridges for hours), it is not an ethical breach. While ill-advised and perhaps not well thought out, it really wasn’t about ethics. In truth, Turner Broadcasting Systems acted very quickly and accepted all responsibility. The guerilla marketing firm that oversaw the campaign, on the other hand, was much slower to respond.

The (Poll 0%) Microsoft’s laptop giveaway, (Poll 5%) Nikon camera outreach program, and the (Poll 5%) McDonald’s mommy bloggers have all been questioned and talked about by bloggers. While all of them have the potential for an ethical breach, none of them did (that we are aware). As long as bloggers disclose the gift, loan, etc. and do not allow these items to bias their opinions and/or encourage/obligate them to make false claims, then no ethical breach can occur.

The last scenario, where Jobster sent Jason Davis a cease a desist letter, claiming Davis had violated a non-compete clause for launching a social network called Recruitingblog.com, was not an ethical question. While the method was not prudent, there was no ethical breach. The two have since reached an amicable agreement.

So why do we care about ethics? To take from the preface of the International Association of Business Communicators’ code of ethics, because: “hundreds of thousands of business communicators worldwide engage in activities that affect the lives of millions of people, and because this power carries with it significant social responsibilities.”

However, as mentioned, this responsibility is two-fold. I believe that we must be cautious in applying ethics so broadly as it continuously raises doubt in or damages the reputation of people, regardless of rank or position, who have not breached ethics. As is often the case, asking the wrong questions — “Is it ethical to ask for comments on a client’s blog?” — can create more confusion than clarity.

As the best measure of our ethics, we must not only be honest with others but also, and most importantly, with ourselves. If you are ever in doubt, the simplest ethical self-test is to ask yourself one of two questions ...

“Would I be proud to tell my grandmother?” or (depending on who your grandmother was) “Would I be proud to see a story about what I am doing on the front page of the New York Times or Wall Street Journal?” If you can answer “yes” to either, you’re likely in good shape. Case in point, I think Mackey would have answered "no."

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Thursday, July 26

Accepting Leadership: ERE Network

If there is one “most important” lesson to be learned from an ERE Network dispute that became a public dispute, it is that those who begin to assume leadership roles, even within social media, must be willing to embrace the responsibilities of leadership no matter how unpleasant they may seem.

Neither David Manaster nor Karen Mattonen, the two most public parties who have participated in this dispute, perceive themselves to be leaders, yet I keep seeing the term continually attached to their names within the recruiting industry. Manaster is CEO of a network that is comprised of 50,000 members and Mattonen operated four discussion groups within that network.

“A leader is an individual who influences, motivates, and enables others to contribute toward the effectiveness and success of the organizations in which they are members.” — R.J. House

This could include any number of organizations, ranging from families and fan clubs to companies and industries. Based on varied responses and comments from other members, I would say both qualify.

They are not alone. Hundreds and thousands and millions of people all over the world, online and off, proliferate the idea that somehow they are not leaders while assuming roles that clearly have leadership responsibilities. And yet, somehow, they fool themselves into believing that if they exempt themselves from the title, they are somehow excused from the accountability of being effective.

As much as I like both Manaster and Mattonen, it seems to me that their unwillingness to apply some principles of effective leadership stems from being in denial that they were leaders, though perhaps in different ways. Had they seen themselves as leaders, I suspect the outcome would be very different.

Having spoken to both parties, it seems futile for me to attempt to explain the actions, events, and perceptions that led to this point. The simplest but somewhat debated summation is this: Mattonen, who led discussions on difficult topics such as ethics and law on the ERE Network, allowed herself to be baited into a personal dispute by another party or parties. The result of this, since she already received a warning for a similar dispute, was her dismissal from the ERE Network.

Any time a leader is banned from a network, whether that position is in title or by default through opinion or action, there are bound to be questions and disagreements over the decision. There were.

As a result, Manaster attempted to move these questions from the ERE Network to a different forum, his personal blog, where those who disagreed with the outcome could express their grievances rather than infuse their questions into discussion groups where perhaps they did not belong. While he achieved this outcome (to his credit), he misidentified several steps in crisis communication.

The most obvious of these was that he may have been better served by making it clear to Mattonen why the decision was made and then directing concerned members to her. As an alternative, he may have created a thread or group within the network and allowed Mattonen to temporarily participate. He may have benefited by keeping the message and focus on the outcome of the dispute rather than attempting to explain the decision for the ban, which shifted the focus from the original dispute onto Mattonen's ban. This created the appearance that Manaster had taken sides.

Truly, Manaster seems to have had the best intentions, but all too often the best intentions do not produce the desired outcomes. In this case, the impact of the communication made the dispute more public; expanded points of potential dissension about Mattonen’s dismissal; increased the number of participants in what became a perceived debate (those vocal and not vocal); created the perception that Manaster had taken sides (as the piece defends his reasoning for banning Mattonen rather than how he chose to handle the dispute); created consequences for Mattonen that extended beyond the ERE Network; and did not provide her any opportunity to respond (she can no longer post anywhere on the ERE Network). Mattenon did eventually respond on a new blog, elevating the crisis.

Fortunately, as with all crisis communication situations, the last step resets the process: collect feedback and adjust.

• There is an opportunity to recognize where the initial communication did not achieve the greater goal of bringing resolution to an unfortunate situation and unnecessarily focused on one individual in a dispute that involved several members. (All involved members, I am told, received warnings. As not all received a prior warning, not all have been dismissed.)

• There is an opportunity to reinforce the finer points of the initial message that seemed buried by comparison: Mattonen has made contributions within the recruiting industry and on the ERE Network specifically, and Manaster has every confidence that she will continue to make such contributions to the industry. Given the response, he may encourage other groups not to base their relationships with her on this network decision, which is isolated to ERE.

• There is an opportunity, it seems to me, that as leaders, both Manaster and Mattonen owe it to any respective followings to discuss, with an arbitrator familiar with the industry as needed and with a very narrow focus, how they may mutually and beneficially conclude the relationship so they may peacefully coexist within the industry. While this may not benefit either party per se, it will benefit those who know them and help prevent further polarization.

While this seems to be an isolated situation, the ERE Network might also review its terms of service, conflict resolution practices, and crisis communication policy. Quantified counts are not an appropriate measure to determine whether the policies that are in place may work or not. On the contrary, if the policies in place worked, there might not be a crisis today.

This leads me to the second “most important” lesson to be learned. There seems to be a trend in social media to push the concept of transparency onto every situation. This is a misconception. Conflict resolution for private matters is best conducted in private, with an arbitrator as needed, because once it is made public, it becomes even more difficult to resolve.

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Wednesday, July 25

Branding Champ: Coca-Cola


For the last several years, when I ask people to think about a successful brand, I often ask them to think of Coca-Cola because, well, Coke is it. I don’t even have to drink it to appreciate why Coca-Cola has risen to the top of Harris Interactive’s “Best Brand” poll.

When Ron Kalb, associate director of public relations for R&R Partners, spoke to my class earlier this year, he shared what I thought was one of the most significant studies on branding I had ever seen, which underpins part of the “Fragile Brand Theory” that I have been working on for a few months. The study, conducted by Baylor College of Medicine a few years ago, showed the huge effect that the Coke label had on brain activity related to the control of actions, the drudging up of memories, and things that involve self-image.

The results were nothing less than amazing to me. When Coke and Pepsi were presented to participants in a blind test, their brains did not respond. When Pepsi was presented with its label, their brains did not respond. When Coke or Pepsi was presented with the Coke label, bingo, their brains lit up. Wow! It seems Kalb really did find the perfect quote to reinforce this concept in his presentation …

“Brand is the relationship between a product and its customer.” — Phil Dusenberry, chairman of BBDO Worldwide

Sure, when I talk about it, I tend to go a bit further to conclude brand is the relationship between a product and everyone (customers or not). But both ideas and the concept basically demonstrate that brand is not the product. Brand exists in the world of perception.

Another reason I like the Coke brand so much is because it provides an excellent example of something else I’ve discussed. The consistency of behaviors, actions, or messages can reinforce or detract from the brand. And, the closer a perception is to reality, the easier it is maintain. Coke is beautifully consistent and its messages continually reinforce its brand and reality.

This is true, so much so, that if you walk into a store and find one damaged can of Coke, you are likely to conclude the grocery store clerks are responsible. Yet, if you purchase a bag of Fritos and a tiny pinhole or other damage has allowed the chips to become stale, you are likely to conclude something happened on the Frito-Lay production line. Why is this? Brand.

The same can be said about the concept of polls. In the AdvertisingAge article that I’m about to link to, Matthew Creamer asks what the whole Best Brand poll really means. Robert Fronk, senior VP for Harris' brand and strategy consulting group, is wonderfully honest about it.

"Some of these polls are done for newsmaker purposes, as you know," he said. "Our PR firms love these quick little things to be able to work with."

And so do journalists. And so do bloggers. In some ways, no matter what the methodology is, we are preconditioned to give polls and surveys more validity. When it comes from Harris Interactive, even more so. In fact, I frequently raise an eyebrow when the methodology seems flawed, the number or respondents seems light, or someone assumes a poll does much better than provide a snapshot at the moment, assuming you have the right demographic mix.

In this case, I have to agree with Fronk’s assessment that on one hand, a one-question poll is not going to help a brand marketer. On the other hand, the one-question poll doesn’t diminish the fact that certain companies come to mind.

Sony, for instance, which held the top spot for the last seven years, dropped to No. 2. Does this mean Sony is doing something wrong? Probably not. Personally, I like Creamer’s take on it. He correctly attributes it to Apple’s ability to dominate the portable music-player category. Dell, which had been in the second spot last year, drops two spots to No. 4 this year. Maybe it has to do with their need for a new advertising campaign.

Hey, that was fast. It seems Michael Dell wasn’t joking when he said he wanted to reboot the Dell brand.

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Tuesday, July 24

Publicizing Bans: ERE Network

Although I've always liked David Manaster, CEO of Electronic Recruiting Exchange (ERE) Network, which is the largest active community of recruiting professionals online, he recently published something on his blog that left me confused. There seems to be little communication logic behind publishing the banishment of a member from his organization.

"To date, I've avoided posting about this decision because I didn't want to needlessly embarrass anyone (which is also why I am not using her name in this post)," he wrote. "However, my lack of explanation and transparency in decision-making has resulted in a number of people publicly speculating about what happened, and that is further disrupting the experience of the silent majority on the ERE site — the exact opposite of the intended effect."

While the most obvious is that silence always leads to speculation, there are several other problems with his post from a communication perspective. Today, I'll share the first two. First, Manaster writes that "the other 49,990 members of the network don't care about these personal disputes." Yet, that didn't stop him from sharing this personal dispute with the rest of the world. Second, since everyone in ERE already knew who he was talking about, how does not mentioning her name make any difference?

Now it seems Karen Mattonen, the person Manaster referenced in his post, wants to know too. She posted several questions along with her side of the story, which includes, among other things, dated e-mails and several other names of those involved. One of the e-mails is from Manaster that says: "We can have any conversations that we need to via email, and they will remain private unless you choose to take our conversations public. What is it that you would like to discuss?"

Regardless of which side (if there are sides) people fall on, one thing is certain. It is never a good idea to publish someone's banishment (or loss of employment) on a blog because it broadens the debate and could potentially lead to other problems. In fact, companies might like to know that even journalists will respect "no comment" if the explanation would force the CEO to share a personal evaluation about a former member or employee. A better answer might have been: ask Ms. Mattonen.

Sooner or later, someone always comes forward with additional information that could cause a communication crisis, one that seems to lend itself to a case study. In this case, the person who came forward was Mattonen herself.

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Protecting Consumers: King County


Some people misunderstood me when I suggested local governments might have better things to do than require quick service restaurants like Burger King, McDonald's, and Wendy's to post calorie counts on their menu boards.

The King County Board of Health can be counted among them. Although the New York City case hasn’t had its day in court, new labeling requirements in King County, Washington, now call for all chain restaurants, those with at least 10 branches nationwide, to list calories, saturated fat, carbohydrates, and sodium in each regular food item they serve.

"The Board of Health is responsible for passing laws to protect the health of the public, and to promote healthy behaviors that improve health and prevent illness," Board of Health Chairwoman Julia Patterson said. "There is no better example of our commitment to residents' health than the legislation passed today that protects us from dangerous trans fats and promotes consumer education and informed choices by labeling menus."

May I offer another suggestion? Do what they do in the United Kingdom (as illustrated above) and force these restaurants to say what you mean: “eating large quantities of food may lead to obesity.”

Before you think I am only being sarcastic, CPSI and Public Citizen say almost exactly that in the subhead of their release, which touts who has joined them in “support of rule to combat obesity epidemic,” after they filed a friend of the court brief in the U.S. District Court for the Southern District of New York supporting New York City’s Board of Health against a lawsuit filed in June by the New York State Restaurant Association.

“The stakes in this lawsuit are high,” said Deepak Gupta, a lawyer at Public Citizen who wrote the brief, according to the release. “A victory for New York City’s law could help clear the way for similar laws throughout the country.”

But will it really solve the so-called obesity epidemic? As James Vesely points out in his humorous (or maybe tragic) column in the Seattle Times, “Yoder, whose place is popular with knowledgeable diners and serves as many calories as the next guy, is exempt from the calorie count on his menus — it depends on how many eateries you operate. So Anthony'sHomePort is not exempt, but along Shilshole's watering spots, Ray's Boathouse next door is exempt. Same calories, different menus. A menu at Denny's will be draped with calorie numbers; the one at Metropolitan Grill will not.”

Vesely then says that the new, calorie-clad menus are not going to be popular, or particularly useful. I agree. Despite all the money spent on lawsuits (money that could be applied to consumer education about a healthy diet), consumers are likely to tune them out.

Sometimes we tune them out for good reason (besides the occasional chuckle): Sainsbury’s peanuts warns us that they contain nuts; an American Sears hairdryer warns us it is not to be used while sleeping; and, one of my personal favorites, found on a blanket: not to be used as protection from a tornado.

So please forgive me if I do not feel any safer knowing that 20 states, cities, and counties are considering legislation or regulations that would require fast food and other chain restaurants to provide calories and other nutrition information on menus and menu boards.

The most obvious truth is, when you get past all the spin on an issue like this, the snack, cookie, and soda aisles at our local grocery stores take up the most space for a reason. They're yummy.

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Monday, July 23

Preserving Freedom: Net Neutrality

According to Ghost In The Machine, written by Sharon Herbert, more than 29,000 comments were submitted to the Federal Communications Commission (FCC) since it opened an inquiry into net neutrality. An additional 670 comments were filed by groups and individual Internet users on the deadline, July 16.

So is that it? Theresa Hall reminds BlogCatalog members that’s not it. She wrote U.S. Senator Barbara A. Mikulski (D-Maryland) with her views that Internet service providers should not be allowed to discriminate by speeding up or slowing down access to Web content based on its source, ownership, or destination.

How did the senator respond?

I understand your concern that the Internet should not favor certain content or services over others. I believe that the Internet is not only an important tool, but a vital resource. It has allowed millions of Americans to communicate instantly with people around the world. It has put access to libraries of information at everyone's fingertips. The use of the Internet continues to grow, and the ways we use it continue to expand. Your views on network neutrality will be very helpful to me as Congress considers this issue.

As someone who frequently works in political arenas, I might point out that Sen. Mikulski's response is largely neutral, demonstrating little movement from her position last year. This is surprising to me, given Maryland state legislators acted on their own to put a mandate into place.

So what is this all really about? Some, like the New York Times, suggest it has to do with Verizon Wireless, Sprint Nextel, T-Mobile, and others always being afraid of the competition, which is why iPhone is only available from one carrier (in Europe, you can change carriers any time regardless of the phone you want). In the years ahead, that competition is likely to include companies like Skype and Google, which have called on the FCC to open up more equipment and software options in the wireless industry. In fact, Google is looking for another leap forward with a wireless spectrum in which chunks of radio frequency currently used for analog TV would be freed up by a switch to digital.

Regardless of this behind-the-scenes wrangling, however, the real stake holders in net neutrality are people like you and me because we funded its creation with a combination of tax dollars and subscription fees. Without net neutrality, Internet carriers would very feasibly be able to control content on the Internet by favoring those sites willing to pony up cash for the carrier; or, as they have with mobile phones, lock up technologies so they can be exclusive providers; or create steeper tier systems similar to cable programming; or, quite possibly enforce net censorship.

I suggest, as always, education is the key to understanding. Catch the entertaining video version on YouTube, keep up to date by visiting sites like SaveTheInternet.com, and write U.S. senators and representatives in your state so you have a better understanding of their positions.

In fact, I am doing the latter today and I'll be happy to share their responses in the days ahead. Good night and good luck.

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