Silencing Crisis: Whole Foods Market, Inc.

There is something to be learned from Whole Foods Market, Inc. (WFMI) beyond its back to school nutritional program. Sometimes silence can be a golden as a July Pippin'.

That's what you'll learn if you visit John Mackey’s blog today. All you will find is silence. The CEO of Whole Foods left his last message, directed to shareholders, on July 17…

“A Special Committee of our Board of Directors' is conducting an independent internal investigation into online financial message board postings related to Whole Foods Market and Wild Oats Markets, Inc. (OATS). In light of this, it is in the best interest of the company to temporarily hold off on posting on my Company blog. The ability to post comments to this blog will be disabled during this time as well. I look forward to resuming our conversations and plan on being in touch with you again soon.”

He will. There is very little doubt. Despite anonymously posting disparaging remarks that may have impacted the stock price of Wild Oats, the company that Whole Foods is now fighting the Federal Trade Commission to acquire; the SEC investigation; the independent internal investigation; and the calls for his resignation by dozens of organizations, including CtW Investment Group, whose members own about 900,000 Whole Foods shares, Mackey will likely retain his position.

Less certain is whether Whole Foods will acquire Wild Oats, but that is another conversation thread all together. Lawyers for Whole Foods and the federal government are set to offer closing arguments today.

More in line with observations in communication is noting: this case study will likely become the bane of public relations professionals because it chips away at what some call the tenets of crisis communication. Maybe that’s a good thing.

For example, against what most PR pros would advise, Whole Foods went silent on the issue after apologizing to stakeholders (never mind Wild Oats shareholders who may have lost money on the advice of the masked Wild Oats stock vandal “rahodeb”). Then, yesterday, earned an extremely rare and generous pass from the media, allowing him to break his company's self-censorship and tout that they beat Wall Street estimates.

"Currently we do not expect the same degree of year-over-year increase in our total pre-opening expenses," Mackey said, as reported by CNN Money. "We are very excited to see the acceleration in our new store openings materialize, as we expect these new stores to drive strong sales and comparable-store sales growth in the not-so-distant future.”

As found in The Wall Street Journal: “I could understand if Mr. Mackey was accused of spreading false rumors about his company to manipulate the stock price, but I have not heard such allegations.” Or perhaps even more telling from The Motley Fool …

“Look, I'm not saying that John Mackey should have gone onto the Yahoo! message board for Whole Foods and posted anonymous messages extolling his company while trashing Wild Oats. It was dumb, an activity with almost no hope for upside. But I understand it. I understand why John Mackey would see the nonsense that some random keyboard heroes wrote about him and his company and find the impulse to shoot back irresistible.”

Chip. Chip. Chip. It is any wonder why some public relations professionals have a hard time finding a position at the proverbial “table?” You cannot get there until you understand business let alone the new state of media, which suggests that today’s editors and analysts would rather be right than write about what is right.

"From a Whole Foods perspective we will be glad one way or another to have this situation resolved because it's taken a lot of management time and we spent a lot of money on lawyers," CNN Money reports Mackey said on a call. "It's been incredibly burdensome on us."

Like a fly buzzing in their ears, I imagine. Whether Whole Foods is allowed to acquire Wild Oats or not, Mackey and Whole Foods will not only survive but will also continue to see their stock fare well. Pending some revelation from the internal or SEC investigation of Whole Foods, it also seems unlikely to me that Mackey will be leaving anytime soon, chipping away at the notion that companies have to make a sacrifice in order to emerge from a crisis.

So what makes Mackey so special? As part of what I call my Fragile Brand Theory, Mackey has always been successful in presenting himself as somewhat eccentric thereby putting himself in the position to garner understanding in the wake of what Mackey himself even called his own “lack of judgment.”

That doesn’t make what he did right by any stretch of the imagination. While some people wonder about the Mackey case study “if we are not falling victim to a distorted sense of hubris in the United States: We are offended to the point of threatening legal action over surficial issues that are probably neither unethical or illegal,” I hopefully offer a clearer perspective.

What Mackey did, posing as an anonymous poster with an alleged agenda to damage his competition for future gain, was unethical.

Whether or not it is illegal is up to the SEC to decide. Whether or not the remedy is his resignation is up to the shareholders to decide. Whether or not shareholders are outraged will likely depend on the price of the shares. And whether or not the media decides to give him a pass or not will largely be dictated by the previous three outcomes.

I’m not saying this is right, but it is what it is. And what also “is” is that public relations professionals need to move away from formulaic approaches to crisis communication and consider the thought processes behind those bullet points. (We’ll compare this crisis to traditional crisis communication check lists next week.)

If they do not, executives will be hard pressed to take the profession seriously when good CEOs like David Neeleman at JetBlue play it by the “book” and are pushed aside while CEOs like Mackey, who clearly breached ethics, can break away and be heralded as a wacky egomaniac who, well, make shareholders lots of money.

Then again, I suppose all those who claimed the remedy is resignation still have a shot to be “right” as this case study seems far from over. But when it is over, I can promise you this: I'll probably have to add a warning label. Don't Try This At Home.

Creating Conversation: BlogStraightTalk

Next Mon. (Aug. 6), Geoff Livingston The Buzz Bin will begin to test drive BUMPzee! with a joint community called "BlogStraightTalk."

We were originally going to host BlogStraightTalk on a new closed niche social network that allowed some semblance of group discussions. In fact, it was this closed niche social network that initiated our conversation.

In reviewing the network, I mentioned it might work "if we can only teach social media newcomers what to blog about so the community blog doesn’t die off as a 'promo post' board."

"Well, why don't we do something about that?" Livingston asked.

"Why don't we ... ? Um, social media overload," I offered. "Besides, I was partial to BlogCatalog.com, RecruitingBloggers.com, and RecruitingBlogs.com, etc., etc.”

Eventually, he persuaded me based on the content model and a modest time commitment (on my part). Besides, it might even be fun to banter about social media somewhere other than our blogs since we do not always agree (but never take those disagreements too seriously).

We were approved and set to launch in early July, but then the term "closed" in the closed niche social network was suddenly taken a bit too seriously for Livingston. It seems that my original definition might have been more accurate if I had said "closed niche commercial network."

Regardless, we found ourselves with a decent concept but no platform for it until settling on BUMPzee, which allows bloggers to develop niche communities around their blogs. I learned about it from Walter Burek and Theresa Hall who host a developing writers community there (I have since joined).

So what's BlogStraightTalk?

BlogStraightTalk is a weekly discussion on the best and worst of blogging content practices, presented in a contrarian format (eg. Ebert & Roper or Kornheiser & Wilbon).

We'll alternate the discussion between best/worst concepts and blogs (or social media) reviews. The basic concept is to open up a discussion among experienced bloggers while allowing those who are newer to social media to gain insights into content development.

Anyone can join as a member of the community and participate in the discussion. Members who have established blogs (with at least 10 posts that positively contribute to the development of social media) may be added to the blog roll.

As Livingston offered up on his blog, "Rich and I do go back and forth on some issues, so it could have a nice Pardon the Interruption “dueling pundits” feel to it."

Does this mean I have to disagree? Find out next Monday.

Acquiring Social Media: Ad Age

A few days ago, Advertising Age (Ad Age), which has a combined online and print reach of 697,000 readers (approximately half online), acquired Todd Andrlik’s “multi metric” methodology, the ranking system used to create Todd And’s Power 150, which is probably the most quoted blog ranking system around.

What does that mean?

That seems to be the question of the week. The acquisition has created a buzz, especially among those who have submitted their sites and are currently ranked. In fact, enough social media insiders like ExperienceCurve and The Viral Garden have asked "What does it mean?" that Andrlik went back and compiled the answers from Jonah Bloom, editor of Ad Age, asking: What does it mean?

“The fact we’ll now also be ranking the media and marketing blogs says a lot about how important that community has become in a very short time,” said Bloom. “Here at Ad Age we have no immediate plans to monkey with Todd’s subjective evaluations. I like that the ranking does have a qualitative filter, and that Todd is that filter.”

What does that mean?

It means more than it says. It means magazine editors are becoming much more adept at talking like public relations practitioners. It means Andrlik will be sticking around as long as it suits Ad Age. It means Ad Age will keep the ranking system in place for the short term. It means Ad Age has acknowledged the growing influence of blogs at a time when print media prefers to ignore them (not one print publication has formally announced the acquisition, including Ad Age). And it means Ad Age, given its close proximity to communication-related industries, recognizes that the time to position a publication as an online content leader is right now.

What does that mean?

It means convergence through quiet acquisition. As I have written before, the future of social media will likely play out much like the Web site boom in the early 1990s. On the front end, advertising agencies called Web sites a fad that targeted too small of a niche audience to be acknowledged whereas IT people saw it as a pristine time to charge tens of thousands of dollars to do what no one wanted to do.

It didn’t take long before advertising agencies realized that the high price of Web site design was cutting into their advertising budgets. So, they quickly and quietly bought up the competition. While there are still a few Web design firms in existence today, the field has been largely absorbed by communication-related companies.

Social media will likely go the same way over time; this time with advertising agencies, public relations firms, companies, and print publications all quietly taking a keen interest in and then acquiring social media content providers. Unlike Web sites though, there will always be new start up content providers waiting in the wings.

When will this happen? Um, long before yesterday.

Writing Fan Fiction: Richard Becker

Yesterday, we launched an unofficial Expanded Universe Short Story Competition fan fiction contest to promote Jericho for the fans, expand its universe (outside of the town where it largely takes place on television), and demonstrate the possibilities of its rich story line. While I don't write fiction all too often (though commercial advertising sometimes crosses over), I thought it might be fun to share a non-submission. It's a good thing I can't submit, because I broke the 1,000 word cap. Ha! Hope you enjoy.

Bacon by Richard Becker

The hearty wooden scent would fill the lake cottage every summer Sunday before the break of dawn. You had to get up early to get some before pitching off the pier with the hope of a catching a muskie in between the ever-abundant supply of perch and northern. The scrambled eggs and bacon already cooking on the stove made the early morning wake-up call bearable.

Grandma was always good about that, sneaking out of bed almost half an hour before anyone else just to start us off. She didn’t need an alarm clock to do it. It was Sunday and she’d say that’s how every summer Sunday ought to be.

She made it easy. With a smile and quick kiss on the cheek, she’d wave us off just as the white caps sparkled silver in the sunlight as it peeked above the tightly packed tree line; white cedar, jack pine, green alders, and birch.

And every Sunday, it was the same. Four lines dropped into the water, two near the boat with fresh minnows to pick up passers by and two cast out with our respective lures. My grandfather charged nothing more than the price of a little company.

“You’ll never catch any today,” he said, pulling a white handkerchief from his pocket and clearing away his rusted lungs.

“You always say that.”

“And even if you do, you can’t eat it,” he said, looking out in the distance. “You wouldn’t know … “

“Hey, you were there … I caught that …”

"Shush now,” he said, looking at me like a stranger. “We’re not alone.”

“What?”

My head hurt as the quiet swell of a rocking boat replaced itself with the hard, compacted ground from the night before. My eyes stung in the light as the campfire smoke circled around in my direction.

“I said … shush now,” the stranger said. “You’re not alone.”

I reached for the G36, a rare find, lifted from the trunk of an abandoned police car outside Charlotte a few days ago; maybe weeks.

“Don’t bother,” he said. “I’m not taking any chances with you blowing my head off or even your own. What’d you do to get this gem anyway, kill a cop?”

“Where’s my stuff?”

“Don’t worry yourself none about it,” he said, cracked lips breaking a smile above a wiry beard, graying red. “You’ll get it back. I only want one thing from you anyway.”

“What?”

“Fair trade,” he said. “You have a fire. I have the bacon. A little company.”

Bacon. I had almost missed the scent of it under the smell of ash. How long had it been since I smelled bacon? Weeks? Months? Probably a couple dozen years, before I took to squandering Sunday mornings with a Power Bars, coffee, and whatever remedy was required to cure the hangover from the night before. But even that seemed like a lifetime ago since the country broke apart.

“Yeah, sure, whatever,” I said.

“Yeah, sure, whatever,” he winked, grinning like a wood elf as he looked over the G36. “So what? You killed a cop? This ain’t issue everywhere, you know.”

“Be careful with that.”

“Be careful with that,” he mimicked. “Bah, somebody else might have already killed you. Pretty foolish, if you ask me, drinking yourself away like that.”

“You were watching me?”

“Yeah, I was watching you. We’ve been headed the same way for days, not that you’d notice,” he set the gun down beside him. “Would’ve said hello sooner, but I figured you might shoot me. Ah heck, suppose it doesn’t matter how you got it. Even if you said you didn’t kill a cop, I probably wouldn’t believe you.”

“I found it, so what?” I muttered, leaning forward out of the smoke to get a better look. Bacon. The smell was strong enough to cover up the taste of stale VO from the night before.

“See. You told me and I don’t believe you,” he squinted his eyes and drifted. “So what. So what. So what if I just came around last night and … fsshtp, fsshtp … skinned ya stem to stern. Oh, don’t think I didn’t think about it, either. I’ve killed people. Korea, Vietnam. You wouldn’t be the first. Probably not the last the way things are. But then … I saw what you did, helping those folks down the road a few days ago. They won’t do it, so I thought I’d pay it forward for them.”

“Pay what forward?” I said, seeing that bacon wasn’t the only thing on the fire. It was weak, but the tawny colored water in the pot was close to coffee.

“Tell you a secret,” he leaned in. “Shhh… you’re going the wrong way.”

“How would you know?’

“It’s Rome, I imagine. You’ve been headed mostly north but staying clear of hot zones,” his animated eyes remembering. “Whoosh. You should’ve seen it down near Miami. Poof. Gone. All gone.”

“Yeah, I am going that way, maybe to help,” I said. “So that’s where you’re from, Miami?”

“Me, no. But I went south from the panhandle before I went north,” His smile faded. “Hell of a mess down there. Hell of a mess. People herded up like cattle into camps. All of them, those who live there and now all those greenhorns running from winter. For most, I suppose it don’t matter where they go. But me, no. I’m what you’d call retired.”

“But you said you’re going to the same way?”

“Not to Rome. They’re making government in Rome.” He laughed. “Government made this mess; so you can bet it won’t be fixing it. Everybody all taking up arms, drawing boundaries, calling themselves these United States. Over in Rome, they’ll either kill ya or draft ya to kill other folks. Here… it’s done.”

It was burnt, dry, and hard to keep from crumbling. But even so, it was almost as good as every summer Sunday. No, not as good as Grandma’s by a long shot, but with most days serving up only canned goods and beef jerky looted from houses long abandoned, it might as well have been steak and eggs.

“Thanks,” I blinked. “So where then, if not north I mean?”

“You? Go west,” he said, pouring off the contents of the pot into two well-used tins. “They weren’t hit too hard out west. Some folks are even trying to live free.”

“West? I thought Lawrence was gone.”

“Lawrence is gone,” he said, pursing his lips around a strip of bacon. “So don’t go through Lawrence. Go, I dunno, go around to New Bern or someplace. Hell, go to Jericho. I dunno. Go anywhere the masses aren’t headed. Besides, you might like it. I lived in Kansas before my wife convinced me to retire to a trailer park.”

“So is that were you’re headed now. Kansas?”

“Me? No, I’m too old,” he said. “So I’m going to my real home. I'm going to Providence.”

“Kind of close to Boston, don’t you think?”

“Yeah, but home is home,” he smiled, tossing the rest of this coffee on the fire and pulling a white handkerchief from his front pocket. “For young folks like you, go live free or whatever. For old folks like me, well, home is good enough.”

“Yeah, right,” I said. “Jericho, huh? Why not.”

“Why not,” he smiled, humming to himself as he passed over my pack and the G36. “When the world is all on fire and overrun with man’s desire, why not Jericho.”

“Appreciate it,” I said. “I mean the company.”

“Now don’t shoot anything with that,” he waved me off. “Even if you do, you can’t eat it. There won’t be nothing left to take for granted.”

“You always say that,” I said.

“You wouldn’t know,” he said, reminding me we just met.

But he was right. There was nothing to take for granted. Not bacon. Not coffee. Not a little bit of company.

Disclaimer: "Jericho” and its related characters are the property of CBS Paramount Television Network and Junction Entertainment. This contest is solely for entertainment purposes. Neither Richard Becker nor Copywrite, Ink. is affiliated with CBS or Junction Entertainment.

Expanding Jericho: Season Two Fan Fiction

It seems Jericho fans had plenty of reason to cheer this week. CBS recognized fans for sending custom label water bottles; launched a blog called The Salty Scoop; made plans to promote Jericho Season 2 at Comic-Con in San Diego; and sent out a promising message from Nina Tassler, president of CBS Entertainment, publicly stating that while the rerun ratings are modest, 23 percent of the viewers currently watching first season Jericho reruns never watched the show before (hat tip to Jericho Saved).

“Just as encouraging, this research shows that one million viewers who left the show after the mid-season hiatus have returned this summer to catch up on the episodes they missed,” Tassler said. “We still have a LONG way to go. But, I wanted to share this news and express our continued appreciation for your support of " Jericho." You have quickly and firmly established "Jericho" as the show with the most passionate and vocal fan community on television. Please keep spreading the word.”

All right. We’ll lend an unofficial assist that we will promote deep …

Every now and again, I have an idea that I want to see come to fruition. One of them is the expansion of the Jericho Universe. While the waters have been tested a bit by fans, we kicked an idea around the office last week on how we might capture new viewers while expanding the Jericho Universe. Done.

Expanded Universe Short Story Competition

The Story. Write a 250- to 1,000-word short story about something happening in the expanded universe of Jericho (outside of Jericho) with original characters. While Jericho can be mentioned, please refrain from using anything that may interfere with future plot lines. Your name and address must be included on the e-mailed entry (we will publish pseudonyms upon request).

The Submission. Please submit the story in the body of an e-mail (no attachments, please) to expanduniverse@yahoo.com by no later than 5 p.m. PST on Aug. 17, 2007.

Entry fee. Nada. Zero.

First Place.
• The story published on the Copywrite, Ink. blog on Sept. 2, 2007
• An authentic hand-signed autographed picture of Skeet Ulrich (above)
• Jericho- The first season on DVD (upon release)
• Choice of Copywrite, Ink. “Covering Nuts” or “Remember Jericho” T-shirt

Second Place.
• The story published on the Copywrite, Ink. blog on Sept. 9, 2007
• Jericho– Official 11x17 reproduction poster
• Choice of Copywrite, Ink. “Covering Nuts” or “Remember Jericho” T-shirt

Third Place.
• The story published on the Copywrite, Ink. blog on Sept. 16, 2007
• Choice of Copywrite, Ink. “Covering Nuts” or “Remember Jericho” T-shirt

Winners will be announced on Aug. 31, 2007. Entry assumes that you agree to grant us first electronic rights (only) for publication on this blog in the event you win. If you do not win, you retain all rights. And by entering, you also agree that the story you submit is your own original work.

Tips. As we tell any writers, be accurate, clear, concise, human, and conspicuous. Since we are writers, spelling and grammar count. We also reserve the right to edit the stories and/or not award some or all prizes if no suitable entries are submitted.

If you are unfamiliar with Jericho, you might visit the Emmy-nominated site for backgrounders. If you have any questions, feel free to comment.

If you need additional inspiration, visit tomorrow because I’ll be posting a fan-fiction piece that I wrote last weekend (geez, hope you like it). Naturally, my example is not eligible to win nor can anyone else employed by Copywrite, Ink. enter.

Disclaimer: "Jericho” and its related characters are the property of CBS Paramount Television Network and Junction Entertainment. This contest is solely for entertainment purposes. Copywrite, Ink. is not affiliated with CBS or Junction Entertainment.

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."