Corporate Social Responsibility, Reputation, Stephanie Fierman, Sustainability, corporate reputation, environment, reputational risk

Like Your Mother Always Said: You Teach People How They Can Treat You

No Comments 15 July 2010

By Stephanie Fierman

Larry King held a two-hour telethon on June 21 to raise funds for those impacted by the BP oil spill titled “Disaster in the Gulf: How You Can Help.”

Am I the only one who doesn’t quite understand this?

It seems uncontested that the spill was caused by a commercial entity that everyone agrees is responsible; that the U.S. government has vowed to hold said entity to its promise of paying for the clean-up and for losses incurred by all affected parties; and BP itself has agreed to do same.

Now I’m not making any claims as to whether BP will or won’t actually do this (or that its version of reimbursement would be agreeable), but this telethon wasn’t saying “We know BP’s 100% responsible, but we don’t believe it’ll come through so we’re doing this just in case.” It was just your regular old telethon to raise money.

So why? Why are we raising money? Why are television watchers being prodded by their favorite celebrities to donate?

Larry King said that “the point of this effort is to get immediate relief to the people and wildlife who (sic) are in urgent need,” and that “the telethon’s proceeds go directly to relief organizations.”

OK, fair enough.  As Mr. King noted when you are out of work you don’t need help tomorrow, you need help today.  But here’s the Reputational rub, if you will. Isn’t BP tasked with providing “immediate relief?”  Doesn’t BP need (and want) to find ways to help the people thrown out of work. One worries for our global business trustscape when a major company is cast in the same light as, well, a hurricane.

I also worry that, in a perverse way, that this kind of giving makes us immune – numb – to disaster and tragedy. Something happens? No need to look too closely: let’s just raise money. Let’s get a bunch of stars to look soulfully into the camera and ask for cash, while we view a dying, oil-blackened bird in split screen. Haiti six months later is still a major scale human disaster, though the media lens and the public have moved on.

And I worry that this makes Americans feel as though we’re doing something – we sent in our $20 bucks, therefore we are good people who care and we can move on. But can we? Are we doing any of the heavy lifting that could actually help managers improve risk management to avoid future outcomes, or to really help the people impacted recover? What does it mean when individuals appear to be picking up the slack for a global corporation?

And I worry, too, about the effect on our collective sense of organizational responsibility. How does this phenomenon impact a company’s commitment to building trust in the marketplace?

It’s easy to pound one’s chest and demand that “those responsible” do more, but I would suggest that, by our own actions, the public may be empowering these same responsible parties to do less. There’s no guidebook that tells an organization exactly what reputable and trustworthy behavior is – society does that. Stakeholders – like you, me and Larry King – do that.

Where do we want to set the bar?  In the midst of a crisis as big, bad and complex as the Gulf, sometimes it’s hard to tell where the bar even is. That said, on one thing, at least, everyone agrees. Help is needed in the Gulf.

Brand Strategy, Other Posts, Reputation Management, Stephanie Fierman, online reputation

LVMH v. Google: Purses and Profits on the Web

No Comments 05 April 2010

by STEPHANIE FIERMAN

There’s a real reputation-meets-commerce battle happening online.

Today, any advertiser with a Google AdWords account can buy virtually any keyword to advertise its own goods, regardless of whether the advertiser in question has the rights to use the word. This is particularly troublesome to companies that have spent decades burnishing brand franchises and consider the associated names and words to be reputational assets of great value.

If you go to Google right now and type in “LVMH” (the owner of numerous brands including Louis Vuitton and Hennessy), one of the sponsored ads shouts “Designer Handbags 70% off,” with a URL that includes the Louis Vuitton name. This has LVMH steamed, and the company sued Google in Europe for trademark infringement.

Well the ruling is in… and it’s a split decision. Advantage: Google. Continue Reading

2009 Classics, Advertising, Customer Advocacy, Leaders, Reputation, Reputation Management, Stephanie Fierman, marketing

Is Santa the Best, Most Trusted Marketer Ever?

No Comments 30 December 2009

by STEPHANIE FIERMAN

Ed Note: As the numbers trickle in and retail analysts debate the success – or lack thereof – of this holiday season, Trustmeister Stephanie Fierman asks the key question…

Is Santa the best marketer ever?

Think about it.

Long-term reputation management: No Tiger Woods problems here. Ever. Do you think that Coca-Cola worries that it might go to sleep one night and wake up to find a sex tape of Santa on the Web? Have you ever noticed that the whole “Mommy kissing Santa Claus” business never seems to go past a certain point (paging Charlie Sheen…)? Nope, not gonna happen. Santa is one reliable dude.

Brand promise and channel integration: No matter where you go, you receive the same disciplined message. Movies, television, email, radio, social media, Web, snail mail, music, retail… You get the same message everywhere and each channel builds upon and reinforces the others. He’s big, he’s fat, he wears a red suit and he gives you what you ask for on Christmas Eve. Not December 23. Not December 25. It’s December 24. Every year.

Continue Reading

Advertising, Brand Strategy, Reputation, Reputation Management, Stephanie Fierman, Trust Issues, Videos/Podcasts

Recession Landmines Do Not Discriminate: Caution

3 Comments 27 March 2009

STEPHANIE FIERMAN

A recession landmine is like a real landmine. It’s going to kill or maim whomever steps on it. The guilty, the innocent… it doesn’t matter. A landmine does not discriminate. You just explode.

And so it was with a recent Pepsi ad for G2 (low-calorie Gatorade).

Continue Reading

2009 Classics, Advertising, Brand Strategy, Classics, Reputation, Stephanie Fierman, corporate reputation, financial crisis, reputational risk, scandals

Financial Firms Must Break From The Pack To Establish Trust

No Comments 06 March 2009

by STEPHANIE FIERMAN

Here at the Garage, we believe that a more measured approach to bank and investment advertising is probably a positive development.

After all, hadn’t all the ads begun to look the same? Could every company and every investment have possibly offered the best return, and the most Morningstar stars, and the biggest retirement homes in paradise? Unlikely. Outside of just a few stalwarts, such as Vanguard with its slow-and-steady point of view and Bogle-esque approach, many of the siren calls in the newspaper, on television and online had all taken on a surreal and undifferentiated patina. That’s not effective.

Now it appears that all the bulls have stampeded in the opposite direction.

Consider the list of firms advertising in one issue of The Wall Street Journal this past week, along with text pulled verbatim from their ads: Continue Reading

Other Posts, Stephanie Fierman

Will Sponsors Throw A Life Line To Michael Phelps?

2 Comments 02 February 2009

by Stephanie Fierman

Well. Well, well, well. What can one say about the picture of Michael Phelps smoking marijuana from a bong?
Yes that’s right kids, your gold-medal idol is smoking grass. Weed. Ganja. He’s inhaled. And it looks like he’s done it before, too.

Having moms ourselves, The Garage shudders to think what Phelps’ mother may have said in reaction to the news. And if your Phelps’ reps at Octagon, you’ve started bailing water. Fast.

Phelps has issued a statement and apology using the “I’m young and dumb” approach and, as Fox Sports is already reporting, this event is likely to fade in the memory of the public. The question is whether sponsors will be willing to help mend his reputation as quickly.

Kid-focused McDonald’s and Kellogg’s Frosted Flakes, for example, have both counted on Phelps to project a wholesome, healthy All-American image. Maybe Phelps could just alter his pitch for McDonald’s a little bit: “Duuuude! After I smoke, I get, like, the wicked munchies. A Big Mac totally hits the spot.” Yikes.

Chances are good that Phelps’ fortunes will survive long-term if this side of him never sees daylight again. But if there’s more to come – if this episode turns out to be only Strike 2 following his arrest for drunk driving in 2004 – his sponsorship potential may not recover for decades, if ever.

A version of this post was originally posted at www.stephaniefierman.com.

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