Could it be that Gordon Gekko’s “Greed is Good” mantra is turning on its head for a more noble, “Greater Good is Good”?

Maybe.

On February 10, New York will join six other states that over the last two years began to permit businesses to incorporate as “benefit corporations,” a classification that allows companies to legally build “doing good” into their for-profit business models.

Benefit corporations are required to create positive social and environmental impact, and in exchange, benefit from expanded legal considerations of stakeholders beyond purely financial interests. And it’s not nonprofits or tax-exempt businesses that are incorporating, but for-profit entities, like Patagonia Inc., who have made social benefits paramount.

This is not just warm and fuzzy talk in a CSR report. These companies are required to report on their performance towards achieving social impact targets (which they are mandated to clearly specify in the bylaws) in an annual audited report.

What would Gordon Gekko say to this new legal structure that allows companies to consider social benefit over profit? My guess is he’d be utterly baffled since his worldview is grounded in the belief that it is a zero sum game where somebody wins and somebody loses.

Sorry, Gordon, but greed as a business model is about as out-dated as your insanely large 1980s cell phone.

mtorres CSR CSR, Gordon Gekko, Patagonia

A note from Carreen Winters: One of the greatest things about working in an agency like MWW Group is the wealth of talent, the diversity of perspective and the new ideas that come from members of the team.  For the next generation of PR leaders, social engagement won’t be a new thing – it will be their thing – like the press conference and the VNR defined “creative” when I was learning the ropes.  (Yes, I am dating myself)  Check out this great post from Farrah Hamid about Nick Kristoff’s use of social gaming…it’s a great read.

Last week, Nick Kristof, famed Pulitzer Prize-winning columnist for The New York Times, announced the release of a Facebook game based on his award-winning book Half the Sky. The game, reportedly similar in format to the popular FarmVille, will allow players to make micro-donations to humanitarian groups around the world and contribute to their own causes. Kristof’s website says that the game will trigger “real-world, charitable action” in the fight against the oppression of women and girls worldwide, the cause at the center of Half the Sky.

The announcement and a particularly interesting corresponding interview that Kristof conducted with Fast Company raises two important discussions about the increasing relevance of social media and gaming for cause organizations. First, it addresses the opportunities that causes and advocacy organizations have to build awareness and credibility – beyond the extraordinary rallying of the crowds on Facebook and Twitter that we’ve witnessed in the recent past, with movements such as the Arab Spring and Occupy Wall Street (just to name two).

For an organization advocating for an issue as serious as oppression against women, gaming is certainly a surprising medium to undertake, especially given its relatively frivolous, entertainment-based connotations. Yet, some are commenting on its potential to change the game (yes, pun intended) for advocacy organizations – Kristof’s game for one will engage users not just to become aware of the cause, but actually raise cash and benefit real world schools and refugee camps.

The second discussion the move addresses is the evolving role of opinion journalism, as reporters are increasingly acknowledging the need for the “real, multi-party dialogue with readers”, as Kristof calls it, that social networks enable. When reflecting on his role as an op-ed columnist, Kristof says, “We’re moving from a format where we ‘proclaimed the news’ to the world on a fixed schedule to one where we converse with the world on a 24/7 basis. That does feel like a significant change.” For more from Kristof, you can follow his active updates on Facebook and Twitter.

Kristof’s currently untitled game is expected to launch in late 2012. What do you think? Can the world’s societal issues be changed through online gaming? Leave us your comments below.

fhamid Social Media Arab Spring, Farmville, Half the Sky, Nick Kristof, OWS

Last weekend’s tragic Costa Concordia accident just off the Italian coast continues to dominate news coverage days later, thanks to the heroic stories of passengers rescuing themselves and each other and the almost daily revelations of the Captain’s incompetence, cowardice and excuses.  Carnival Cruise Lines, parent of Costa, has seen its stock price plummet.  The media and financial analysts are also speculating on costs to insurers and the cruise industry in general, particularly at the height of the booking season.  Cable news and investigative reporters everywhere are breathlessly reporting on such topics as the “hidden dangers of cruise ships” and “what you need to know before you book a cruise.”

From a communications perspective, the Costa Concordia grounding shows how an entire industry can be sent into crisis mode from one player’s accident.  And unlike the airlines, the cruise sector is focused purely on leisure activities so taking to the water is optional and not the necessity that air travel is for the majority of fliers.  Therefore, companies such as Royal Caribbean, Norwegian Cruise Lines and even Disney are scrambling to reassure the public of their safety procedures and distance themselves from the egregious missteps that took place in Italy.  One can also expect that a bevy of cruise sales are just around the corner.

For companies across industries, the lesson here is to be prepared to react and react quickly and appropriately when a crisis hits a competitor.  The media and public, especially in the digital age, can be fast and even reckless, painting an entire industry with one brush when there is an accident, scandal or any significant issue facing one player.   This is a great time to dust off that crisis communications plan, see if it is updated to take account of social media and game plan how you would react if a Costa Concordia happened in your industry.  There are times to be proactive as in the current crisis facing the cruise industry and there are times when you want to only be reactive, such as when a data breach impacts a competitor.   Notice how quiet online retailers have been after Zappos’ data breach, as no one want to raise their hand to tout their security bona fides and challenge a hacker.

rtauberman Crisis Communications Carnival Cruise Lines, Costa Concordia, Zappos

As we move into the New Year, who will be 2012’s biggest winners and losers in the reputation game?  Here are a few on my “watch list”:

1. Tim Tebow – College and professional sports have had a rough year, and we are looking for some new heroes.  Enter Tim Tebow – athletic uber-achiever, seemingly authentic advocate for faith, Tim Tebow has the stuff that heroes are made of…so much so that he was voted the most desirable celebrity neighbor in a recent poll.  Is this sustainable?   Or is he a one hit wonder?
2. President Obama – this one is self explanatory – people don’t think of our President as the CEO, but he is the CEO of America, Inc.  As Washington’s gridlock continues and the Republican nominees become more of a known quantity, will President Obama be the reputation winner?
3. Target – still a beloved brand for its budget-chic sensibility, Target is a reputation at a crossroads.  Last year brought negative attention for support of anti LGBT candidates to the red bulls eye, and a series of workplace issues threatens the store where the First Lady loves to shop.
4. Johnson & Johnson – The iconic trusted “baby company” is taking a lot of punches due to a series of recalls.  How long before that reputation goodwill bank runs out?
5. Mark Zuckerberg and Facebook – The young billionaire took a few punches with release of The Social Network, punched back with a mega-donation to the Newark Schools.  If Facebook IPOs in 2012, all eyes will be on this company.
6. London and the 2012 Olympic Committee – an event of this magnitude is a make or break proposition.  But no pressure…
7. Sears & Kmart – my personal view is that the Kmart acquisition gave Sears a big black eye.  After weak holiday sales, they announced this week that they are shutting stores.
8. North Korea and Kim Jong Un – will a new supreme leader change the nation’s reputation, and its economy?
9. Meg Whitman and HP – distractions in leadership and strategy shifts put HP on the reputation roller coaster at a time when it was still reeling from the scandalous resignation of Mark Hurd.  Whitman seems to be bringing focus back to HP – and this may be the year they get their reputation mojo back.
10. Warren Buffet – 2010 was the year of asking billionaire’s to give away their wealth.  2011 brought the Buffet “tax me please” message to Washington.  What will the Oracle of Omaha do in 2012?

cwinters General Corporate Barack Obama, Facebook, HP, Johnson & Johnson, Meg Whitman, Tim Tebow

Trust and relevance, in combination, is the key to building reputation.  What happens when you are relevant for the wrong reasons?  When relevance comes without trust, the result is negative for reputations.  Here are my thoughts on the biggest reputation losers of 2011:

1. Rupert Murdoch – Murdoch was never a beacon of honesty, but a publication-ending scandal of this magnitude solidified his position as the guy we shouldn’t trust.
2. Ashton Kutcher – what happens when a twitter-licious celebrity goes off the rails?  Ashton’s public marital problems, followed by his rant defending Joe Paterno caused his reputation to take a major tumble.
3. NBA and David Stern – when millionaires fight with billionaires, nobody wins.  And while the fans got a Christmas gift with the return of NBA play, they start the shortened season with a black eye.
4. Yahoo – is this really how you fire a CEO?  Enough said.
5. Joe Paterno and Penn State Football – Legendary coach Joe Paterno’s firing in the wake of a sexual abuse scandal is the headline here, but far from the only reputation damaging event in college football. 
6. Bank of America – already the poster child for labor protests on executive pay and the “1 percent problem” Bank of America’s decision to implement nickel and dime fees to customers is one of the things that makes me go “hmmmm?”
7. Mayor Bloomberg – OWS, mishandling the October blizzard and the Cathie Black debacle have made the straight talking Mayor one of the year’s reputation losers.
8. Big Banks, Wall Street and the Financial Services industry – it’s hard to believe that there is further to fall after the TBTF trend of last year – but OWS, MF Global and other high profile events are proof that there is still further they can fall.
9. The European Union – the European Financial Crisis is one to watch in 2012…seems like yesterday that the world was celebrating the EU and the Eurozone – concepts whose viability are now in question.
10. Netflix – the customer owns the brand.  And that customer is angry.  A bumbled apology doesn’t make up for a breathtaking lack of awareness of what matters to customers.  BofA and Netflix seem to be missing the same chip here.

cwinters General Corporate EU, Murdoch, NBA, Netflix, Penn State, Yahoo

Reputation building requires relevance – sometimes that relevance comes from an event in the news, and sometimes it is created and crafted by the choices, statements and actions of individuals. History is filled with examples of reputations ruined in a single action or in a brief news cycle, and 2011 was no different.  (Watch for that blog soon). 

But winning the reputation battle…that is another story altogether.  Here’s my list of reputation winners of 2011 – who would you add?

• NYC as a tech hub – the success of FourSquare, Twitter’s NY office and Facebook’s plan to come to NY in 2012 have put NYC back on the map as a legitimate technology center.
• Tablet Computing – sure, Apple still dominates the category – but the holiday success and popularity of the Kindle Fire and Samsung’s Galaxy Tab have taken Tablets from a product (the iPad) to a category.
• Populism and mass protest – three letters – OWS.  But this wasn’t the only movement that captured attention this year – think about the protests over Russia’s elections, the Arab Spring or even India’s anti-corruption movement. 
• The British Monarchy – there is nothing like a royal wedding to make an out of date institution like the monarchy relevant again.  Will and Kate have captured the hearts of the public in a way we haven’t seen since Princess Diana.
• Social Media – no longer the wild, wild, west – social media’s acceptance in the mainstream world and in the board room makes it a big winner of 2011.
• NCAA Basketball – scandals in college football and an NBA lockout made college basketball the darling of winter sports – where the love of the game rules the day. 
• Steve Jobs – The untimely passing of Steve Jobs, and the insight into the long range plans he left behind for Apple has taken an iconic leader of our time and made him even larger and more iconic than when we was living. 
• Google’s Sergy Brin – taking back the reigns of Google and tackling tough issues like China while restoring Google’s focus on the ideas that work is helping Google get its mojo back.  Let’s watch Google+ in 2012.
• GM, Ford and the American Automotive industry – Once the industry America loved to hate, complete with CEOs taking private jets to Washington to ask for a bailout, the American Automotive industry is on the rise, fueled by bold leadership by CEOs like Dan Akerson, who dares to say out loud what many just think, or Alan Mulalley, who arguably led the industry’s reputation turnaround.
• Lady Gaga – once known simply for her eccentricity (meat dress, anyone?), Lady Gaga has emerged as a leading equality advocate – for LGBT issues and for anti-bullying in general.

cwinters General Corporate Arab Spring, Ford, GM, Google, Lady Gaga, OWS, Social Media, Steve Jobs

It’s that time of year again..when we recap the biggest PR blunders of the year, the biggest crisis of the year, the best PR campaign of the year. I’ve even got a few of those on tap for this blog in the next few weeks. (Stay tuned!).

As a self-processed “Student of the CEO” – I’ve often written about the value of the CEO in building trust for a Company or brand, and more importantly, making or keeping that brand or Company relevant. In its simplest form, the notion of CEO as a reputation driver is predicated on the presumption that the CEO’s actions are additive.

But what happens when the CEO doesn’t help your cause? Typically, that conjures up images of a CEO in handcuffs, or professing ignorance about what transpired at his company. This David Pogue piece from yesterday’s New York Times makes a great case about questionable decisions by CEOs leading to reputational damage…Netflix, Cisco, HP are his examples. Where a CEO’s singular focus on a particular constituency, at the expense of all others, causes reputational damage, not only to the CEO (some end up losing their jobs), but to their Company or brand.

Leadership requires balancing the needs of multiple stakeholders in all decision making. And while you can’t make all of them happy all of the time (sometimes their needs are diametrically opposed), you can communicate big decisions in a way that includes and addresses each stakeholder. We call it the Total Stakeholder Approach.

In the post OWS world, it is clear that ignoring even one of your stakeholder groups is ill advised….will the leaders of 2012 learn from these CEOs’ blunders….or do more of the same?

cwinters Public Relations CEOs, Corporate Brand, David Pogue, Executive Visibility

When you think of labor leadership, what comes to mind?  If you are thinking of the tough talking prototype portrayed in the movie Hoffa, think again.    Labor unions and their members have massively changed in the past generation – 1/3 have college degrees, nearly half are women, and only 1 in 10 work in manufacturing.  And their leadership is changing with it.

This NYT piece profiles three labor leaders who are women…that’s right, women. And they aren’t the heads of nurses or teachers unions.

Some would argue that this is simply a reflection of the changing demographic – but I think it is more than that.  Today’s labor leaders live in an increasingly complex world, where the old style game of “chicken” that characterized negotiations may no longer be effective.  As states entertain right-to-work policies, governors play hard ball with public employee unions and concessionary contracts become commonplace, the ability for a leader to create communities, build consensus and advance compromise as an acceptable, even successful outcome, has never been greater. 

As I read about these women, there is a notable absence of “scorched earth” in their success stories, and an increased focus on being more broadly relevant to their communities at large – not just their immediate membership.  This is a model that would serve leaders of all kinds well.  Iconic leaders don’t just represent their own company, their own employees, or their own customers – they are the voice of an industry, or of the business at large.   They stimulate conversation on broadly relevant issues.  They lead.

cwinters Employee Engagement, Executive Visibility Labor Unions, Public Employees

Here’s some unsolicited advice to Penn State students – you are up in arms over the wrong thing.  You shouldn’t be protesting Paterno’s exit – you should be protesting the fact that the Coach you so admire allowed little boys to be abused, and turned a blind eye….literally. 

Penn State was one of those schools that prided itself on being “clean” back in the day when a college sports scandal usually involved an alumnus purchasing a car for a hot recruit. Paterno, who was well on his way to a legacy akin to that of Vince Lombardi, prided himself on being free from those sorts of allegations.  This is worse.  Far worse.

Even though Paterno, who reportedly hired a criminal attorney, has coached his last game, the reputational implications for the University will live on for a long time.  Some would say that this requires bold action – like suing Paterno or suspending the football team for a couple of years, to rebuild it from scratch.  I’m not a fan of punishing the kids – those who play and those who chose Penn State and are looking forward to the weekend football game as part of their college experience.

What can Penn State do to put this behind them?

1.  Open the kimono…it’s time to ‘fess up, take responsibility and make some sort of reparation to the victims before a court requires you to do so.  No amount of money can “fix” those abused children…but until Penn State does this, they can’t move on to what comes next.
2. Take action against anyone and everyone who was peripherally involved…if you knew, might have known or should have known – start looking for a job.
3. Choose your next head coach carefully – and from the outside.  Thoroughly investigate the candidates, and involve credible third parties to do so.
4. Implement a policy that prohibits a child from being alone with an adult for any reason.  Hundreds, if not thousands, of children attend camps, clinics and programs at Penn State each year (or at least they used to).  This is closing the barn door after the cows have escaped, for sure. But it needs to be done.
5. Lead with something other than football.  I’ve seen Penn State students take to social media saying that football doesn’t define the University.  Really?  Because to most people Paterno, Penn State and football are inextricably linked. Penn State should lean in to the prominent alumni, focus on academic programs…anything other than football.  

The reputational implications are significant, but the practical consideration is that Penn State is likely to see a change in its applicant pool – parents just won’t feel good about sending  their kids to a place they no longer trust.    It’s going to be a long haul.  It’s not likely that there will be a bigger scandal to take them off the hot seat – although Herman Cain should send Paterno flowers.

cwinters General Corporate Joe Paterno, Penn State Scandal

The latest political drama to hit cinemas is The Ides of March (based on a play based on truth) adapted for the screen by the ever-relevant George Clooney and starring the newly ubiquitous Ryan Gosling, as the “country’s greatest media mind” behind the campaign of a presidential candidate (played by Clooney).

The film’s themes are provocative for those of us in the business of PR, as they reflect many ingredients of effective reputation management:  one part media relations, one part crisis, and a helping of ethics on the side. In the film, Gosling’s character is a media relations superstar, tasked with maintaining the high profile reputation of a potential future president, yet grappling with a possible sacrifice of values.

No one would argue that reputation management can be a sneaky game especially in politics, but these days, flaws are harder to sweep under the rug. On the other side of the silver screen, everyone from corporations to students are realizing that it’s not just the media at the helm of their reputations – it’s social media. We know the examples: Nestle ran into trouble, as did Urban Outfitters. The political world is almost too obvious, with the downfalls of Anthony Weiner and Chris Lee as examples.  Hollywood itself isn’t exempt – what’s the most buzzed-about topic related to the affair rumors facing Ashton Kutcher and Demi Moore? Tweeting habits.

Though the film doesn’t address social media specifically, it recognizes the power of public relations on an individual and broader level, presenting a compelling narrative on ethics and the role of reputation and media. It does a particularly good job of examining the lengths that those in the highest echelons of politics go to in order to maintain that critical, yet fragile, sphere of influence.

But today, the approach by many lately has been the opposite of the underhandedness in Ides – it is openness over exclusivity, transparency over bureaucracy. Whether in Hollywood or in Washington, we’re all learning hard and fast that the person with just about as much power as that scrappy reporter from the Times, might just be your Facebook friend.

fhamid General Corporate Facebook, Ides of March, Nestle, Twitter, Urban Outfitters