I consider myself to be a student of “culture building.”  And I whole heartedly believe that culture has a direct impact on business performance.  It was a lesson I learned as a young PR pup, learning the ropes with my first big client, Continental Airlines – whose efforts to change their culture saved the airline and resulted in a business school case study kind of turnaround. 

Since then, I’ve observed, learned and absorbed every client’s approach to culture – and it is no surprise that the annual Fortune Best Places to Work leaders all talk about the role of culture in enabling their businesses to be successful. 

Building a performance-driving culture isn’t rocket science.  Most of the rules of the road come from simple lessons we all learned from our grandparents:

1. Treat people with respect.  Google’s Larry Page said it perfectly:  “When you treat people with respect, they tend to return the favor.”   Respect isn’t just about talking to them nicely – it is about trusting them to have some control over their work – whether that is their schedule, their assignments, and management of priorities.  Respecting them enough to share the big picture strategy.  And yes, work-life balance counts too.  Page says you need to treat employees like family – you probably need to treat them better than family.
2. Treat people as individuals.  Employees are not a flock of sheep.  We’ve developed super sophisticated ways to market products to micro-targeted groups of customers…recognizing the trend in individualization applies to the internal customer too and can be a real differentiator. It’s also how companies like Wegman’s and companies you may never have heard about like Camden Property Trust break into the Top Ten.    Perhaps the most extreme examples of this philosophy are the 14 companies who have a “no layoffs” policy.  The interesting thing about them is that many of them are in businesses that are hardest hit by the recession and changes in public policy– retailers, travel companies, healthcare and even AFLAC.  So they aren’t businesses who grow in all cycles.
3. Communicate, communicate, communicate.  Repetition is the key to culture building.  Grandpa’s story about walking to school uphill both ways served a purpose.  When you are sick of talking about something, your team is just starting to hear it.  And when you are ready to choke yourself, they are starting to believe this is more than the “direction du jour.”  Stay the course.  Reinforce your message.  And most importantly….walk the talk.

cwinters Employee Engagement AFLAC, Continental Airlines, Culture Building, FOrtune, Google, Wegman's

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