I remember when the Susan G. Komen Foundation came on the scene.  It was early on in my PR career, and every client I had wanted to partner with them – almost as fervently as they wanted to be on Oprah. Soon we had pink everything – from KitchenAid mixers to diamond necklaces – all supporting breast cancer research.  And the Komen Foundation became the Xerox, QTip or Kleenex of breast cancer.   Heck, the NFL had a pink out.  The Komen Foundation and the pink ribbon became the gold standard for every health advocacy group out there.  Until today.

Unless you’ve been shut off from the world the past few days, you know that the Komen Foundation will no longer be funding mammograms and other cancer detection services through Planned Parenthood.  I learned about it the same way you probably did – on Facebook.  And if social media is a good indication, this one isn’t going to just pass over.  The Komen Foundation has quickly become Public Enemy No. 1 for women everywhere, and put the debate over coverage of contraceptives on the back burner. Commentary ranges from statements about the power and influence of right leaning politics to suggestions that the foundation itself has lost its way in a sea of pink licensing and promotional deals. 

The Komen folks point to a new policy that prohibits them from funding, but a recent story highlights the departure of a top executive as a result of that policy, and several inside sources who paint a picture of duplicity – a public Komen advocating for women, while privately scheming to cut off Planned Parenthood in a nod to conservative politics who’ve made sport of villain-izing Planned Parenthood.  What inevitably follows is the question of Komen’s trustworthiness, and where the money goes.  How much of the millions they raise through walks, endorsement, licensing and product sales really goes to cancer research, and with what kind of results? 

The pundits will surely be lining up to talk about the importance of crisis communications.  And yes, good crisis communications will be key to the very existence of the Komen Foundation.  But this isn’t a communications problem – this is a policy problem.  In an apparent nod to conservative politics, the Susan G. Komen foundation manufactured a new policy in order to sever ties with Planned Parenthood. The Komen Foundation seemingly forgot, or miscalculated, the priorities of its passionate advocates and supporters. Good communications, even great communications, can’t fix bad policy or bad decisions.  The Susan G. Komen Foundation needs to make good decisions first, then communicate.

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.

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?

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.

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.

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?

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.

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.

Whether talking to investors, or customers, for the narrative to be relevant and authentic, it must match the stakeholders’ own experience with the Company…it is at the heart of the distinction between brand and reputation.   

From an investor perspective, delivering on the promise requires operational and financial performance…which ultimately boils down to every employee understanding the mission and their individual roles in making it happen.  

I often remind clients that Citizenship begins at home (for CSR clients) and that turnarounds begin at home.  Let’s add shareholder value to that list.

In a recent poll, just 17 percent of Americans say that they are following the protest closely – down from one in four in April.  It is not surprising that more people followed the death of Steve Jobs than Occupy Wall Street…but more people are also following the situation in Afghanistan closely than OWS.  

It seems to me that the OWS protest is more like organized labor’s inflatable rat than a real movement…you see it, and move on without engaging unless you are already a supporter.

Why? The protestors are certainly getting plenty of ink and air – which is the key criteria for legitimacy for many in my profession. 

• Sustainable movements need a leader.  A face for the cause.  Would the Civil Rights movement of the 60s been the same without Martin Luther King Jr.?
• You have to be for something.  Much like the broader, more generic protests of the 60s, it is clear that the OWS protestors are against “the establishment” – but they offer little in terms of specific recommendations.  President Clinton pointed this out in a recent interview, and recommended that the protestors get behind the Obama Job Plan. 
• They need defining moments that create a real connection with the broader population.  Historically, these moments come from the missteps of the establishment, particularly law enforcement.   One of the founders of the movement seems to think that the arrests on the Brooklyn Bridge are that moment – but I’m not sure that is sustainable.  And I’m not sure jumping on the beat up Bank of America bandwagon will do it, either.

In totality, OWS needs a relevant, sustainable narrative, delivered by a credible and compelling spokesperson.