Stop the Presses

The Sustainable Endowments Institute has issued its 2008 College Sustainability Report Card (PDF file)–and in the spirit of March Madness, we decided to take a look at which of the 65 NCAA Men’s Tournament teams would have gone to San Antonio had energy efficiency, green buildings, and recycling been the deciding factors, rather than athletic prowess.

Why? Because Duke University (PDF file), Stanford University (PDF file), the University System of California (PDF file), and the University of Wisconsin–Madison (PDF file)–the four tournament schools that earned the best grades–are now leading the green university movement and demonstrating how getting out in front of a hot issue can bolster a brand. (more…)

If you mention the phrase ‘Web 2.0′ to some communications professionals, don’t be surprised if the reaction you get is less than positive. With the spread of misinformation and urban legends, the rise of a blogosphere with potentially vigilante elements and a constant battle over Wikipedia entries, the social media revolution may be at the root of many sleepless nights for some marcom staffers.

But it all depends on how you look at it. Smart companies are turning to Web 2.0 technologies like social networking and microblogging service Twitter (click here for an excellent explanation of this somewhat tedious-to-explain service) to take a proactive approach in solving today’s communications and brand management problems. (more…)

This weekend, The New York Times published a series of articles detailing the less-than-successful adoption of increased transparency requirements in driving tangible executive compensation reforms. As companies were required to shed more light on executive compensation policy, shareholders believed that top pay packages would reflect the fact that boards would now have to publicly justify their decisions.

Thus far, they have not. And no one should be surprised that C-Suite salaries continue to grow. Even when faced with beefed-up reporting requirements, the need to be competitive in attracting top talent still comes first.

What is surprising, however, is that the way in which companies communicate their executive compensation issues has remained unchanged as well– especially given the brand-strengthening opportunities that greater transparency presents. (more…)

Though online video may be best known for dancing cats, Obama Girl and the kid who sings the Numa Numa song, people would be remiss to think that the Video web is a place only for teenagers–there are valuable nuggets out there for professional audiences, too, and more and more every day. No more is this apparent than in the case of a video collection that has been making the rounds through the legal profession–LawProse.org’s raw, unedited footage of candid interviews conducted with eight of the nine current Supreme Court justices, where they talk honestly about things like typos, lengthy briefs and made-up words.

The videos are so interesting because there aren’t any snazzy graphics or slick transitions between scenes. There are no slow-motion flashbacks or fast-paced action sequences. In short, they are relatively unedited. (more…)

A few weeks ago, in attempting to answer a question that has baffled political philosophers for centuries, The Christian Science Monitor asked: “Is Democracy the Natural State of Mankind?” On one side of the debate is Thomas Jefferson’s vision of an enlightened people with whom freedom can be entrusted. On the other side is Alexander Hamilton, for whom the devils of human nature trump self-government.

As one of the last bastions of populist democracy in American society, New Media lend a fresh perspective to this age old debate. With the advent of Website optimization, blogging, pay-per-click campaigns, viral videos, and myriad other tools, the Internet is the one communications vehicle that has the potential to provide each of us with an equal voice.

As such, those of us who communicate online owe it to ourselves to examine whether we’re creating a virtual world in which Jefferson’s best hopes or Hamilton’s worst fears will be realized. (more…)

When it comes to diversity initiatives within law firms, a recent study by Novations Group pinpoints several areas for improvement. Novations Vice President Fred Smith gave a succinct overview of the issue when he said,

“The best diversity training has moved far beyond the one-dimensional, feel-good event and today needs to be held to the same rigorous standards as other corporate training. Anything less cheats participants, wastes resources and undermines diversity efforts.”

Smith is absolutely correct. No amount of deftly-worded copy on a firm’s web site–mere symbolism, however well intentioned, if there is no ongoing, integrated action–can disguise a lack of firm buy-in or action. In an increasingly competitive environment, firms are coming under scrutiny on diversity-related issues from both potential recruits and potential clients. And even mainstream media are happy to point fingers at firms whose diversity efforts aren’t as impressive or effective as they may sound.

How can your firm ensure that your diversity initiatives go beyond lip service? (more…)

In late March, global investment banking analysis provider Dealogic released new data about sovereign wealth funds’ investments in U.S. and European financial institutions. According to this data, investments by global sovereign funds hit a record-setting $48.5 billion in 2007, and already stood at $24.4 billion by the end of February 2008.

Beyond the staggering numbers, there are a few other interesting information points. First, the announcement shows Singapore in the lead, with transactions accounting for 57% of the total amount invested in 2007. So why haven’t we heard very much about these large Singapore investments? (more…)

In late March, the New York Times Magazine took a look at the growing role of the Internet in spreading rumors. Recalling the persistent rumor about Barack Obama being a Muslim, the story examined how the Web is making it easier for misinformation and urban legend not only to spread, but to stick.

Urban legends and outrageous rumors, of course, have always been a vexing problem for crisis managers–just ask the marketing managers at Sara Lee and Starbucks, or the people at the Federal Trade Commission how it feels to have the phones ringing off the hook with confused and angry customers. To watch the story continue to fester–despite your best efforts to calm fears and reassure consumers by providing accurate, factual information–is a frustrating place to be, indeed.

So is it better to say nothing and simply let the rumor die down, or should you aggressively defend yourself against the unfounded rumor? Every case is different. Some companies, such as SC Johnson, choose to address online rumors by working with rumor debunking sites like Snopes.com to ensure that misinformation is corrected. Other companies, like Coca-Cola, take rumors head-on in the pages of their own web site. And Proctor & Gamble actually filed a lawsuit and won against competitors who were intentionally propagating misinformation.

Companies, countries and high profile individuals are all potential rumor targets–the “run on the bank” scenario is, today, more likely than ever to be accelerated online–and while there’s no one-size-fits-all answer, your communications counsel can help identify areas of your brand that are most vulnerable, and can make suggestions on things you can do–both online and in the real world–to be better prepared.

Lost somewhat amidst the tectonic shifts that JP Morgan Chase’s acquisition of Bear Stearns had on global capital markets was the far-sighted and proactive legal and communications initiative JP Morgan put in place to quell any negative fallout from the all-too-easy to anticipate shareholder litigation that is sure to follow.

Indeed, JP Morgan Chase moved aggressively to build a firebreak around any issue that could have distracted regulators, shareholders, analysts, employees, and countless other key audiences. With a swift and steady hand, the bank included among its first announcements that it would set aside $6 billion to cover potential litigation–a good strategy given that Bear Stearns went from a company valued at $3.5 billion at the close of trading on Friday to selling for a mere $240 million the following Monday. And that included their Madison Avenue headquarters, valued at $1 billion in Manhattan real estate circles. The fact that they’ve now upped their buyout bid to $10/share is another positive sign that JP Morgan Chase wants to get this deal done as soon as possible and reduce a prolonged discussion of it in the media.

Given that the entire focus of this effort was to calm global markets, JP Morgan Chase adroitly recognized the need to limit any discussion of liability (and its subsequent impact on the bottom line of the new entity) by discussing–and disarming–the issue immediately.

JP Morgan Chase also sent a powerful message to potential judges and jurors, the financial media, and the public at large that it is accepting responsibility for rectifying a situation it played no part in creating–thus helping to neutralize the ability to paint the company as a cold, unfeeling entity.

JP Morgan Chase’s anticipation of strike suits alleging everything from material misrepresentation to cooking the books demonstrates the need to communicate with clarity and speed given the fear and uncertainty that permeate the marketplace today.

From Capitol Hill to the White House, federal lawmakers and regulators are talking tougher than ever about regulation. The crisis in the nation’s housing market, the roller-coaster ride on Wall Street and the series of safety scares and recalls involving spinach, toys, toothpaste, beef and pet food are driving both political parties to call for stricter regulation of consumer products and financial services.

“We’re in for a potentially significant regulatory response,” Glenn Hubbard, dean of Columbia University’s business school and a former chief economist for the Bush White House, told The Wall Street Journal this Monday.

Simply put, 2008 is shaping up to be a very scary year. Increased scrutiny of product safety and efforts to punish unscrupulous service providers is a priority at the Consumer Product Safety Commission, the Food and Drug Administration, the U.S. Department of Agriculture, the Environmental Protection Agency, the Securities and Exchange Commission and any other government agency that has oversight authority.

Most important, recalls are attracting ever more media attention to any manufacturer, retailer or wholesaler that issues a recall. And with words like “E. coli”, “salmonella”, “mortgage meltdown” peppering newspapers, magazines, the airwaves and the Internet, one can safely assume that every corporate logo potentially looks like a bull’s-eye to lawmakers, regulators and journalists eager to make headlines.

Smart companies need to have their crisis plans in place and tested now so that they aren’t caught flat-footed when the spotlight inevitably hits them. In recent weeks, we saw the bankruptcy of the Hallmark Westland meat company, which took appropriate steps to protect consumers during the largest beef recall in history, but was overtaken by events because it had no crisis communications plan in place.

We’re not just talking about mere message points and creating a call-list for reporters. What’s your Internet blogging strategy? Has your website been optimized? How are you tracking what your adversaries are saying about you online? Who’s working with the regulators in Washington or in your state capital? Who’s on speed-dial to prepare your team to testify before a Congressional committee? All these questions and more need to be answered BEFORE the crisis hits. So, use your peacetime wisely and prepare your crisis plan now. It could mean the difference between your company’s survival and its demise.