By Andrew Kenneally
I attended a social media camp (i.e., PodCamp) in Boston this weekend and the buzz was - everyone loves Twitter! For those not familiar with Twitter, its a simple social networking tool that allows friends to tell each other what they are doing.
Businesses like Comcast and Southwest Airlines have already jumped on the bandwagon (”Hurry up, the customer has a complaint“) to the delight of their customers because they understand the importance of embracing new technology to communicate with their customers. Here at Racepoint, we have understood this for quite a while.
Unfortunately not everyone is embracing Twitter. According to a recent New York Times article (“In House, Tweets Fly Over Web Plan”), there was a rumor that the U.S. House of Representatives was banning members from using Twitter. Although the rumor turned out to be just that, word spread and a Let our Congress Tweet campaign was launched by the Twitter community.
As a former staffer for several members of Congress, I think Congress should embrace Twitter. It would allow citizens to follow and get more involved in the activities of their elected officials. This would be very educational, increase Congress’s transparency, and increase citizen involvement - which is at an all time low.
July 22nd, 2008
by Peter Prodromou
This week’s crisis with mortgage giants Freddie Mac and Fannie Mae has reinforced the need for a strong communications strategy and community formation to quell fear and inspire confidence in the public. As with every financial crisis, this one has the potential to spiral out of control if public confidence isn’t re-inforced. The government’s swift action to provide credit to the mortgage giants, is commendable and, so far, has worked. But the prospect still remains that with the foundation of financial markets quaking, the public could lose confidence and financial institutions of all kinds - down to community banks - could begin to fail.
That’s what happened in the late 80s with the S&L crisis and what we saw was a spiral effect that compromised completely solvent institutions that should have survived. A key preventive measure this time around is a sound communications strategy to convey strength by reminding shareholders and depositors that your institution is strong. Heads of marketing at every bank should be reaching out to key constituents via media, social media and direct contact to reassure them of the strength of the institution. This kind of relationship building - through offline and social media - will inspire confidence and keep institutions that deserve to survive, out of harm’s way.
July 15th, 2008
By Peter Prodromou
We hear with increasing frequency from companies wanting Racepoint’s corporate practice to take them through the pre-IPO process or support their ongoing IR strategy. And while the usual check box questions about capability are clearly front and center, the thing that really gets a lot of attention these days is the role of social media in investor relations.
We’re the first to counsel our clients to be judicious with a social media program in the context of IR and broader corporate communications as a public company. At the same time, it’s clearer than ever, that social media can and does have huge impact on shareholder and corporate stakeholder perceptions. Any company not integrating a social media component into their IR and corporate programs — even something as simple as understanding and evaluating the digital dialogue — is making a mistake.
This article, which we authored for the National Investor Relations Institute, should provide some guidance on what public companies should be doing in this area. We urge readers to take a look and contact us with any questions.
June 30th, 2008
By Andrew Kenneally
This week, Congressional Quarterly reported that the U.S. Senate’s Ethics Committee added an amendment to housing legislation (HR 3221) that would require senators to disclose the creditor, amount, interest rate and term of any mortgage they have.
The amendment is the result of news that Connecticut Sen. Chris Dodd and North Dakota Sen. Kent Conrad received sweetheart deals from Countrywide Financial Corporation. According to the New York Times, both Senators were assigned to the corporation’s “V.I.P. program” and given interest rates far lower than what the public was offered. Dodd said he and his wife “assumed” that “it was more of a courtesy thing.” Courtesy for what….. for being a U.S. Senator? I am sure it didn’t hurt that you were on the Senate Banking Committee either, which directly impacts their business.
When our elected officials start receiving kickbacks and sweetheart deals, they forfeit the ability to be objective guardians of the public trust for which they were entrusted. What does that mean in layman’s terms? If you take a gift from someone, they are going to expect something in return. Countrywide Financial Corp. knew it and so did Dodd - that’s politics. The old adage, “you wash my back, I wash yours,” comes to mind. However, scandals like these solidify the public’s view that decisions impacting their lives are done in smokey back rooms where politicians and special interests cut deals for themselves.
Congress, like so many corporations, must open their doors to greater transparency. It builds trust, prevents such scandals from happening in the first place, and incentivizes more people to participate in our great democracy.
June 27th, 2008
By Andrew Kenneally
California Assemblywoman Sally Lieber’s bill (AB 2967) to increase transparency and disclosure in the health care industry is moving closer to the governor’s desk. The bill would require public reporting of cost and quality by doctors, hospitals HMOs and others in the health care industry.
Apart from checking up on the health care industry, the data would be adjusted to take into account income, geography, cultural and linguistic issues – since there are many factors that contribute to a patient’s health. Lieber wants to use the information to funnel health care dollars more appropriately into treatments that work and to reduce health disparities seen in race and income. Collecting data, said Lieber, is “better than driving in the dark with no headlights, which is what we’re doing now.”
Perhaps Gov. Patrick and other legislators who are attending the international biotechnology conference this week in California to entice life sciences companies back to their states should also bring Lieber’s legislative idea back as well? Anything that can help government and industry move more quickly to identify and address health related problems and disparities is common sense. Not to mention that greater transparency ensures the public’s trust.
June 19th, 2008
By Andrew Kenneally
Yesterday, CNBC online had an article from the CSR Wire that said Boulder, Colorado is considered the “Birthplace of the Green Movement.” This is due to locally-based companies such as Celestial Seasonings, Pharmaca, and Eco-Cycle, who back in the 1970’s, made a choice to advocate and run businesses that would promote a more sustainable lifestyle.
This week, they and other companies are returning to the birthplace (i.e., Boulder) for the LOHAS (acronym for Lifestyles of Health and Sustainability) forum, which is a global gathering of premier businesses, thought leaders, market researchers, media executives and opinion makers seeking to participate in the $209 billion LOHAS market.
Why should this matter to your company, government or NGO? Well statistics show that LOHAS consumers take up about 20% of the marketplace and that number is rapidly increasing. Additionally, the Natural Marketing Institute estimates the $209 billion LOHAS market will grow to be more than $400 billion by the year 2010. As the article points out, “this is proof that today’s consumers are looking beyond cost and educating themselves on what is best, not only for their bodies, but for the environment and society too.”
June 18th, 2008
by Andrew Kenneally
Who isn’t getting on the green train these days? Add a couple more - the Discovery Channel, Indy 500 and Honda!
On June 4th the Discovery Channel is launching Planet Green - the first and only 24-hour eco-lifestyle television network. It’s the center for the new green conversation, speaking to people who want to understand green living and to those who truly want to make a difference in meeting the critical challenge of protecting our environment. Planet Green’s unique content, tools and information will enlighten, empower and most importantly, entertain.
But what’s most interesting about their launch was what they did a couple weeks before it. Over Memorial Day weekend, they brought the news of their launch to the Indy 500 - the largest attended single-day sporting event in the world - to educate fans about how they can help the environment. During the day, on-air talent offered race fans tips throughout the day on little things they can do to make a difference from drinking organic beer and eating locally-sourced food.
And you only thought the green movement was only applicable to people from Vermont with PhDs and Californians practicing Tai Chi. No the green movement is about saving money, living more efficiently and avoiding $6 gas prices that are not too far in our future. Yes being green is something that anyone – North or South, man or woman, old or young – can appreciate.
One company that is head and shoulders above the rest is Honda, which created a new GREEN website to show customers their green activities. Companies like Honda and Toyota have been at the forefront of forecasting the future buying habits of their customers, which is reflected in their market share. They have used their new hybrid, fuel cell vehicles to entice consumers with lower CO2 emissions and higher gas millage.
Not to be out done, the Senate is taking up green legislation (S. 2191) this week. The America’s Climate Security Act or S. 2191 would place strict caps on the amount of greenhouse gas emissions that power plants, fuel refiners and producers, chemical producers and other manufacturers may release into the atmosphere. The Act’s sponsors (Senators Lieberman and Warner) estimate that the bill would reduce U.S. greenhouse gas emissions by up to 63% by 2050.
So if your corporation, government or NGO is not on the green train…you better get on before your left at the station. And don’t worry, it’s not a select club that you have to wait in line for behind a velvet rope and you don’t have to be in the top 10% of the intelligentsia to understand it. Yes, everyone can be green and here at Racepoint Group’s Corporate Practice we can help you! We’ll align your organization with these defining issues (environment, poverty, etc.) of our time (i.e., 21st century) and use our expertise in traditional and new media to show the world what you are doing. This will not only aid your conscience, but it will aid your bottom line because the world – as evident by the Indy 500 – is calling for it.
June 3rd, 2008
A few random thoughts on some key issues impacting business and how corporations can step up and benefit…
An Boston Globe article posits that we may be seeing a bubble in green energy investment. With gas prices over $4 a gallon and heating oil likely to hit $5 a gallon next winter we say invest away… What does it mean that it takes these kinds of pressure on the consumer before the government and market act? Companies that leverage know-how and responsible behavior can solve this problem and make good money.
Speaking of aligning green and business, check out the cover story on General Motors in this week’s BusinessWeek. GM has staked its future on finding the right balance between environment and business. Now they just need to take our advice on how to merchandise that in the marketplace of ideas (see our blog posting from March).
Everybody Loves GINA…right? This legislation, barring discrimination based on genetic test results, is good stuff. And if insurers were smart, they’d create a set of consistent rules and self regulation around reimbursement for genetic testing for dealing with the consumer effectively (check out this piece in US News & World Report). It’s not just responsible…it’s good business.
May 22nd, 2008
By Cody Barbierri
Last Tuesday, a highly publicized bill known as the GINA (Genetic Information Nondiscrimination Act) legislation was passed by the Senate with a 95-0 vote. Close to final approval, this bill is the crucial next step in anti-discrimination laws that will prohibit both health insurers and employers from discriminating against an individual based on their genetic code. Basically, these institutions can’t hold any of your genetic information against you, ask you to participate in any genetic testing or divulge any genetic information.
Though genetic discrimination is relatively unheard of today, the possibility is on the horizon and approaching fast. Some of you may have seen the movie GATTACA, a sci-fi thriller where humans are placed in society by their genetic code. Though it seemed truly futuristic in 1997, perhaps this theme isn’t so far fetched 11 years later.
As science progresses, corporations, medical facilities, the government and the general population need to take a hard look at this kind of legislation. Scientific progress is essential to our future, but with a keen eye on social responsibility. At the moment, there may be some organizations rolling their eyes about having to deal with another piece of legislation. For them we would say, placing scientific progress ahead of scientific progress blended with corporate social responsibility is not a positive corporate stance. GINA gives these companies the chance to shine – to talk about a brighter, healthier future, but with the right kind of attention to social issues and moral purpose. These companies should emerge as leaders in the wake of congress’ decision and embrace the fact that society feels it necessary to ensure equality for all employees and potential employees.
Much like showing a genuine care for improving sustainability, corporations that demonstrate the right balance of business sense and responsibility, are poised to be role models, and no doubt will been seen in a favorable light by everyone they interact with, from employees to stockholders to customers. In all honestly, do they really have a choice?
May 1st, 2008
A USA Today article this Earth Day reports that “About 34% of Americans said they were much more concerned about the environment than they were the year before, according to a 2007 Yankelovich poll of 2,763 consumers.” Not hard to believe considering the cost of oil and the ongonig reportage about melting polar ice caps, droughts and all the rest. Isn’t it about time more of the world’s oil companies replicate BP’s efforts to get Beyond Pretroleum?
Are you hungry? Are you sweating higher food prices? It’s hard to take if you think it’s only because the US and world don’t have a comprehensive energy policy. But what if it has to do with your food suppliers actually doing some good — for themselves and you? A report in this morning’s Food Production Daily reports that:
Management and technology consultants Diamond suggest that introducing environmentally friendly and ethical practices into the supply chain is not only good for improving a company’s image: it also improves operations and reduces costs.environmental regulation towards a means of effecting real cost savings in areas such as energy conservation or recycling.
Diamond analysts Mark Baum and Darin Yug said that green supply chain initiatives have moved rapidly from merely compliance with
This isn’t just good PR, it’s good business.
I love the Red Sox. I don’t love the Yankees. But I’ve got to love what’s going on right now with the David Ortiz jersey controversy. For those who don’t know, a Red Sox fan working on construction of new Yankee Stadium buried an Ortiz jersey in the concourse concrete to curse the Yankees. Yanks officials dug it up and are selling it on eBay with proceeds going to the Jimmy Fund for cancer research. Last bid? Over $70,000…nice.
Finally, what are Yahoo! Google and every other media company doing for CSR? I love the little green recycling things they’ve built into their logos today…nice touch on Earth Day. But I’d really love to see them engaging in public dialogue and web-based discourse on a more regular basis about what global corporations need to do to ensure a better future fo us all.
Happy Earth Day and go Sox and Celtics (my favorite green team on Earth Day).
April 22nd, 2008
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