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Tag Archives: Risk management

London

The web is now the medium of choice for campaign groups like Greenpeace, Oxfam and the WWF to raise funds, expand their networks, and mobilise supporters. Little wonder: online pressure played no small part in Shell exiting its longstanding partnership with Lego, Nestlé reconfiguring its palm oil supply chain, SeaWorld halting its breeding of captive orcas, and the collapse in shark fin consumption in Hong Kong. Then UK Culture Secretary Jeremy Hunt admitted that online pressure had ‘significantly influenced’ his decision on the Rupert Murdoch’s 2010 bid to take full control of BSkyB.

finishedwithfins

 

But it is not just the big campaign groups that have benefited. Once the preserve of students, tree huggers and political dissidents, activism is now the opium of suburban housewives and white collar workers across the world. It is particularly evident in the huge popularity of online petition sites:

  • Change.org counts over 140 million members in 196 countries
  • Avaaz boasts some 43 million members in 194 countries
  • Care2 has almost 35 million members
  • A UK member of parliament recently told me she receives dozens of emails every day supporting various causes from the 3 million+ members of 38 Degrees, all of which she feels compelled to respond to.

People power has never felt so real, or so daunting. And in an age in which business is increasingly expected to play the role of a concerned and actively engaged ‘citizen’, the numbers involved and the sheer unpredictability of public opinion raises real challenges and risks, as firms supporting ostensibly mainstream causes have discovered.

Drawing on discussions and interviews with Greenpeace, the WWF and high profile individual activists, I argue in my book Managing Online Reputation that online activism is now mainstream, activist networks are becoming more amorphous, and campaign groups are deliberately making their lines of attack less predictable, before going on to detail three current and emerging strategies and tactics used online in the ongoing battle for public support.

The relevant chapter – on the social and environmental threats of the web – is now available online as a free sample:

 

With propaganda swirling online, a Change.org petition fast escalating and Greenpeace all over your Facebook page, an online activist attack can feel terrifying and remorseless. But while some activist campaigns meet or even exceed their objectives, most fail to convince the public of their merits, or simply succumb to slacktivism.

How you choose to respond requires a close understanding of your detractors’ playbook, a smart reading of the public mood, and an appreciation of your tolerance for business and reputational risk – factors I’ll explore shortly.

Image courtesy of WWF Hong Kong.

 

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Bangkok

Drawing on my experiences in journalism, government, IPO-ing one of Europe’s top digital agencies, and working at WPP, I had the pleasure earlier this week of talking to early stage entrepreneurs and assorted others at Paperclip Hong Kong about the importance of building trust from the get-go.

The second half of the talk focused on online reputation, specifically how companies should handle threats on the internet and social web and draws on my book Managing Online Reputation. A single negative review, badly handled, can be disastrous for a small company so it is all the more important that business owners have a decent understanding of the many options, tools and techniques available to help them evaluate and respond to common problems.

Here’s the deck:

I often find plane flights a good time to catch up on reading, and yesterday’s journey to Hi Chi Minh City to speak at a Strategic Integrated Marketing Communications conference proved an opportune moment to read Oxford Metrica’s 2012 Reputation Review.

An interesting and mercifully brief take on recent top corporate reputation events, the report re-visited events such as the Olympus governance scandal and Research in Motion global service outage and demonstrated the importance of governance, product/service quality and workplace in driving reputation. It also showed the damage that crises can have on shareholder value.

The report also highlighted the rising importance of supply chain risk as a key reputation driver,  graphically demonstrated by the impact of the Fukushima/TEPCO earthquake and nuclear disaster on Japanese consumer electronics and auto (see below) companies.

As the chart above indicates, the disaster had relatively little impact on Nissan, whose local manufacturing plant at Iwaki was back up and running within a week. Yet the impact on Toyota, with a higher percentage of its manufacturing in Japan and a considerably more local and less competitive supply chain, was far greater.

The morale? An overly concentrated supply chain is a significant potential reputation risk.

A more recent example? Ask Apple.