Monday's quick reads: Microsoft, reputation management, and social media

1.) Where does blogging end and plugging begin? (St. Louis Post-Dispatch) -- Consumers researching a product online can find a trove of insightful reviews and revealing complaints. Or, they can get mired in a snake pit of fake blogs, paid testimonials and word-of-mouth campaigns engineered by marketers posing as consumers. At the center of it all are bloggers, who find themselves being tugged in opposite directions by big business and federal regulators — with each side claiming the other threatens the vitality and independence of the medium.

2.) Attraction to "do good" brands is escalating (Marketing Daily) -- Whether despite or because of the recession, consumers are more inclined than ever to spend their money with companies and brands that have dedicated themselves to a social purpose, according to new findings from Edelman Worldwide's "goodpurpose Consumer Study."

3.) Employees: It's easy to damage a company's reputation on social media (Social Media Business Council) -- Deloitte’s 2009 Ethics and Workplace Survey revealed that nearly three quarters of working Americans believe it is easy to damage a brand’s reputation via social media. The survey also showed that while 58% of executives agree that reputational risk and social networking should be a board room issue, only 15% say it actually is.

4.) Windows 7: Can Microsoft reboot its reputation? (Los Angeles Times) -- With more than 8 million "beta testers" using Windows 7 since January and dozens of reviews already published, virtually every aspect of Microsoft's new operating system is already public knowledge prior to this morning's "launch" -- except one. Can Windows 7 repair Microsoft's reputation and trigger enough sales to pull the technology sector out of the economic funk?

Top ten brands for corporate social responsibility

Many factors make up a corporate reputation - customer service, shareholder value, and employee morale to name a few. A new study from the Boston College Center for Corporate Citizenship aims to rank those companies that have earned the strongest reputations in the area of ethics, citizenship and workplace practices. Here are your top ten:

1. Walt Disney Company
2. Microsoft
3. Google
4. Honda
5. Johnson & Johnson
6. PepsiCo.
7. General Mills
8. Kraft Foods
9. Campbell Soup Company
10. FedEx

Notably absent from the list are any financial institutions, as they seek to rebuild trust with the public in the wake of the financial crisis. To view the complete list and get background on the center's methodology, click here.

The Center also notes some important trends:

• Despite upheaval in the economy, a majority of U.S. companies are not making major changes in their corporate citizenship practices. Of those who made changes 38% reduced philanthropy/giving, 27% increased layoffs, and 19% reduced R&D for sustainable products.
  
  
• Most U.S. senior executives believe business should be more involved than it is today in addressing major public issues including health care, product safety, education, and climate change. Surveyed in June, just as the national debate on health care began to intensify, some 65 percent said business should increase its involvement in this issue.
  
  
• Reputation was cited by 70% as a driver for corporate citizenship, tied for the top spot with “it fits our company traditions and values.”

The fact that executives increasingly want to help shape public policy underscores the importance of building coalitions of like-minded organizations. Without them, it's very difficult to exert influence on customers, voters, and government decision-makers.

How to give customers and shareholders a voice

During my first job search out of college, a mentor told me: "Don't be afraid to ask people for help. If they help you, they become vested in your success. They view your success as a reflection on their efforts."

The same could be said for how companies engage their stakeholders, whether they be customers or investors. It may seem odd to ask customers or shareholders for help, but it can go a long way toward influencing public opinion in your favor.

Here are three examples of organizations asking their stakeholders for help or advice in a very public way and, in my view, strengthening their reputations in the process:


1. Microsoft: The tech giant is one of the first Fortune 500's to allow shareholders to vote on executive compensation. The "say on pay" proposal is non-binding, but it nonetheless positions Microsoft in the court of public opinion as inclusive of its stakeholders, receptive to a broader dialogue, and a leader in corporate compensation reform. One could argue that legislation pending in Congress could make shareholder votes a requirement anyway, but Microsoft deserves credit for getting ahead of Congress and engaging its stakeholders at a time of its own choosing.

2. Hallmark: The card maker has challenged its customers to design the best holiday cards and submit them on the company's website. The best designs will be sold online. The best of the best will be sold in stores, as well. What better way to guarantee someone buys your product than to let them design the product?

3. State of Wisconsin: The state's natural resources department is letting citizens vote online for a new license plate design, the proceeds of which will benefit endangered species. By opening up the process, the department did a far better job promoting the license plate than if it had made the decision behind closed doors. By giving citizens a say in the process, they are more likely to buy the license plate and help a worthy cause in the process.

When was the last time your organization gave its stakeholders a say in anything? If it's been a while and you're looking for ideas, give us a call or send us an email.

Millennials, car companies, and you

A new survey from Microsoft shows that a majority of millennials (born between 1981 and 2001) expect automotive companies to connect with them through new forms of communication, such as blogs, websites, and instant messaging. In my mind, the survey results aren't just about the automotive industry. Every industry would be well served asking how effectively they communicate with younger consumers. Remember, the oldest millennials are now 28 years old. They are adults with steadily increasing purchasing power and influence.

A few highlights from the survey:

Three out of four millennials want to visit company-sponsored blogs to get information and ask questions of the company. (See our previous post about Toyota's blog.)

More than half (56%) want companies to communicate with them through instant messaging.

Nine out of ten expect car company websites to offer a full view of purchase options and service history.

Nearly two-thirds report visiting a social networking site at least once a day, creating a huge opportunity for companies to connect with them on new platforms.

Additionally, more than half of millennials polled (56%) consider the auto industry to be "old." Not surprisingly, a majority also believe the auto industry has a poor public image and fails to offer career stability.

So, how adept is your company at using new communications platforms? The answer may reveal a lot about how well you connect with younger audiences.