Deck 19: Managing Public Relations

Question 1

Do you think that Mackey used an appropriate public relations channel to share his thoughts about his own company and its competitor?

Answer 1

The case is about the CEO of world's leading natural and organic food retailer 'Whole Foods Market, Inc'. The CEO used to post his views on financial issues as blogs. He wrote the blogs under an alias name and not his original name. He also discussed financial well being issues of his firm through the blog. In his postings he used to praise the financial results of the firm and himself. Through his postings, the CEO attacked his main competitor Wild Oats Markets. In year 2007 the firm announced plans to Purchase the competitor firm Wild Oats. But, Federal Trade Commission (FTC) sued Whole Foods Markets Inc. claiming that the merger would violate antitrust laws. While preparing for FTC hearing the firm had to provide various documents including internet postings made by the CEO of Whole foods. Upon recovering about these web postings, Securities and Exchange Commission (SEC) started investigation to know if CEO had selectively disclosed any corporate financial information which could have violated any law. Company's internal investigation as well as SEC found that CEO did not violate any company policy as well no wrong doing was committed. Later CEO returned to blogging but in his original name.
After studying the case facts, one can say that CEO utilized the idea of blogging which is a latest technique to share views and thoughts, which helped the CEO to reach large number of people within a click. Blog can be considered as an appropriate channel to share his thoughts and viewpoints. However, he must not use this channel to influence views of others. Also, he must use this channel in his name and not an alias.
As a senior official, the CEO must be careful while making posting on social sites. He must not make postings about forbidden issues that may create controversies. While making postings, one must not try to promote biases and must not provide misleading information. The CEO must not disclose any confidential information that violates company policy.

Question 2

Do you think Mackey did anything illegal or unethical by posting messages
under the name Rahodeb?

Answer 2

The case describes about the CEO of world's leading natural and organic food retailer 'Whole Foods Market, Inc'. The CEO used to post his views on financial issues as blogs. He wrote the blogs under an alias name and not his original name. He also discussed financial well being of his firm through the blog. In his postings he used to praise the financial results of the firm and himself. Through his postings, the CEO attacked his main competitor Wild Oats Markets. In year 2007 the firm announced plans to Purchase the competitor firm Wild Oats. But, Federal Trade Commission (FTC) sued Whole Foods Markets Inc. claiming that the merger would violate antitrust laws. While preparing for FTC hearing the firm had to provide various documents including internet postings made by the CEO of Whole foods. Upon recovering about these web postings, Securities and Exchange Commission (SEC) started investigation to know if CEO had selectively disclosed any corporate financial information which could have violated any law. Company's internal investigation as well as SEC found that CEO did not violate any company policy as well no wrong doing was committed. Later CEO returned to blogging but in his original name.
After studying the case details, one can say that the CEO's decision to make write blog under an alias name was unethical. People may argue that many people write blogs under an alias name to disguise their identity. But in this case it is considered as an unethical act as the CEO tried to influence others' opinions about the firm, by using the technology. He can make postings about his viewpoints but in his original name.
In the given case no wrongdoing and violation of company policy were discovered in investigations done by special committee and SEC, but the CEO's decision to make blog postings in an alias name had a negative effect on the profits of the firm and he had to issue an apology statement. All such activities tarnish an organization's image in eyes of stakeholders. So, employees must refrain from indulging in unethical acts.

Question 3

Were Mackey's actions described in this case consistent with the comments earlier in the chapter from Bill Nielsen, where Nielsen calls for public relations officers to uphold their organization's values?

Answer 3

The case is about the CEO of world's leading natural and organic food retailer 'Whole Foods Market, Inc'. The CEO used to post his views on financial issues as blogs. He wrote the blogs under an alias name and not his original name. He also discussed financial well being of his firm through the blog. In his postings he used to praise the financial results of the firm and himself. Through his postings, the CEO attacked his main competitor Wild Oats Markets. In year 2007 the firm announced plans to Purchase the competitor firm Wild Oats. But, Federal Trade Commission (FTC) sued Whole Foods Markets Inc. claiming that the merger would violate antitrust laws. While preparing for FTC hearing the firm had to provide various documents including internet postings made by the CEO of Whole foods. Upon recovering about these web postings, Securities and Exchange Commission (SEC) started investigation to know if CEO had selectively disclosed any corporate financial information which could have violated any law. Company's internal investigation as well as SEC found that CEO did not violate any company policy as well no wrong doing was committed. Later CEO returned to blogging but in his original name.
After understanding the case facts, one can understand the importance of managing public relations effectively. Effective public relations programs help a firm in earning trust of the stakeholders, consumers and others.
As per Nielsen "the pressing agenda for public relations and corporate communications is all about critical components of reputation that have to do with values and trust…." This statement clearly indicates the importance of organizational values and trust. So acts of the employees must reflect organization's core values to earn trust and goodwill of the stakeholders. This would help a firm to earn good reputation on a global level.
After analyzing the case facts, one can clearly say that the actions of the CEO of Whole foods were not consistent with the values of the firm. It could be determined by the fact that the CEO used to write the blogs in an alias name and not his original name. This act questions his integrity towards the organization. He should have made postings in his real name as the CEO. This would reflect his honesty. Mackey's act of blogging and misleading people cannot be termed as fair dealing and resulted in negative impact on firm's image.

Question 4

Under what circumstances should company executives share their thoughts in various online forums? Is it ever appropriate for them to do so under an alias?