Global Challenges

Future Business
Jos Tavares

2015

Lecture 12
Business and the Masses:
Media, Activism, the Public
BUSINESS AND THE MASSES:
Media, Social Activists, and the Public
 This Is My Name

http://www.youtube.com/watch?v=hNoS2BU6bbQ&playnext=1&list=PLD52BC4EC6DAA656A

(3:02 min)
 Bond on Womens Day

Analyze the devices that make the following message effective:

http://www.youtube.com/watch?v=gkp4t5NYzVM
(2:04 min)
The News Media in Nonmarket Issues

The legislative, the executive, the judiciary, and

The fourth branch of government
Thomas Carlyle
The fourth estate
Edmund Burke

Editors and journalists asthe officeholders of the institution

The News Media in Nonmarket Issues

Media coverage can:

Alert the public, activists, interest groups, and government officials to nonmarket issues
Raise concerns about the policies and practices of firms
Provide information about the likely effects of alternative courses of action
Reduce the costs of collective nonmarket action
Enhance a nonmarket strategy by conveying information generated by an interest group
Represent interests and principles consistent with the news medias perception
The News Media in Nonmarket Issues
The News Media in Nonmarket Issues

Forms to Issue Treatment

A straightforward presentation of facts and description of events.

An interpretation of the facts and events.

An exploration of their potential significance and ramifications.

Advocacy of a course of action.

A Theory of Media Coverage and Treatment

Explanatory Variables

Intrinsic audience interest in the issue

An issues societal significance as perceived by the news media

A Theory of Media Coverage and Treatment
The principal predictions of intrinsic audience theory are :

Coverage increases with audience interest

and
Treatment chosen to appeal to and retain an audience

The societal significance theory views coverage and treatment as:

A reflection of the news medias perception of the significance of the issue

to society

Reflects the medias role in serving democracy by providing information that

citizens need to make choices
A Theory of Media Coverage and Treatment

Coverage depends more on audience interest.

whereas

Treatment depends more on societal significance than on

audience interest

See: 500 000 versus half a million

A Theory of Media Coverage and Treatment
Business Interaction with the Media

Very few companies like their activities to be publicly scrutinized

The incentive to develop controversy to make stories appealing often give

critics of the company an opportunity to deliver their message to the public

Some executives agree that the media caters to anti-business sentiments

Media has control over the editing process

Media treatment almost always results in oversimplification

Business Interaction with the Media

An Effective Media Strategy Involves

The unusual is usual.

Emphasize the consistency of business and the public interest.
Have your audience in mind.
Communicate through the press.
The medium is the message.
Establish credibility not friendship.
Business Interaction with the Media

An Effective Media Strategy

For most nonmarket issues the interests of a firm:

are consistent with some aspect of the public interest

or, at least
the interests of stakeholders

Emphasize the effects of the issue, not on profits, but on stakeholders

Point the consistency of the practice in question is with some
component of the public interest
Business Interaction with the Media

Anticipating Coverage

Gather relevant information about the issue and its context

Assign spokesman to interact with media

Evaluate message likely to be conveyed by the media and its sources

Business Interaction with the Media
Interview 101
Assume everything you say is on the record.
Speak in plain English.
State your main point or conclusion first.
If you dont understand a question, say so.
If presented with a laundry list of questions, identify the one question you are responding to
before answering it.
Dont hesitate to repeat an answer.
Volunteer information to make your points and to give perspective
Use anecdotes and illustrations involving people.
Have fun doing the interview, without being flippant, of course.
Dont be afraid to make mistakes.
Dont expect the editor to clear the story with you before it is published.
Never, never, never stretch the truth.
 Social Media
What is Social Media?

Social media describes the online technologies and practices that

people use to share content, opinions, insights, experiences, perspectives,
and media themselves.

Social media is

Editable
Popular
A conversation
Fast
Historical
Social Media

"We are the people formerly known as the audience.

Social Media
Video Case Study

After watching the two following videos:

Identify the major differences between social media and standard media
Highlight the advantages of using social media for business purposes

What Is Social Media?

(3:44 min)

http://www.youtube.com/watch?v=MpIOClX1jPE

Employing Social Media in a Crisis

(3:06 min)

http://www.youtube.com/watch?v=EpG9uGQpme8
Social Activism

Public Politics
The competition between firms and other
interests over the resolution of nonmarket
issues in the context of the institutions of
government is called public politics.

Private Politics
The competition between firms and
individuals, interest groups, activists, and
NGOs over the resolution of issues outside of
government institutions is called private
politics
 Social Activism
Addressing Activism
Identify the relevant interest groups and activists organizations in your market and
nonmarket environments
Understand their agenda, preferences, and capabilities:
The nature and strength of the activists
The concerns that motivate them
How central is the issue to their agenda
Determining if they are led by professionals or amateurs
Understand the broader public support for their agenda:
The likelihood of media coverage
How much damage might be caused
Consult with them on important issues:
a number of companies have established regular forums for exchanging information and
views - cooptation
Cooperate when that is beneficial
Fight when you are right and can win
Social Activism

Addressing Activism

1. Assessment

2. Strategy and negotiation

3. Cooperation or challenge
Social Media
Video Case Study
In the following videos identify:

Advocated values and attitudes that are contrary to corporate interests

Advent Conspiracy
http://www.youtube.com/watch?v=K14c4NGuhD
(2:39 min)
Crisis Management

Defined as a situation in which

sudden, important and possibly persistent harm
to people or property
including reputation and brand value
either has occurred
or is imminent
Crisis Management

Features of a Crisis

Typically unexpected
Can escalate quickly
Can damage
Firm operating performance
Firm reputation
Credibility of management
Requires a response under time pressure and under public attention
Crisis Management

Stages of Crisis Management

Identification
Escalation Associated with:
Intervention
Media coverage
Resolution
Actions by interest groups
Government actions
Company actions
Actions by the company to deal with the crisis
Communication with stakeholders, the public, and government
Substantive measures to resolve crisis and lessen likelihood of a
similar crisis in the future
Crisis Management

Message should be:

Truthful
Sincere,
and
Which expresses concern for those affected.

Turning the crisis into a manageable nonmarket issue

Eliminating potential for further harm
Assuring public and media
Compensating those harmed
Crisis Management
Case Study

Black Barbies On Sale

WalMart, the largest retail chain in the world, is being accused of

racism for promoting sale prices on the back version of Barbie dolls.
Black and white Barbie dolls are exactly alike, only the skin color
changes, but the price on black Barbie dolls is almost half that of
white dolls.
Crisis Management
Case Study
 Crisis Management
Case Study

A spokesperson for Wal-mart has explained that, in order to sell off

stocks and prepare the arrival of new spring collections, several of our
products are being sold at lower prices. Both are excellent dolls and if one
of the models is being sold at a lower price it is just due to lower sales.

Some representatives of the african-american community are not happy

with the explanation. The implication of lowering the price is devaluing
the black doll and, even if unintended, these decisions sometimes have
important collateral effects., points Thelma Dye, responsible for a center
for child development in Harlem, one of the most charismatic african-
american neighborhoods in New York.
 Video Case Study
3 Ways to (usefully ) Lose Control of Your Brand

3 Ways to (usefully ) Lose Control of Your Brand

Tim Leberecht
6:23
https://www.ted.com/talks/tim_leberecht_3_ways_to_usefully_lose_control_of_your_reputation