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  • Creepy Loyalty Programs

    Managers reward loyal customers with discounts. But, first the customer must give the company his or her personal information (such as name, address, telephone number, driver's license number, and email address). Then, the customer gets a card or number. Each time the customer buys something, he or she shows the card or number. The company knows what customers buy, how often they buy, and how much they spend. One of the first and most successful loyalty programs is American Airlines' AAdvantage frequent flyer program , established in 1981. But a study by eMarketer says that many users report being wary of certain "creepy" behaviors. See the leading "creepy/weird" ways loyalty programs use personal information in the table below. Do you use loyalty cards or numbers when you shop? Why? What are the benefits of using loyalty cards or numbers when shopping? Are you concerned about your privacy? How can loyalty program managers keep consumer privacy in mind when targeting offers to customers?
  • Giving Tuesday

    Management decision making is influenced by the political environment, but managers also influence political decisions. President Abraham Lincoln declared Thanksgiving a national holiday on the last Thursday in November 1863, but in 1939 President Franklin D. Roosev elt moved the holiday to the fourth Thursday in November. Business leaders had asked President Roosevelt to move the date to allow an extra week in the holiday shopping season (between Thanksgiving and Christmas). Managers saw a shopping opportunity after Thanksgiving and decided to open early and offer specials. Black Friday , the day after Thanksgiving, is the day many retailers are profitable. In accounting, black ink denotes positive income, as opposed to red ink which denotes negative values. Thus "in the black" means making money. Cyber Monday is the Monday after Black Friday when most people go back to work after the four-day Thanksgiving holiday, and shop online. Giving Tuesday , is the day after Cyber Monday, for people to participate in holiday charitable giving. It is a new opportunity, maybe the start of a holiday tradition . Will you give today? How? What do you think about "Giving Tuesday"? How are managers incorporating "Giving Tuesday" into their business?
  • Leaders and Extra Marital Affairs

    Leaders have a responsibility to set an example in personal conduct for their followers. So, evidence of a leader's extra marital affair can lead to organizational conflict. Outcomes include complaints of favoritism by workers outside of the relationship, claims of sexual harassment, and decreased productivity of those involved in the office romance. Two recent investigations which led to proof of adultery and then loss of jobs headlined the news. The leader of the Central Intelligence Agency ( CIA ), Director David Petraeus resigned after an FBI inquiry into the use of one of his personal email accounts found that he was engaging in an extra marital affair. Actually, the Federal Bureau of Investigation ( FBI ) was investigating a harassment complaint against Paula Broadwell by another woman. Broadwell is Petraeus' biographer, and the email exchanges revealed that Patraeus and Broadwell were having an affair. General Patraeus resigned and wrote the following to his employees. "Yesterday afternoon, I went to the White House and asked the President to be allowed, for personal reasons, to resign from my position as D/CIA. After being married for over 37 years, I showed extremely poor judgment by engaging in an extramarital affair. Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours. This afternoon, the President graciously accepted my resignation." The other affair was at Lockheed Martin , the Pentagon's largest supplier. An internal whistleblower at Lockheed made the allegation. The investigation found that Christopher Kubasik, the President and future CEO had a close personal relationship with a subordinate employee, which is a violation Lockheed's code of ethics and business conduct. The subordinate employee has left the company. Kubasik said in a statement , "I regret that my conduct in this matter did not meet the standards to which I have always held myself." Both men knew of their organizations' strict relationship policies. What does it mean to adhere to a code of duty, integrity, and honor? If you were the manager, what would you do if you found out about an office romance?
  • Scaling Up Sustainability

    Many businesses have a genuine commitment to give back to society. But, others encounter roadblocks to scaling up business sustainability . A weak business case is a major limiting factor. A business may not understand natural assets. It may not give value to ecosystems. Furthermore, it may lack business knowledge of the importance of biodiversity. One solution to scale up business sustainability is to work in partnership with education, institutes, certification organizations, and partners to progress despite the obstacles. In this video, Sir Richard Branson talks to the IUCN World Conservation Congress . How can business "listen to Mother Nature"? How can business "learn from Mother Nature"? How can this scale up sustainability?
  • Sustainibility is Corporate Social Responsibility

    More and more companies are including sustainability in their visions of the future. Also, a company strategy may include a statement on corporate social responsibility (CSR)/sustainability. Many companies desire to invest in communities, care for the environment, and build a better society. This might be accomplished through actual business practices or through activities such as charitable donations or employees volunteering for charitable events. The annual conference for Business for Social Responsibility (BSR) is meeting in New York this week. BSR has "more than 250 member companies and develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration. With six offices in Asia, Europe, and North America, BSR uses its expertise in the environment, human rights, economic development, and governance and accountability to guide global companies toward creating a just and sustainable world." Should the company care? Do we expect more of companies than maximizing profits? Should managers make decisions based on the impact on people and the planet or on profit?
  • Trustworthy Managers

    Managers must earn people's trust, because people form relationships with those that they respect. The appropriate way for managers to interact with employees, customers, and the community is to adopt the principles of transparency and openness. The manager, who approves or writes content, owns the relationship. He or she must be open and transparent with the audience. Unfortunately, the managers at Nokia learned the importance of truthfulness the hard way when they demonstrated the new Lumia 920, a Windows smartphone, with PureView camera technology. It has optical image stabilization (OIS), which is supposed to reduce blur and camera shake and makes photos and videos look better in low light. Managers did not disclose that the video below was not recorded with PureView technology. Viewers believed that the video was recorded by the new phone. Then, it was revealed that the video had been recorded by a video camera. Nokia apologized on the Web and added the video below recorded from the phone. The New York Times reported that Stephen Elop, Nokia's CEO, asked the chief ethics officer to investigate the situation. Some managers are afraid of transparency. They don't want criticism and debate. What could a manager learn about truth and openness from the Nokia Lumia 920? Should Nokia have included a disclaimer with the first video noting that it was simulated? How does the Nokia Lumia 920 reveal compare with that of the Apple iPhone5?
  • Corporate Reputation is Driven by Corporate Culture

    An employee resigned at Goldman Sachs in a very public way. In March, he sent a letter to the New York Times calling the firm "toxic" and disrespectful of its clients . MWW used the open resignation letter in a survey to explore the connections between corporate reputation and corporate culture. The study found that three out of four business leaders believe corporate reputation is substantially driven by internal corporate culture, yet only 5 percent think their organization’s culture is strong enough to preclude reputational crisis. (Read the full report .) Listed below are some of the findings of surveyed business leaders' reactions to the scathing open resignation letter. 77% believed the letter had a negative impact on Goldman Sachs’ reputation Only 3% strongly believed that this was an isolated incident of a single disgruntled employee and not representative of the culture at Goldman Sachs 66% expect to see more of these situations with other companies in the future “Nearly every week a major company is in the news with a culture related crisis, and this study demonstrates a growing acknowledgement of the connection between internal culture and external reputation,” said Carreen Winters, executive vice president, reputation management of MWW Group. “Yet all too often, reputation management programs focus exclusively or predominantly on engaging with external stakeholders. Positive, productive cultures don’t just happen; they are cultivated and nurtured over time. Communications can be a powerful and effective tool for connecting the dots between internal and external stakeholders, and for creating the kind of culture that serves as the foundation of a bulletproof reputation.” What is reputation management? How should managers incllude employees in reputation management programs?
  • Your transcript follows you for the rest of your life

    It is important to remember that your college transcript follows you for the rest of your life. This was emphasized recently when Time.com reported, "A disgruntled Yahoo shareholder questioned the qualifications and integrity of recently hired CEO Scott Thompson after exposing a misrepresentation about the executive's education." Daniel S. Loeb, the founder of the hedge fund Third Point, sent a letter to the board of Yahoo questioning chief executive, Scott Thompson's credentials. The New York Times reported that Yahoo's website said that Thompson has a "bachelor's in accounting and computer science from Stonehill College." In truth, Thompson has a degree in accounting. Computer science was not offered as a degree at the time Thompson was enrolled. Loeb says this violate Yahoo's code of ethics and accused Yahoo of poor corporate governance. He wrote, "If Mr. Thompson embellished his academic credentials we think that it 1) undermines his credibility as a technology expert and 2) reflects poorly on the character of the C.E.O. who has been tasked with leading Yahoo! at this critical juncture. Now more than ever Yahoo investors need a trustworthy C.E.O." The company statement said, "This, in no way, alters that fact that Mr. Thompson is a highly qualified executive with a successful track record leading large consumer technology companies. Under Mr. Thompson's leadership, Yahoo! is moving forward to grow the company and drive shareholder value." Yahoo's code of ethics says, "Make sure information we disclose about our company is clear, truthful, and accurate." What do you think?
  • Choosing Events and Sponsorships

    Choosing which events to sponsor is a strategic decision by managers. Requests from nonprofit organizations are numerous, and many are quite emotional. But, by focusing on strategy, managers can choose those with the best fit for the business. One way to keep strategic focus when considering which events to sponsor is to use some strategic questions. A set of questions for managers to consider is found in Gina F. Rubel , Esq.'s book Everyday Public Relations for Lawyers . The questions are listed below. Your Business The Event / Sponsorship Opportunity What are your core business goals? What are the event's business goals? What are your marketing objectives? Does this opportunity meet your marketing objectives? Who is your target audience? Does this event reach your target audience? What is your budget? Does the cost of this opportunity fit within your budget? How do you measure the success for your marketing efforts? Does this event / sponsorship provide measurable opportunities? Do you track your opportunity costs? What are the opportunity costs if you do not participate? Who is your competition? Will your competition have a significant presence at the event? Note : You may want to participate because there is no significant competitive presence or the opposite might hold true. If there is alignment of the answers for your business and the event/sponsorship opportunity , the business will want to take advantage of the sponsoring the event. At this time, what nonprofits do you support? How could you use these questions to determine your charitable gifts?
  • Corporate social responsibility (CSR) at General Mills

    General Mills believes that doing "well" for shareholders goes hand in hand with doing "well" for consumers, communities and the planet. The company accomplishes its corporate social responsibility (CSR) through nutrition, volunteerism, sharing expertise, protecting the environment, and more. General Mill's 2012 Global Responsibility Report highlights actions, goals, and performance in the areas of health, environment, and community. Look through the report at http://www.generalmills.com/~/media/Files/CSR/csrII_2012.ashx . How could managers and employees at General Mills use the report as a guide? What do you find most helpful?
  • Socially Conscious Consumers Prefer to Work for Socially Responsible Companies

    Socially conscious consumers prefer to work for companies that have implemented programs to give back to society according to Nielsen's 2012 Global Corporate Citizenship Survey . Choosing an effective cause requires strategic prioritization. Managers need to identify the most relevant cause to their business. Then, the cause program should be implemented. The global, socially conscious consumer is described by Nielsen as young, green, and willing to pay more for socially responsible products/services. Respondents were given a list of 18 causes, as seen below. Sixty-six (66) percent of socially conscious consumers identified environmental sustainability as a cause companies should support. Do you agree? Which of the causes listed is most important to you? How can managers let potential employees know about their social responsibility?
  • J&J Tarnished Credo

    Johnson & Johnson (J&J) used its credo to guide management decisions in 1982 when it recalled millions of bottles of Tylenol. Seven people died after their Tylenol pills were laced with cyanide. When Tylenol came back on the market, it was among the first products to have tamper-proof packaging. J&J's credo put consumer safety before profits. The Tylenol recall became a textbook case for crisis management. The credo was written in 1943 by Robert Wood Johnson, former chairman from 1932 to 1963 and a member of the Company’s founding family. (It is attached.) However, today’s J&J management doesn’t seem to be using the credo as a guide. Profit seems to be the number one goal. The company has been accused of lapses in quality control , failure to promptly respond to product safety issues , and marketing drugs for unapproved uses . Is the J&J credo out of date? Should profits come first? OR should customers come first? Should J&J management recommit to using the credo to guide decisions?
  • Do Some Good

    Corporate social responsibility (CSR) attempts to align corporate goals, such as profits, revenue, and growth with the social needs of the community. Choosing the social need is the key. The company's assets must intersect with the greater community's needs, while resulting in a sustainable program. In other words, the company must make a profit. The company inspires sales while it makes a difference. An example is Denver-based Chipotle Mexican Grill's "Food With Integrity" movement , which educates consumers about Chipotle's use of local and sustainable farm suppliers. "We have always understood the importance of serving food that is raised right. We produced this film to help illustrate the choices people face in deciding what to eat, and hope that it will encourage people to choose food that is raised with respect for the land, the animals and the farmers that produce it," said Steve Ells, founder, chair and chief executive of Chipotle. How does Chipotle's commercial engage consumers to share the message?
  • Corporate Social Responsibility

    In Corporate Social Responsibility: Making Good Business Sense , the World Business Council for Sustainable Development defined the strategy as, "...the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large." Many companies encourage charitable efforts on the part of their employees. Apple Chief Tim Cook announced that Apple would match its employee's charitable contributions to non-profit organizations up to $10,000 per year (2011). Other companies pay their employees for volunteer time (an hour each week, for example) at local charities. It is important for managers to support employees' charitable efforts. While most companies can't afford to match their employees' contributions or pay them for volunteering, they can show support in other ways. For example, a manager could support an employee's charity of choice by volunteering or participating in a fundraiser, such as a walk or run that raises money for charity. When a business chooses one important cause, such as McDonald's and Ronald McDonald houses , it is important for the entire team to be in agreement. Managers should talk to employees about the causes that are important to them before choosing a cause. Then, once the cause is chosen, managers must make sure employees are engaged and motivated because the cause becomes part of the business strategy. How do you think employees show their appreciation for getting volunteer time or matching charitable contributions? Do companies lose money by letting employees contribute their time?
  • Martin Luther King, Jr. Day of Service

    Martin Luther King, Jr. challenged laws that discriminated against African Americans. He risked imprisonment and his life for his values. One of King's main values was courage, the willingness to face difficulty whatever the risk. Courage is a value which is important to a manager's success. Having courage will enhance your success as an employee and as a manager. While having courage will not automatically make one successful, exercising and applying it on a daily basis will certainly increase the likelihood of succeeding. Asking questions about existing practices at work or suggesting new products promotes a better way. It takes courage to do so but it is a way of showing your values, like King. In this video , corporate managers talk about the benefits of volunteering and service . What are corporations and employees risking? What else can managers learn from Martin Luther King, Jr.?