I have posted a lot about organizations that have effectively used Web 2.0 to convey transparency and authenticity. Now I want to look at the other side of the coin: when companies have used new social media to impede transparency. To begin this discussion I will talk about astroturfing.
According to The Buzz Bin, astroturfing is false PR or phony social media in the blogosphere, especially in corporate social media related events. They are public relations campaigns that want to create the impression that they were spontaneous, grassroots behavior.
One such example comes from the actions of the CEO of Whole Foods. According to MSN Money, CEO John Mackey attacked smaller competitor Wild Oats Markets under the alias, “rahodeb.” Mackey posted anonymously on Internet financial forums, saying that Wild Oats’ stock was overpriced and questioned why anyone would buy its stock. Then Whole Foods announced it would buy Wild Oats.
This was a blatant use of social media for dishonest purposes and a breach of transparency. If the CEO of a company is going to comment about something online, he should identify himself. Especially if he is writing about his company’s competition and there are unidentified interests at hand (like Whole Foods’ decision to buy its competitor).
When utilizing Web 2.0 it is more important than ever for companies to be open and honest, especially when it is easier than ever to misrepresent themselves. Ethics should seriously be considered when a company decides to use social media. It is always better to be transparent because, as in the case of Whole Foods, you will most likely get caught.
Elaine, I completely agree with your point in this post about just how important it is for companies to be transparent in their new social media efforts. Without being honest with your constituents, you are basically throwing away any positive feelings that the public may have about your company and its reputation. In the case of the Whole Foods situation that you discussed, I also agree with you in that the CEO should have been honest about his identity from the beginning. No matter the company, I feel that it is important that the CEO realize his or her role as a face of the company, further understanding how important it is that he or she truly embody the company’s values in his or her actions both in person and on the Web.
Wow, I had no idea that happened! What Whole Foods did was completely abuse the social media system for its own advantage. A CEO is someone the organization looks to for guidance and to be the face of the company; setting an example like that brings down the credibility and reputation of the company. I definitely agree that he should have identified himself before posting about a competitor. Ethics really should be emphasized in the bloggosphere. They are tricky to deal with online because you never know who someone claims to be, just like Mackey. For social media to be honest and reliable, people must be honest about who they are online.
I also completely agree with your post on how companies need to pay special attention to being transparent online especially since virtually everything is saved and can be traced back to the original sender. I find it completely dishonest for a CEO of a corporation to personally use or either condones suck underhanded methods of attacking competitors. It seems like a corporation should realize how much more credible their organization would seem to be if they just were open and honest about their criticism for their competition.
[...] social media. As I have said before, some professionals have had the misfortune to be caught lying (Whole Foods). But for most professionals, who have no intention of being fraudulent, where does the line fall [...]