http://www.bulletproofblog.com The blog on crisis communications Fri, 12 Mar 2010 18:16:36 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 http://www.bulletproofblog.com/2010/03/12/weekly-web-wrap-up-for-march-12-2010/ http://www.bulletproofblog.com/2010/03/12/weekly-web-wrap-up-for-march-12-2010/#comments Fri, 12 Mar 2010 18:16:36 +0000 Dallas Lawrence http://www.bulletproofblog.com/?p=2295 Bulletproof’s Weekly Web Wrap-Up offers a compilation of key discussions regarding social media’s increasing relevance to business.

It’s official; location-based social networking is rapidly going mainstream. In just the last week, Twitter has added geo-location capabilities to its website and Facebook has announced its own plans to add location-based functionality. Emerging social media sites, such as FourSquare, Google Buzz, and Loopt, all offer geo-location options as well. And at the South by Southwest (SXSW) conference going on now in Austin, Texas, even more location-based social media platforms and tools are expected to burst onto the market.

This week’s Wrap-Up covers ongoing location-based social media developments, as well as tactics for how companies can best use these tools to grow their businesses:

Mashable:
Twitter’s Website Now Attaches Locations to Tweets

CNN:
Facebook to Add Location Features

Social Media Examiner:
5 Emerging Social Media Sites to Watch in 2010

TechCrunch:
How to Use Video SEO to Jump to the Top of Google Search Results

Social Media Examiner:
6 Powerful LinkedIn Marketing Tips for Small Businesses

***Stay tuned next week for live updates and blog posts from SXSW.

 

Click here to receive the Weekly Web Wrap-Up in your inbox each week

Dallas Lawrence is Chair of the Social and Digital Media Practice at Levick Strategic Communications, the nation's top crisis communications firm. He blogs on emerging digital media trends and best practices for social media engagement on Bulletproof. Connect with him @dallaslawrence.

]]> http://www.bulletproofblog.com/2010/03/12/weekly-web-wrap-up-for-march-12-2010/feed/ 0 http://www.bulletproofblog.com/2010/03/11/the-right-way-to-leverage-a-competitor%e2%80%99s-crisis/ http://www.bulletproofblog.com/2010/03/11/the-right-way-to-leverage-a-competitor%e2%80%99s-crisis/#comments Thu, 11 Mar 2010 21:31:57 +0000 Richard Levick http://www.bulletproofblog.com/?p=2287 height of the Toyota recalls, competing car companies that smelled blood in the water engaged in a feeding frenzy that sought to strip the former “King of Reliability” of its loyal customer base. Chrysler and Dodge offered money-back guarantees to customers with qualifying trade-ins, such as the Toyota Sienna. The Nissan Maxima went on sale with added benefits for customers trading in a Toyota. Hyundai offered rebates to current Toyota owners. The list went on and on.

It was a predictable market reaction to Toyota’s woes – and one that clearly worked in light of consumers’ recent automobile purchasing decisions. But while these are all good, short term tactics, they should not be confused with strategy.

In order to fully-leverage the powerful shift in consumer perceptions that is underway, car companies need to take a longer-term approach that reflects a commitment to reliability. Over the past two decades, many American car companies have treated price as the primary – if not the near exclusive – criteria. Auto parts contractors were forced to be the lowest bidder or lose access to the Big Three. Quality, safety, mileage, green technologies, and even innovation were a distant consideration. This “price fixation” was manifested in many manufacturers’ decision to offer short term promotional deals aimed at taking immediate advantage of a competitor’s problems.

That’s unfortunate – because almost entirely forgotten were the longer term – and thus far more valuable – benefits bestowed upon companies that use times of heightened public anxiety and attention to re-invent themselves. While crises often pass, brands are eternal – and such compelling opportunities to fundamentally alter how a company is perceived simply don’t come along every day.

I say that this axiom was almost entirely forgotten because it seems that there are at least two car companies that understand the enormity of the opportunity at hand – and they’re right in our own backyard. In an article published in The New York Times last week, David Segal led with the story of Josh Smith, a General Motors employee who is a member of the company’s Red X team – a unit that spends it days breaking GM parts in the hopes of better understanding what causes – or could cause – them to fail. According to Segal, Red X and similar initiatives underway at Ford Motor Company demonstrate the companies’ understanding that they “have been handed a once-in-a-generation chance to make their case to an American buying public that is listening as never before.”

While the long-term impact of the brand rebuilding underway at GM and Ford remains to be seen, we know that similar strategies have worked in the past. During the 2007 lead paint toy recalls, Hasbro leveraged the same branding dynamic with stunning results. Though the company didn’t experience a single lead paint-related issue, it established a “Total Safety Program” that became the gold standard in keeping harmful products out of children’s hands. In October of that year, Business Week wrote that “The Pawtucket, R.I.-based toy manufacturer reported a nearly 64% jump in profit to $161.6 million.”

Such success underscores the significance of long-term thinking when a competitor’s issues fundamentally alter industry-wide marketplace perceptions. It isn’t about increased sales over the next quarter; it’s about sustained brand strength over decades or more.

As Toyota continues to grow and learn from this crisis, it seems its competitors are doing the same.

Richard S. Levick, Esq. is President and CEO of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with him @richardlevick.

]]> http://www.bulletproofblog.com/2010/03/11/the-right-way-to-leverage-a-competitor%e2%80%99s-crisis/feed/ 0 http://www.bulletproofblog.com/2010/03/11/latest-food-safety-recall-turns-attention-toward-legislative-remedies/ http://www.bulletproofblog.com/2010/03/11/latest-food-safety-recall-turns-attention-toward-legislative-remedies/#comments Thu, 11 Mar 2010 18:56:47 +0000 Gene Grabowski http://www.bulletproofblog.com/?p=2282 salmonella has been detected in a popular flavor enhancer used in products ranging from hot dogs and salad dressing to potato chips and soup. Signs of contamination were also detected at the Basic Food Flavors plant, which made the hydrolyzed vegetable protein in question. Given the scope and sheer number of food products that contain the flavor enhancer, some experts are predicting that we may be on the cusp of the biggest food recall in FDA's 100-year history.

Coming on the heels of high-profile recalls of pistachios, cookie dough, peanut butter, tomatoes, spinach, and a host of other food products, this latest food safety recall is also spurring renewed calls for Congress to step in and finally update food safety legislation that has remained largely unchanged since 1906, despite modifications in the 1930s and 1970s. Last year, Senator Dick Durbin (D – Ill.) sponsored a bill that would change all that. And with each major food recall only increasing the chances that the Durbin bill could become law, smart food companies ought to begin preparing now to do business in what soon could become a more rigid regulatory environment.

Should the Durbin bill pass, the FDA will evolve from a largely reactive agency to one focused primarily on prevention. Among other measures, the proposed legislation seeks to require food manufacturers to perform analyses that identify where contamination is most likely to happen and develop risk mitigation plans that clearly outline how the company will reduce the chances that an outbreak could occur. The bill also seeks to ensure that onsite FDA inspections occur more often than the current industry average of around once every 10.5 years and provide the FDA with the authority to mandate recalls for the first time in the agency’s history.

With such sweeping changes now a real possibility, companies that act now to demonstrate their focus on prevention will not only ready themselves to meet tougher compliance standards. They will also position themselves as industry leaders at a time when only 32 percent of Americans are “very confident” that the food they buy is safe.

Gene Grabowski is Senior Vice President of Crisis and Litigation at Levick Strategic Communications, the nation’s top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with him @crisisguru.

]]> http://www.bulletproofblog.com/2010/03/11/latest-food-safety-recall-turns-attention-toward-legislative-remedies/feed/ 0 http://www.bulletproofblog.com/2010/03/10/ma-uptick-dictates-the-need-for-digital-due-diligence/ http://www.bulletproofblog.com/2010/03/10/ma-uptick-dictates-the-need-for-digital-due-diligence/#comments Wed, 10 Mar 2010 15:03:20 +0000 Dallas Lawrence http://www.bulletproofblog.com/?p=2276 Wall Street was abuzz over an uptick in merger and acquisition activity that some analysts expect to evolve into a full-blown rebound by the end of the year. From the media and entertainment sector to the high-tech industry to the alternative energy market, companies now emerging from the cash-strapped days of 2008 and 2009 are looking to make moves. But before the wheeling and dealing begins in earnest, companies seeking to make major acquisitions in 2010 need to be aware of just how fast a business partner’s – or even potential business partner’s – reputational liabilities can become their own.

In today’s increasingly inter-connected and global economy, companies are judged in part by the company they keep. When conducting major transactions, entering emerging markets, or initiating partnerships with vendors, suppliers, or distributors, it is no longer sufficient to simply vet a potential business partner’s fiscal health, legal liabilities, or regulatory environment; the prospect’s standing in the Court of Public Opinion must be an essential element of due diligence as well. Today, entering into a commercial partnership is tantamount to an endorsement of the partner’s business practices and the sociological and political statements that those practices entail.

The reputational implications of a potential business relationship usually can’t be found in a balance sheet or earnings report. More often than not, they are hiding in plain sight – on nightly newscasts, the front page headlines, or any of the 133 million active blogs throughout the world. Thus, traditional and digital media sweeps for mentions of the company in question – and its leadership – are essential to any risk assessment or due diligence effort surrounding a transactional relationship.

Digital media sweeps, such as those of online-only publications, blogs, and other forms of social media, have taken on added significance as the Internet increasingly drives traditional media coverage. With more than three-quarters of traditional journalists reporting that they regularly check blogs for story ideas, the digital space provides the most comprehensive real-time snapshot of a potential partner’s reputational liabilities.

In the Information Age, digital media monitoring enables companies to make the most informed decisions possible as to where, when, and with whom to conduct business.

Dallas Lawrence is Chair of the Social and Digital Media practice at Levick Strategic Communications, the world’s top crisis communications firm. He blogs on emerging digital media trends and best practices for social media engagement on Bulletproof. Connect with him @dallaslawrence.

]]> http://www.bulletproofblog.com/2010/03/10/ma-uptick-dictates-the-need-for-digital-due-diligence/feed/ 1 http://www.bulletproofblog.com/2010/03/09/six-six-6-ways-businesses-can-leverage-google-buzz/ http://www.bulletproofblog.com/2010/03/09/six-six-6-ways-businesses-can-leverage-google-buzz/#comments Tue, 09 Mar 2010 21:42:17 +0000 Dallas Lawrence http://www.bulletproofblog.com/?p=2272 The top six social media tips to know before you leave the office.

Last month, Google burst onto the social media scene. Google Buzz – a service populated by posts that are longer than tweets, shorter than blog posts, incorporate photos or video, and include geo-location information – is already years ahead of many start-up social networks in a number of ways. It is feature rich, bringing together many of the capabilities that previously existed on disparate platforms, and it integrates with the 100 million existing Gmail accounts. This is a figure Facebook did not surpass for years and Twitter has yet to even approach.

With the Google name behind it and this immediate audience of users, Buzz has all the makings of an online tool that will provide even greater opportunity for businesses to reach new customers, cultivate existing brand ambassadors, and connect with other stakeholders online. Even in its current nascent state, Google Buzz provides services that go well beyond existing functionality on other social networks.

This week’s Six @ Six highlights six ways that businesses can start making use of Google Buzz. If you have additional suggestions or are already using Google Buzz for your business, I’d love to hear about it on Twitter @DallasLawrence:

1. Foster Relationships:

I’ve said it before, and I’ll say it again: the key to success in the social media realm is to listen, engage, and foster relationships. In a social medium, one-way communications will fall on deaf ears. Google Buzz, as an integrated part of existing Gmail accounts, provides unprecedented opportunity for fostering two-way conversations and engaging with others, particularly those already in your network of contacts. The service is designed to show ongoing conversations about a particular topic, which stands in stark contrast to Twitter’s focus on displaying individual Tweets. Without a 140-character limit, Buzz also provides more freedom to write out complete thoughts and include attachments that can enhance conversations. Try following the example of ReadWriteWeb, which uses Buzz to ask questions or request feedback about topics of interest to its followers. This approach demonstrates a commitment to listening and a genuine interest in what your customers or followers have to say. Not only can this help gauge interest in future business opportunities, but it can also help build an extensive network of brand ambassadors that you can draw on in times of need.

2. Promote Your Web Content:

If your business regularly publishes blog posts, is quoted in the press, or frequently offers special deals, Google Buzz provides another valuable outlet for disseminating links and messages to your followers. Just as with other social media platforms, however, be careful not to come across as excessively promotional, as users are more interested in conversations than being inundated with recommended links. Consider asking your followers what they think about a post or quote you send out via Google Buzz, or encourage them to share feedback when they take advantage of a special deal. If you have a blog and don’t already have a widget such as AddThis or Bookmarkify that encourages visitors to share content via social media, it’s time to add one – and make sure that Google Buzz is an option. This encourages readers to serve as third-party “validators” by sharing your content with their followers. When effectively utilized, Buzz provides yet another avenue for virally disseminating your Web content and reaching new audiences.

3. Monitor Conversations:

The backbone of any effective marketing, public relations, or social media effort is monitoring. After all, in order to respond to concerns or get involved in a conversation, you need to know what those concerns are and how the conversation is unfolding. While you can easily ask your followers for feedback on topics of interest to your company, new tools such as Buzzr allow you to track what’s popular and what others are discussing throughout the network. If your company is a trending topic on Buzz, whether positive or negative, it’s time to engage the conversation with your own messaging. Or if a particular area where your company specializes is trending, join the conversation and share your expertise. As Buzz grows in scope and use, new features will undoubtedly be developed that enable you to track all conversations related to your brand – ensuring that no crisis sneaks up on you and that you are aware of every opportunity to respond and engage.

4. Location-Based Functionality:

Local and retail businesses take note: Google Buzz makes it easy for mobile users to “check in” each time they visit your location, broadcasting their whereabouts to all of their followers. Much like the up and coming social network FourSquare, Buzz provides an unprecedented opportunity for businesses to provide special offers to frequent customers and incentives for visiting a particular location. Many small businesses have already embraced FourSquare, encouraging shoppers and visitors to check in via the network and present their phones to cashiers and servers in exchange for a free gift. Users who frequent the location are often offered ongoing discounts or free offers. By encouraging customers to broadcast their support of your particular store, you increase your exposure to their followers and beyond – leading to increased brand awareness and expanded business.

5. Project Collaboration:

Google’s array of products, including its latest tool, makes it easy for teams to collaborate on a wide range of projects. While Google Docs has long made it easy to share documents, presentations, spreadsheets and more by providing a venue for others to contribute and make edits, Google Buzz takes this to the next level. Buzz makes it easy to create groups of contacts on the fly, specifying just those whose input you seek on a particular project. You can then post a private message – including links to Google Docs – to be shared only with the particular Group you choose. In this regard, Buzz is essentially a less cumbersome form of the back-and-forth email conversations that define business today. You can request feedback and share comments with your team, all of which will appear in a dedicated conversation stream, rather than sprinkled within various emails on unrelated topics.
 
6. Integrate Your Buzz Feed:

As a brand-new social media platform, Google Buzz provides an unparalleled opportunity for businesses to help blaze a trail and influence future expansion. One of the first important steps companies should take is to build off of Buzz’s API to integrate a company feed onto your website, blog, or other Web presence. With Google placing significant focus on expandability and developer-friendly functionality, be sure to stay tuned for future opportunities to build customized apps and widgets for Google Buzz, much like Facebook or iPhone apps. By taking advantage of the opportunity to lead the way in developing new widgets that can help simplify your key constituencies’ everyday tasks, your brand will be forever associated with innovation and simplification, thus strengthening relationships with these key audiences.

Click here to receive Six @ Six in your inbox each week

Dallas Lawrence is Chair of the Social and Digital Media Practice at Levick Strategic Communications, the nation's top crisis communications firm. He blogs on emerging digital media trends and best practices for social media engagement on Bulletproof. Connect with him @dallaslawrence.

]]> http://www.bulletproofblog.com/2010/03/09/six-six-6-ways-businesses-can-leverage-google-buzz/feed/ 2 http://www.bulletproofblog.com/2010/03/09/goldman-sachs-cites-reputational-risk-in-annual-report/ http://www.bulletproofblog.com/2010/03/09/goldman-sachs-cites-reputational-risk-in-annual-report/#comments Tue, 09 Mar 2010 17:56:48 +0000 Sara Brown Meehan http://www.bulletproofblog.com/?p=2267 has cited “adverse publicity” as an important “Risk Factor” in its 2010 Annual Report.

While the move may not surprise some, especially given the recent criticism Goldman Sachs has endured on issues ranging from executive compensation to the degree to which it played a role in the global financial meltdown, this disclosure may be the first to so plainly illustrate the ironclad relationship between reputation and profit. According to The Wall Street Journal, corporate governance guru Charles Elson, the Director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, “couldn’t recall a previous instance where a company cited bad publicity as a risk to its business.”

It may be too early say that a trend is developing; but when a company with key stakeholders as sophisticated as Goldman Sachs’ (who are generally investing hundreds of millions of dollars and who aren’t easily swayed by passing headlines) elevates reputational concerns to levels that require their inclusion in annual reports, it’s not too much of a stretch to predict that companies more vulnerable to Main Street perceptions will shortly follow suit. But it also makes the point that when a company has been targeted for criticism by any one of an array of actors, the hurdle for this to impact its public perception is much lower indeed.

Of course, any company that chooses to inform investors about reputational risks that could hurt the bottom line needs to be prepared to outline its strategies to mitigate those risks. In a new era of transparency and accountability, increasingly vocal and activist shareholders will expect nothing less.

Sara Brown Meehan is a Vice President at Levick Strategic Communications, the world’s top crisis communications firm. She also is a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.

]]> http://www.bulletproofblog.com/2010/03/09/goldman-sachs-cites-reputational-risk-in-annual-report/feed/ 1 http://www.bulletproofblog.com/2010/03/08/fcpa-enforcement-to-increase-yet-again/ http://www.bulletproofblog.com/2010/03/08/fcpa-enforcement-to-increase-yet-again/#comments Mon, 08 Mar 2010 21:10:30 +0000 Michael Robinson http://www.bulletproofblog.com/?p=2262 by more than 20 percent. Given the steady increases in anti-corruption enforcement activity we’ve seen since in the last decade, some in the compliance community may be wondering just where the ceiling is. According to Mark Mendelsohn, the Deputy Chief of the DOJ fraud section’s criminal division, we haven’t hit it yet.

In a speech before compliance professionals attending the Global Ethics Summit 2010 in New York City last month, Mr. Mendelsohn stated that his team “may grow as much as 50 percent in size in the next year or two.” With greater manpower and resources in the offing, it’s seems that the federal government’s focus on corruption issues is posed to intensify yet again.

How can global companies safely operate in an enforcement environment that grows only more perilous with each passing year? According to Mr. Mendelsohn, “companies – individually and collectively and in collaboration with countries – need to adopt stricter standards.” While that may be stating the obvious, what is less apparent to companies facing tough compliance challenges is how best to implement an effective anti-corruption program – and, fortunately, Mr. Mendelsohn had advice on this front as well.

In the very near future, the Organization for Economic Cooperation and Development (OECD) is expected to publish anti-corruption best practices guidelines that – according to Mr. Mendelsohn – will receive the U.S. government’s stamp of approval. As such, careful adherence to OECD standards will help insulate a company against escalating government investigations, prosecutions, and fines and provide a strongly supportive position in the courtroom and the Court of Public Opinion should problems arise.

With a new generation of FCPA enforcers expected to arrive on scene soon, companies that put in place comprehensive anti-corruption programs today – and then communicate them internally and externally – are poised to stay on the right side of this coming legal and regulatory initiative.

Michael W. Robinson is a Senior Vice President and Chair of the Corporate Practice at Levick Strategic Communications, the nation's top crisis communications firm. He is also a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.

]]> http://www.bulletproofblog.com/2010/03/08/fcpa-enforcement-to-increase-yet-again/feed/ 0 http://www.bulletproofblog.com/2010/03/08/what%e2%80%99s-next-the-bulletproof-interview-%e2%80%93-todd-lang-on-the-2010-proxy-season/ http://www.bulletproofblog.com/2010/03/08/what%e2%80%99s-next-the-bulletproof-interview-%e2%80%93-todd-lang-on-the-2010-proxy-season/#comments Mon, 08 Mar 2010 14:01:22 +0000 Larry Smith http://www.bulletproofblog.com/?p=2259 Each week, Bulletproof Blog™ features exclusive interviews with thought leaders on issues of critical importance to companies and countries. This week, as corporations embark on a 2010 proxy season that promises to be as challenging as any recent in memory, we interview Todd Lang, a Senior Partner at the law firm of Weil, Gotshal & Manges LLP with more than 50 years of experience in matters of corporate governance.

Mr. Lang has served as chair of the Committee on Corporate Governance of the American Bar Association’s Business Law Section and has been extensively involved in the activities of the Section’s Committee on Federal Regulation of Securities. He also serves as Chairman of the Board of Advisors for the Center for the Study of Corporate Law at Yale Law School. A leading authority on how a torrent of investor and regulatory activity has affected the 2010 proxy season, Mr. Lang shared his thoughts on the matter with Bulletproof™:

What do you expect will be the most striking feature of the 2010 proxy season?
 
Todd Lang: Executive compensation and corporate governance are both front and center in terms of investor and regulatory attention. The role of the compensation committee is necessarily expanded because the corporation will need to focus on the relationship of risk to the compensation program and the use of clawbacks and other measures to minimize or recover compensation upon the occurrence of defined adverse events. The committee will need to use independent consultants and relate the compensation program to corporate strategy. The allocation of compensation between stock and cash and the deferral of payments have become an integral part of the structure of these arrangements.
 
The proxy rules have been amended to require enhanced disclosure as to compensation programs as well as such governance items as the qualification and experience of directors and nominees and the leadership structure of the corporation. While these are separate requirements, they are substantively intertwined as a governance matter.
 
All of this amounts to a significant amount of preparatory work by the corporation, including its board of directors and committees, and the development and implementation of policies that are consistent with disclosure on the particular subject matter. The quality of disclosure will be subject to close examination by the staff of the SEC.

Given all that the SEC has on its plate currently, is there more for the Commission to do with respect to shareholder access to proxies? If so, what would that entail?
 
Todd Lang: The SEC proxy access proposal consists of 250 pages and propounds over 500 questions. The subject matter is complex and highly controversial. Proxy access will, when adopted, apply to more than 10,000 publicly-held corporations.
 
It is time to reach a decision on access given the seven years it has been under discussion. Final rulemaking, which is anticipated for early spring, requires resolution of a number of issues, including:

• Providing a clear definition of purpose, which would serve as a guideline to the content of the rule;


• Providing a reasonable transition period during which corporations, through director or shareholder action, can establish or conform to the terms of the rule;


• Defining the extent to which shareholders have a choice, including an opt-out right;

Outlining the means by which the corporation, through its directors or shareholders, can adapt the access right to the corporation’s governing documents and arrangements and deal with future events and opportunities;

• Offering guidance on shareholder use of the corporation’s proxy materials, under the shareholder proposal rule, to propose an access bylaw assuming that the director election exclusion is eliminated or modified; and


• Defining the workability of the process, which involves – in part – the extent and nature of its prescriptive terms.

On adoption, proxy access will enter a new phase with significant activity by corporations, their shareholders and the SEC.

How do you expect that the investor/regulator anger that still exists toward Corporate America will play out during this proxy season?
 
Todd Lang: The past couple of years have been characterized by scandals, joblessness, foreclosures, and other events that have raised serious concerns and a lack of confidence in the management of many companies. While these problems are essentially systemic in nature, there has already been impact on the amount and terms of executive compensation, the rewarding of effectiveness for participating in activities which involve meaningful risk to the enterprise, and the enhanced proxy disclosure requirements with respect to corporate leadership, compensation, risk and other governance matters.
 
The very human premise is that while many people suffer, others receive excessive rewards for activities which involve untoward risks and insufficient business judgment.  Most corporations have started to adopt measures to deal with these issues, and the SEC and other regulators have prescribed enhanced disclosure and other means to deal with them. If the efforts to effect change from the past are real, credible to investors and the public alike, and carefully implemented in a transparent manner, confidence can be restored. This is a year of transition, but by next year, investors, regulators and others should be in a position to make the judgment as to the effectiveness of these measures.

Does proxy access necessarily constitute a “best practice?”  Should it be a matter of shareholder choice?
 
Todd Lang: It is not axiomatic that the shareholders of every corporation favor the federal adoption of a right of proxy access. There are other alternatives, such as reimbursement by the corporation of solicitation expenses. Some believe that access establishes the basis for divisive action on the board of directors which could impede its effective functioning. Others are not convinced that access would be used for non-control purposes and suggest that the SEC proposal establishes a means of “access creep” –meaning that over time, directors elected through access may be inclined to act together with major control and influence implications.
 
In order to create confidence in the use of the right of proxy access, its purpose needs to be defined so that clear parameters are established to prevent its misuse. Principally, the proxy access right could be exercised by long-term shareholders with no-control intent or effect who have a meaningful interest in the corporation. Further, the shareholders of one corporation may have a different view on access than the shareholders of another corporation and, therefore, an “opt-out” right could be adopted to enable shareholders of each corporation to make their own choice.  An alternative is to establish access by providing shareholders with the right to “opt-in.”

With the economy beginning to improve, would you forecast an increase or a decrease in proxy fights in the coming year?
 
Todd Lang: There is a great deal of initial activity which suggests that there may be a substantial number of proxy contests in the coming year. This is based on economic opportunity, the increased ability of shareholders to seek and obtain board representation, and the number of issues which may favor change. While a proxy access rule would not be operative for the current year, depending on its terms, it certainly will encourage this kind of activity and, particularly, an increased use of the short slate. For practical purposes, a proxy contest means an election where there are more nominees than director slots to be filled and, therefore, this does not necessarily involve control.

Click here to receive the Bulletproof Interview in your inbox each week.

Larry Smith is Senior Vice President of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.]]> http://www.bulletproofblog.com/2010/03/08/what%e2%80%99s-next-the-bulletproof-interview-%e2%80%93-todd-lang-on-the-2010-proxy-season/feed/ 0 http://www.bulletproofblog.com/2010/03/05/weekly-web-wrap-up-for-march-5-2010/ http://www.bulletproofblog.com/2010/03/05/weekly-web-wrap-up-for-march-5-2010/#comments Fri, 05 Mar 2010 20:30:37 +0000 Dallas Lawrence http://www.bulletproofblog.com/?p=2251 Bulletproof’s Weekly Web Wrap-Up offers a compilation of key discussions regarding social media’s increasing relevance to business.

This week’s events confirmed what many of us have suspected all along: that on-the-go social media activity is skyrocketing as smart phone use becomes increasingly widespread. With more Americans accessing news and information from the Internet, mobile Web, and social media, businesses – and small businesses in particular – must adapt accordingly. Location-based social media activity presents an unprecedented opportunity for businesses to leverage brand ambassadors in the online space, reach new customers, and generate new business.

This week’s Wrap-Up highlights a few of the ways small businesses can use social media and mobile mania to capture new business and connect with existing customers:

HubSpot:
5 Reasons B2B Product Marketers Should Increase Social Media Spending

VentureBeat:
Twitter Mobile Traffic Up 347 Percent from 2009

Social Media Examiner:
4 Ways to Use Twitter to Capture Customers

Mashable:
How Small Business Is Using Social Media

CNN:
Survey: More Americans Get News from Internet than Newspapers or Radio

Click here to receive the Weekly Web Wrap-Up in your inbox each week

Dallas Lawrence is Chair of the Social and Digital Media Practice at Levick Strategic Communications, the nation's top crisis communications firm. He blogs on emerging digital media trends and best practices for social media engagement on Bulletproof. Connect with him @dallaslawrence.

]]> http://www.bulletproofblog.com/2010/03/05/weekly-web-wrap-up-for-march-5-2010/feed/ 0 http://www.bulletproofblog.com/2010/03/05/an-inconvenient-truth-about-law-firm-diversity/ http://www.bulletproofblog.com/2010/03/05/an-inconvenient-truth-about-law-firm-diversity/#comments Fri, 05 Mar 2010 18:53:03 +0000 Derede McAlpin http://www.bulletproofblog.com/?p=2249 as a result of the recent recession. According to the annual Diversity Scorecard issued by The American Lawyer, which compiles diversity data from 200 of the largest U.S. firms, the percentage of attorneys of color at all responding firms decreased for the first time in nine years in 2009. Between 2000 and 2008, diversity had increased from below ten percent to 13.9 percent. Last year, the proportion dipped to 13.4 percent.

The raw data show that a disproportionate number of attorneys of color have been impacted by involuntary attrition. The number of African-American attorneys declined the most with layoffs impacting almost one in six. Simply put, at a time when diversity is increasingly important to winning and maintaining new business, U.S. law firms seem to be moving in the wrong direction.

In 2008, The Coca-Cola Company established a program that promotes diversity in the legal profession by honoring U.S. partner law firms that make minority inclusion a priority. That idea is catching on throughout Corporate America. Wal-Mart goes further. It doesn’t reward partner firms that meet its diversity standards; it fires those that don’t – dropping at least two firms that didn’t make the grade in 2006. In 2009, corporate titans such as Microsoft and Starbucks implemented similar policies. In 2010, more companies are sure to join the ranks.

As diversity takes on added significance in legal buying decisions, it is absolutely imperative that firms take proactive measures to avoid losing clients due to less than stellar diversity efforts. In an environment where criticism can arise from actual patterns of discrimination, disgruntled employees or consumers, or the realities of an increasingly global marketplace, vulnerable firms should establish a "diversity brand" to distinguish themselves from the pack. And they must communicate that commitment within the firm and to the outside world as aggressively as possible.

The aforementioned Coca-Cola program probably never would have been implemented if not for a lawsuit filed in 1999 by four former African-American employees who alleged they were denied advancement because of the color of their skin. The case eventually grew into a 2,200 member class action.

When faced with a massive legal and reputational crisis, Coke didn’t fight; it listened. Today, the findings of an independent task force charged with monitoring Coke’s inclusion efforts since the settlement have led the Atlanta Journal-Constitution to declare “Coke’s Diversity Case Closed.”

Law firms can take a cue from their corporate clients during time of crisis and economic downturns. As Coca-Cola demonstrated, the more of a commitment you demonstrate, the more you attract the very people you want to attract. Look beyond the numbers. Fine-tune communications efforts internally and externally, and you could find shades of difference to be invaluable assets.

Derede McAlpin, Esq. is a Vice President at Levick Strategic Communications, the world’s top crisis communications firm. She is also a contributing author to Bulletproof Blog. Connect with Levick on Twitter: @Levick.

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