Burson-Marsteller and Facebook: A Public Relations Ethics Case Study
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Transcript of Burson-Marsteller and Facebook: A Public Relations Ethics Case Study
BURSON-MARSTELLER & FACEBOOK: A CAUTIONARY TALE By: Alexandria Chong, Nailah McKesey, Nicole Troelstrup, Greg Wilson & Ni Zeng
Agenda
1. Background Information2. Two Tech Giants Compared3. Case Description and Responses4. Evidence5. Ethics Comparison6. Our Verdict7. Q&A
THE MAJOR PLAYERS
Burson-Marsteller
Founded in 1953 by Harold Burson and William "Bill" Marsteller
One of the “Top 5 PR Firms” Operating in 67 wholly owned offices and 71
affiliate offices 98 countries across 6 continents Owned by WPP – Wire and Plastic Products
What are they about?
"We have a clear vision: To provide gold standard performance - for our clients, our
people and our shareowners - as one seamless, global business with a single
culture.“
Founded in 1995 at Stanford University by Larry Page and Sergey Brin
Top used search engine Named after “Googol” - a term defined as the
number 1 followed by 100 zeros representing “a nod to the company’s vast goal of organizing all of the internet’s data”
“Don’t Be Evil” – mantra explaining their relationships and view of competitors
What are they about?
"Don't Be Evil" Originally stated by two Google employees
Buchheit and Patel
Founded in 2004 by Mark Zuckerberg Top used social networking service In September 2012, had over one billion active
users In a study in December 2011, Facebook is the 2nd
most accessed website in the US Users create a personal profile, add other users as
friends, exchange messages
What are they about?
"Facebook's mission is to give people the power to share and make the world more open and connected.”
The Two Tech Giants Compared
Facebook has risen to become the second-most important online property, behind Google.
Undermines Google’s communication tools.
Could jeopardize Google by developing its own search capabilities
Dominates search advertising: 65% of U.S. market and more than 50% of the global market
Reaction to Facebook: Launches Google+
A $40 billion company built on innovation and execution in advertising
Facebook Google
WHAT HAPPENED?
1. Burson-Marsteller aims at getting newspapers to run stories about how Social Circle infringes on privacy and violates FTC rules
2. Spearheaded by B-M’s Jim Goldman and former political columnist John Mercurio on behalf of an unnamed client
3. Goldman and Mercurio began engaging reporters and technologists
4. Mercurio offered to help a blogger…
5. And the blogger turned the tables, posting Mercurio’s embarrassing email pitch online
6. A few days later, USA Today broke the story
The Smear Campaign
Google’s Response
"We have seen this email reportedly sent by a representative of the PR firm Burson-
Marsteller. We're not going to comment further. Our focus is on delighting people with
great products.”
Burson-Marsteller’s Response
“Whatever the rationale, this was not at all standard operating procedure and is against our policies, and the assignment on those terms should have been declined. When talking to the media, we need to adhere to strict standards of transparency about clients, and this incident underscores the absolute importance of that principle.”
Facebook’s Response
"No 'smear' campaign was authorized or intended. Instead, we wanted third parties to verify that people did not approve of the collection and use of information from their accounts on Facebook and other services for inclusion in Google Social Circles—just as Facebook did not approve of use or collection for this purpose"
MERCURIO’S E-MAILS REVEALED
BURSON-MARSTELLER & FACEBOOK
CODES OF ETHICS
Facebook vs. Industry StandardsLeading Tech Companies Honesty and Competition
Facebook “Facebook personnel must always abide by laws related to competition... including predatory conduct intended to exclude a competitor from a market"
Linked In "LinkedIn employees are expected to act and perform their duties ethically, honestly and with integrity - doing the right thing even when "no one is looking."
Google "We respect our competitors and want to compete with them fairly. But we don’t want their confidential information. The same goes for confidential information belonging to any Googler’s former employers.”
Burson-Marsteller vs. Industry Standards
Public Relations Codes Honesty and Transparency
Burson-Marsteller We will not undertake work which is intended or designed to mislead, including in relation to social, environmental and human rights issues
Arthur W. Paige Society Tell the truth
PRSA We adhere to the highest standards of accuracy and truth in advancing the interests of those we represent and in communicating with the public
UNETHICAL OR NOT?
The Charges…
1. Facebook and B-M launched a smear campaign: a campaign aimed at damaging someone's reputation by making accusations and/or spreading rumors.
2. The smear campaign included false and inaccurate information.
3. The campaign was used to gain a competitive advantage.
The Verdict…
On the whole:Unethical and Not Very Smart
PRSA CEO/Chair Weighs In:http://www.prdaily.com/Main/Articles/8232.aspx
Q&A
Thanks for listening!