Category: public relations practice
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Prosperity for all: lessons from Bangladesh
The great distance between America and Asia helps obscure a fundamental truth: that we enjoy cheap manufactured goods while others, including children, toil under sweatshop conditions at low wages. This was thrown into sharp relief when a factory in Bangladesh collapsed, killing more than 400 workers. Products manufactured in the factory include clothing that is likely in your closet, sold by mainstream brands like JC Penney and Gap.
We are all complicit in these deaths. We create the demand that makes the commerce possible. U.S.-based companies look the other way when they see the conditions that workers suffer under. And the manufacturers patrol their domains like gangsters, because they often are.
It doesn’t have to be that way. If we boycott the sweatshops, they will change their ways or go out of business. And we can start by becoming more mindful consumers, buying fewer but higher quality items and knowing more about their provenance.
Just 315 kilometers northwest of Savar, there’s a different kind of manufacture going on. Saidpur Enterprises is a cooperative of 21 women who sew market bags, which sell for between $58 and $78 from apolisglobal.com. This is a sort of “right-sized” capitalism, with the workers creating a high-quality product, Apolis marketing it worldwide, and consumers paying a fair price.

Apolis practices what Richard Edelman calls “profit with purpose.” Apolis “is a living and breathing social enterprise that equips and empowers people through opportunity. Apolis is a pioneer in the socially responsible apparel industry and creates opportunity by forming unique manufacturing partnerships around the globe.” The company is not a non-profit. Instead, it is a “B Corporation,” an innovative structure that balances good business with social purpose. Success, for a B Corporation, is much more than just making money. Also part of the rubric: governance, workers, community and environment. B Corporations also practice transparency, sharing their progress for all the world to see (view Apolis’ scorecard here).
Apolis is one company riding a crest of public support for ethical business practices. In 2012, Edelman updated the “Good Purpose” study, a six-year longitudinal study that has documented this trend. The study found:
- a 47 percent increase over 2010 in consumers who bought a cause-related brand monthly;
- a 39 percent increase in willingness to recommend cause-related brands;
- a majority feel that CEOs should be leaders in creating socially-responsible practices.
Adding purpose to a company’s mission can turn out to be good business. It certainly can help improve the quality of life for the workers who make the products that we buy.
And it’s certainly something to think about in the attention economy, in which advertising no longer works and companies have resorted to shouting to be heard. Instead: invest in performance, deputize your stakeholders, and let them tell your story. People will listen to that.
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PRSA Chicago slide deck on disclosure of material connections
Here is my slide deck from my presentation in Chicago on July 20. Thanks for attending!
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The FTC and blogola: here comes trouble
Last week, the FTC issued a ruling that will have the effect of cracking down on bloggers who write about free products without disclosing that they were, in fact, “compensated” for the post.Disclosing payment is one of those “things you should have learned in kindergarten.” It’s common sense. It’s a basic component of the PRSA Code of Ethics, for example. Who would be against that? For example, here is how an article on Mashable framed the issue:Certainly, it seems like this is an update that’s time has come. While most well-run social media programs already include appropriate disclosure, there’s still no shortage of unscrupulous marketers using deceptive practices to sell products. Now, with the threat of serious fines, those who look to push the boundaries of ethical blogging will be doing so at their own risk.
Yet, something about the ruling seemed wrong to me. Then I read an excellent piece by Eric Felten in the Wall St. Journal. Felten writes the popular column, “How’s your drink?” and he made my objections clear.
Specifically, he notes that swag is a part of life at even the most high-toned newspapers and magazines: “Jumbo are the shrimp and deep are the highballs at most media events,” he writes. No newspaper is going to pay for a book reviewed in the Sunday section. No food writer is going to pay for the unsolicited cookbooks that arrive daily, hoping for some ink. And no sports writer is going to pay for that great seat in the media deck at the ballpark. Yet a blogger writing about an unsolicited book could be fined for failure to disclose.In the United States, we don’t license journalists. There’s no corral that safely keeps journalists in and bloggers out. In fact, while the business model for newspapers slowly dies, we’re seeing interesting hybrids, publications like the Huffington Post, Politico, and hyperlocals like the Chi-town Daily News and the Beachwood Reporter. Who’s a journalist? Who can say? And the FTC rules also cover other, unspecified “word-of-mouth” marketers, whatever they are.I agree with Felten: this regulation has a potential chilling effect on speech, while failing to show a serious harm that the ruling might protect us from. Dear FTC, give us some credit for being able to assess the veracity of what we read.Here’s a final question raised by the ruling. I serve as a professor at Loyola University Chicago. Let’s say a prospective student arrives at my office and I provide a tour of our facilities, pointing out good things about our program. Do I have to disclose my salary to the student? Have I provided an “endorsement” for which I am paid? Am I a “word-of-mouth marketer?”Does the FTC really want to look that closely into, well, everything?photo credit: ashe-villain, licensed under Creative Commons

