Get It In Gear Volkswagen!

In public relations, you often hear the importance of transparency and honesty. If a company does not uphold these values, it is bound to face issues with its publics. A company that is currently learning the importance of honesty is Volkswagen as it faces a growing crisis involving dishonest claims about its diesel cars emissions. When U.S. regulators claimed the German company had programmed some 500,000 vehicles to emit lower levels of harmful emissions in official tests than on the roads, millions of people from all around the world lost trust in the brand. Volkswagen has a long road ahead as it faces this global issue and the ramifications to the automotive industry as a whole. 

Volkswagen confessed to the U.S. Environmental Protection Agency it was responsible for installing software in some of its diesel-engine vehicles that enabled them to trick regulators into believing the cars met the appropriate emission standards. This scandal has the potential to cause extreme damage to the automaker, facing a total of $18 billion in fines for its violation of emission standards on approximately 500,000 diesel cars. In the U.S., Volkswagen has apologized, ordered an external investigation and promised to set aside $7.3 billion to cover the recalls and other damage-control efforts. Rebuilding customer trust after this damaging blow to its reputation will be difficult and take time. Volkswagen Chief Executive Martin Winterkorn made a formal apology, stating the company’s commitment to its customers, employees and the public as it works to fix the problem and be as transparent as possible throughout the process:  

"Millions of people all over the world trust our brands, our cars and our technologies. I am deeply sorry that we have broken this trust. I would like to make a formal apology to our customers, to the authorities and to the general public for this misconduct. We will do everything necessary to reverse the damage. And we will do everything necessary to win back trust – step by step."

As Volkswagen moves forward and makes efforts to fix the technical issues, authenticity and transparency will be key. The world has been impacted by this scandal and winning back consumers’ trust will not be a simple task. Volkswagen’s reputation of reliability, efficiency and trustworthiness is at stake as this deceitful situation unfolds. How the automaker handles this crisis will change the way the company is viewed by the general public forever. Honesty is the best policy, especially if an entire industry is depending on it. I believe this scandal will be a popular public relations case we will see studied heavily in the future due to its impact on a global level.  

Payments Through Facebook Messenger

Facebook recently introduced a new tool for users, allowing them to quickly send and receive money from their friends via Facebook Messenger. This is a convenient way to exchange money between friends, family or anyone else you choose that you are friends with on Facebook! This new Facebook capability is similar to tools like PayPal, Venmo or Square Cash. Here’s how it works:

To send money:

1.     Start a message with a friend

2.     Tap the $ icon and enter the amount you would like to send to them

3.     Tap Pay in the top right and add your debit card to send the money

To receive money:

1.     Open the conversation from your friend containing the money

2.     Tap Add Card in the message and add your debit card to accept money for the first time

For those concerned about security, don’t be! Facebook has this covered. Once you add a debit card in Facebook payment settings, you can create a PIN to provide additional security the next time you send money. You can also enable Touch ID on iOS devices as an additional security measure. If you are still worried about security, you can always add another layer of authentication to your account at any time.

In an organizational setting, this tool could be utilized when rewarding brand advocates during specific social media competitions as an incentive for their participation. Customer surveys could be incentivized through Facebook chats with small monetary bonuses for customers after completion, contributing to the brands efforts to continue growing and improving after receiving feedback. Additionally, this tool could be utilized by an organization if a customer leaves a negative review. The organization could use this tool to reimburse the money if it is a valid complaint in an attempt to mend the relationship. These efforts could create brand advocates because the customer felt the company was taking responsibility and listening to their concerns.

Sending and receiving money via Facebook Messenger is easy, free, convenient and secure. Facebook has fraud specialists monitoring at all times for suspicious activity to ensure your account is safe. Currently, this tool is mostly for personal use because it can make the exchange of money between friends much easier. For example, the tool can be used for rent or utilities between roommates or paying someone back for a meal. Overcoming member security concerns will be the largest challenge for Facebook. Organizations will be able to utilize this tool in the future after the general Facebook members have a better understanding of the full benefits of this new money exchange channel. 

Blue Bell Defuses PR Crisis

In this day and age, it is virtually impossible to avoid reputation-damaging instances. With the rise of social media and instant communication, news travels faster and farther than ever before. Organizations must learn how to protect themselves from damaging blows to their reputation and work to regain customer trust in light of a negative situation. Sometimes it is difficult to gain trust after a company’s reputation has been damaged. BlueBell Creameries is experiencing this challenge to this day.

Texas-based Blue Bell Creameries took a damaging blow to its reputation when the company was required to recall products due to a listeria contamination. The safety concerns were widespread enough that in addition to the recall, new procedures and training to clean the plants were implemented. Blue Bell was forthcoming with information and exhibited responsibility by pulling the items from store shelves. Although a crisis situation, this was also an opportunity for the company to reinforce its values, reputation and commitment to customer safety through improved procedures for the future. Customers tend to be forgiving of a damaged reputation when the company is apologetic and ready to take aggressive actions to resolving the issue.

In the face of this crisis, media representatives at Blue Bell were given a difficult job. The crisis management team worked to fix the situation and they offered frequent updates on the improvements to sanitation and testing. The company utilized social media to reassure its large and loyal fan base by posting a stream of Twitter and Facebook updates. Being transparent and keeping the public updated on the situation proved Blue Bell was forthright and authentic about this dangerous situation. Despite this damaging blow to its reputation, Blue Bell Creameries is working diligently to fix the issue and prevent any future danger to customers.

Ego or Enthusiasm for President?

Republican presidential candidate Donald Trump has reached 32% support, according to the new CNN/ORC poll. This boisterous business billionaire continues to gain ground in the race for the Republican nomination with retired neurosurgeon Dr. Ben Carson in second place with 19% support. What’s the difference between Trump and Carson? Trump has a major ego problem in need of fixing if he expects to be a viable Republican candidate while Carson’s likability factor contributes to his close second in the polls.

Both candidates are new to the political scene and America likes this factor. We are looking for real results and these candidates intrigue us because they seem determined to finally invoke real change. Their previous careers bring a different perspective and this is appealing. The problem Trump faces is a reputation crisis. Instead of focusing on the real issues at hand, he touts his endless wealth as a reason he should be elected president, insults immigrants, denounces news reporters and shows absolutely no signs of vulnerability or authenticity. Focusing on ego management has the potential to represent Trump, as a person and a candidate, in a completely different light. Maybe he should take some pointers from the doctor!

Reputation is everything. Carson is proving he has the humility and determination to continue successfully in the race. People want to like their president and let’s face it, not many people like Trump because his ego gets in the way of what truly matters. If Trump could show even a small level of humility, accountability and consistency, potential voters and the GOP might begin taking him more seriously. His notorious remarks are keeping his face in the news, but at the price of damaging reputation blows to himself as well as the GOP. Donald might want to keep an eye on Carson because his likability factor trumps the boisterous business billionaire’s enormous ego. (Pun intended.)

Ashley Madison Scandal

Online dating and social networking service Ashley Madison is facing strong public scrutiny after various claims of a hack allowing the information of 36 million users to be obtained and publicly posted. Included in this list of names were astonishing clients with a large reputation crisis on their hands. The online dating service is marketed to people who are married or in committed relationships, encouraging affairs and approving of infidelity from anyone and everyone.

The exposed clients included 44 Obama administration staffers, 13,078 members of the military, celebrities and many more. Although the brand promised its customers discretion, millions are struggling with the upheaval this hack has produced. The scandal is a rude awakening about data privacy and the threat of credibility destroying information being shared with the world. For the prevalent individuals, this humiliating security breach is causing a large disturbance in their personal and professional lives.

We are witnessing a large number of divorces, companies questioning employee morals, friends and family disgusted by the disgraceful actions and public relations practitioners at the ready to try to manage this reputation crisis. The first step for many will be a sincere public apology for their poor decisions. I am curious to see the progression of this scandal because the release of this private information is causing turmoil in many lives.

Although we live in a world of redemption, I think it will be difficult for many of the individuals to convince their family, friends, coworkers and acquaintances to accept their flaws and move on. Righting wrongs is not exactly an option in this situation. The infidelity has occurred and they cannot take this back. In order for these individuals to manage the destroyed reputation they have caused, a genuine attempt to regain trust and credibility is essential.