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The blog in the corporate machine
Key Excerpts from Article on Website of The Economist
Posted: November 11th, 2006
http://www.economist.com/business/displaystory.cfm?story_id=...
They have always had their critics, but corporations are having an especially hard time making friends of late. Scandals at Enron and WorldCom destroyed thousands of employees' livelihoods, raised hackles about bosses' pay and cast doubt on the reliability of companies' accounts. Big companies such as McDonald's and Wal-Mart have found themselves the targets of scathing films. Labour groups and environmental activists are finding new ways to co-ordinate their attacks on business. But those are just the enemies that companies can see. Even more troubling for many managers is dealing with their critics online -- because, in the ether, they have little idea who the attackers are. One of the main reasons that executives find bloggers so very challenging is because, unlike other 'stakeholders', they rarely belong to well-organised groups. That makes them harder to identify, appease and control. When a company is dealing directly with a labour union or an environmental outfit, its top brass often take the easy route, by co-opting the leaders or paying some sort of Danegeld. Until a couple of decades ago, that meant doling out generous union contracts and sticking shareholders, taxpayers or consumers with the bill. Increasingly, companies are learning that the best defence against these attacks is to take blogs seriously and fix rapidly whatever problems they turn up.
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