Social Media For Good 19 Oct 2009

Social Media for Good

Erik Kiewiet de Jonge
Jeff Shah
19 October 2009

Leading Through Innovation

For more information, contact Erik Kiewiet de Jonge (erik_kiewiet@mba.berkeley.edu) or Jeff
Shah (jeff_shah@mba.berkeley.edu)

Social Media Roadmap: Where We’re Heading

4. Social media in
3. Frameworks practice:
1. Define social 2. Social media • Risk management
for using social
media technologies • CSR reporting
media
• Branding
• Innovation


What is social media?

4. Social media
3. Frameworks in practice:
1. Define 2. Social media
for using social • Risk management
social media technologies • CSR reporting
media
• Branding
• Innovation


Social Media is the new buzz, but…

My organization already has a web strategy. Do we need a social media
strategy?

Who actually uses social media to advance sustainability
initiatives?

Will my organization lose message control if
we use social media?

Does social media add corporate value?

Twitter? Facebook? Aren’t these for personal
use only?


What is Social Media?

Web 2.0
Participation Creation

Affiliation Trust

Broadcasting
Community

sharing
Simplicity
“THE LONG TAIL”

Web 1.0 vs. Web 2.0

Source: David Ciccarelli, CEO of Voices.com

"The days of companies being able to push whatever they want into your box and influence you are
waning. It was probably never the right thing to do to begin with, but it was all we had in the past.“
- Bob Pearson, former head of Dell's social media efforts


So we have a sense of what social media is …
… but remember what social media is not:

● Just a technology – it’s about sharing information

● Just flashy content and slick graphics – it’s about
greater interaction and participation between users
● About every single web user – it’s about the
(relatively) few active ones
● Just for tech savvy kids – it’s gaining popularity
with every demographic and age group


Your customers and stakeholders are talking about
you.

Have you been listening? To traditional channels? To
social media outlets?

How can you measure and assess the
conversation level?

So, a few people on twitter are chattering. Big deal?

What are the implications of viral communication?


Following the Conversation: United

United damaged a musician’s guitar during a flight and
refused to pay damages….

In the past passengers had limited ability to bring this
to the public’s attention, but social media has changed
everything.


Following the Conversation:
United’s Social Media Firestorm
86,889 posts

In a matter of a few 19,715 posts

weeks this past
6,755 posts
summer, the
following 5,828 posts

conversations on 3.3 million YouTube views
United’s guitar
incident occurred: 400+ changes made to
United entry in 2009


The Twitter Chatter Intensifies

United being bashed on the
guitar fiasco…

on


Social Media Trend Analyses

United apologizes


The conversation is happening.

Will you be listening?

Can you afford not to listen?

Tools exist to help you track the conversation and
assess trends.

Will you join the conversation?


Social Media Technologies

4. Social media
3. Frameworks in practice:
1. Define social 2. Social media for using social • Risk management
media technologies media • CSR reporting
• Branding
• Innovation


Top Social Media Technologies for Business
…based on current usage and expected potential

Blogs Microblogs Online video Social networks

Crowdsourcing Interactive games Wikis


Here’s a crash course on social
media technologies


Blogging 101
Overview/ Definition: Demographics and Statistics:
– Blogs allow companies to present the facts, clarify – Estimates suggest 70% of active internet users –
misconceptions and address stakeholder concerns 346 million people - regularly read blogs1
in a conversational forum – 16% of Fortune 500 companies have externally
– Allows users to leave comments, transforming facing corporate blogs2
blogs into active dialogue forums – Estimates suggest that business related blogs
Business Case: account for roughly 12% of readers’ regular blog
visits3
– Build trust and credibility through frequent
– 36% of internet users report thinking more
communication
positively about companies that blog4
– Manage how issues evolve in the market through
connection to corporate strategy
Keys to Success:
– Blogs are often perceived as extensions of the
marketing department, so refrain from using blogs
as just a sales platform
– Be honest and transparent about difficult issues—
present facts, clarify misconceptions and answer
concerns
– Incorporate many voices from the business to
show a high level of corporate engagement
– Align content to corporate strategy, ensuring a
consistent message


Blogging Success in Action:
McDonald’s Values in Practice

Overview
McDonald’s Corporate Responsibility Vice-President Bob Langert and other employees author the
Values in Practice Blog, which discusses CR challenges faced by McDonald’s.
What we like
The blog’s integrated online video, news postings and traditional corporate responsibility reports give
readers a rich experience. A diverse group of CR managers’ personal, conversational writing tones
and willingness to allow controversial comments on blog entries give the blog credibility. McDonald’s
achieves a moderate balance between marketing and CR discussions.
What we’d like to see
While McDonald’s addresses difficult topics, authors hesitate from directly soliciting stakeholders on
McDonald’s biggest CR challenges. Furthermore, continued and enhanced references to third-party
reports on CR issues material to McDonald’s would add credibility.


Microblogging 101

– Blogging typified by users sending brief text – Primary user base: technology oriented teens and
updates (usually less than 140 characters) twentysomethings
– Content differs from traditional blogging in – Twitter is the third most subscribed social
networking service, with over 10 million users3
that it tends to be highly topical and time
sensitive – Increasing presence in mainstream media,
including regular use on CNN, BBC, etc.
Business Case:
– Gaining traction among older demographics (e.g.
– Anticipate and manage conflicts as they Congressional Twittering), though still a nascent
develop1 technology
– Immediacy has the potential to shape
stakeholder perceptions in real-time2
– Gather pulse of the public
Keys to Success:
– Match personality to the company culture
– Be casual and use humor where appropriate
– Use micro-blogs to hook readers and then
send them to resources with more extensive
information
– Stay engaged: micro-blogging is a
conversation and followers are likely to notice
if you are absent


Microblogging Success in Action:
@WholeFoods on twitter
Overview
Whole Foods maintains a corporate Twitter
account and individual store accounts to monitor
and respond to customer and stakeholder
comments and concerns. Whole Foods’ tweets
regularly respond to environmental questions
related to products and store operations, while
also facilitating discussions of sustainability issues.

What we like
Whole Foods demonstrates its commitment to
directly addressing customer concerns through an
effective mix of customer service, data gathering
and sustainability conversations. Its “tweeters”
judiciously use tweets as product or discussion
launch points.
Hypothesis: Whole Foods’
twittering may be able to What we’d like to see
influence customers at point- Adding names and titles of employees on “Twitter
of-sale duty” would add a personal touch while increasing
the dialogue on Whole Foods’ largest sustainability
challenges would strengthen credibility and solicit
valuable feedback.

Online Video 101

Overview/ Definition:
– Individuals, companies and media increasingly Demographics and Statistics:
share videos online for the general public – Nearly 400 million people worldwide watch online
video clips, with 70% watching weekly1
– Embedded video clips have become the norm
on social networks, blogs and web pages – Online video transcends demographics, though
younger users tend toward YouTube while older
Business Case: viewers use traditional media providers2
– Online video helps stakeholders visualize your – YouTube remains the dominant online video site,
companies’ challenges – show and tell may be holding 42% marketshare3
more personal, memorable and impactful – Online video continues to grow exponentially
– Creates buzz around sustainability issues across the globe
– Damage control through addressing
stakeholders directly through video response
– Creates personal connection to your company
– Gather stakeholder perspectives through
monitoring comments (widely used features
on sites like Youtube)
Keys to Success:
– Beware of online video’s viral nature –
creating a video buzz can be both good and
bad
– Tone is key, especially when putting leadership
on camera. Often a casual and conversational
tone can generate greater levels of trust from
viewers

Online Video Success in Action:
Starbucks’ YouTube Channel
Overview
Starbucks created its own YouTube channel to showcase its videos
addressing new product launches, sustainability initiatives like
(STARBUCKS) RED, and organic coffee production and sourcing.
What we like
Starbucks features a mix of polished commercials and amateur-
feeling, more serious videos, which avoids making the Starbucks
Channel a marketing-only venue. Many of Starbucks’ videos are
humorous, educational and action-inspiring.
A playlist organizing videos directly pertaining to Starbucks’
sustainability efforts would make navigation easier while videos
featuring Starbucks executives discussing sustainability challenges
would demonstrate management’s strong commitment.
Three of Starbucks’ YouTube videos have 400k+ views


Interactive Games /
Virtual Worlds 101
– Interactive games and virtual worlds use – Virtual worlds attract millions of users every day
computer simulations to let users explore and at some of these sites:
manipulate a modeled scenario or • Second Life: 14M registered (July 08)
environment
• Habbo: 138M registered (June 09)
– Some companies have chosen to develop their • Whyville: 3M to 10M users
own tool while others engage on an existing
• Club Penguin: 15M to 30M users
platform
– Online games drew 217 M users in 2007, who
Business Value: average 5.8 hours per week playing. Males
– Due to their immersive nature, interactive edge out females 58% to 42%.2
worlds allow users to explore sensitive topics – 20% of all adults (18+) play online games.3
– Potential to build communities around shared
experiences and passions
– Opportunity to educate consumers on specific
issue or challenge
– Opportunity to facilitate conversations and
collaborations between multiple stakeholders
Keys to Success:
– Link strongly to the company’s strategy / core
message to ensure greatest traction
– Make the game as realistic as possible
– Reward users for their time and input to
further encourage engagement


Interactive Games Success in Action: Chevron
Energyville
Overview
Chevron created a game called “Energyville,” which lets users choose
how to power a virtual city of 5.9 million people, making trade-offs
between costs, environmental effects and political pressure.
What we like
Forces players to recognize the complex nature of energy generation.
The game makes it impossible to power the virtual city only with
renewable energy sources, but also makes it unsustainable
environmentally to power it only with fossil fuels. Chevron clearly
makes the point that cities must use a variety of power sources.
More realistic choices. The tradeoffs mandated in the Energyville
game are not necessarily true for every country, let alone every part
of America. Forcing players to make artificial or arbitrary tradeoffs
between cost, political will and environmental consequences may open
Chevron up to criticism.

For more information, contact Erik Kiewiet de Jonge (erik_kiewiet@mba.berkeley.edu) or
Jeff Shah (jeff_shah@mba.berkeley.edu)

Social Networks 101
Overview/ Definition:
– Social networks from external platforms like Demographics and Statistics:
Justmeans, Facebook and Linkedin to company – Globally, 57% (272M) of internet users have
developed groups focused on specific issues created a profile on a social network1
– Smaller social networks sponsored by companies – Social network users are active, with more than
have rallied consumers around specific issues or 30% participating daily2
products – Facebook, the most popular social network,
attracts more young, female participants than any
Business Case: other demographic. However, more men and older
– Companies can identify issues that are important to users are starting to register.
stakeholders by monitoring user activity and
postings
– By staying active and communicating often with
members of a social network, companies
demonstrate a commitment to forming relationships
with stakeholders and are listening to feedback
– An opportunity to build trust by directly addressing
stakeholder concerns online
Keys to Success:
– Branded pages in social networks need purpose to
create engagement – just putting a brand on a page
serves little purpose
– Staying active on the site and interacting with
members encourages dialogue and puts a personal
face on the company


Social Networks Success in Action:
Timberland – Justmeans
Overview
Instead of relying on stakeholders to come to its own website,
Timberland posts its corporate responsibility report on Justmeans, a
social responsibility networking site.
What we like
The corporate responsibility report is easier to read and reaches a
much larger audience than most CR reports. Most importantly, the
public gets to weigh in on Timberland’s progress, ask questions and
receive feedback from the company.
More comments by the public. Timberland has done a great job
getting its content on the Justmeans network, but has yet to amass a
large following (currently under 400 people following Timberland).


Wikis 101

– Wikis enable users to contribute or modify – Wikispaces, a popular wiki hosting platform,
content, track contributions, store files, boasts 2,100,000 members and 900,000 wikis
conversation threads and data in one location
– In 2007, 32% of companies already used an
– While Wikipedia is the most famous example, most internal wiki, and 33% were planning to use
wikis are used as collaborative workspaces by one in the next two years1
companies or work teams
Business Case:
– Improve a work team’s efficiency by helping users
gather, organize and store information,
communicate across the organization and reduce
the amount of emails sent
– Levarage collective intelligence to solve problems
or answer questions
Keys to Success:
– Allow organic growth from a grass-roots effort vs.
top-down enforcement
– Provide an easily understood architecture while
granting employees ownership and responsibility


Wikis in Action: Best Buy “The Loop
Marketplace”
Overview
Best Buy created “The Loop Marketplace” wiki as a component of
their broader internal social network, Blue Shirt Nation.
What we like
Employees communicate with each other on topics of their
choosing. This has led to frank discussions of customer service,
product ideas and company policy. Best Buy has even honored
the participation by actually changing some of its policies (e.g.
email access for employees) and adding products (e.g. Geek
Squad Gaming Services) based on feedback from the wiki.
More participation - currently, only 20,000 of the 140,000
employees use the wiki. While this is an impressive number, it
means there are 120,000 employees who either don’t know how
to use the wiki or don’t see the value. And these 120,000 are
largely the employees that interact with customers every day,
making them valuable sources of information. By making it clear
that Best Buy is willing to listen and act on employee ideas, the
company will increase participation.


Crowdsourcing 101

Overview/ Definition: Types of Crowdsourcing:
– Crowdsourcing harnesses the collective power of – Collective intelligence, or crowd wisdom –
groups to create content and solve problems gathering information from groups to solve
problems, inform policy or predict results
– It leverages the principle that groups are generally
more knowledgeable and more powerful than – Crowd voting – using crowd’s judgments to
individuals organize vast quantities of information (e.g.
Google’s Page Rank)
Business Case:
– Folksonomy / social tagging (sub-set)
– Given its ability to gather huge amounts of data
from thousands of users, the clearest use of – Crowdfunding – tapping the collective
crowdsourcing is product development and pocketbook, allowing large groups of people to
innovation become a source of funds (e.g. Kiva)
– Tools like social tagging can help companies
research and catalogue industry trends to get a
read on what the public at large thinks
– Outsourcing small tasks to a potentially unlimited
crowd as part of a larger project (e.g. SETI @
home)
Keys to Success:
– Demonstrate commitment to acting on user
contributions to encourage continued involvement


Crowdsourcing in Action: Whole Foods,
getsatisfaction.com
Overview
Whole Foods engages with customers on getsatisfaction.com, an internet site dedicated to connecting consumers
and companies on issues that matter to them. Millions of consumers generate questions and comments, and
companies have the chance to respond openly.
What we like
Hundreds of Whole Foods employees are members of the site and answer questions candidly. All members
(companies and consumers alike) must sign the “Company-Customer Pact1,” which outlines the rules of polite,
candid, transparent and thoughtful engagement.
It’s not always clear when Whole Foods is responding to a customer question or when another user is responding.
There should be some way (other than stating that the user is a Whole Foods employee) of indicating that this is a
response by someone affiliated with the company.


Frameworks for using social media

4. Social media
2. Social 3. Frameworks in practice:
1. Define social
media
media for using social •
•
Risk management
CSR reporting
technologies
media • Branding
• Innovation


Now that you know more about
social media, here’s a few ways to
think about how to use it more
effectively…


Business Value Matrix
How well do social media technologies promote brand awareness? Facilitate CSR
reporting? Help manage risk? Foster innovation? Which one suits my needs?

Social Crowd- Interactive Online
Blogs Microblogs Wikis
Networks sourcing Games Video

• Brand
awareness • Risk • Risk
• Brand and management • Brand • Risk management
awareness reputation • Brand awareness management • CSR
Proven and • CSR awareness • Fostering and • Brand reporting
Strengths reputation reporting and innovation reputation awareness • Brand
• CSR • Fostering reputation • Fostering and awareness
reporting innovation • Fostering innovation reputation and
• Risk innovation reputation
management

Potential • Fostering • CSR • Risk • Risk • CSR
Strengths innovation reporting management management reporting

• Brand
awareness
• Risk and • CSR • Fostering • Fostering
Weaknesses
management reputation reporting innovation innovation
• CSR
reporting

Based on evidence of existing and potential business uses

Who Does Social Media Reach?
Statistics Source:
Universal McCann

It’s not just teenagers Social
Network
Social Media
Research Wave 3
RSS Subscribers (160M)
Members
and 20-somethings… (272M)

Global Read
Key Insights: Watch blogs
Social online video (346M)
● Traditionally social media users are
young, though older users are Media (394M)

becoming more active Statistics Share
● LOHAS consumers more active Video
online than “conventional” Clips
counterparts1 (303M)
Microbloggers (10M+)3 Download
● Users differ across platforms – be Podcasts
(215M)
cognizant of your desired audience
40%

% of bloggers post frequently
about brands they love or hate2


You’ve seen the size of the user base,
but remember that some users have more influence
than others.

“The 1% Rule” of Web Content
Be aware of the
contributors and
commentators and
1% Contribute
1% 9% 90% 9% Comment know how their
90% Consume content affects the
consumers


Making It Work: Degree of Control

Low
Crowdsourcing,
Message
Control Social Networking

Medium
Message
Control Microblogs, Wikis

High
Message Blogs, Online
Control
Video, Interactive
Games

Making It Work: Achieving Trust and Credibility

Trustworthy and credible social media examples have:

• Tell the good and the bad – • Having substance avoids a
you can leave out the ugly marketing-only persona
• Honesty is disarming and • Good style shows that
builds respect you’re world class
• Video and audio are inherently • Be conversational to put a
more personal and help human face on the issues
achieve more credible Transparency Substance
transparency & Style

• Facilitate two-way dialogues Collaboration Relevance • Keep on top of the issues
• Respond to credible critics • Update your online
• Form stronger partnerships presence often
with stakeholders • Be relevant to readers
• Encourage dissenting views
to build trust


Resource Intensity: How Much Does it Cost?
Social media tools require varying levels of time and money.
Generally, they adhere to the following spectrum:

Microblogging Online Video Crowdsourcing

Low Resource High Resource
Intensity Intensity
Blogging Wikis
Virtual
Social Networks
Worlds/Games


Social Media Challenges and Solutions
Challenges Solutions
Disarm through rapid, personal
1. Critics and activists organize easier response; engage early to
understand concerns

Guide and participate in
2. Losing control of the conversation
conversation; cultivate advocates

3. Conversation is permanent and
So is your conversation!
widespread

Social media tools can distill
4. Too many voices
voices into trends

Social media is inexpensive to
5. Development cost is high maintain, and brings
efficiency and scale to engagement


Social media in practice

4. Social media
in practice:
2. Social 3. Frameworks
1. Define social media for using social • Risk management
media technologies media • CSR reporting
• Branding
• Innovation


How does social media enhance risk management?

Social
Risk Mgmt
Media
Tactics
Strengths

● Monitor reputation and issues in real-time
● Regain some control of the conversation
● Engage where critics are organizing
● Capitalize on viral information distribution
● Move from reactive to proactive

Case Example: jetBlue CEO Apology on YouTube
JetBlue’s CEO David Neeleman apologized to jetBlue customers
following 1000+ flight cancellations around Valentine’s Day 2007.

354,471 views
Source: http://www.youtube.com/watch?v=-r_PIg7EAUw


Best Social Media Technologies for
Risk Management

Proven Potential Weak

Blogs Online video Crowdsourcing Social networks

Microblogs Interactive Wikis
games


Risk Management Best Practices

● Determine your strategy for monitoring your online
reputation … but don’t forget about the offline world
● Respond quickly and through the appropriate
channels … but don’t sacrifice quality or alignment
with corporate strategy
● Be transparent and authentic in your responses …
but remember the potential for your shared
information to spread and be long-lasting


How does social media enhance CSR reporting?

CSR Social
Reporting Media
Efforts Strengths

● Bring CSR reporting issues to life
● Solicit feedback on CSR challenges
● Address readers’ short attention spans
● Reach a broader audience
● Connect disparate information and resources

Case Example: Timberland’s Justmeans CSR
Reporting


CSR Reporting


Blogs Online video Microblogs Crowdsourcing

Social networks Interactive Wikis
games


CSR Reporting Best Practices

● Use social media to make your CSR reporting more
accessible and engaging for existing stakeholders…
but don’t ignore the potential to reach a much larger
audience
● Make information consumable for those with short
attention spans … but don’t water it down too much
● Encourage comments and feedback … but be
prepared for criticism


How does social media enhance CSR branding
efforts?

CSR Social
Branding Media
Goals Strengths

• Generate mass awareness
• Engage, educate and empower
• Build relationship with consumer
• Reach niche consumer segments
• Manage consumer perception of brand

Branding
Proven Potential

Blogs Online video Crowdsourcing Wikis

Social media has
exceptionally high
Microblogs Interactive Social networks branding potential
games


Case Example: Häagen-Dazs Loves Honey Bees

Häagen-Dazs connects cause marketing, corporate
strategy and branding through viral online video


CSR Branding Best Practices

● Avoid making your social media presence just a sales
pitch … but leverage consumers’ strong passion for
sustainability
● Use social media to join (and shape) the conversation
about your brand … but recognize that, ultimately,
consumers own the brand
● Be consistent with social media CSR communications
- across multiple platforms and with other corporate
social media campaigns … but don’t feel like you
have to do everything


How does social media enhance sustainable
innovation efforts?

Social
Innovation
Media
Goals
Strengths

• Spread development tasks over many individuals
• Get deep and broad consumer insights
• Build a fully-interactive partnership with end-users
• Leverage a potentially unlimited number of experiences and views

Innovation


Crowdsourcing Wikis Social networks Online video

Microblogs Blogs Interactive
games


Case Example: MyStarbucksIdea.com

Starbucks leverages the collective intelligence of its customers to
generate new product and operational ideas


Case Example: MyStarbucksIdea.com

Starbucks takes uses customer feedback to
foster product and CSR innovations


Fostering Innovation Best Practices

● Use “the crowd’s” wealth of opinions and
perspectives … but be aware that many contributions
will not be relevant or valuable to your business
● Engage with all participants … but be sure to reward
the most valuable contributors and communicate
progress on their ideas
● All of us are smarter than any one of us…but only
when “all of us” are somewhat qualified to address
the challenge at hand


Social Media for Good – Key Insights

For more information, contact Erik Kiewiet de Jonge (erik_kiewiet@mba.berkeley.edu)
or Jeff Shah (jeff_shah@mba.berkeley.edu)

Key Insight #1

Social media has an interesting relationship
with message control – it can both enhance
and weaken it. Sometimes weaker message
control can mean stronger credibility and
greater participation from stakeholders.


Key Insight #2

Social media can be a low cost, high reach, value-
generating platform for engaging with
stakeholders and generating real business value.
But remember, not all social media technologies
are cheap replacements for offline business
processes.


Key Insight #3

Social media leverages collective intelligence to raise,
discuss and solve sustainability challenges. And,
often, the “crowd” – as a whole – can help accomplish
more than your organization can acting alone.


Key Insight #4

Social media for sustainability issues succeeds
best when aligned and integrated with corporate
strategy.

Marketing & Competitive
Sales Positioning

CSR Web Presence


Acknowledgements

For their support on this project. Special thanks
to Professor Kellie McElhaney and CRB Director
Jo Mackness.

For sponsoring the consulting engagement that
resulted in this presentation. Special thanks to
Michael Sadowski, Alex Hammer and Katie Fry
Hester.

About the authors

Erik Kiewiet de Jonge Jeff Shah
Haas MBA Candidate 2010 Haas MBA 2009

● Background in management consulting ● Background in marketing and sustainability
erik_kiewiet@mba.berkeley.edu jeff_shah@mba.berkeley.edu

Social Media For Good 19 Oct 2009

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